i  i: 


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IMPORTANT  FEDERAL  LAWS 


COMPILED  BY 

JOHN  A.  LAPP,  LL.  D. 

Director  of  Indiana  Bureau  of  LEcasLATiVE  Information  ;  Member  of 

Executive  Committf;e  of  the  National  Legislative  Drafting 

Conference;    Editor   of    "Special   Libraries." 


1917 


B.  F.  BOWEN  &  COMPANY 

INDIANAPOLIS 

INDIANA 

U.  S.  A. 


OOPtRIGHT,  1917 

BT 
B.  P.  BOWBN  &  COMPANY 


J 


INTRODUCTION 

The  growth  of  federal  power  has  been  marked  during  the  last  few 
years,  the  concrete  evidence  of  which  is  found  in  the  many  acts  of  Con- 
gress'which  regulate  business.  Twenty  years  ago  it  was  hardly  necessary 
for  tl-te  lawver  or  business  man  to  refer  to  federal  acts  in  the  conduct 
of  everv-day  afifairs.  The  state  laws  governed  the  business  relations 
of  men  almost  entirely.  This  condition  has  completely  changed,  and  now 
scarcely  any  business^  can  be  done  involving  shipments  across  state  lines 
without  consulting  federal  laws.  The  number  of  restrictions  in  the  niter- 
est  of  the  common  welfare  which  the  federal  government  has  thrown 
about  business  makes  the  consultation  of  federal  laws  imperative. 

The  list  of  acts  compiled  in  this  volume  indicates  the  extent  to  which 
the  federal  government  has  gone  in  controlling  the  affairs  of  men  and  in 
providing  for  the  common  welfare.  The  publication  of  these  acts  in  a 
single  volume  will  undoubtedly  impress  thinking  citizens  with  the  signifi- 
cance of  modern  changes  in  the  relations  existing  between  the  states  and 
the  nation. 

Beginning  with  the  interstate  commerce  act  of  1887,  the  powers  of 
Congress  have  been  vastly  extended  through  the  implied  powers  which 
have  been  exercised  and  subsequently  upheld  by  the  courts.  At  first  the 
power  of  control  was  exercised  merely  over  the  instruments  of  interstate 
commerce — the  railroads  and  other  carriers — and  such  laws  as  the  inter- 
state commerce  acts,  the  anti-rebate  act,  the  safety  appliance  acts  and 
.the  employers'  liability  laws  were  passed.  Gradually  the  power  of  the 
federal  government  was  extended  to  affect  not  merely  the  instruments  of 
commerce,  but  also  the  commodities  shipped,  as  well  as  all  men  who 
had  any  transactions  in  interstate  commerce.  Even  individuals  who 
travel  across  state  lines  under  certain  conditions  find  themselves  amenable 
to  federal  laws.  The  white  slave  act  of  1910  acted  upon  the  individual 
and  penalized  him  for  transporting  anyone  across  state  lines  for  imrnoral 
purposes.  The  child  labor  act  affected  the  manufacturers  by  prohibiting 
the  introduction  into  interstate  commerce  of  goods  which  are  manufac- 
tured by  child  labor.  The  insecticide  act,  the  plant  disease  act,  the  pure 
seed  act  and  the  animal  disease  act  all  prohibit  transportation  of  certain 
products  across  state  lines,  unless  they  have  been  inspected  and  approved. 
The  standard  barrel  and  basket  laws  prbhibit  the  use  of  any  other  than 
the  standard  barrel  and  basket  for  shipments  of  apples,  grapes  and  other 
fruits  and  the  shipment  of  lime. 

We  have  been  accustomed  to  the  idea  that  practically  all  the  money 
used  by  the  federal  government  should  be  derived  from  the  tariff  and 
internal  revenue.  In  wartime  we  have  been  accustomed  to  some  oother 
taxes,  but  ordinarily  the  average  citizen  never  felt  that  he  paid  the  fed- 
eral government  anything  in  the  way  of  direct  taxes.    But  within  the  last 

iii 


IV 


decade  a  revolutionary  change  has  taken  place  and,  as  regular  sources 
of  revenue,  we  have  now  adopted  the  income  tax  upon  individuals  and 
corporations,  and  an  inheritance  tax,  besides  a  multitude  of  new  sources 
of  revenue  brought  about  by  the  war.  Until  the  passage  of  these  acts, 
the  citizens  scarcely  ever  saw  the  tax  collectors  of  the  federal  govern- 
ment. The  brewer,  distiller,  tobacco  manufacturer  and  a  few  others 
were  the  only  citizens  who  had  occasion  to  meet  the  internal  revenue 
collector.  These  acts  of  the  past  few  years  have  brought  the  federal 
government  into  closer  personal  relations  with  the  individual. 

Another  federal  statute  which  has  a  direct  interest  to  all  citizens 
relates  to  food  and  drugs.  This  legislation  began  in  1906  with  the  pas- 
sage of  the  pure  food  and  drugs  act.  The  meat  inspection  act  was  passed 
the  same  year.  The  complete  regulation  of  the  sale  of  habit-fornung 
drugs  was  enacted  in  1914,  thus  bringing  practically  the  whole  question 
of  food  and  drugs  under  the  direct  control  of  the  federal  government. 

The  regulation  of  business  engaged  in  interstate  commerce  forms 
another  chapter  in  the  growth  of  federal  power,  and,  since  almost  every 
business  is  interstate  in  character,  these  laws  affect  practically  all  busi- 
ness. After  the  Sherman  act  was  passed  in  1890,  a  long  period  of  quiet 
ensued,  followed  by  the  establishment  of  the  Bureau  of  Corporations  in 
1906,  and  finally  the  passage  of  the  Clayton  act  and  the  trade  commission 
act  in  1914,  which  bring  business  rather  completely  under  federal  control. 

The  banking  acts  offer  another  striking  example  of  the  extension  of 
the  federal  power.  Federal  supervision  was  begun  by  the  passage  of  the 
national  bank  act  in  1863.  Then  for  a  period  of  almost  fifty  years  no 
legislation  of  any  importance  was  enacted.  The  federal  reserve  act  of 
1913  completely  nationalized  the  banking  resources  of  the  country  and 
placed  the  federal  government  in  a  more  direct  relation  with  all  banks. 
In  the  meantime  the  postal  savings  bank  (1910)  had  put  the  government 
directly  in  the  banking  business,  while  the  recent  passage  of  the  farm 
loan  act  has  further  extended  the  jurisdiction  of  the  government  over 
the  banking  business. 

In  agriculture  and  horticulture  there  has  been  a  very  marked  growth 
of  federal  activities.  The  earliest  act  on  these  subjects  related  to  agri- 
cultural education.  Then  came  the  animal  disease  acts  for  the  suppres- 
sion of  animal  diseases  through  quarantine.  The  pure  seed  act,  the  plant 
quarantine  act,  the  standard  basket  and  barrel  act,  and  the  farm  loan  act 
have  served  to  bring  the  farmer  and  the  federal  government  into  direct 
relations.  ■  •      . 

Important  legislation  affecting  labor  has  been  placed  on  the  federal 
statutes  during  the  last  few  years.  The  safety  appliance  acts  cover  almost 
all  phases  of  the  operation'  of  the  railroads;  'the  employers'  liability  act 
affecting'*the  employees  of  carriers ;  the  hours  of  service  act;  the  eight- 
hour  laws,.;  the  child  labor  act,  and'the  act  providing  for  compensation  for 
federal  employees,  practically  all  have  been' passed  within  the  last  ten 
years. 


Of  direct  interest  to  all  citizens  has  been  the  activity  of  the  govern- 
ment in  election  reforms.  Two  important  acts  have  been  passed,  one 
prohibiting  contributions  to  campaign  funds  by  corporations  and  the  other 
requiring  publicity  of  campaign  expenditures  in  federal  elections,  while 
the  acts  prohibiting  conspiracy  to  control  federal  elections  have  resulted 
in  the  discomfiture  of  many  politicians. 

The  acts  mentioned  do  not  include  all  the  important  acts  in  this 
volume,  but  those  in  which  the  most  striking  changes  have  taken  place 
in  the  last  few  years.  Other  important  acts  which  have  been  completely 
revised  or  amended  are  the  bankruptcy  act,  the  trademark  and  copyright 
laws,  the  immigration  act,  the  naturalization  act,  the  criminal  code  and 
the  federal  judicial  code,  while  the  passing  of  the  national  defense  act, 
the  conscription  act,  the  shipping  board  act  of  1916  and  the  several  war 
laws  of  1917  bring  added  interest  to  federal  affairs. 

It  is  significant  to  note  that  of  the  important  acts  in  this  volume, 
more  than  two-thirds  have  been  enacted  or  completely  revised  since  1910, 
and  more  than  one-half  of  these  acts  have  been  passed,  revised  or 
amended  since  June,  1916. 

JOHN  A.  LAPP. 

July  1st,  1917. 


TABLE  OF  CONTENTS 


Page 

Introduction    iii-v 

Table  ,of    Contents vi-viii 

Citations    of    Acts ix-xiii 

Constitution  of  United  States . 1 

Agriculture  and  Horti culture — 

The  Farm  Loan  Act 14 

The  Agricultural   Education  Acts 44 

Bureau  of  Animal  Industry 57 

Suppression  of  Animal  Diseases  Act 60 

Quarantine   of  Animals  Act 62 

Cruelty  to  Animals  Act 64 

Grain  Standards  Act 66 

The    Warehouse   Act 70 

Plant  Quarantine  Act 78 

Pure    Seeds   Act 83 

Standard  Apple    Barrel    Act 85 

Standard  Fruit  Basket  Act 86 

Standard  Lime  Barrel  Act 88 

Insecticide  Act 89 

Vocational  Education  Act 96 

Banking  Acts— 

The  Federal   Reserve  Act 106 

The  Postal    Savings   Act 144 

The  National    Bank    Act 152 

Immigration  and  Naturalization — 

Immigration  Act 1^ 

Naturalization   Laws ^ 19.4 

Regulation  of  Business — 

The  Trade  Commission  Act 215 

The  Sherman  Act 223 

The  Clayton  Act 225 

Cotton  Futures  Act 239 

Food  and  Drugs — 

The  Food  and  Drugs  Act 249 

The  Meat  Inspection  Act 255 

Imported   Meat  Act 262 

Sale  and  Use  of  Cocaine  and  Narcotics  Act 263 

Opium    Act 269 

Manufacture  of  Opium  Act 271 

vii 


viii  Contents. 

I^BOR—  ^«^e 

Mediation    and    Arbitration    Act 273 

Employers"    Liability   Act 279 

Safety   Appliance   Acts 282 

Accident  Reiwrts  Act 2S7 

Boiler  Inspection  Act 289 

Ash-Pan  Act 294 

Medals  of  Honor  Act 295 

Hours  of  Service  Act 296 

Compensation  for  Injuries  of  Federal  Employees 298 

Cbild  Labor  Act ^^^ 

Children's  Bureau  Act ^^2 

Eight-Hour  Day  Act 313 

Eight  Hours  on  Tublic  Works  Act 315 

Taxation  and  Revenue — • 

The  Income  Tax  Act 316 

The  Corporation  Tax  Act 328 

General  Administrative  Provisions  of  Tax  Act 338 

Inheritance  Tax   Act 343 

Munitions  Manufacturers'  Tax  Act 348 

Miscellaneous  Taxes  Act 351 

Tariff  Act 365 

Dyestuffs  Act 431 

Print  Paper  Act 403 

Tariff    Commission    Act 460 

Unfair  Competition  Act 464 

Interstate  Commerce — 

J       Interstate  Commerce  Act 468 

District   Court    Jurisdiction   Act 837 

Immunity  of  Witnesses  Act 505 

The  Anti-Rebate  Act 505 

Expediting    Act 509 

Compulsory    Testimony    Act 510 

Bill  of  Lading  Acts 511 

Federal  Elections — 

The  Publicity  of  Campaign   Contributions  Act 522 

Corporation  Contributions  Act 528 

National  Defense — 

The  National    Defense   Act 529 

The  Conscription    Act 596 

The  Shipping  Board  Act 606 

War   Risk  Insurance   Act 620 

Trademarks  and  Copyrights — 

Trademark    Laws 623 

Copyright  Laws 634 


Contents.  ix 

Moral  Reform  Laws — 

Transportatiou  of  Prize  Fight   Films 653 

White  Slave  Act 653 

Liquor    Shipments 657 

Bankruptcy   Act 659 

The  Criminal  Code — 

Offenses  Against  the  Existence  of  the  Government 695 

Offenses  Against  Neutrality 697 

Offenses  Against  Elective  Franchise 7(X) 

Offenses  Against  Operations  of  Government 701 

Offenses  Relating  to  Official  Duties 717 

Offenses  Against  Public  Justice 726 

Offenses  Against  Currency  and  Coinage 731 

Offenses  Against  Postal  Service 742 

Offenses  Against  Interstate  Commerce 758 

Larceny  in   Interstate   Commerce 763 

Slave  Trade  and  Peonage — 764 

Offenses  Within  the  Admiralty 770 

Piracy 774 

Offenses  in  Territories 778 

General   and   Special   Provisions 781 

The  Parole  of  Prisoners  Act 785 

The  Federal  Judicial  Code 788 

Proof  of  Handwriting  Act 864 

Public  He:alth 865 

Good  Roads 867 


Addenda- 


Excess   Profits   Tax 873 

Plant   Quarantine    (Amendment) 875 


CITATIONS  OF  ACTS 


Agriculture  and  Horticulture 

Paqe 
The  Fanu  Loan  Act.  approved  July  17.  1916  (39  Statutes  at  Large  360) 14 

Agricultural  Educatiou  (First  Morrill  Act),  approve^l  July  2,  1862  (12  Stat- 
utes at  Large  5(KS).  as  auiendeil  March  3,  18S3  (22  Statutes  at  Large  484)      44 

Act  for  the   Further  Eudowment  of  Agricultural   Colleges    (Second  Morrill 

Act),  approved  August  30.  ISW   (26  Statutes  at  Large  417) 47 

Establishing    Agricultural    Experiment    Stations,    approved    March    2.    18S7 

(24  Statutes  at  Large  440) ' 50 

The  Further  Endowment  of  Agricultural  Experiment  Stations  Act,  approved 

March  16,  1906  (34  Statutes  at  Large  63) 52 

Providing  for  Cooperative  Extension  Work  Act  of  May  8,  1914  (38  Stat- 
utes at  Large  372) 54 

Bureau   of  Animal   Industry  Act,   approved   May  29.    1884    (23   Statutes  at 

Large  31) 1 57 

Suppression  of  Animal  Diseases  Act,  approved  February  2,  1903  (32  Stat- 
utes at   Large  791) 60 

Quarantine    of    Animals    Act,    approved    March    3,    1905    (33    Statutes    at 

Large  1264),  as  amended  March  4.  1913   (37  Statutes  at  Large  831) 62 

Cruelty  to  Animals  Act.  approved  June  29.  li)06  (34  St^itutes  at  Large  607)  __  64 
The    Grain    Standards    Act.    approved    August    11,    1916     (39    Statutes    at 

I^rge  482) qq 

The  Warehouse  Act.  approved  August  11,  1916  (39  Statutes  at  Large  486)  __  70 
The  Plant  Quarantine  Act.  approved  August  20.  1912  (37  Statutes  at  Large 

315).  as  amended  March  4,  1913   (37  Statutes  at  Large  854) 78 

Pure  Seeds  Act  of  August  24.  1912  (37  Statutes  at  Large  506) S3 

Standard  Apple  Barrels  Act  of  August  3,  1912  (37  Statutes  at  Large  250) __  85 
Standard    Fruit    Baskets   Act.    approved   August  31,    1916    (39    Statutes   at 

Large  673) gg 

Standard    Lime    Barrels   Act.    approved    August   23,    1916    (39    Statutes    at 

Large  530) g^^ 

Insecticide  Act,  approved  April  26.  1910   (36  Statutes  at  Large  331) 80 

Vocational  Education 

Vocational    Education    Act,    approved    February    23,    1917    (39    Statutes    at 

Large  929) 1 ^ 

Banking  Acts 

The  Federal  Reserve  Act.  approved  December  23.  1913  (38  St<itutes  at 
Large  251)  ;  as  amended  August  4.  1914  (38  Statutes  at  Large  682)  • 
as  amendetl  September  7.  1916  (39  Statutes  at  Large  752)  ;  as  amended 
June  21.  1917  (40  Statutes  at  Large  ) 106 

The  Postal  Savings  Act,  approved  June  25.  1910  (36  Statutes  at  Large  814)  • 
as  amended  August  24,  1912  (37  Statutes  at  Large  559)  ;  as  amended 
JnPiTo^''''  -•^'  ^''^^  ^'"'^  Statutes  at  Large  716)  ;  as  amended  May  IS. 
1916  (39  Statutes  at  Large  159) ____"_  144 

XI 


xii  Citation  of  Acts. 

Page 
National   Bank  Act.  approved  June  20,  1874    (IS   Statutes  at   Large  123)  ; 
approved  February  25.  18»)3:   additional  section  June  3.  1.S<j4    (13  Stat- 
utes at    Ivarge  !«))  ;    additional    section   March   3.   1865    (13   Statutes   at 
Large  498)  '  -  ~  -     ^~   ^^^^  - 


i>i;iicu  1,  jt^^M    \o-±  oiitiuifo  ill.  iJiiLg,c  -i^ti.t;  ,  it.-?  iiiijciiucu  Deceoiber  2o, 
1013    (38  Statutes  at  Large  251) 152 

Immigration  and  Natubalization 

The  Immigration  Act,  approved  February  5,  1917  (39  Statutes  at  Large  874)  1G4 
Naturalization  Laws,  approved  June  29.  1900  (34  Statutes  at  Large  596)  ; 
as  amended  Marcb  4.  1909  (35  Statutes  at  Large  1102)  ;  as  amended 
June  25.  1910  (30  Statutes  at  Large  830)  ;  as  amended  March  4,  1913 
(37  Statutes  at  Large  730)  ;  additional  section.  Act  of  July  30,  1813, 
amending  Act  of  April  14,  1802  (R.  S.  1878.  p.  380;  1  Comp.  Stat.  1!X>1, 
p.  1334);  additional  section.  Act  of  March  3.  1S13  (R.  S.  1878,  p.  .3.80; 
1  Comp.  Stat.  1901,  p.  1333)  ;  additional  section.  Act  of  February  10, 
1855,  amending  Act  of  April  14.  1802  (R.  S.  1878,  p.  350;  Comp.  Stat. 
1901.  p.  1268)  ;  additional  section.  Act  of  July  17,  1862  (12  Statutes  at 
Large  597)  ;  additional  section.  Act  of  February  18,  1875,  amending 
Act  of  July  14,  1870  (R.  S.  1878.  p.  3.80;  1  Comp.  Stat.  1901,  p.  13.33)  ; 
additional  section,  July  7,  1872  (17  Statutes  at  Large  2f>S)  ;  additional 
section.  Act  of  May  0,  1882  (22  Statutes  at  Large  58)  ;  additional  sec- 
tion. Act  of  July  20,  1894  (28  Statutes  at  Large  124)  ;  additional  sec- 
tion, Act  of  April  30,  1!M)0  (31  Statutes  at  Large  101)  ;  additional  sec- 
tion. Act  of  March  2,  1907  (34  Statutes  at  Large  1228)  ;  as  amended 
by  sections  of  Jime  30,  1914  (38  Statutes  at  Large  395) 194 

Regulation  of  Business 

Trade    Commission    Act,    approved    September    20,    1914     (38    Statutes    at 

Large  717) 215 

The  Federal  Anti-Trust  Laws   (The   Sherman  Act),  approved  July  2,   1890 

(26   Statutes  at   T^irge  20!>) 223 

The  Clavton  Anti-Trust  Act.  Act  of  October  15.  1914   (38  Statutes  at  I^irge 

730).  as  amended  May  15,  1916  (39  Statutes  at  Large  121) 225 

Cotton  Futures  Act,  approved  August  11,  1916  (39  Statutes  at  Large  470)—  239 

Food  and  Drugs 

The  Food  and  Drugs  Act,  approved  June  30,  1900  (34  Statutes  at  Large  708)  ; 

as  amendetl  August  23.  1912    (37   Statutes  at  Large  410)  ;  as  amended 

March  3,  1913   (37  Statutes  at  Large  732) 249 

The  Meat  Inspection  Act,  approved   March  4,  1907    (34   Statutes  at  Large 

1200) 255 

The  Importeil  Meat  Act,  appi'oved   October  3,  1913    (38  Statutes  at   I^irge 

159) 262 

Sale  and  Use  of  Cocaine  and  Narcotics  Act.   approved  December   17,   1914 

(.38  Statutes  at  Large  785) 203 

Opium  Act,  approved  January  17,  1914   (38  Statutes  at  Large  275) 269 

Manufacture  of  Opium  Act  of  January  17,  1914  (38  Statutes  at  Large  277) __  271 


Citation  of  Acts.  xiii 

Labor  Page 

Mediation   and    Arbitration    Act,    approved    July    15,    1913    (38    Statutes   at 

Large  103) -"^ 

Employers"  Liability  Act.  approved  April  22,  IIX^S  (35  Statutes  at  Large  05)  __  279 
Safety  Appliance  Acts,  approved  Marcli  2.  1893  (27  Statutes  at  Large  531)  ; 

as  amended  April  1,  189(5   (29  Statutes  at  Large  85)  :  as  supplemented 

by  Act  of  March  2,  1903   (32  Statutes  at  Large  943)  ;  as  supplemented 

by  Act  of  March  4,  1911    (36  Statutes  at  Large  1397) 282 

Accident  Reports  Act,  approved  May  U,  1910  (30  Statutes  at  Large  350)—  287 
Boiler  Inspection  Act.  Act  of  February  17,  1911    (30  Statutes  at  Large  913)  ; 

as  amended  March  4,  1915  (38  Statutes  at  Large  1192) 289 

Ash-Pau  Act,  Act  of  May  30.  1908   (35  Statutes  at  Large  470) 294 

Medals  of  Honor  Act,  Act  of  February  23.  VMb  (33  Statutes  at  Large  743 )__  295 
Hours  of  Service  Act,  Act  of  March  4,  191>7    (34  Statutes  at  Large  1415)  ; 

as  amended  May  4,  1910   (39  Statutes  at  Large  61) 296 

Compensation  for  Injuries  of  Federal  Employees  Act.  approved  September  7, 

1910    (39   Statutes  at  Large  742) 298 

Child  Labor  Act,  approved  September  1,  1910  (39  Statutes  at  Large  075) 310 

Children's  Bureau  Act.  approved  April  9.  1912  (37  Statutes  at  Large  79)  __  312 
Eight-Hour  Day  Act,  approved  September  3-5,  1910    (39   Statutes  at  Large 

721 ) - 313 

Eight   Hours  on  I'ublic   Works  Act.   approved   March  3.   1913    (37   Statutes 

at  Large   720) 315 

Taxation  and  Revenue 
Federal  Tax  Laws,  approved  September  8.  1916  (39  Statutes  at  Large  750) 

Title  I— Income  Tax 317 

Part  1 — On   Individuals,   approved    September   8.   1910    (39  Statutes  at 

Large  750) 317 

Part  2— The   Corporation   Tax,   approved   September.  8,   1916    (39  Stat- 
utes at  Large  705) : 328 

Pai-t  3— General  Administrative  Provisions  of  Tax  Act,  approved   Sei> 

tember  8.  1910.(39  Statutes  at  Large  780) __ ._ 338 

Title  II — The  Inheritance  Tax.  approved  September  8,  1916  (39  Statutes 
at   Large  777)  ;    as  amended   Marc^h   3.    1917    (39    Statutes  at    Large 

1002) ^ —  343 

Title- III — Munition  Manufacturer's  Tax.  approved  September  8,  1910   (39 

■Statutes  at   Large   780) 348 

Title  IV— Miscellaneous  Taxes,  approved  September  8,  1910   (39  Statutes 

■at  Large  783) 351 

The  TarilT  Act.  approved  Octol)er  3,  1913    (38  Statutes  at  Large  114)  ;   as 

•amended  September  8.  1910  (39  Statutes  at  LYirge  793.  795)— 365 

Dyestiifts  Act,  approved  September  8.  1910  (39  Statutes  at  Large  793)  ____  431 
Tariff    Commission    Act,    approved    September    8,    1910    (39  .Statutes    at 

Large  795) 400 

Unfair    Competition    Act.    approved    September    8,    1910    (39    Statutes   at 
.■  Large  798) —J-i- 464 

.Interstate  CQM]vtgR9E 

The -Interstate  Commence  Act,  q,,pproved  ., Feb ruar-y 5.4, :  1887    (24   Sti^tutes  at 
Large  379-)  ;  as.  anjeucVt^d -M.arch.  2,  lSi89  (25,Stiatutes  at  Large  855)  ;  as 

..-VI- ;    '    "     .     .  .       *<• 


xiv  Citation  of  Acts. 

Page 
amended  February  10.  1891  (26  Statutes  at  Large  743)  ;  as  amended 
February  8.  1805  (28  Statutes  at  Large  643)  ;  as  amended  June  29. 
1906  (34  Statutes  at  Large  584)  ;  as  amended  by  a  joint  resolution  June 
30,  ld()6  (34  Statutes  at  Large  838)  ;  as  amended  April  13,  1!>U8  (35 
Statutes  at  Large  60)  ;  as  amended  February  25,  1909  (35  Statutes  at 
Large  648)  :  as  amended  Jime  18,  1910  (36  Statutes  at  Large  539)  ; 
as  amended  August  24,  '1912  (37  Statutes  at  Large  56(>)  :  as  amended 
March  1,  1913  (37  Statutes  at  Large  701)  ;  as  supplemented  by  Act  of 
August  1,  1914  (38  Statutes  at  Large  627)  ;  as  amended  March  4,  1915 
(38  Statutes  at  Large  1196)  ;  as  amended  August  9,  1916  (39  Statutes 
at  Large  441)  ;  as  amended  August  29.  1916  (39  Statutes  at  Large 
556) 468 

Immunity    of    Witnesses    Act,    approved    June    30,    1906    (34    Statutes    at 

Large  798) 505 

Anti-Rebate  Act,  approvetl  February  19,  1903   (32  Statutes  at  Large  847)  ; 

as  amended  June  29,  1906  (34  Statutes  at  Large  587) 505 

Expediting  Act,  Act  of  June  25,  1910  (36  Statutes  at  Large  854) . 509 

Compulsory   Testimony   Act,    approved    February    11,   1893    (27    Statutes   at 

Large  443) 510 

Bill  of  Lading  Act,  approved  August  29,  1916  (39  Statutes  at  Large  538) 511 

Fkderal  Elections 

Publicity  of  Campaign  Contributions  Act,  approved  June  25,  1910  (36  Stat- 
utes at  Large  822)  ;  as  amended  August  19.  1911  (37  Statutes  at  Large 
25)  ;  as  amended  August  23,  1912  (37  Statutes  at  Large  360) 522 

Campaign    Contributions  by  Corporations  Act,   approved   January  26,   1907 

(34  Statutes  at  Large  864) 528 

National  Defbinse 

National  Defense  Act,  approved  June  3,  1916  (39  Statutes  at  Large  166) 529 

The  Conscription  Act,  approved  May  18,  1917  (39  Statutes  at  Large )__  596 

Shipping  Board  Act,  approved  September  7,  1916  (39  Statutea  at  Liirge  72S)_  606 
War  Risk  Insurance  Act,  Act  of  September  2.  1914    (38  Statutes  at  I^irge 

711)  ;  «8  amended  March  3,  1917   (39  Statutes  at  Large  1131) €20 

Trademarks  and  CorYBioHTS 

Trademark  Laws,  approved  February  20,  1905  (33  Statutes  at  I>arge 
724)  ;  as  amended  May  4,  1906  (34  St^itutes  at  Large  168)  ;  as  amended 
March  2,  1907  (34  Statutes  at  Large  l^^il)  ;  as  amended  February  18. 
1909  (35  Statutes  at  Large  627)  ;  as  amended  February  18.  1911  (38 
Statutes  at  I^rge  918)  ;  as  amended  January  8,  1913  (37  Statutea  at 
Large  649) 623 

Copyright  I^w.  approved  March  4.  1909  (35  Statutes  at  I^rge  1075)  ;  as 
"amended  August  24,  1912  (37  Statutes  at  I^rge  488)  ;  as  amended 
March  2.  1913  (37  Statutes  at  Large  724)  ;  as  amended  March  28.  1914 
(38  Statutes  at  Large  311) ^ 634 

Moral  Reform  Laws 

Transportation  of  Prise  Fight  Pictures  Act  of  July  31,  1912   (37  Statutes 

at  Large  240) 653 

White  Slave  Act.  approTed  June  25.  1910  (36  Statutes  at  Large  825) 663 

Liquor  Shipments  In  Interstate  Commerce   (The  Webt>-Kenyon  Act).  Act  of 

March  1.  1913  (37  Statutes  at  I^irge  699)  ;  as  amended.  Act  of  March  3. 

1917    (39  Statutes  at  Large  1069) 3W 


Citation  of  Acts.  xv 

Bankruptcy  Act                                                 Page 
Bankruptcy  Act,   approved   July  1,   1898    (30   Statutes   at   Large  544)  ;    as 
amended  June  15,  1900  (34  Statutes  at  Large  267)  ;  as  amended  June  25, 
1910  (36  Statutes  at  Large  838)  ;  as  amended  March  2.  1917   (39  Stat- 
utes at  Large  999) 659 

Criminal  Ck)DE 

Criminal  Code  Act,  approved  March  4,  1909   (35  Statutes  at  Large  108.8)  ; 

as  amended  February  15,  1912  (37  Statutes  at  Large  64) 695 

Larceny  in  Interstate  Commerce   (37  Statutes  at  Large  670) 763 

The  Parole  of  Prisoners  Act,  approved  June  25,  1910  (36  Statutes  at  Large 

819)  ;  as  amended  January  23,  1913  (37  Statutes  at  Large  650) 785 

Federal  Judicial  Code 

The  Federal  Judicial  Code,  approved  March  3,  1911  (36  Statutes  at  Large 
1087)  ;  as  amended  December  21,  1911  (37  Statutes  at  Large  46)  ;  as 
amended  January  13,  1912  (37  Statutes  at  Large  52)  ;  as  amended 
February  5,  1912  (37  Statutes  at  Large  59)  ;  as  amended  March  4.  1913 
(37  Statutes  at  Large  1013)  ;  as  amended  October  3,  1913  (38  Statutes 
at  Liirge  203)  ;  as  amended  January  20,  1914  (38  Statutes  at  Large 
278)  ;  as  amended  July  30,  1914  (38  Statutes  at  Large  580)  ;  as  amended 
August  22.  1914  (38  Statutes  at  Large  703)  ;  as  amended  January  28, 
1915  (38  Statutes  at  Large  803)  ;  as  amended  March  3,  1915  (38  Stat- 
utes at  Large  956)  ;  as  amended  September  6,  1916  (39  Statutes  at 
Large  726)  ;  as  amended  February  3,  1917  (39  Statutes  at  Large  873)  ; 
as  supplemented  by  District  Court  Jurisdiction  Act,  approved  October 
22,  1913   (38  Statutes  at  Large  219 788 

Proof   of  Handwriting  Act,   approved   February   26,   1913    (37    Statutes   at 

Large  683) 8^ 

Public  Health  Act,  approved  March  27,  1890  (26  Statutes  at  Large  31)  ; 
Act  of  February  15,  1893  (27  Statutes  at  Large  452)  ;  Act  of  August 
14,  1912    (37  Statutes  at  Large  309) 865 

Federal  Good  Roads  Act,  approved  July  11,  1916  (39  Statutes  at  Large  355).  867 

Addenda 

Excess  Profits  Tax,  approved  March  3,  1917  (38  Statutes  at  Large  1000) 873 

Plant  Quarantine  Act,  approved  March  4,  1917  (38  Statutes  at  Large  1165)  __  875 


CONSTITUTION  OF  UNITED  STATES. 

1787. 
Preamble. 

We,  the  People  of  the  United  States,  in  order  to  form  a  more  per- 
fect union,  establish  justice,  insure  domestic  tranquility,  provide  for  the 
common  defense,  promote  the  general  welfare,  and  secure  the  blessings 
of  liberty  to  ourselves  and  our  posterity,  do  ordain  and  establish  this 
COXSTITUTION  FOR  THE  UNITED  STATES  OF  AMERICA. 

Article  I. — The  Legislative  Department. 

Section  1.  All  legislative  powers  herein  granted  shall  be  vested 
in  a  Congress  of  the  United  States,  which  shall  consist  of  a  Senate  and 
House  of  Representatives. 

Sec.  2.  The  House  of  Representatives  shall  be  composed  of  mem- 
bers chosen  every  second  year  by  the  people  of  the  several  States,  and 
the  electors  in  each  State  shall  have  the  qualifications  requisite  for  elect- 
ors of  the  most  numerous  branch  of  the  State  Legislature. 

No  person  shall  be  a  representative  who  shall  not  have  attained  to 
the  age  of  twenty-five  years,  and  been  seven  years  a  citizen  of  the  United 
States,  and  who  shall  not,  when  elected,  be  an  inhabitant  of  that  State 
in  which  he  shall  be  chosen. 

Representatives  and  direct  taxes  shall  be  apportioned  among  the 
several  States  which  may  be  included  wathin  this  Union,  according  to 
their  respective  numbers,  which  shall  be  determined  by  adding  to  the 
whole  number  of  free  persons,  including  those  bound  to  service  for  a 
term  of  years,  and  excluding  Indians  not  taxed,  three-fifths  of  all  other 
persons.  The  actual  enumeration  shall  be  made  within  three  years  after 
the  first  meeting  of  the  Congress  of  the  United  States,  and  within  every 
subsequent  term  of  ten  years,  in  such  manner  as  they  shall  by  law  direct. 
The  number  of  Representatives  shall  not  exceed  one  for  every  thirty 
thousand  ;  but  each  State  shall  have  at  least  one  Representative ;  and 
until  such  enumeration  shall  be  made,  the  State  of  New  Hampshire  shall 
be  entitled  to  choose  three.  Massachusetts  eight,  Rhode  Island  and  Prov- 
idence Plantations  one,  Connecticut  five.  New  York  six,  New  Jersey 
four,  Pennsylvania  eight,  Delaware  one,  Mary-land  six,  Virginia  ten, 
North  Carolina  five,  South  Carolina  five,  and  Georgia  three. 

When  vacancies  happen  in  the  representation  from  any  State,  the 
executive  authority  thereof  shall  issue  writs  of  election  to  fill  such 
"vacancies. 

The  House  of  Representatives  shall  choose  their  Speaker  and  other 
officers ;  and  shall  have  the  sole  power  of  impeachment. 

Sec.  3.  The  Senate  of  the  United  States  shall  be  composed  of  two 
Senators  from  each  State,  elected  by  the  people  thereof,  for  six  years ; 
.and  each  Senator  shall  have  one  vote.     The  electors  in  each  State  shall 

(1) 


2  liiFORTANT  Federal  Laws 

have  the  quahfications  requisite  for  electors  of  the  most  numerous  branch 
of  the  State  Legislatures. 
Amendment  adopted  1913. 

Immediately  after  they  shall  be  assembled  in  consequence  of  the 
first  election,  they  shall  be  divided  as  equally  as  may  be  into  three  classes. 
The  seats  of  the  Senators  of  the  first  class  shall  be  vacated  at  the  expi- 
ration of  the  second  year,  of  the  second  class  at  the  expiration  of  the 
fourth  year,  and  of  the  third  class  at  the  expiration  of  the  sixth  year, 
so  that  one-third  may  be  chosen  every  second  year.  When  vacancies 
happen  in  the  representation  of  any  State  in  the  Senate,  the  executive 
authority  of  such  State  shall  issue  writs  of  election  to  fill  such  vacancies : 
Provided,  That  the  Legislature  of  any  State  may  empower  the  exec- 
utive thereof  to  make  temporary  appointments  until  the  people  fill  vacan- 
cies by  election  as  the  Legislature  may  direct. 

This  amendment  shall  not  be  so  construed  as  to  afifect  the  election 
or  term  of  any  Senator  chosen  before  it  becomes  valid  as  part  of  the 
Constitution. 

Amendment  adopted  1913. 

No  person  shall  be  a  Senator  who  shall  not  have  attained  to  the 
age  of  thirty  years,  and  been  nine  years  a  citizen  of  the  United  States, 
and  who  shall  not,  when  elected,  be  an  inhabitant  of  that  State  for  which 
he  shall  be  chosen. 

The  Vice-President  of  the  United  States  shall  be  President  of  the 
Senate,  but  shall  have  no  vote,  unless  they  be  equally  divided. 

The  Senate  shall  choose  their  other  officers,  and  also  a  President 
pro  tempore,  in  the  absence  of  the  Vice-President,  or  when  he  shall 
exercise  the  office  of  President  of  the  United  States. 

The  Senate  shall  have  the  sole  power  to  try  all  impeachments. 
When  sitting  for  that  purpose,  they  shall  be  on  oath  or  affirmation. 
When  the  President  of  the  United  States  is  tried,  the  Chief  Justice  shall 
preside ;  and  no  person  shall  be  convicted  without  the  concurrence  of  two- 
thirds  of  the  members  present. 

Judgment  in  cases  of  impeachment  shall  not  extend  further  than  to 
removal  from  office,  and  disqualification  to  hold  and  enjoy  any  office 
of  honor,  trtist,  or  profit  under  the  United  States ;  but  the  party  con- 
victed shall  nevertheless  be  liable  and  subject  to  indictment,  trial,  judg- 
ment and  punishment,  according  to  law. 

Sec.  4.  The  times,  places  and  manner  of  holding  elections  for  Sen- 
ators and  Representatives  shall  be  prescribed  in  each  State  by  the  Legis- 
lature thereof ;  but  the  Congress  may  at  any  time  by  law  make  or  alter 
such  regulations,  except  as  to  the  places  of  choosing  Senators. 

The  Congress  shall  assemble  at  least  once  in  every  year,  and  such 
meeting  shall  be  on  the  first  Monday  in  December,  unless  they  shall  by 
law  appoint  a  dififerent  day. 

Sec.  5.  Each  House  shall  be  the  judge  of  the  elections,  returns 
and  qualifications  of  its  own  members,  and  a  majority  of  each  shall  con- 
stitute a  quorum  to  do  business ;  but  a  smaller  number  may  adjourn 


I 


Constitution  of  the  United  States  3 

from  day  to  day,  and  may  be  authorized  to  compel  the  attendance  of 
absent  members  in  such  manner,  and  under  such  penalties  as  each  House 
may  provide. 

Each  House  may  determine  the  rules  of  its  proceedings,  punish  its 
members  for  disorderly  behavior,  and,  with  the  concurrence  of  two- 
thirds,  expel  a  member. 

Each  House  shall  keep  a  journal  of  its  proceedings,  and  from  time 
to  time  publish  the  same,  excepting  such  parts  as  may  in  their  judg- 
ment require  secrecy ;  and  the  yeas  and  nays  of  the  members  of  either 
House  on  any  question  shall,  at  the  desire  of  one-fifth  of  those  present, 
be  entered  on  the  journal. 

Neither  House,  during  the  session  of  Congress,  shall,  without  the 
consent  of  the  other,  adjourn  for  more  than  three  days,  nor  to  any  other 
place  than  that  in  which  the  two  Houses  shall  be  sitting. 

Sec.  6.  The  Senators  and  Representatives  shall  receive  a  compen- 
sation for  their  services,  to  be  ascertained  by  law,  and  paid  out  of  the 
treasury  of  the  United  States.  They  shall  in  all  cases,  except  treason, 
felony  and  breach  of  the  peace,  be  privileged  from  arrest  during  their 
attendance  at  the  session  of  their  respective  Houses,  and  in  going  to 
and  returning  from  the  same ;  and  for  any  speech  or  debate  in  either 
House,  they  shall  not  be  questioned  in  any  other  place. 

No  Senator  or  Representative  shall,  during  the  time  for  which  he 
was  elected,  be  appointed  to  any  civil  office  under  the  authority  of  the 
United  States,  which  shall  have  been  created,  or  the  emoluments  whereof 
shall  have  been  increased  during  such  time ;  and  no  person  holding  any 
office  under  the  United  States,  shall  be  a  member  of  either  House  during 
his  continuance  in  office. 

Sec.  7.  All  bills  for  raising  revenues  shall  originate  in  the  House 
of  Representatives ;  but  the  Senate  may  propose  or  concur  with  amend- 
ments as  on  other  bills. 

Every  bill  which  shall  have  passed  the  House  of  Representatives 
and  the  Senate,  shall,  before  it  become  a  law,  be  presented  to  the  Pres- 
ident of  the  United  States ;  if  he  approve  he  shall  sign  it,  but  if  not  he 
shall  return  it,  with  his  objections,  to  that  House  in  which  it  shall  have 
originated,  who  shall  enter  the  objections  at  large  on  their  journal,  and 
proceed  to  reconsider  it.  If  after  such  reconsideration  two-thirds  of 
that  House  shall  agree  to  pass  the  bill,  it  shall  be  sent,  together  with  the 
objections,  to  the  other  House  by  which  it  shall  likewise  be  reconsidered, 
and  if  approved  by  two-thirds  of  that  House,  it  shall  become  a  law. 
But  in  all  such  cases  the  votes  of  both  Houses  shall  be  determined  by 
yeas  and  nays,  and  the  names  of  the  persons  voting  for  and  against  the 
bill  shall  be  entered  on  the  journal  of  each  House  respectively.  If  any 
bill  shall  not  be  returned  by  the  President  within  ten  days  (Sundays 
excepted)  after  it  shall  have  been  presented  to  him,  the  same  shall  be  a 
law,  in  like  manner  as  if  he  had  signed  it,  unless  the  Congress,  by  their 
adjournment  prevent  its  return,  in  which  case  it-  shall  not  be  a  law. 

Every  order,  resolution,  or  vote  to  which  the  concurrence  of  the 


4  Important  Federal  Laws 

Senate  and  House  of  Representatives  may  be  necessan^  (except  on  a 
question  of  adjournment)  shall  be  presented  to  the  President  of  the 
United  States ;  and  before  the  same  shall  take  effect,  shall  be  approved 
by  him,  or  being  disapproved  by  him,  shall  be  repassed  by  two-thirds 
of  the  Senate  and  House  of  Representatives,  according  to  the  rules  and 
limitations  prescribed  in  the  case  of  a  bill. 

Sec.  8.  The  Congress  shall  have  power  to  lay  and  collect  taxes, 
duties,  imposts,  and  excises,  to  pay  the  debts  and  provide  for  the  com- 
mon defense  and  general  welfare  of  the  United  States ;  but  all  duties, 
imposts  and  excises  shall  be  uniform  throughout  the  United  States ; 
To  borrow  money  on  the  credit  of  the  United  States ; 
To  regulate  commerce  with  foreign  nations,  and  among  the  several 
States,  and  with  the  Indian  tribes; 

To  establish  an  uniform  rule  of  naturalization,  and  uniform  laws  on 
the  subject  of  bankruptcies,  throughout  the  United  States; 

To  coin  money,  regulate  the  value  thereof,  and  of  foreign  coin,  and 
fix  the  standard  of  weights  and  measures ; 

To  provide  for  the  punishment  of  counterfeiting  the  securities  and 
current  coin  of  the  United  States ; 

To  establish  post-offices  and  post-roads ; 

To  promote  the  progress  of  science  and  useful  arts,  by  securing  for 
limited  times  to  authors  and  inventors  the  exclusive  right  to  their  re- 
spective writings  and  discoveries; 

To  constitute  tribunals  inferior  to  the  Supreme  Court ; 
To  define  and  punish  piracies  and  felonies  committed  on  the  high 
seas,  and  offenses  against  the  law  of  nations ; 

To  declare  war,  grant  letters  of  marque  and  reprisal,  and  make  rules 
concerning  captures  on  land  and  water; 

To  raise  and  support  armies,  but  no  appropriation  of  money  to  that 
use  shall  be  for  a  longer  term  than  two  years; 
To  provide  and  maintain  a  navy; 

To  make  rules  for  the  government  and  regulation  of  the  land  and 
naval  forces; 

To  provide  for  calling  forth  the  militia  to  execute  the  laws  of  the 
Union,  suppress  insurrections,  and  repel  invasions ; 

To  provide  for  organizing,  arming,  and  disciplining  the  militia, 
and  for  governing  such  part  of  them  as  may  be  employed  in  the 
service  of  the  United  States,  reserving  to  the  States  respectively,  the 
appointment  of  the  officers  and  the  authority  of  training  the  militia 
according  to  the  discipline  prescribed  by  Congress ; 

To  exercise  exclusive  legislation,  in  all  cases  whatsoever,  over  such 
district  (not  exceeding  ten  miles  square)  as  may,  h^  cession  of  partic- 
ular States,  and  the  acceptance  of  Congress,  become  the  seat  of  the  gov- 
ernment of  the  United  States,  and  to  exercise  like  authority  over  all 
places  purchased  by  the  consent  of  the  Legislature  of  the  State  in  which 
the  same  shall  be,  for  the  erection  of  forts,  magazines,  arsenals,  dock- 
yards, and  other  needful  buildings; 


CONSTITUTIOX   OF   THE    UnITED    StATES  5 

And  to  make  all  laws  which  shall  be  necessary  and  proper  for  carry- 
ing into  execution  the  foregoing  powers,  and  all  other  powers  vested  by 
this  Constitution  in  the  government  of  the  United  States,  or  in  any 
department  or  officer  thereof. 

Sec.  9.  The  migration  or  importation  of  such  persons  as  any  of 
the  States  now  existing  shall  think  proper  to  admit,  shall  not  be  pro- 
hibited by  the  Congress  prior  to  the  year  one  thousand  eight  hundred 
and  eight,  but  a  tax  or  duty  may  be  imposed  on  such  importation,  not 
exceeding  ten  dollars  for  each  person. 

The  privilege  of  the  writ  of  habeas  corpus  shall  not  be  suspended, 
unless  when  in  cases  of  rebellion  or  invasion  the  public  safety  may 
require  it. 

No  bill  of  attainder  or  ex  post  facto  law  shall  be  passed. 

No  capitation,  or  other  direct  tax  shall  be  laid,  unless  in  proportion 
to  the  census  or  enumeration  hereinbefore  directed  to  be  taken. 

No  tax  or  duty  shall  be  laid  on  articles  exported  from  any  State. 

No  preference  shall  be  given  by  any  regulation  of  commerce  or 
revenue  to  the  ports  of  one  State  over  those  of  another:  nor  shall  ves- 
sels bound  to,  or  from,  one  State,  be  obliged  to  enter,  clear,  or  pay 
duties  in  another. 

No  money  shall  be  drawn  from  the  Treasury,  but  in  consequence 
of  appropriations  made  by  law;  and  a  regular  statement  and  account 
of  the  receipts  and  expenditures  of  all  public  money  shall  be  published 
from  time  to  time. 

No  title  of  nobility  shall  be  granted  by  the  United  States:  and  no 
person  holding  any  office  of  profit  or  trust  under  them,  shall,  without 
the  consent  of  the  Congress,  accept  of  any  present,  emolument,  office, 
or  title,  oi  anv  kind  whatever,  from  any  king,  prince,  or  foreign  State. 

Sec.  10.  '  No  State  shall  enter  into  any  treaty,  alliance,  or  confed- 
eration;  grant  letters  of  marque  and  reprisal;  coin  money ;_  emit  bills 
of  credit;  make  an>i:hing  but  gold  and  silver  coin  a  tender  in  payment 
of  debts ;  pass  any  bill  of  attainder,  ex  post  facto  law,  or  law  impairing 
the  obligation  of  contracts,  or  grant  any  title  of  nobility.  No  State 
shall,  without  the  consent  of  the  Congress,  lay  any  imposts  or  duties 
on  imports  or  exports,  except  what  may  be  absolutely  necessary  for 
executing  its  inspection  laws :  and  the  net  produce  of  all  duties  and 
imposts, "laid  by  anv  State  on  imports  or  exports,  shall  be  for  the  use 
of  the  Treasury  of  'the  United  States ;  and  all  such  laws  shall  be  subject 
to  the  revision  and  control  of  the  Congress  No  State  shall,  without  the 
consent  of  Congress,  lay  any  duty  of  tonnage,  keep  troops,  or  ships  of 
war  in  time  of  peace,  enter  into  any  agreement  or  compact  with  another 
State,  or  with  a  foreign  power,  or  engage  in  war,  unless  actually  in- 
vaded, or  in  such  imminent  danger  as  will  not  admit  of  delay. 

Article  II. — The  Executive  Department. 

Section  1.  The  executive  power  shall  be  vested  in  a  President  of 
the  United  States  of  America.     He  shall  hold  his  office  during  the  term 


Important  Federal  Laws 

of  four  years,  and,  together  with  the  Vice-President,  chosen  for  the  same 
term,  be  elected,  as  follows: 

Each  State  shall  appoint,  in  such  manner  as  the  Legislature  thereof 
may  direct,  a  number  of  electors,  equal  to  the  whole  number  of  Senators 
and  Representatives  to  which  the  State  may  be  entitled  in  the  Congress ; 
but  no  Senator  or  Representatives,  or  person  holding  an  office  of  trust 
or  profit  under  the  United  States,  shall  be  appointed  an  elector. 

See  amendment  No.  12. 

The  Congress  may  determine  the  time  of  choosing  the  electors,  and 
the  dav  on  which  they  shall  give  their  votes,  which  day  shall  be  the  same 
throughout  the  United  States. 

No  person  except  a  natural-born  citizen,  or  a  citizen  of  the  United 
States,  at  the  time  of  the  adoption  of  this  Constitution,  shall  be  eligible 
to  the  office  of  President ;  neither  shall  any  person  be  eligible  to  that 
office  who  shall  not  have  attained  to  the  age  of  thirty-five  years,  and  been 
fourteen  years  a  resident  within  the  United  States. 

In  case  of  the  removal  of  the  President  from  office,  or  of  his  death, 
resignation  or  inability  to  discharge  the  powers  and  duties  of  the  said 
office,  the  same  shall  devolve  on  the  Vice-President,  and  the  Congress 
may  by  law  provide  for  the  case  of  removal,  death,  resignation  or  in- 
ability,' both  of  the  President  and  Vice-President,  declaring  what  officer 
shall  then  act  as  President,  and  such  officer  shall  act  accordingly,  until 
the  disability  be  removed,  or  a  President  shall  be  elected. 

The  President  shall,  at  stated  times,  receive  for  his  services,  a  com- 
pensation, which  shall  neither  be  increased  nor  diminished  during  the 
period  for  which  he  shall  have  been  elected ;  and  he  shall  not  receive, 
within  that  period,  any  other  emolument  from  the  United  States,  or 
any  of  them. 

Before  he  enter  on  the  execution  of  his  office,  he  shall  take  the 
following  oath  or  affirmation : 

"I  do  solemnly  swear  (or  affirm)  that  I  will  faithfully  execute  the 
office  of  President  of  t*ie  United  States,  and  will  to  the  best  of  _my 
ability,  preserve,  protect  and  defend  the  Constitution  of  the  United 
States." 

Sec.  2.  The  President  shall  be  Commander-in-Chief  of  the  army 
and  navy  of  the  United  States,  and  of  the  militia  of  the  several  States, 
when  called  into  the  actual  service  of  the  United  States ;  he  may  require 
the  opinion,  in  writing,  of  the  principal  officer  in  each  of  the  executive 
departments,  upon  any  subject  relating  to  the  duties  of  their  respective 
offices,  and  he  shall  have  power  to  grant  reprieves  and  pardons  for 
offenses  against  the  United  States,  except  in  cases  of  impeachment. 

He  shall  have  power,  by  and  with  the  advice  and  consent  of  the 
Senate,  to  make  treaties,  provided  two-thirds  of  the  Senators  present 
concur;  and  he  shall  nominate,  and  by  and  with  the  advice  and  consent 
of  the  Senate,  shall  appoint  ambassadors,  other  public  ministers  and 
consuls,  judges  of  Supreme  Court,  and  all  other  officers  of  the  United 
States  whose  appointments  are  not  herein  otherwise  provided  for,  and 


Constitution"  of  the  United  States  7 

which  shall  be  established  by  law ;  but  the  Congress  may  by  law  vest 
the  appointment  of  such  inferior  officers,  as  they  think  proper,  in 
the  President  alone,  in  the  courts  of  law,  or  in  the  heads  of  departments. 

The  President  shall  have  power  to  fill  up  all  vacancies  that  may 
happen  during  the  recess  of  the  Senate,  by  granting  commissions  which 
shall  expire  at  the  end  of  their  next  session. 

Sec.  3.  He  shall  from  time  to  time  give  to  the  Congress  informa- 
tion of  the  state  of  the  Union,  and  recommend  to  their  consideration 
such  measures  as  he  shall  judge  necessary  and  expedient;  he  may,  on 
estraordinary  occasions,  convene  both  Houses,  or  either  of  them,  and 
in  case  of  disagreement  between  them,  with  respect  to  the  time  of  ad- 
journment, he  may  adjourn  them  to  such  time  as  he  shall  think  proper; 
he  shall  receive  ambassadors  and  other  public  ministers  ;  he  shall  take 
care  that  the  laws  be  faithfully  executed,  and  shall  commission  all  the 
officers  of  the  United  States. 

Sec.  4.  The  President,  Vice-President,  and  all  civil  officers  of  the 
United  States,  shall  be  removed  from  office  on  impeachment  for,  and 
conviction  of,  treason,  bribery,  or  other  high  crimes  and  misdemeanors. 

Article  III. — The  Judicial  Department. 

Section  1.  The  judicial  power  of  the  United  States  shall  be 
vested  in  one  Supreme  Court,  and  in  such  inferior  courts  as  the  Con- 
gress may  from  time  to  time  ordain  and  establish.  The  judges,  both 
of  the  Supreme  and  inferior  courts,  shall  hold  their  offices  during  good 
behavior,  and  shall,  at  stated  times,  receive  for  their  services  a  com- 
pensation, which  shall  not  be  diminished  during  their  continuance  in 
office. 

Sec.  2.  The  judicial  power  shall  extend  to  all  cases,  in  law  and 
equity,  arising  under  this  Constitution,  the  laws  of  the  United  States, 
and  treaties  made,  or  which  shall  be  made,  under  their  authority ;  to 
all  cases  affecting  ambassadors,  other  public  ministers  and  consuls  ;  to 
all  cases  of  admiralty  and  maritime  jurisdiction;  to  controversies  to 
which  the  United  States  shall  be  a  party ;  to  controversies  between  two 
or  more  States ;  between  a  State  and  citizens  of  another  State ;  be- 
tween citizens  of  different  States ;  between  citizens  of  the  same  State 
claiming  lands  under  grants  of  different  States,  and  between  a  State, 
or  the  citizens  thereof,  and  foreign  States,  citizens  or  subjects. 

In  all  cases  affecting  ambassadors,  other  public  ministers  and  con- 
suls, and  those  in  which  a  State  shall  be  party,  the  Supreme  Court  shall 
have  original  jurisdiction.  In  all  the  other  cases  before  mentioned,  the 
Supreme  Court  shall  have  appellate  jurisdiction,  both  as  to  law  and  fact, 
with  such  exceptions  and  under  such  regulations  as  the  Congress  shall 
make. 

The  trial  of  all  crimes,  except  in  cases  of  impeachment,  shall  be 
by  jury ;  and  such  trial  shall  be  held  in  the  State  where  the  said  crimes 
shall  have  been  committed ;  but  when  not  committed  within  any  State, 


8-  Important  Federal  Laws 

the  trial-  shall  be  at  such  place  or  places  as  the  Congress  may  by  law 
have  directed. 

Sec.  3.  Treason  against  the  United  States  shall  consist  only  in 
levying  war  against  them,  or  in  adhering  to  their  enemies,  giving  them 
aid  and  comfort.  No  person  shall  be  convicted  of  treason  unless  on  the 
testimony  of  two  witnesses  to  the  same  overt  act,  or  on  confession  in 
open  court. 

The  Congress  shall  have  power  to  declare  the  punishment  of  treason, 
but  no  attainder  of  treason  shall  work  corruption  of  blood,  or  forfeiture 
except  during  the  life  of  the  person  attained. 

Article  IV. — Federal  and  State  Relations. 

Section  1.  Full  faith  and  credit  shall  be  given  in  each  State  to 
the  public  acts,  records  and  judicial  proceedings  of  every  other  State. 
And  the  Congress  may  by  general  laws  prescribe  the  manner  in  which 
such  acts,  records  and  proceedings  shall  be  proved,  and  the  effect 
thereof. 

Sec.  2.  The  citizens  of  each  State  shall  be  entitled  to  all  privileges 
and  immunities  of  citizens  in  the  several  States. 

A  person  charged  in  any  State  with  treason,  felony,  or  other  crime, 
who  shall  flee  from  justice,  and  be  found  in  another  State,  shall,  on 
demand  of  the  executive  authority  of  the  State  from  which  he  fled,  be 
delivered  up  to  be  removed  to  the  State  having  jurisdiction  of  the  crime. 

No  person  held  to  service  or  labor  in  one  State,  under  the  laws 
thereof,  escaping  into  another,  shall,  in  consequence  of  any  law  or  regu- 
lation therein,  be  discharged  from  such  service  or  labor,  but  shall  be 
delivered  up  on  claim  of  the  party  to  whom  such  service  or  labor  may 
be  due. 

Sec.  3.  New  States  may  be  admitted  by  the  Congress  into  this 
Union;  but  no  new  State  shall  be  formed  or  erected  within  the  juris- 
diction of  any  other  State;  nor  any  State  be  formed  by  the  junction  of 
two  or  more  States,  or  parts  of  States,  without  the  consent  of  the  Legis- 
latures of  the  States  concerned  as  well  as  of  the  Congress. 

The  Congress  shall  have  power  to  dispose  of  and  make  all  needful 
rules  and  regulations  respecting  the  territory  or  other  property  belonging 
to  the  United  States ;  and  nothing  in  this  Constitution  shall  be  so  con- 
strued as  to  prejudice  any  claims  of  the  United  States,  or  of  any  par- 
ticular State. 

Sec.  4.  The  United  States  shall  guarantee  to  every  State  in  this 
Union  a  republican  form  of  government,  and  shall  protect  each  of  them 
against  invasion;  and  on  application  of  the  Legislature,  or  of  the  Exec- 
utive (when  the  Legislature  can  not  be  convened),  against  domestic 
violence. 

Article  V. — Amendments. 

The  Congress,  whenever  two-thirds  of  both  houses  shall  deem  it 
necessar}',  shall  propose  amendments  to  this  Constitution,  or,  on  the 
application  of  the  Legislatures  of  two-thirds  of  the  several  States,  shall 


Constitution  of  the  United  States  9 

call  a  convention  for  proposing  amendments,  which,  in  either  case,  shall 
be  valid  to  all  intents  and  purposes,  as  part  of  this  Constitution,  when 
ratified  by  the  Legislatures  of  three-fourths  of  the  several  States,  or 
by  conventions  in  three-fourths  thereof,  as  the  one  or  the  other  mode 
of  ratification  may  be  proposed  by  the  Congress :  Provided,  That  no 
amendment  which  may  be  made  prior  to  the  year  one  thousand  eight 
hundred  and  eight  shall  in  any  manner  aflfect  the  first  and  fourth  clauses 
in  the  ninth  section  of  the  first  article;  and  that  no  State,  without  its 
consent,  shall  be  deprived  of  its  equal  suffrage  in  the  Senate. 

Article  VI. — Miscellaneous, 

All  debts  contracted  and  engagements  entered  into,  before  the 
adoption  of  this  Constitution,  shall  be  as  valid  against  the  United  States 
under  this  Constitution,  as  under  the  confederation. 

This  Constitution,  and  the  laws  of  the  United  States  which  shall  be 
made  in  pursuance  thereof,  and  all  treaties  made,  or  which  shall  be 
made,  under  the  authority  of  the  United  States,  shall  be  the  supreme 
law  of  the  land ;  and  the  judges  in  every  State  shall  be  bound  thereby, 
anything  in  the  Constitution  or  laws  of  any  State  to  the  contrary  not- 
withstanding. 

The  Senators  and  Representatives  before  mentioned,  and  the  mem- 
bers of  the  several  State  Legislatures,  and  all  executive  and  judicial 
officers,  both  of  the  United  States  and  of  the  several  States,  shall  be 
bound  by  oath  or  affirmation,  to  support  this  Constitution  :  but  no  reli- 
,  gious  test  shall  ever  be  required  as  a  qualification  to  any  office  or  public 
trust  under  the  United  States. 

Article  VII. — Ratification. 

The  ratification  of  the  conventions  of  nine  States  shall  be  sufficient 
for  the  establishment  of  this  Constitution  between  the  States  so  ratifying 
the  same. 

ARTICLES  IN  AMENDMENT  OF  THE  CONSTITUTION 

Article  I. 

Congress  shall  make  no  law  respecting  an  establishment  of  religion, 
or  prohibiting  the  free  exercise  thereof ;  or  abridging  the  freedom  of 
speech,  or  of  the  press ;  or  the  right  of  the  people  peaceably  to  assemble, 
and  to  petition  the  government  for  a  redress  of  grievances. 

The  first  ten  amendments  were  adopted  in  1790  in  fulfillment  of  a  demand 
for  a  bill  of  rights.  They  apply  to  the  national  g'overnment  and  limit  its 
powers,  but  do  not  restrict  the  power  of  the  States  with  respect  to  its  people. 
194  U.  S.  445  and  cases  cited. 

Article  II. 

A  well  regulated  militia  being  necessary  to  the  security  of  a  free 
State,  the  right  of  the  people  to  keep  and  bear  arms,  shall  not  be  in- 
fringed. 

Article  III. 

No  soldier  shall,  in  time  of  peace,  be  quartered  in  any  house,  with- 


10  Important  Federal  Laws 

out  the  consent  of  the  owner,  nor  in  time  of  war,  but  in  a  manner  to  be 
prescribed  by  law. 

Article  IV. 

The  right  of  the  people  to  be  secure  in  their  persons,  houses,  papers, 
and  effects,  against  unreasonable  searches  and  seizures,  shall  not  be  vio- 
lated, and  no  warrants  shall  issue,  but  upon  probable  cause,  supported 
by  oath  or  affirmation,  and  particularly  describing  the  place  to  be 
searched,  and  the  persons  or  things  to  be  seized. 

Article  V. 

No  person  shall  be  held  to  answer  for  a  capital,  or  otherwise  infa- 
mous crime,  unless  on  a  presentment  or  indictment  of  a  grand  jury, 
except  in  cases  arising  in  the  land  or  naval  forces,  or  in  the  militia, 
when  in  actual  service  in  time  of  war  or  public  danger ;  nor  shall  any 
person  be  subject  for  the  same  oft"ense  to  be  twice  put  in  jeopardy  of 
life  or  limb ;  nor  shall  be  compelled  in  any  criminal  case  to  be  a  witness 
against  himself,  nor  be  deprived  of  life,  liberty,  or  property,  without  due 
process  of  law ;  nor  shall  private  property  be  taken  for  public  use,  with- 
out just  compensation. 

Article  VI. 

In  all  criminal  prosecutions,  the  accused  shall  enjoy  the  right  to  a 
speedy  and  public  trial,  by  an  impartial  jury  of  the  State  and  district 
wherein  the  crime  shall  have  been  committed,  which  district  shall  have 
been  previously  ascertained  by  law,  and  to  be  informed  of  the  nature 
and  cause  of  the  accusation;  to  be  confronted  with  the  witnesses  against 
him ;  to  have  compulsory  process  for  obtaining  witnesses  in  his  favor, 
and  to  have  the  assistance  of  counsel  for  his  defense. 

Article  VII. 

In  suits  at  common  law,  where  the  value  in  controversy  shall  exceed 
twenty  dollars,  the  right  of  trial  by  jury  shall  be  preserved,  and  no  fact 
tried  by  a  jury  shall  be  otherwise  re-examined  in  any  court  of  the  United 
States,  than  according  to  the  rules  of  the  common  law. 

Article  VIII. 

Excessive  bail  shall  not  be  required,  nor  excessive  fines  imposed,  nor 
cruel  and  unusual  punishments  inflicted. 

Article  IX. 

The  enumeration  in  the  Constitution  of  certain  rights  shall  not  be 
construed  to  deny  or  disparage  others  retained  by  the  people. 

Article  X. 

The  powers  not  delegated  to  the  United  States  by  the  Constitution, 
nor  prohibited  by  it  to  the  States,  are  reserved  to  the  States,  respectively, 
or  to  the  people. 
Article  XI. 

The  judicial  power  of  the  United  States  shall  not  be  construed  to 
extend  to  any  suit  in  law  or  equity,  commenced  or  prosecuted  against 


Constitution  of  the  United  States  11 

on-e  of  the  United  States  by  citizens  of  another   State,  or  by  citizens 
or  subjects  of  any  foreign  State. 

Article  XII. 

The  electors  shall  meet  in  their  respective  States,  and  vote  by  ballot 
for  President  and  Vice-President,  one  of  whom,  at  least,  shall  not  be  an 
inhabitant  of  the  same  State  with  themselves;  they  shall  name  in  their 
ballots  the  person  voted  for  as  President,  and  in  distinct  ballots  the 
person  voted  for  as  Vice-President ;  and  they  shall  make  distinct  lists  of 
all  persons  voted  for  as  President,  and  of  all  persons  voted  for  as  Vice- 
President,  and  of  the  number  of  votes  for  each,  which  lists  they  shall 
sign  and  certify,  and  transmit  sealed  to  the  seat  of  the  government  of 
the  United  States,  directed  to  the  President  of  the  Senate ;  the  Pres- 
ident of  the  Senate  shall,  in  the  presence  of  the  Senate  and  House  of 
Representatives,  open  all  the  certificates  and  the  votes  shall  then  be 
counted ;  the  person  having  the  greatest  number  of  votes  for  Pres- 
ident shall  be  the  President,  if  such  number  be  a  majority  of  the  whole 
number  of  electors  appointed ;  and  if  no  person  have  such  majority,  then 
from  the  persons  having  the  highest  numbers  not  exceeding  three  on  the 
list  of  those  voted  for  as  President,  the  House  of  Representatives  shall 
choose  immediately,  by  ballot,  the  President.  But  in  choosing  the  Pres- 
ident, the  votes  shall  be  taken  by  States,  the  representation  from  each 
State  having  one  vote ;  a  quorum  for  this  purpose  shall  consist  of  a  mem- 
ber or  members  from  two-thirds  of  the  States,  and  a  majority  of  all  the 
States  shall  be  necessary  to  a  choice.  And  if  the  House  of  Representa- 
tives shall  not  choose  a  President,  whenever  the  right  of  choice  shall 
devolve  upon  them,  before  the  fourth  day  of  March  next  following,  then 
the  Vice-President  shall  act  as  President,  as  in  the  case  of  the  death  or 
other  constitutional  disability  of  the  President. 

The  person  having  the  greatest  number  of  votes  as  Vice-President 
shall  be  the  Vice-President,  if  such  number  be  a  majority  oi  the  whole 
number  of  electors  appointed,  and  if  no  person  have  a  majority,  then  from 
the  two  highest  numbers  on  the  list,  the  Senate  shall  choose  the  Vice- 
President ;  a  quorum  for  the  purpose  shall  consist  of  two-thirds  of  the 
whole  number  of  Senators,  and  a  majority  of  the  whole  number  shall 
be  necessary  to  a  choice. 

But  no  person  constitutionally  ineligible  to  the  ofiice  of  President 
shall  be  eligible  to  that  of  Vice-President  of  the  United  States. 

Article  XIII. 

Section  1.  Neither  slavery  nor  involuntary  servitude,  except  as  a 
punishment  for  crime,  whereof  the  party  shall  have  been  duly  convicted, 
shall  exist  within  the  United  States  or  any  place  subject  to  their  juris- 
diction. 

Sec.  2.  Congress  shall  have  power  to  enforce  this  article  by  appro- 
priate legislation. 

Article  XIV. 

Section   1.     All  persons  born  or  naturalized  in  the  United  States, 


12  Important  Federal  Laws 

and  subject  to  the  jurisdiction  thereof,  are  citizens  of  the  United  States 
and  of  the  State  wherein  they  reside.  No  State  shall  make  or  enforce 
any  law  which  shall  abridge  the  privilege*  or  immunities  of  citizens  of 
the  United  States;  nor  shall  any  State  deprive  any  person  of  life,  lib- 
erty, or  property,  without  due  process  of  law ;  nor  deny  to  any  person 
within  its  jurisdiction  the  equal  protection  of  the  laws. 

Sec.  2.  Representatives  shall  be  apportioned  among  the  several 
States  according  to  their  respective  numbers,  counting  the  whole  num- 
ber of  persons  in  each  State,  excluding  Indians  not  taxed.  But  when 
the  right  to  vote  at  any  election  for  the  choice  of  electors  for  President 
and  Vice-President  of  the  United  States,  Representatives  in  Congress, 
the  executive  and  judicial  officers  of  a  State,  or  the  members  of  the 
Legislature  thereof,  is  denied  to  any  of  the  male  inhabitants  of  such 
State,  being  twenty-one  years  of  age,  and  cifizens  of  the  United  States, 
or  in  any  way  abridged,  except  for  participation  in  rebellion,  or  other 
crime,  the  basis  of  representation  therein  shall  be  reduced  in  the  propor- 
tion which  the  number  of  such  male  citizens  shall  bear  to  the  whole 
number  of  male  citizens  twenty-one  years  of  age  in  such  State. 

Sec.  3.  No  person  shall  be  a  Senator  or  Representative  in  Congress, 
or  elector  of  President  and  Vice-President,  or  hold  any  office,  civil  or 
military,  under  the  United  States,  or  under  any  State,  who,  having  pre- 
viously taken  an  oath,  as  a  member  of  Congress,  or  as  an  officer  of  the 
United  States,  or  as  a  member  of  any  State  Legislature,  or  as  an  exec- 
utive or  judicial  officer  of  any  State,  to  support  the  Constitution  of  the 
United  States,  shall  have  engaged  in  insurrection  or  rebellion  against 
the  same  or  given  aid  or  comfort  to  the  enemies  thereof.  But  Congress 
may  by  a  vote  of  two-thirds  of  each  house,  remove  such  disability. 

Sec.  4.  The  validity  of  the  public  debt  of  the  United  States,  au- 
thorized by  law,  including  debts  incurred  for  pa}Tnent  of  pensions  and 
bounties  for  services  in  suppressing  insurrection  or  rebellion,  shall  not 
be  questioned.  But  neither  the  United  States  nor  any  State  shall  assume 
or  pay  any  debt  or  obligation  incurred  in  aid  of  insurrection  or  rebellion 
against  the  United  States,  or  any  claim  for  the  loss  or  emancipation  of 
any  slave ;  but  all  such  debts,  obligations  and  claims  shall  be  held  illegal 
and  void. 

Sec.  5.  The  Congress  shall  have  power  to  enforce,  by  appropriate 
legislation,  the  provisions  of  this  article. 

Article  XV. 

Section  1.  The  right  of  the  citizens  of  the  United  States  to  vote 
shall  not  be  denied  or  abridged  by  the  United  States  or  by  any  State, 
on  account  of  race,  color,  or  previous  condition  of  servitude. 

Sec.  2.  The  Congress  shall  have  power  to  enforce  this  article  by 
appropriate  legislation. 

Article  XVI. 

The  Congress  shall  have  power  to  lay  and  collect  taxes  on  incomes. 


Constitution  of  the  United  States  13 

from  whatever  source  derived,  without  apportionment  among  the  several 
States,  and  without  regard  to  any  census  or  enumeration. 
This  amendment  was  ratified  in  1913. 

Article  XVII. 

Providing  for  the  election  of  United  States  Senators  by  the  people.     See 
section  3  of  Art  I. 


AGRICULTURE  AND  HORTICULTURE. 


THE  FARM  LOAN  ACT. 

Act  of  July  17,  1916. 

An  Act  to  provide  capital  for  agricultural  development,  to  create  standard 
forms  of  investment  based  upon  farm  mortgage,  to  equalize  rates  of  in- 
terest upon  farm  loans,  to  furnish  a  market  for  United  States  bonds,  to 
create  Government  depositaries  and  financial  agents  for  the  United  States, 
and  for  other  purposes. 

Sec.  1.    That  the  short  title  of  this  Act  shall  be  "The  Federal  Farm 

Loan  Act."     Its  administration  shall  be  under  the  direction  and  control 

of  the  Federal  Farm  Loan  Board  hereinafter  created. 

Definitions. 

Sec.  2.  That  wherever  the  term  "first  mortgage"  is  used  in  this 
Act  it  shall  be  held  to  include  such  classes  of  first  liens  on  farm  lands  as 
shall  be  approved  by  the  Federal  Farm  Loan  Board,  and  the  credit 
instruments  secured  thereby.  The  term  "farm  loan  bonds"  shall  be  held 
to  include  all  bonds  secured  by  collateral  deposited  with  a  farm  loan 
registrar  under  the  terms  of  this  Act ;  they  shall  be  distinguished  by  the 
addition  of  the  words  "Federal,"  or  "joint  stock,"  as  the  case  may  be. 

Federal  Farm  Loan  Board. 

Sec.  3.  That  there  shall  be  established  at  the  seat  of  government 
in  the  Department  of  the  Treasury  a  bureau  charged  with  the  execu- 
tion of  this  Act  and  of  all  Acts  amendatory  thereof,  to  be  known  as 
the  Federal  Farm  Loan  Bureau,  under  the  general  supervision  of  a 
Federal  Farm  Loan  Board. 

Said  Federal  Farm  Loan  Board  shall  consist  of  five  members, 
including  the  Secretary  of  the  Treasury,  who  shall  be  a  member  and 
chairman  ex  of^cio,  and  four  members  to  be  appointed  by  the  Presi- 
dent of  the  United  States,  by  and  with  the  advice  and  consent  of  the 
Senate.  Of  the  four  members  to  be  appointed  by  the  President,  not 
more  than  two  shall  be  appointed  from  one  political  party,  and  all 
four  of  said  members  shall  be  citizens  of  the  United  States  and  shall 
devote  their  entire  time  to  the  business  of  the  Federal  Farm  Loan 
Board ;  they  shall  receive  an  annual  salary  of  $10,000  payable  monthly, 
together  with  actual  necessary  traveling  expenses. 

One  of  the  members  to  be  appointed  by  the  President  shall  be  desig- 
nated by  him  to  serve  for  two  years,  one  for  four  years,  one  for  six 
years,  and  one  for  eight  years,  and  thereafter  each  member  so  ap- 
pointed shall  serve  for  a  term  of  eight  years,  unless  sooner  removed 
for  cause  by  the  President.  One  of  the  members  shall  be  designated 
by  the  President  as  the  Farm  Loan   Commissioner,  who  shall  be  the 


Farm  Loan  Act  15 

active  executive  officer  of  said  board.  Each  member  of  the  Federal 
Farm  Loan  Board  shall  within  fifteen  days  after  notice  of  his  appoint- 
ment take  and  subscribe  to  the  oath  of  office. 

The  first  meeting  of  the  Federal  Farm  Loan  Board  shall  be  held  in 
Washington  as  soon  as  may  be  after  the  passage  of  this  Act,  at  a 
date  and  place  to  be  fixed  by  the  Secretary  of  the  Treasury. 

No  member  of  the  Federal  Farm  Loan  Board  shall,  during  his  con- 
tinuance in  office,  be  an  officer  or  director  of  any  other  institution, 
association,  or  partnership  engaged  in  banking,  or  in  the  business  of 
making  land  mortgage  loans  or  selling  land  mortgages.  Before  enter- 
ing upon  his  duties  as  a  member  of  the  Federal  Farm  Loan  Board 
each  member  shall  certify  under  oath  to  the  President  that  he  is 
eligible  under  this  section. 

The  President  shall  have  the  power,  by  and  with  the  advice  and 
consent  of  the  Senate,  to  fill  any  vacancy  occurring  in  the  member- 
ship of  the  Federal  Farm  Loan  Board ;  if  such  vacancy  shall  be  filled 
during  the  recess  of  the  Senate  a  commission  shall  be  granted  which 
shall  expire  at  the  end  of  the  next  session. 

The  Federal  Farm  Loan  Board  shall  appoint  a  farm  loan  registrar 
in  each  land  bank  district  to  receive  applications  for  issues  of  farm 
loan  bonds  and  to  perform  such  other  services  as  are  prescribed  by 
this  Act.  It  shall  also  appoint  one  or  more  land  bank  appraisers  for 
each  land  bank  district  and  as  many  land  bank  examiners  as  it  shall 
deem  necessary.  Farm  loan  registrars,  land  bank  appraisers,  and  land 
bank  examiners  appointed  under  this  section  shall  be  public  officials  and 
shall,  during  their  continuance  in  office,  have  no  connection  with  or 
interest  in  any  other  institution,  association,  or  partnership  engaged 
in  banking  or  in  the  business  of  making  land  mortgage  loans  or  selling 
land  mortgages :  Provided,  That  this  limitation  shall  not  apply  to  persons 
employed  by  the  board  temporarily  to  do  special  work. 

The  salaries  and  expenses  of  the  Federal  Farm  Loan  Board,  and 
of  farm  loan  registrars  and  examiners  authorized  under  this  section, 
shall  be  paid  by  the  United  States.  Land  bank  appraisers  shall  receive 
such  compensation  as  the  Federal  Farm  Loan  Board  shall  fix,  and  shall 
be  paid  by  the  Federal  land  banks  and  the  joint  stock  land  banks  which 
they  serve,  in  such  proportion  and  in  such  manner  as  the  Federal  Farm 
Loan  Board  shall  order. 

The  Federal  Farm  Loan  Board  shall  be  authorized  and  empowered 
to  employ  such  attorneys,  experts,  assistants,  clerks,  laborers,  and  other 
employees  as  it  may  deem  necessary  to  conduct  the  business  of  said 
board.  All  salaries  and  fees  authorized  in  this  section  and  not  otherwise 
provided  for  shall  be  fixed  in  advance  by  said  board  and  shall  be  paid 
in  the  same  manner  as  the  salaries  of  the  Federal  Farm  Loan  Board. 
All  such  attorneys,  experts,  assistants,  clerks,  laborers,  and  other  em- 
ployees, and  all  registrars,  examiners,  and  appraisers  shall  be  appointed 
without  regard  to  the  provisions  of  the  Act  of  January  sixteenth,  eigh- 


16  Important  Federal  Laws 

teen  hundred  and  eighty-three  (volume  twenty-two,  United  States  Stat- 
utes at  Large,  page  four  hundred  and  three),  and  amendments  thereto, 
or  any  rule  or  regulation  made  in  pursuance  thereof:  Provided,  That 
nothing  herein  shall  prevent  the  President  from  placing  said  employees 
in  the  classified  service. 

Every  Federal  land  bank  shall  semiannually  submit  to  the  Federal 
Farm  Loan  Board  a  schedule  showing  the  salaries  or  rates  of  compen- 
sation paid  to  its  officers  and  employees. 

The  Federal  Farm  Loan  Board  shall  annually  make  a  full  report  of 
its  operations  to  the  Speaker  of  the  House  of  Representatives,  who 
shall  cause  the  same  to  be  printed  for  the  information  of  the  Congress. 

The  Federal  Fsrm  Loan  Board  shall  from  time  to  time  require 
examinations  and  reports  of  condition  of  all  land  banks  established 
under  the  provisions  of  this  Act  and  shall  publish  consolidated  state- 
ments of  the  results  thereof.  It  shall  cause  to  be  made  appraisals  of 
farm  lands  as  provided  by  this  Act,  and  shall  prepare  and  publish 
amortization  tables  which  shall  be  used  by  national  farm  loan  associa- 
tions and  land  banks  organized  under  this  Act. 

The  Federal  Farm  Loan  Board  shall  prescribe  a  form  for  the  state- 
ment of  condition  of  national  farm  loan  associations  and  land  banks 
under  its  supervision,  which  shall  be  filled  out  quarterly  by  each  such 
association  or  bank  and  transmitted  to  said  board. 

It  shall  be  the  duty  of  the  Federal  Farm  Loan  Board  to  prepare  from 
time  to  time  bulletins  setting  forth  the  principal  features  of  this  Act 
and  through  the  Department  of  Agriculture  or  otherwise  to  distribute 
the  same,  particularly  to  the  press,  to  agricultural  journals,  and  to 
farmers'  organizations ;  to  prepare  and  distribute  in  the  same  manner 
circulars  setting  forth  the  principles  and  advantages  of  amortized  farm 
loans  and  the  protection  afforded  debtors  under  this  Act,  instructing 
farmers  how  to  organize  and  conduct  farm  loan  associations,  and  advis- 
ing investors  of  the  merits  and  advantages  of  farm  loan  bonds ;  and  to 
disseminate  in  its  discretion  information  for  the  further  instruction  of 
farmers  regarding  the  methods  and  principles  of  cooperative  credit  and 
organization.  Said  board  is  hereby  authorized  to  use  a  reasonable  por- 
tion of  the  organization  fund  provided  in  section  thirty-three  of  this 
Act  for  the  objects  specified  in  this  paragraph,  and  is  instructed  to  lay 
before  the  Congress  at  each  session  its  recommendations  for  further 
appropriations  to  carry  out  said  objects. 

Federal  Land  Banks. 

Sec.  4.  That  as  soon  as  practicable  the  Federal  Farm  Loan  Board 
shall  divide  the  continental  L^nited  States,  excluding  Alaska,  into 
twelve  districts,  which  shall  be  known  as  Federal  land  bank  districts, 
and  may  be  designated  by  number.  Said  districts  shall  be  apportioned 
Avith  due  regard  to  the  farm  loan  needs  of  the  country,  but  no  such 
district  shall  contain  a  fractional  part  of  any  State.     The  boundaries 


Farm  Loan  Act  17 

thereof  may  be  readjusted  from. time  to  time  in  the  discretion  of  said 

board. 

The  Federal  Farm  Loan  Board  shall  establish  in  each  Federal  land 
bank  district  a  Federal  land  bank,  with  its  principal  office  located  in 
such  city  within  the  district  as  said  board  shall  designate.  Each  Federal 
land  bank  shall  include  in  its  title  the  name  of  the  city  in  which  it  is 
located.  Subject  to  the  approval  of  the  Federal  Farm  Loan  Board,  any 
Federal  land  bank  may  establish  branches  wathin  the  land  bank  district. 

Each  Federal  land  bank  shall  be  temporarily  managed  by  five 
directors  appointed  by  the  Federal  Farm  Loan  Board.  Said  directors 
shall  be  citizens  of  the  United  States  and  residents  of  the  district.  They 
shall  each  give  a  surety  bond,  the  premium  on  which  shall  be  paid  from 
the  funds  of  the  bank.  They  shall  receive  such  compensation  as  the 
Federal  Farm  Loan  Board  shall  fix.  They  shall  choose  from  their 
number,  by  majority  vote,  a  president,  a  vice-president,  a  secretary  and  a 
treasurer.  They  are  further  authorized  and  empowered  to  employ  such 
attorneys,  experts,  assistants,  clerks,  laborers,  and  other  employees  as 
they  may  deem  necessary,  and  to  fix  their  compensation,  subject  to  the 
approval  of  the  Federal  Farm  Loan  Board. 

Said  temporary  directors  shall,  under  their  hands,  forthwith  make 
an  organization  certificate,  which  shall  specifically  state: 

First.     The  name  assumed  by  such  bank. 

Second.  The  district  within  which  its  operations  are  to  be  carried 
on,  and  the  particular  city  in  which  its  principal  office  is  to  be  located. 

Third.  The  amount  of  capital  stock  and  the  number  of  shares  into 
which  the  same  is  to  be  divided:  Provided,  That  every  Federal  land 
bank  organized  under  this  Act  shall  by  its  articles  of  association  peraiit 
an  increase  of  its  capital  stock  from  time  to  time  for  the  purpose  of 
providing  for  the  issue  of  shares  to  national  farm  loan  associations  and 
stockholders  who  may  secure  loans  through  agents  of  Federal  land 
banks  in  accordance  with  the  provisions  of  this  Act. 

Fourth.  The  fact  that  the  certificate  is  made  to  enable  such  persons 
to  avail  themselves  of  the  advantages  of  this  Act.  The  organization 
certificate  shall  be  acknowledged  before  a  judge  or  clerk  of  some  court 
of  record  or  notary  public,  and  shall  be,  together  with  the  acknowl- 
edgment thereof,  authenticated  by  the  seal  of  such  court  or  notary, 
transmitted  to  the  Farm  Loan  Commissioner,  who  shall  record  and 
carefullv  preserve  the  same  in  hi^  office,  where  it  shall  be  at  all  times 
open  to  public  inspection. 

The  Federal  Farm  Loan  Board  is  authorized  to  direct  such  changes 
in  or  additions  to  any  such  organization  certificate,  not  inconsistent 
with  this  Act.  as  it  may  deem  necessary  or  expedient. 

Upon  duly  making  and  filing  such  organization  certificate  the  bank 
shall  become,  as  from  the  date  of  the  execution  of  its  organization 
certificate,  a  body  corporate,  and  as  such,  and  in  the  nzune  designated 
in  the  organization  certificate,  it  shall  have  power — 

(2) 


18  Important  Federal  Laws 

First.     To  adopt  and  use  a  corporate  seal. 

Second.  To  have  succession  until  it  is  dissolved  by  Act  of  Congress 
or  under  the  provisions  of  this  Act. 

Third.     To  make  contracts. 

Fourth.  To  sue  and  be  sued,  complain,  interplead,  and  defend,  in 
any  court  of  law  or  equity,  as  fully  as  natural  persons. 

Fifth.  To  elect  or  appoint  directors,  and  by  its  board  of  directors 
to  elect  a  president  and  a  vice  president,  appoint  a  secretary  and  a 
treasurer  and  other  officers  and  employees,  define  their  duties,  require 
bonds  of  them,  and  fix  the  penalty  thereof;  by  action  of  its  board  of 
directors  dismiss  such  officers  and  employees,  or  any  of  them,  at  pleas- 
ure and  appoint  others  to  fill  their  places. 

Sixth.  To  prescribe,  by  its  board  of  directors,  subject  to  the  super- 
vision and  regulation  of  the  Federal  Farm  Loan  Board,  by-laws  not 
inconsistent  with  law,  regulating  the  manner  in  which  its  stock  shall 
be  transferred,  its  directors  elected,  its  ofiicers  elected  or  appointed, 
its  property  transferred,  its  general  business  conducted,  and  the  priv- 
ileges granted  to  it  by  law  exercised  and  enjoyed. 

Seventh.  To  exercise,  by  its  board  of  directors  or  duly  authorized 
officers  or  agents,  subject  to  law,  all  such  incidental  powers  as  shall  be 
necessary  to  carry  on  the  business  herein  described. 

After  the  subscriptions  to  stock  in  any  Federal  land  bank  by 
national  farm  loan  associations,  hereinafter  authorized,  shall  have 
reached  the  sum  of  $100,000,  the  officers  and  directors  of  said  land 
bank  shall  be  chosen  as  herein  provided  and  shall,  upon  becoming  duly 
qualified,  take  over  the  management  of  said  land  bank  from  the  tem- 
porary officers  selected  under  this  section. 

The  board  of  directors  of  every  Federal  land  bank  shall  be  selected 
as  hereinafter  specified  and  shall  consist  of  nine  members,  each  hold- 
ing office  for  three  years.  Six  of  said  directors  shall  be  known  as  local 
directors,  and  shall  be  chosen  by  and  be  representative  of  national  farm 
loan  associations ;  and  the  remaining  three  directors  shall  be  known  as 
district  directors,  and  shall  be  appointed  by  the  Federal  Farm  Loan 
Board  and  represent  the  public  interest. 

At  least  two  months  before  each  election  the  Farm  Loan  Commis- 
sioner shall  notify  each  national  farm  loan  association  in  writing  that 
such  election  is  to  be  held,  giving  the  number  of  directors  to  be  elected 
for  its  district,  and  recjuesting  each  association  to  nominate  one  can- 
didate for  each  director  to  be  elected.  Within  ten  days  of  the  receipt 
of  such  notice  each  association  shall  forward  its  nominations  to  said 
Farm  Loan  Commissioner.  Said  commissioner  shall  prepare  a  list  of 
candidates  for  local  directors  consisting  of  the  twenty  persons  secur- 
ing the  hisfhest  number  of  votes  from  national  farm  loan  associations 
making  such  nominations. 

At  least  one  month  before  said  election  said  Farm  Loan  Commis- 
sioner  shall    mail    to    each    national    farm    loan    association    the    list    of 


Farm  Loan  Act  19 

candidates.  The  directors  of  each  national  farm  loan  association  shall 
cast  the  vote  of  said  association  for  as  many  candidates  on  said  list  as 
there  are  vacancies  to  be  filled,  and  shall  forward  said  vote  to  the  Farm 
Loan  Commissioner  within  ten  days  after  said  list  of  candidates  is 
received  by  them.  The  candidates  receiving  the  highest  number  of 
votes  shall  be  elected  as  local  directors.  In  case  of  a  tie  the  Farm  Loan 
Commissioner  shall  determine  the  choice. 

The  Federal  Farm  Loan  Board  shall  designate  one  of  the  district 
directors  to  serve  for  three  years  and  to  act  as  chairman  of  the  board 
of  directors.  It  shall  designate  one  of  said  directors  to  serve  for  a 
term  of  two  years  and  one  to  serve  for  a  term  of  one  year.  After  the 
first  appointments  each  district  director  shall  be  appointed  for  a  term 
of  three  years. 

At  the  first  regular  meeting  of  the  board  of  directors  of  each  Federal 
land  bank  it  shall  be  the  dutv  of  the  local  directors  to  designate  two 
of  the  local  directors  whose  term  of  ofifice  shall  expire  in  one  year  from 
the  date  of  such  meeting,  two  whose  term  of  office  shall  expire  in  two 
years  from  said  date,  and  two  whose  term  of  office  shall  expire  in  three 
years  from  said  date.  Thereafter  every  local  director  of  a  Federal 
land  bank  chosen  as  hereinbefore  provided  shall  hold  office  for  a  term 
of  three  years.  Vacancies  that  may  occur  in  the  board  of  directors 
shall  be  filled  for  the  unexpired  term  in  the  manner  provided  for  the 
original  selection  of  such  directors. 

Directors  of  Federal  land  banks  shall  have  been  for  at  least  two 
years  residents  of  the  district  for  which  they  are  appointed  or  elected, 
and  at  least  one  district  director  shall  be  experienced  in  practical  farm- 
ing and  actually  engaged  at  the  time  of  his  appointment  in  farming 
operations  within  the  district.  No  director  of  a  Federal  land  bank  shall, 
during  his  continuance  in  office,  act  as  an  officer,  director,  or  employee 
of  any  other  institution,  association,  or  partnership  engaged  in  banking 
or  in  the  business  of  making  or  selling  land  mortgage  loans. 

Directors  of  Federal  land  banks  shall  receive,  in  addition  to  any 
compensation  otherwise  provided,  a  reasonable  allowance  for  neces- 
sary expenses  in  attending  meetings  of  their  respective  boards,  to  be 
paid  by  the  respective  Federal  land  banks.  Any  compensation  that 
may  be  provided  by  boards  of  directors  of  Federal  land  banks  for 
directors,  officers,  or  employees  shall  be  subject  to  the  approval  of  the 
Federal  Farm  Loan  Board. 

Capital  Stock  of  Federal  Land  Banks. 

Sec.  5.  That  every  Federal  land  bank  shall  have,  before  begin- 
ning business,  a  subscribed  capital  of  not  less  than  $750,000.  The  Fed- 
eral Farm  Loan  Board  is  authorized  to  prescribe  the  times  and  conditions 
of  the  payment  of  subscriptions  to  capital  stock,  to  reject  any  subscrip- 
tion in  its  discretion,  and  to  require  subscribers  to  furnish  adequate 
security  for  the  payment  thereof. 


20  Important  Federal  Laws 

The  capital  stock  of  each  Federal  land  bank  shall  be  divided  into 
shares  of  $5  each,  and  may  be  subscribed  for  and  held  by  any  indi- 
vidual, firm,  or  corporation,  or  by  the  Government  of  any  State  or  of 
the  United  States. 

Stock  held  by  national  farm  loan  associations  shall  not  be  trans- 
ferred or  hypothecated,  and  the  certificates  therefor  shall  so  state. 

Stoclv  owned  by  the  Government  of  the  United  States  in  Federal 
land  baitks  shall  receive  no  dividends,  but  all  other  stock  shall  share 
in  dividend  distributions  without  preference.  Each  national  farm  loan 
association  and  the  Government  of  the  United  States  shall  be  entitled 
to  one  vote  for  each  share  of  stock  held  by  it  in  deciding  all  questions  at 
meetings  of  shareholders,  and  no  other  shareholder  shall  be  permitted  to 
vote.  Stock  owned  by  the  United  States  shall  be  voted  by  the  Farm 
Loan  Commissioner,  as  directed  by  the  Federal  Farm  Loan  Board. 

It  shall  be  the  duty  of  the  Federal  Farm  Loan  Board,  as  soon  as 
practicable  after  the  passage  of  this  Act,  to  open  books  of  subscrip- 
tion for  the  capital  stock  of  a  Federal  land  bank  in  each  Federal  land 
bank  district.  If  within  thirty  days  after  the  opening  of  said  books  any 
part  of  the  ntinimum  capitalization  of  $750,000  herein  prescribed  for 
Federal  land  banks  shaW  remain  unsubscribed,  it  shall  be  the  duty  of 
the  Secretary  of  the  Treasury  to  subscribe  the  balance  thereof  on  behalf 
of  the  United  States,  said  subscription  to  be  subject  to  call  in  whole  or 
in  part  by  the  board  of  directors  of  said  land  bank  upon  thirty  days' 
notice  with  the  appro^■al  of  the  Federal  Farm  Loan  Board ;  and  the 
Secretary  of  the  Treasury  is  hereby  authorized  and  directed  to  take  out 
shares  corresponding  to  the  unsubscribed  balance  as  called,  and  to  pay 
for  the  same  out  of  any  moneys  in  the  Treasury  not  otherwise  appro- 
priated. Thereafter  no  stock  shall  be  issued  except  as  hereinafter  pro- 
vided. 

After  the  subscriptions  to  capital  stock  by  national  farm  loan  asso- 
ciations siiall  amount  to  $750,000  in  any  Federal  land  bank,  said  bank 
shall  apply  semiannually  to  the  payment  and  retirement  of  the  shares 
of  stock  which  were  issued  to  represent  the  subscriptions  to  the  original 
capital  twenty-tive  per  centum  of  all  sums  thereafter  subscribed  to 
capital  stock  until  all  such  original  capital  stock  is  retired  at  par. 

At  least  twenty-five  per  centum  of  that  part  of  the  capital  of  any 
Federal  land  bank  for  which  stock  is  out-standing  in  the  name  of  national 
farm  loan  associations  shall  be  held  in  quick  a.ssets,  and  may  consist  of 
cash  in  the  vaults  of  said  land  bank,  or  in  deposits  in  member  banfe  of 
the  Federal  reserve  system,  or  in  readily  marketable  securities  which  are 
approved  under  rules  and  regulations  of  the  Federal  Farm  Loan  Board : 
Provided,  Tl>at  not  less  than  five  per  centum  of  such  capital  shall  be 
invested  in  United  States  Government  bonds. 

Govemment  Depositaries. 

Sec.  6.  Ttiat  all  Federal  land  banks  and  joint  stock  land  banks 
organized   under   this    Act,    when    designated    for    tshat   purpose   by   the 


Farm  Loan  Act  21 

Secretary  of  the  Treasury,  shall  be  depositaries  of  public  money,  except 
receipts  from  customs,  under  such  regulations  as  may  be  prescribed  by 
said  Secretary ;  and  they  may  also  be  employed  as  financial  agents  of  the 
Government;  and  they  shall  perform  all  such  reasonable  duties,  as 
depositaries  of  public  money  and  financial  agents  of  the  Government,  as 
may  be  required  of  them.  And  the  Secretary  of  the  Treasury  shall 
require  of  the  Federal  land  banks  and  joint  stock  land  banks  thus  desig- 
nated satisfactory  security,  by  the  deposit  of  United  States  bonds  or 
otherwise,  for  the  safekeeping  and  prompt  payment  of  the  public  money 
deposited  with  them,  and  for  the  faithful  performance  of  their  duties  as 
financial  agents  of  the  Government.  No  Government  funds  deposited 
under  the  provisions  of  this  section  shall  be  invested  in  mortgage  loans 
or  farm  loan  bonds. 

National  Farm  Loan  Association. 

Sec.  7 .  That  corporations,  to  be  known  as  national  farm  loan 
associations,  may  be  organized  by  persons  desiring  to  borrow  money  on 
farm  mortgage  security  under  the  terms  of  this  Act.  Such  persons  shall 
enter  into  articles  of  association  which  shall  specify  in  general  terms 
the  object  for  which  the  association  is  formed  and  the  territory  within 
which  its  operations  are  to  be  carried  on,  and  which  may  contain  any 
other  provision,  not  inconsistent  with  law,  which  the  association  may  see 
fit  to  adopt  for  the  regulation  of  its  business  and  the  conduct  of  its 
affairs.  Said  articles  shall  be  signed  by  the  persons  uniting  to  form  the 
association,  and  a  copy  thereof  shall  be  forwarded  to  the  Federal  land 
bank  for  the  district,  to  be  filed  and  preserved  in  its  office. 

Every  national  farm  loan  association  shall  elect,  in  the  manner  pre- 
scribed for  the  election  of  directors  of  national  banking  associations,  a 
board  of  not  less  than  five  directors,  who  shall  hold  office  for  the  same 
period  as  directors  of  national  banking  associations.  It  shall  be  the  duty 
of  said  board  of  directors  to  choose  in  such  manner  as  they  may  prefer 
a  secretary-treasurer,  who  shall  receive  such  compensation  as  said  board 
of  directors  shall  determine.  The  board  of  directors  shall  elect  a  presi- 
dent, a  vice  president,  and  a  loan  committee  of  three  members. 

The  directors  and  all  officers  except  the  secretary-treasurer  shall 
serve  without  compensation,  unless  the  payment  of  salaries  to  them 
shall  be  approved  by  the  Federal  Farm  Loan  Board.  All  officers  and 
directors  except  the  secretary-treasurer  shall,  during  their  term  of  office, 
be  bona  fide  residents  of  the  territory  within  which  the  association  is 
authorized  to  do  business,  and  shall  be  shareholders  of  the  association. 

It  shall  be  the  duty  of  the  secretary-treasurer  of  every  national  farm 
loan  association  to  act  as  custodian  of  its  funds  and  to  deposit  the  same 
in  such  bank  as  the  board  of  directors  may  designate,  to  pay  over  to  bor- 
rowers all  sums  received  for  their  aceount  from  the  Federal  land  bank 
upon  first  mortgage  as  in  this  Act  prescribed,  and  to  meet  all  other  obli- 
gations of  the  association,  subject  to  the  orders  of  the  board  of  directors 


22  Important  Federal  Laws 

and  in  accordance  with  the  by-laws  of  the  association.  It  shall  be  the 
duty  of  the  secretary-treasurer,  acting  under  the  direction  of  the  national 
farm  loan  association,  to  collect,  receipt  for.  and  transmit  to  the  Federal 
land  bank  payments  of  interest,  amortization  installments,  or  principal 
arising  out  of  loans  made  through  the  association.  He  shall  be  the  cus- 
todian of  the  securities,  records,  papers,  certificates  of  stock,  and  all 
documents  relating  to  or  bearing  upon  the  conduct  of  the  affairs  of  the 
association.  He  shall  furnish  a  suitable  surety  bond  to  be  prescribed  and  ap- 
proved by  the  Federal  Farm  Loan  Board  for  the  proper  performance  of 
the  duties  imposed  upon  him  under  this  Act,  which  shall  cover  prompt 
collection  and  transmission  of  funds.  He  shall  make  a  quarterly  report 
to  the  Federal  Farm  Loan  Board  upon  forms  to  be  provided  for  that 
purpose.  Upon  request  from  said  board  said  secretary-treasurer  shall 
furnish  information  regarding  the  condition  of  the  national  farm  loan 
association  for  which  he  is  acting,  and  he  shall  carry  out  all  duly  author- 
ized orders  of  said  board.  He  shall  assure  himself  from  time  to  time 
that  the  loans  made  through  the  national  farm  loan  association  of  which 
he  is  an  officer  are  applied  to  the  purposes  set  forth  in  the  application  of 
the  borrower  as  approved,  and  shall  forthwith  report  to  the  land  bank 
of  the  district  any  failure  of  any  borrower  to  comply  with  the  terms  of 
his  application  or  mortgage.  He  shall  also  ascertain  and  report  to  said 
bank  the  amount  of  any  delinquent  taxes  on  land  mortgaged  to  said  bank 
and  the  name  of  the  delinquent. 

The  reasonable  e.xpenses  of  the  secretary-treasurer,  the  loan  com- 
mittee, and  other  officers  and  agents  of  national  farm  loan  associations, 
and  the  salary  of  the  secretary-treasurer,  shall  be  paid  from  the  general 
funds  of  the  association,  and  the  board  of  directors  is  authorized  to  set 
aside  such  sums  as  it  shall  deem  requisite  for  that  purpose  and  for  other 
expenses  of  said  association.  When  no  such  funds  are  available,  the 
board  of  directors  may  levy  an  assessment  on  members  in  proportion  to 
the  amount  of  stock  held  by  each,  which  may  be  repaid  as  soon  as  funds 
are  available,  or  it  may  secure  an  advance  from  the  Federal  land  bank 
of  the  district,  to  be  repaid  with  interest  at  the  rate  of  six  per  centum 
per  annum,  from  dividends  belonging  to  said  association.  Said  Federal 
land  bank  is  hereby  authorized  to  make  such  advance  and  to  deduct  such 
repayment. 

Ten  or  more  natural  persons  who  are  the  owners,  or  about  to  become 
the  owners,  of  farm  land  qualified  as  security  for  a  mortgage  loan  under 
section  twelve  of  this  Act,  may  unite  to  form  a  national  farm  loan  asso- 
ciation. They  shall  organize  subject  to  the  requirements  and  the  con- 
ditions specified  in  this  section  and  in  section  four  of  this  Act,  so  far  as 
the  same  may  be  applicable:  Provided.  That  the  board  of  directors  may 
consist  of  five  members  only,  and  instead  of  a  secretary  and  a  treasurer 
there  shall  be  a  secretary-treasurer,  who  need  not  be  a  shareholder  of  the 
association. 


Farm  Loan  Act  23 

When  the  articles  of  association  are  forwarded  to  the  Federal  land 
bank  of  the  district  as  provided  in  this  section,  they  shall  be  accompanied 
by  the  written  report  of  the  loan  committee  as  required  in  section  ten  of 
this  Act,  and  by  an  affidavit  stating  that  each  of  the  subscribers  is  the 
owner,  or  is  about  to  become  the  owner,  of  farm  land  qualified  under 
section  twelve  of  this  x^ct  as  the  basis  of  a  mortgage  loan ;  that  the  loan 
desired  by  each  person  is  not  more  than  $10,000.  nor  less  than  $100  and 
that  the  aggregate  of  the  desired  loans  is  not  less  than  $20,000;  that  said 
affidavit  is  accompanied  by  a  subscription  to  stock  in  the  Federal  land 
bank  equal  to  five  per  centum  of  the  aggregate  sum  desired  on  mortgage 
loans;  and  that  a  temporary  organization  of  said  association  has  been 
formed  by  the  election  of  a  board  of  directors,  a  loan  committee  and  a 
secretary-treasurer  who  subscribes  to  said  affidavit,  giving  his  residence 
and  postoffice  address. 

Upon  receipt  of  such  articles  of  association,  with  the  accompanying 
affidavit  and  stock  subscription,  the  directors  of  said  Federal  land  bank 
shall  send  an  appraiser  to  investigate  the  solvency  and  character  of  the 
applicants  and  the  value  of  their  lands,  and  shall  then  determine  whether 
in  their  judgment  a  charter  should  be  granted  to  such  association.  They 
shall  forward  such  articles  of  association  and  the  accompanying  affidavit 
to  the  Federal  Farm  Loan  Board  with  their  recommendation.  If  said 
recommendation  is  unfavorable,  the  charter  shall  be  refused. 

If  said  recommendation  is  favorable,  the  Federal  Farm  Loan  Board 
shall  thereupon  grant  a  charter  to  the  applicants  therefor,  designating  the 
territory  in  which  such  association  may  make  loans,  and  shall  forward 
said  charter  to  said  applicants  through  said  Federal  land  bank :  Pro- 
vided, That  said  Federal  Farm  Loan  Board  may  for  good  cause  shown 
in  any  case  refuse  to  grant  a  charter. 

Upon  receipt  of  its  charter  such  national  farm  loan  association  shall 
"be  authorized  and  empowered  to  receive  from  the  Federal  land  bank  of 
the  district  sums  to  be  loaned  to  its  members  under  the  terms  and  con- 
ditions of  this  i\.ct. 

Whenever  any  national  farm  loan  association  shall  desire  to  secure 
ior  any  member  a  loan  on  first  mortgage  from  the  Federal  land  bank 
of  its  district  it  shall  subscribe  for  capital  stock  of  said  land  bank  to  the 
amount  of  five  per  centum  of  such  loan,  such  subscription  to  be  paid  in 
■cash  upon  the  granting  of  the  loan  by  said  land  bank.  Such  capital  stock 
shall  be  held  by  said  land  bank  as  collateral  security  for  the  payment  of 
said  loan,  but  said  association  shall  be  paid  any  dividends  accruino-  and 
payable  on  said  capital  stock  while  it  is  outstanding.  Such  stock  may, 
in  the  discretion  of  the  directors,  and  with  the  approval  of  the  Federal 
Farm  Loan  Board,  be  paid  off  at  par  and  retired,  and  it  shall  be  so  paid 
off  and  retired  upon  full  payment  of  the  mortgage  loan.  In  such  case 
the  national  farm  loan  association  shall  pay  oft'  at  par  and  retire  the  corre- 


24  Important  Federal  Laws 

spending  shares  of  its  stock  which  were  issued  when  said  land  bank 
stock  was  issued.  The  capital  stock  of  a  Federal  land  bank  shall  not  be 
reduced  to  an  amount  less  than  five  per  centum  of  the  principal  of  the 
outstanding  farm  loan  bonds  issued  by  it. 

Capital  Stock  of  National  Farm  Loan  Associations. 

Sec.  8.  That  the  shares  in  national  farm  loan  associations  shall  be 
of  the  par  value  of  $5  each. 

Every  shareholder  shall  be  entitled  to  one  vote  on  each  share  of 
stock  held  by  him  at  all  elections  of  directors  and  in  deciding  all  questions 
at  meetings  of  shareholders:  Provided,  That  the  maximum  number  of 
votes  which  may  be  cast  by  any  one  shareholder  shall  be  twenty. 

No  persons  but  borrowers  on  farm  land  mortgages  shall  be  members 
or  shareholders  of  national  farm  loan  associations.  Any  person  desiring 
to  borrow  on  farm  land  mortgage  through  a  national  farm  loan  associa- 
tion shall  make  application  for  membership  and  shall  subscribe  for  shares 
of  stock  in  such  farm  loan  association  to  an  amount  equal  to  five  per 
centum  of  the  face  of  the  desired  loan,  said  subscription  to  be  paid  in  cash 
upon  the  granting  of  the  loan.  If  the  application  for  membership  is  ac- 
cepted and  the  loan  is  granted,  the  applicant  shall,  upon  full  payment 
therefor,  become  the  owner  of  one  share  of  capital  stock  in  said  loan 
association  for  each  $100  of  the  face  of  his  loan,  or  any  major  fractional 
part  thereof.  Said  capital  stock  shall  be  paid  ofT  at  par  and  retired  upon 
full  payment  of  said  loan.  Said  capital  stock  shall  be  held  by  said  asso- 
ciation as  collateral  security  for  the  payment  of  said  loan,  but  said  bor- 
rower shall  be  paid  any  dividends  accruing  and  payable  on  said  capital 
stock  while  it  is  outstanding. 

Every  national  farm  loan  association  formed  under  this  Act  shall  by 
its  articles  of  association  provide  for  an  increase  of  its  capital  stock  from 
time  to  time  for  the  purpose  of  securing  additional  loans  for  its  members 
and  providing  for  the  issue  of  shares  to  borrowers  in  accordance  with 
the  provisions  of  this  Act.  Such  increases  shall  be  included  in  the 
quarterly  reports  to  the  Federal  Farm  Loan  Board. 

National  Farm  Loan   Associations. — Special   Provisions. 

Sec.  9.  That  any  person  whose  application  for  membership  is  ac- 
cepted by  a  national  farm  loan  association  shall  be  entitled  to  borrow 
money  on  farm  land  mortgage  upon  filing  his  application  in  accordance 
with  section  eight  and  otherwise  complying  with  the  terms  of  this  Act 
whenever  the  Federal  land  bank  of  the  district  has  funds  available  for 
that  purpose,  unless  said  land  bank  or  the  Federal  Farm  Loan  Board 
shall,  in  its  discretion,  otherwise  determine. 

Any  person  desiring  to  secure  a  loan  through  a  national  farm  loan 
association  under  the  provisions  of  this  Act  may,  at  his  option,  borrow 
from  the  Federal  land  bank  through  such  association  the  sum  necessary 
to  pay  for  shares  of  stock  subscribed  for  by  him  in  the  national  farm  loan 
association,  such  sum  to  be  made  a  part  of  the  face  of  the  loan  and  paid 


Farm  Loan  Act  25 

off  in  amortization  payments :  Provided,  however,  That  such  addition 
to  the  loan  shall  not  be  permitted  to  increase  said  loan  above  the  limita- 
tion imposed  in  subsection  fifth  of  section  twelve. 

Subject  to  rules  and  regulations  prescribed  by  the  Federal  Farm 
Loan  Board,  any  national  farm  loan  association  shall  be  entitled  to  retain 
as  a  commission  from  each  interest  payment  on  any  loan  indorsed  by  it 
an  amount  to  be  determined  by  said  board  not  to  exceed  one-eighth  of  one 
per  centum  semiannually  upon  the  unpaid  principal  of  said  loan,  any 
amounts  so  retained  as  commissions  to  be  deducted  from  dividends  pay- 
able to  such  farm  loan  association  by  the  Federal  land  bank,  and  to  make 
application  to  the  land  bank  of  the  district  for  loans  not  exceeding  in  the 
aggregate  one-fourth  of  its  total  stock  holdings  in  said  land  bank.  The 
Federal  land  banks  shall  have  power  to  make  such  loans  to  associations 
applying  therefor  and  to  charge  interest  at  a  rate  not  exceeding  six  per 
centum  per  annum. 

Shareholders  of  every  national  farm  loan  association  shaJl  be  held 
individually  responsible,  equally  and  ratably,  and  not  one  for  another, 
for  all  contracts,  debts  and  engagements  of  such  association  to  the  extent 
of  the  amount  of  stock  owned  by  them  at  the  par  value  thereof,  in  addi- 
tion to  the  amount  paid  in  and  represented  by  their  shares. 

After  a  charter  has  been  granted  to  a  national  farm  loan  associa- 
tion, any  natural  person  who  is  the  owner,  or  about  to  become  the  owner, 
of  farm  land  qualified  under  section  twelve  of  this  Act  as  the  basis  of  a 
mortgage  loan,  and  who  desires  to  borrow  on  a  mortgage  of  such  farm 
land,  may  become  a  member  of  the  association  by  a  two-thirds  vote  of 
the  directors  upon  subscribing  for  one  share  of  the  capital  stock  of  such 
association  foreach  $1(X)  of  the  face  of  his  proposed  loan  or  any  major 
fractional  part  thereof.  He  shall  at  the  same  time  file  with  the  secretarv'- 
treasurer  his  application  for  a  mortgage  loan,  giving  the  particulars  re- 
quired by  section  twelve  of  this  Act. 

Appraisal. 

Sec.  10.  That  whenever  an  application  for  a  mortgage  loan  is  made 
to  a  national  farm  loan  association,  it  shall  be  first  referred  to  the  loan 
committee  provided  for  in  section  seven  of  this  Act.  Said  loan  com- 
m.ittee  shall  examine  the  land  which  is  offered  as  security  for  the  desired 
loan  and  shall  make  a  detailed  written  report  signed  by  all  three  members, 
giving  the  appraisal  of  said  land  as  determined  by  them,  and  such  other 
information  as  may  be  required  by  rules  and  regulations  to  be  prescribed 
by  the  Federal  Farm  Loan  Board.  No  loan  shall  be  approved  by  the 
directors  unless  said  loan  committee  agrees  upon  a  favorable  report. 

The  written  report  of  said  loan  committee  shall  be  submitted  to  the 
Federal  land  bank,  together  with  the  application  for  the  loan,  and  the 
directors  of  said  land  bank  shall  examine  said  written  report  when  they 
pass  upon  the  loan  application  which  it  accompanies,  but  they  shall  not 
be  bound  by  said  appraisal. 


26  Important  Federal  Laws 

Before  any  mortgage  loan  is  made  by  any  Federal  land  bank,  or 
joint  stock  land  bank,  it  shall  refer  the  application  and  written  report 
of  the  loan  committee  to  one  or  more  of  the  land  bank  appraisers  ap- 
pointed under  the  authority  of  section  three  of  this  Act,  and  such  ap- 
praiser or  appraisers  shall  investigate  and  make  a  written  report  upon 
the  land  offered  as  security  for  said  loan.  No  such  loan  shall  be  made 
by  said  land  bank  unless  said  written  report  is  favorable. 

Forms  for  appraisal  reports  for  farm  loan  associations  and  land 
banks  shall  be  prescribed  by  the  Federal  Farm  Loan  Board. 

Land  bank  appraisers  shall  make  such  examinations  and  appraisals 
and  conduct  such  investigations,  concerning  farm  loan  bonds  and  first 
mortgages,  as  the  Federal  Farm  Loan  Board  shall  direct. 

No  borrower  under  this  Act  shall  be  eligible  as  an  appraiser  under 
this  section,  but  borrowers  may  act  as  members  of  a  loan  committee  in 
any  case  where  they  are  not  personally  interested  in  the  loan  under  con- 
sideration. When  any  member  of  a  loan  committee  or  of  a  board  of 
directors  is  interested,  directly  or  indirectly,  in  a  loan,  a  majority  of  the 
board  of  directors  of  any  national  farm  loan  association  shall  appoint 
a  substitute  to  act  in  his  place  in  passing  upon  such  loan. 

Powers  of  National  Farm  Loan  Associations. 

Sec.  11.  That  every  national  farm  loan  association  shall  have 
power : 

First.  To  indorse,  and  thereby  become  liable  for  the  payment  of, 
mortgages  taken  from  its  shareholders  by  the  Federal  land  bank  of  its 
district. 

Second.  To  receive  from  the  Federal  land  bank  of  its  district  funds 
advanced  by  said  land  bank,  and  to  deliver  said  funds  to  its  shareholders 
on  receipt  of  first  mortgages  qualified  under  section  twelve  of  this  Act. 

Third.  To  acquire  and  dispose  of  such  property,  real  or  personal,  as 
may  be  necessary  or  convenient  for  the  transaction  of  its  business. 

Fourth.  To  issue  certificates  against  deposits  of  current  funds  bear- 
ing interest  for  not  longer  than  one  year  at  not  to  exceed  four  per  centum 
per  annum  after  six  days  from  date,  convertible  into  farm  loan  bonds 
when  presented  at  the  Federal  land  bank  of  the  district  in  the  amount  of 
$25  or  any  multiple  thereof.  Such  deposits,  when  received,  shall  be 
forthvvith  transmitted  to  said  land  bank,  and  be  invested  by  it  in  the  pur- 
chase of  farm  loan  bonds  issued  by  a  Federal  land  bank  or  in  first  mort- 
gages as  defined  by  this  Act. 

Restrictions  on   Loans   Based   on   First   Mortgages. 

Sec.  12.  That  no  Federal  land  bank  organized  under  this  Act  shall 
make  loans  except  upon  the  following  terms  and  conditions : 

First.  Said  loans  shall  be  secured  by  duly  recorded  first  mortgages 
on  farm  land  within  the  land  bank  district  in  which  the  bank  is  situated. 

Second.  Every  such  mortgage  shall  contain  an  agreement  provid- 
ing for  the  repayment  of  the  loan  on  an  amortization  plan  by  means  of  a 


Farm  Loan  Act  27 

fixed  number  of  annual  or  semiannual  installments  sufficient  to  cover, 
first,  a  charge  on  the  loan,  at  a  rate  not  exceeding  the  interest  rate  in 
the  last  series  of  farm  loan  bonds  issued  by  the  land  bank  making  the 
loan ;  second,  a  charge  for  administration  and  profits  at  a  rate  not  exceed- 
ing one  per  centum  per  annum  on  the  unpaid  principal,  said  two  rates 
combined  constituting  the  interest  rate  on  the  mortgage  ;  and,  third,  such 
amounts  to  be  applied  on  the  principal  as  will  extinguish  the  debt  within 
an  agreed  period,  not  less  than  rive  years  nor  more  than  forty  years : 
Provided,  That  after  five  years  from  the  date  upon  which  a  loan  is  made 
additional  payments  in  sums  of  $25  or  any  multiple  thereof  for  the  re- 
duction of  the  principal,  or  the  payment  of  the  entire  principal,  may  be 
made  on  any  regular  installment  date  under  the  rules  and  regulations 
of  the  Federal  Farm  Loan  Board :  /\nd  provided  further,  That  before 
the  first  issue  of  farm  loan  bonds  by  any  land  bank  the  interest  rate  on 
mortgages  may  be  determined  in  the  discretion  of  said  land  bank  sub- 
ject to  the  provisions  and  limitations  of  this  Act. 

Third.  No  loan  on  mortgage  shall  be  made  under  this  Act  at  a  rate 
of  interest  exceeding  six  per  centum  per  annum,  exclusive  of  amortization 
payments. 

Fourth.  Such  loans  may  be  made  for  the  following  purposes  and 
for  no  other : 

(a)  To  provide  for  the  purchase  of  land  for  agricultural  uses. 

(b)  To  provide  for  the  purchase  of  equipment,  fertilizers  and  live 
stock  necessary  for  the  proper  and  reasonable  operation  of  the  mortgaged 
farm ;  the  term  "equipment"  to  be  defined  by  the  Federal  Farm  Loan 
Board. 

(c)  To  provide  buildings  and  for  the  improvement  of  farm  lands; 
the  term  "improvement"  to  be  defined  by  the  Federal  Farm  Loan  Board. 

(d)  To  liquidate  indebtedness  of  the  owner  of  the  land  mortgaged, 
existing  at  the  time  of  the  organization  of  the  first  national  farm  loan 
association  established  in  or  for  the  county  in  which  the  land  mortgaged 
is  situated,  or  indebtedness  subsequently  incurred  for  purposes  mentioned 
in  this  section. 

Fifth.  No  such  loan  shall  exceed  fifty  per  centum  of  the  value  of 
the  land  mortgaged  and  twenty  per  centum  of  the  value  of  the  permanent, 
insured  improvements  thereon,  said  value  to  be  ascertained  by  appraisal, 
as  provided  in  section  ten  of  this  Act.  In  making  said  appraisal  the 
value  of  the  land  for  agricultural  purposes  shall  be  the  basis  of  appraisal 
and  the  earning  power  of  said  land  shall  be  a  principal  factor. 

A  reappraisal  may  be  permitted  at  an}'  time  in  the  discretion  of  the 
Federal  land  bank,  and  such  additional  loan  may  be  granted  as  such  re- 
appraisal will  warrant  under  the  provisions  of  this  paragraph.  When- 
ever the  amount  of  the  loan  applied  for  exceeds  the  amount  that  may  be 
loaned  under  the  appraisal  as  herein  limited,  such  loan  may  be  granted 
to  the  amount  permitted  under  the  terms  of  this  paragraph  without  re- 
quiring a  new  application  or  appraisal. 


28  Important  Federal  Laws 

Sixth.  No  such  loan  shall  be  made  to  any  person  who  is  not  at  the 
time,  or  shortly  to  become,  engaged  in  the  cultivation  of  the  farm  mort- 
gaged. In  case  of  the  sale  of  the  mortgaged  land,  the  Federal  land  bank 
may  permit  said  mortgage  and  the  stock  interests  of  the  vendor  to  be 
assumed  by  the  purchaser.  In  case  of  the  death  of  the  mortgagor,  his 
heir  or  heirs,  or  his  legal  representative  or  representatives,  shall  have 
the  option,  within  sixty  days  of  such  death,  to  assume  the  mortgage  and 
stock  interests  of  the  deceased. 

Seventh.  The  amount  of  loans  to  any  one  borro\\'«r  shall  in  no  case 
exceed  a  maximum  of  $10,000,  nor  shall  any  loan  be  for  a  less  sum  than 

$100. 

Eighth.  Every  applicant  for  a  loan  under  the  terms  of  this  Act 
shall  make  application  on  a  form  to  be  prescribed  for  that  purpose  by  the 
Federal  Farm  Loan  Board,  and  such  applicant  shall  state  the  objects  to 
which  the  proceeds  of  said  loan  are  to  be  applied,  and  shall  afford  such 
other  infonnation  as  may  be  required. 

Ninth.  Every  borrower  shall  pay  simple  interest  on  defaulted  pay- 
ments at  the  rate  of  eight  per  centum  per  annum,  and  by  express  cove- 
nant in  his  mortgage  deed  shall  undertake  to  pay  when  due  all  taxes,  liens, 
judgments,  or  assessments  which  may  be  lawfully  assessed  against  the 
land  mortgaged.  Taxes,  liens,  judgments,  or  assessments  not  paid  when 
due,  and  paid  by  the  mortgagee,  shall  become  a  part  of  the  mortgage  debt 
and  shall  bear  simple  interest  at  the  rate  of  eight  per  centum  per  annum. 
Every  borrower  shall  undertake  to  keep  insured  to  the  satisfaction  of 
the  Federal  Farm  Loan  Board  all  buildings  the  value  of  which  was  a 
factor  in  determining  the  amount  of  the  loan.  Insurance  shall  be  made 
payable  to  the  mortgagee  as  its  interest  may  appear  at  time  of  loss,  and, 
at  the  option  of  the  mortgagor  and  subject  to  general  lobulations  of  the 
Federal  Farm  Loan  Board,  sums  so  received  may  bt  used  to  pay  for 
reconstruction  of  the  buildings  destroyed. 

Tenth.  Every  borrower  who  shall  be  granted  a  loan  under  the  pro- 
visions of  this  Act  shall  enter  into  an  agreement,  in  form  and  under  con- 
ditions to  be  prescribed  by  the  Federal  Farm  Loan  Board,  that  if  the 
whole  or  any  portion  of  his  loan  shall  be  expended  for  purposes  other 
than  those  specified  in  his  original  application,  or  if  the  borrower  shall 
be  in  default  in  respect  to  any  condition  or  covenant  of  the  mortgage,  the 
whole  of  said  loan  shall,  at  the  option  of  the  mortgagee,  become  due  and 
payable  forthwith :  Provided,  That  the  borrower  may  use  part  of  said 
loan  to  pay  for  his  stock  in  the  farm  loan  association,  and  the  land  bank 
holding  such  mortgage  may  permit  said  loan  to  be  used  for  any  purpose 
specified  in  subsection  fourth  of  this  section. 

Eleventh.  That  no  loan  or  the  mortgage  securing  the  same  shall  be 
impaired  or  invalidated  by  reason  of  the  exercise  of  any  power  by  any 
Federal  land  bank  or  national  farm  loan  association  in  excess  of  the 
powers  herein  granted  or  any  limitations  thiereon. 


Farm  Loan  Act  29 

Funds  transmitted  to  farm  loan  associations  by  Federal  land  banks 
to  be  loaned  to  its  members  shall  be  in  current  funds,  or  farm  loan  bonds, 
at  the  option  of  the  borrower. 

Powers  of  Federal  Land  Banks. 

Sec.  13.  That  every  Federal  land  bank  shall  have  power,  subject 
to  the  limitations  and  requirements  of  this  Act — 

First.  To  issue,  subject  to  the  approval  of  the  Federal  Farm  Loan 
Board,  and  to  sell  farm  loan  bonds  of  the  kinds  authorized  in  this  Act, 
to  buy  the  same  for  its  own  account,  and  to  retire  the  same  at  or  before 
maturity. 

Second.  To  invest  such  funds  as  may  be  in  its  possession  in  the 
purchase  of  qualified  first  mortgages  on  farm  lands  situated  within  the 
Federal  land  bank  district  within  which  it  is  organized  or  for  which  it  is 
acting. 

Third.  To  receive  and  to  deposit  in  trust  with  the  farm  loan  regis- 
trar for  the  district,  to  be  by  him  held  as  collateral  security  for  farm 
loan  bonds,  first  mortgages  upon  farm  land  qualified  under  section  twelve 
of  this  Act,  and  to  empower  national  farm  loan  associations,  or  duly 
authorized  agents,  to  collect  and  immediately  pay  over  to  said  land  banks 
the  dues,  interest,  amortization  installments  and  other  sums  payable 
under  the  terms,  conditions,  and  covenants  of  the  mortgages  and  of  the 
bonds  secured  tliereby. 

Fourth.     To  acquire  and  dispose  of — 

(a)  Sucli  property,  real  or  personal,  as  may  be  necessary  or  con- 
venient for  the  transaction  of  its  business,  which,  however,  may  be  in 
part  leased  to  others  for  revenue  purposes. 

(b)  Parcels  of  land  acquired  in  satisfaction  of  debts  or  purchased 
at  sales  under  judgments,  decrees,  or  mortgages  held  by  it.  But  no  such 
bank  shall  hold  title  and  possession  of  any  real  estate  purchased  or  ac- 
quired to  secure  any  debt  due  to  it,  for  a  longer  period  than  five  years, 
except  with  the  special  approval  of  the  Federal  Farm  Loan  Board  in 
writing. 

Fifth.  To  deposit  its  securities,  and  its  current  funds  subject  to 
check,  with  any  member  bank  of  the  Federal  Reserve  System,  and  to 
receive  interest  on  the  same  as  may  be  agreed. 

Sixth.  To  accept  deposits  of  securities  or  of  current  funds  from 
national  farm  loan  associations  holding  its  shares,  but  to  pay  no  interest 
on  such  deposits. 

Seventh.  To  borrow  money,  to  give  security  therefor,  and  to  pay 
interest  thereon. 

Eigi^th.     To  buy  and  sell  United  States  bonds. 

Ninth.  To  charge  applicants  for  loans  and  borrowers,  under  rules 
and  regulations  promulgated  by  the  Federal  Farm  Loan  Board,  reason- 
able fees  not  exceeding  the  actual  cost  of  appraisal  and  determination  of 


30  Important  Federal  Laws 

title.  Legal  fees  and  recording  charges  imposed  by  law  in  the  State 
where  the  land  to  be  mortgaged  is  located  may  also  be  included  in  the 
preliminary  costs  of  negotiating  mortgage  loans.  The  borrower  may  pay 
such  fees  and  charges  or  he  may  arrange  with  the  Federal  land  bank 
making  the  loan  to  advance  the  same,  in  which  case  said  expenses  shall 
be  made  a  part  of  the  face  of  the  loan  and  paid  off  in  amortization  pay- 
ments. Such  addition  to  the  loan  shall  not  be  permitted  to  increase  said 
loan  above  the  limitations  provided  in  section  twelve. 

Restrictions  on  Federal  Land  Banks. 

Sec.  14.     That  no  Federal  land  bank  shall  have  power — 

First.  To  accept  deposits  of  current  funds  payable  upon  demand 
except  from  its  own  stockholders,  or  to  transact  any  banking  or  other 
business  not  expressly  authorized  by  the  provisions  of  this  Act. 

Second.  To  loan  on  first  mortgage  except  through  national  farm 
loan  associations  as  provided  in  section  seven  and  section  eight  of  this 
.A.ct,  or  through  agents  as  provided  in  section  fifteen. 

Third.  To  accept  any  mortgages  on  real  estate  except  first  mort- 
gages created  sul:)iect  to  all  limitations  imposed  by  section  twelve  of  this 
Act,  and  those  taken  as  additional  security  for  existing  loans. 

Fourth.  To  issue  or  obligate  itself  for  outstanding  farm  loan  bonds 
in  excess  of  twenty  times  the  amount  of  its  capital  and  surplus,  or  to 
receive  from  anv  national  farm  loan  association  additional  mortgaees 
when  the  principal  remaining  unpaid  upon  mortgages  already  received 
from  such  association  shall  exceed  twenty  times  the  amount  of  its  capital 
stock  owned  by  such  association. 

Fifth.  To  demand  or  receive,  under  any  form  or  pretense,  any  com- 
mission or  charge  not  specifically  authorized  in  this  Act. 

Agents  of  Federal  Land  Banks. 

Sec.  15.  That  whenever,  after  this  Act  shall  have  been  in  effect 
one  year,  it  shall  appear  to  the  Federal  Farm  Loan  Board  that  national 
farm  loan  associations  have  not  been  formed,  and  are  not  likely  to  be 
formed,  in  any  locality,  because  of  peculiar  local  conditions,  said  board 
may,  in  its  discretion,  authorize  Federal  land  banks  to  make  loans  on 
farm  lands  through  agents  approved  by  said  board. 

Such  loans  shall  be  subject  to  the  same  conditions  and  restrictions 
as  if  the  same  were  made  through  national  farm  loan  associations,  and 
each  borrower  shall  contribute  five  per  centum  of  the  amount  of  his  loan 
to  the  capital  of  the  Federal  land  bank,  and  shall  become  the  owner  of 
as  much  capital  stock  of  the  land  bank  as  such  contribution  shall  warrant. 

No  agent  other  than  a  duly  incorporated  bank,  trust  company,  mort- 
gage company,  or  savings  institution,  chartered  by  the  State  in  which  it 
has  its  principal  office,  shall  be  employed  under  the  provisions  of  this 
section. 

Federal  land  banks  may  pay  to  such  agents  the  actual  expense  of 
appraising  the  land  oft'ered  as  security  for  a  loan,  examining  and  certi- 


Farm  Loan  Act  31 

fying  the  title  thereof,  and  making,  executing,  and  recording  the  mort- 
gage papers ;  and  in  addition  may  allow  said  agents  not  to  exceed  one- 
half  of  one  per  centum  per  annum  upon  the  unpaid  principal  of  said  loan, 
such  commission  to  be  deducted  from  dividends  payable  to  the  borrower 
on  his  stock  in  the  Federal  land  bank. 

Actual  expenses  paid  to  agents  under  the  provisions  of  this  section 
shall  be  added  to  the  face  of  the  loan  and  paid  oft'  in  amortization  pay- 
ments subject  to  the  limitations  provided  in  subsection  ninth  of  section 
thirteen  of  this  Act. 

Said  agents,  when  required  by  the  Federal  land  banks,  shall  collect 
and  forward  to  such  banks  without  charge  all  interest  and  amortization 
payments  on  loans  indorsed  by  them. 

Any  agent  negotiating  any  such  loan  shall  indorse  the  same  and 
become  liable  for  the  payment  thereof,  and  for  any  default  by  the  mort- 
gagor, on  the  same  terms  and  under  the  same  penalties  as  if  the  loan 
had  been  originally  made  by  said  agent  as  principal  and  sold  by  said  agent 
to  said  land  bank,  but  the  aggregate  of  the  unpaid  principal  of  mortgage 
loans  received  from  any  such  agent  shall  not  exceed  ten  times  its  capital 
and  surplus. 

If  at  any  time  the  district  represented  by  any  agent  under  the  pro- 
visions of  this  section  shall,  in  the  judgment  of  the  Federal  Farm  Loan 
Board,  be  adequately  served  by  national  farm  loan  associations,  no 
further  loans  shall  be  negotiated  therein  by  agents  under  this  section. 

Joint  Stock  Land  Banks. 

Sec.  16.  That  corporations,  to  be  known  as  joint  stock  land  banks, 
for  carrying  on  the  business  of  lending  on  farm  mortgage  security  and 
issuing  farm  loan  bonds,  may  be  formed  by  any  number  of  natural  per- 
sons not  less  than  ten.  They  shall  be  organized  subject  to  the  require- 
ments and  under  the  conditions  set  forth  in  section  four  of  this  Act,  so 
far  as  the  same  may  be  applicable :  Provided.  That  the  board  of  directors 
of  every  joint  stock  land  bank  shall  consist  of  not  less  than  five  members. 

Skareholders  of  every  joint  stock  land  bank  organized  under  this 
Act  shall  be  held  individually  responsible,  equally  and  ratably,  and  not 
one  for  another,  for  all  contracts,  debts  and  engagements  of  such  bank  to 
the  extent  of  the  amount  of  stock  owned  by  them  at  the  par  value  thereof, 
in  addition  to  the  amount  paid  in  and  represented  by  their  shares. 

Except  as  otherwise  provided,  joint  stock  land  banks  shall  have  the 
powers  of,  and  be  subject  to  all  the  restrictions  and  conditions  imposed 
on,  Federal  land  banks  by  this  Act,  so  far  as  such  restrictions  and  con- 
ditions are  applicable :  Provided,  however.  That  the  Government  of  the 
United  States  shall  not  purchase  or  subscribe  for  any  of  the  capital  stock 
of  any  such  bank;  and  each  shareholder  of  any  such  bank  shall  have  the 
same  voting  privileges  as  holders  of  shares  in  national  banking  associa- 
tions. 

No  joint  stock  land  bank  shall  have  power  to  issue  or  obligate  itself 


32  Important  Federal  Laws 

for  outstanding  farm  loan  bonds  in  excess  of  fifteen  times  the  amount 
of  its  capital  and  surplus,  or  tO'  rec'ei've  deposits  or  to  transact  any  bank- 
ing or  other  business  not  expressly  authorized  by  the  provisions  of  this 
Act. 

No  joint  stock  land  bank  shall  be  authorized  to  do  business  until 
capital  stock  to  the  amount  of  at  least  $250,000  has  been  subscribed,  one- 
half  thereof  paid  in  cash  and  the  balance  subject  to  call  by  the  board  of 
directors,  and  a  charter  has  been  issued  to  it  by  the  Federal  Farm  Loan 
Board. 

No  joint  stock  land  bank  shall  issue  any  bonds  until  after  the  capital 
stock  is  entirely  paid  up. 

Farm  loan  bonds  issued  by  joint  stock  land  banks  shall  be  so  engraved 
as  to  be  readily  distinguished  in  form  and  color  from  farm  loan  bonds 
issued  by  Federal  land  banks,  and  shall  otherwise  bear  sucli  distinguish- 
ing marks  as  the  Federal  Farm  Loan  Board  shall  direct. 

Joint  stock  land  banks  shall  not  be  subject  to  the  provisions  of  sub- 
section (b)  of  section  seventeen  of  this  Act  as  to  interest  rates  on  mort- 
gage, loans  or  farm  loan  bonds,  nor  to  the  provisions  of  subsections  first, 
fourth,  sixth,  seventh  and  tenth  of  section  tAvelve  as  to  restrictions  on 
mortgage  loans :  Provided,  however,  That  no  loans  shall  be  made  which 
are  not  secured  by  first  mortgages  on  farm  lands  within  the  State  in 
which  such  joint  stock  land  bank  has  its  principal  office,  or  within  some 
one  State  contiguous  to  such  State.  Such  joint  stock  land  banks  shall  be 
subject  to  all  other  restrictions  on  mortgage  loans  imposed  on  Federal 
land  banks  in  section  twelve  of  this  Act. 

Joint  stock  land  banks  shall  in  no  case  charge  a  rate  of  interest  on 
farm  loans  exceeding  by  more  than  one  per  centum  the  rate  of  interest 
established  for  the  last  series  of  farm  loan  bonds  issued  by  them. 

Joint  stock  land  banks  shall  in  no  case  demand  or  receive,  under 
any  fonn  or  pretense,  any  commission  or  charge  not  specifically  author- 
ized in  this  Act. 

Each  joint  stock  land  bank  organized  under  this  Act  shall  have 
authority  to  issue  bonds  based  upon  mortgages  taken  by  it  in  accordance 
with  the  terms  of  this  Act.  .Such  bonds  shall  be  in  form  prescribed  by 
the  Federal  Farm  Loan  Board,  and  it  shall  be  stated  in  such  bonds  that 
such  bank  is  organized  under  section  sixteen  of  this  Act,  is  under  Federal 
supervision,  and  operates  under  the  provisions  of  this  Act. 

Powers  of  Federal  Farm  Loan  Board. 

Sec.  17.     That  the  Federal  Farm  Loan  Board  shall  have  power — 

(a)  To  organize  and  charter  Federal  land  banks,  and  to  charter 
national  farm  loan  associations  and  joint  stock  land  banks  subject  to  the 
provisions  of  this  Act,  and  in  its  discretion  to  authorize  them  to  increase 
their  capital  stock. 

(b)  To  review  and  alter  at  its  discretion  the  rate  of  interest  to  be 
charged  by  Federal  land  banks  for  loans  made  by  them  under  the  pro- 
visions of  this  Act,  said  rates  to  be  uniform  so  far  as  practicable. 


Farm  Loan  Act  33 

(c)  To  grant  or  refuse  to  Federal  land  banks,  or  joint  stock  land 
banks,  authority  to  make  any  specific  issue  of  farm  loan  bonds. 

(d)  To  make  rules  and  regulations  respecting  the  charges  made  to 
borrowers  on  loans  under  this  Act  for  expenses  in  appraisal,  determina- 
tion of  title  and  recording. 

(e)  _  To  require  reports  and  statements  of  condition  and  to  make 
examinations  of  all  banks  or  associations  doing  business  under  the  pro- 
visions of  this  Act. 

(f)  To  prescribe  the  form  and  terms  of  farm  loan  bonds,  and  the 
form,  terms  and  penal  sums  of  all  surety  bonds  required  under  this  Act 
and  of  such  other  surety  bonds  as  they  shall  deem  necessary,  such  surety 
bonds  to  cover  financial  loss  as  well  as  faithful  performance  of  duty. 

(g)  To  require  Federal  land  banks  to  pay  forthwith  to  any  Fed- 
eral land  bank  their  equitable  proportion  of  any  sums  advanced  bv  said 
land  bank  to  pay  the  coupons  of  any  other  land  bank,  basing  said  required 
payments  on  the  amount  of  farm  loan  bonds  issued  by  each  land  bank  and 
actually  outstanding  at  the  time  of  such  requirement. 

(h)  To  suspend  or  to  remove  for  cause  any  district  director  or 
any  registrar,  appraiser,  examiner,  or  other  official  appointed  by  said 
board  under  authority  of  section  three  of  this  Act,  the  cause  of  such 
suspension  or  removal  to  be  communicated  forthwith  in  writing  by  the 
Federal  Farm  Loan  Board  to  the  person  suspended  or  removed,  and  in 
case  of  a  district  director  to  the  proper  Federal  land  bank. 

(i)  To  exercise  general  supervisory  authority  over  the  Federal  land 
banks,  the  national  farm  loan  associations,  and  the  joint  stock  land  banks 
herein  provided  for. 

(j)  To  exercise  such  incidental  powers  as  shall  be  necessary  or 
requisite  to  fulfill  its  duties  and  carry  out  the  purposes  of  this  Act. 

Applications  for  Farm  Loan  Bonds. 

^  Sec.  18.  That  any  Federal  land  bank,  or  joint  stock  land  bank, 
which  shall  have  voted  to  issue  farm  loan  bonds  under  this  Act,  shall 
make  written  application  to  the  Federal  Farm  Loan  Board,  through  the 
farm  loan  registrar  of  the  district,  for  approval  of  such  issue.  With 
said  application  said  land  bank  shall  tender  to  said  farm  loan  reo-istrar 
as  collateral  security  first  mortgages  on  farm  lands  qualified  under  the 
provisions  of  section  twelve,  section  fifteen,  or  section  sixteen  of  this  Act, 
or  United  States  Goveniment  bonds,  not  less  in  aggregate  amount  than 
the  sum  of  the  bonds  proposed  to  be  issued.  Said  bank  shall  furnish 
with  such  mortgages  a  schedule  containing  a  description  thereof  and  such 
further  information  as  may  be  prescribed  by  the  Federal  Farm  Loan 
Board. 

L'pon  receipt  of  such  application  said  farm  loan  registrar  shall  verify 

said  schedule  and  shall  transmit  said  application  and  said  schedule  to  the 

Federal  Farm  Loan  Board,  giving  such  further  information  pertaining 

thereto  as  he  may  possess.     The  Federal  Farm  Loan  Board  shall  forth- 

(3) 


34  Important  Federal  Laws 

with  cause  to  be  made  such  investigation  and  appraisement  of  the  secur- 
ities tendered  as  it  shall  deem  wise,  and  it  shall  grant  in  whole  or  in  part, 
or  reject  entirely,  such  application. 

The  Federal  Farm  Lx)an  Board  shall  promptly  transmit  its  decision 
as  to  any  issue  of  farm  loan  bonds  to  the  land  bank  applying  for  the  same 
and  to  the  farm  loan  registrar  of  the  district.  Said  registrar  shall  fur- 
nish, in  writing,  such  information  regarding  any  issue  of  farm  loan  bonds 
as  the  Federal  P'arm  Loan  Board  may  at  any  time  require. 

No  issue  of  farm  loan  bonds  shall  be  authorized  unless  the  Federal 
Farm  Loan  Board  shall  approve  such  issue  in  writing. 

Issue  of  Farm  Loan  Bonds. 

Sec.  19.  That  whenever  any  farm  loan  registrar  shall  receive  from 
the  Federal  Farm  Loan  Board  notice  that  it  has  approved  any  issue  of 
farm  loan  bonds  under  the  provisions  of  section  eighteen  he  shall  forth- 
with take  such  steps  as  may  be  necessary,  in  accordance  with  the  provi- 
sions of  this  Act,  to  insure  the  prompt  execution  of  said  bonds  and  the 
delivery  of  the  same  to  the  land  bank  applying  therefor. 

Whenever  the  Federal  Farm  Loan  Board  shall  reject  entirely  any 
application  for  an  issue  of  farm  loan  bonds,  the  first  mortgages  and  bonds 
tendered  to  the  farm  loan  registrar  as  collateral  security  therefor  shall 
be  forthwith  returned  to  said  land  bank  by  him. 

Whenever  the  Federal  Farm  Loan  Board  shall  approve  an  issue  of 
farm  loan  bonds,  the  farm  loan  registrar  having  the  custody  of  the  first 
mortgages  and  bonds  tendered  as  collateral  security  for  such  issue  of 
bonds  shall  retain  in  his  custody  those  first  mortgages  and  bonds  which 
are  to  be  held  as  collateral  security,  and  shall  return  to  the  bank  owning 
the  same  any  of  said  mortgages  and  bonds  which  are  not  to  be  held  by 
him  as  collateral  security.  The  land  bank  which  is  to  issue  said  farm 
loan  bonds  shall  transfer  to  said  registrar,  by  assignment,  in  trust,  all  first 
mortgages  and  bonds  which  are  to  be  held  by  said  registrar  as  collateral 
security,  said  assignment  providing  for  the  right  of  redemption  at  any 
time  by  payment  as  provided  in  this  Act  and  reserving  the  right  of  substi- 
tution of  other  mortgages  qualified  under  sections  twelve,  fifteen  and  six- 
teen of  this  Act.  Said  mortgages  and  bonds  shall  be  deposited  in  such 
deposit  vault  or  bank  as  the  Federal  Farm  Loan  Board  shall  approve, 
subject  to  the  control  of  said  registrar  and  in  his  name  as  trustee  for  the 
bank  issuing  the  farm  loan  bonds  and  for  the  prospective  holders  of  said 
farm  loan  bonds. 

No  mortgage  shall  be  accepted  by  a  farm  loan  registrar  from  a  land 
bank  as  part  of  an  ofifering  to  secure  an  issue  of  farm  loan  bonds,  either 
originally  or  by  substitution,  except  first  mortgages  made  subject  to  the 
conditions  prescribed  in  said  sections  twelve,  fifteen  and  sixteen. 

It  shall  be  the  duty  of  each  farm  loan  registrar  to  see  that  the  farm 
loan  bonds  delivered  by  him  and  outstanding  do  not  exceed  the  amount 
of  collateral  security  pledged  therefor.     Such  registrar  may,  in  his  dis- 


Farm  Loan  Act  35 

cretion,  temporarily  accept,  in  place  of   mortgages  withdrawn,  United 
States  Government  bonds  or  cash. 

The  Federal  Farm  Loan  Board  may,  at  any  time,  call  upon  any  land 
bank  for  additional  security  to  protect  the  bonds  issued  by  it. 

Form  of  Farm  Loan  Bonds. 

Sec.  20.  That  bonds  provided  for  in  this  Act  shall  be  issued  in 
denominations  of  S25,  $50,  $100,  $500  and  $1,000;  they  shall  run  for 
specified  minimum  and  maximum  periods,  subject  to  payment  and  retire- 
ment, at  the  option  of  the  land  bank,  at  any  time  after  five  years  from  the 
date  of  their  issue.  They  shall  have  interest  coupons  attached,  payable 
semiannually  and  shall  be  issued  in  series  of  not  less  than  $50,000,  the 
amount  and  terms  to  be  fixed  by  the  Federal  Farm  Loan  Board.  They 
shall  bear  a  rate  of  interest  not  to  exceed  five  per  centum  per  annum. 

The  Federal  Farm  Loan  Board  shall  prescribe  rules  and  regulations 
concerning  the  circumstances  and  manner  in  which  farm  loan  bonds  shall 
be  paid  and  retired  under  the  provisions  of  this  Act. 

Farm  loan  bonds  shall  be  delivered  through  the  registrar  of  the  dis- 
trict to  the  bank  applying  for  the  same. 

In  order  to  furnish  farm  loan  bonds  for  delivery  at  the  Federal  land 
banks  and  joint  stock  land  banks,  the  Secretary  of  the  Treasury  is  hereby 
authorized  to  prepare  suitable  bonds  in  such  form,  subject  to  the  provi- 
sions of  this  Act,  as  the  Federal  Farm  Loan  Board  may  approve,  such 
bonds  when  prepared  to  be  held  in  the  Treasury  subject  to  delivery  upon 
order  of  the  Federal  Farm  Loan  Board.  The  engraved  plates,  dies,  bed- 
pieces,  and  so  forth,  executed  in  connection  therewith  shall  remain  in 
the  custody  of  the  Secretary  of  the  Treasury.  Any  expenses  incurred  in 
the  preparation,  custody  and  delivery  of  such  farm  loan  bonds  shall  be 
paid  by  the  Secretary  of  the  Treasury  from  any  funds  in  the  Treasury 
not  otherwise  appropriated:  Provided,  however.  That  the  Secretary 
shall  be  reimbursed  for  such  expenditures  by  the  Federal  Farm  Loan 
Board  through  assessment  upon  the  farm  land  banks  in  proportion  to 
the  work  executed.  They  may  be  exchanged  into  registered  bonds  of 
any  amount,  and  re-exchanged  into  coupon  bonds,  at  the  option  of  the 
holder,  under  rules  and  regulations  to  be  prescribed  by  the  Federal  Farm 
Loan  Board. 

Special  Provisions  of  Farm  Loan  Bonds. 

Sec.  21.  That  each  land  bank  shall  be  bound  in  all  respects  by  the 
acts  of  its  officers  in  signing  and  issuing  farm  loan  bonds,  and  by  the  acts 
of  the  Federal  Farm  Loan  Board  in  authorizing  their  issue. 

Every  Federal  land  bank  issuing  farm  loan  bonds  shall  be  primarily 
liable  therefor,  and  shall  also  be  liable,  upon  presentation  of  farm  loan 
bond  coupons,  for  interest  payments  due  upon  any  farm  loan  bonds  issued 
by  other  Federal  land  banks  and  remaining  unpaid  in  consequence  of  the 
default  of  such  other  land  banks ;  and  every  such  bank  shall  likewise  be 
liable  for  such  portion  of  the  principal  of  farm  loan  bonds  so  issued  as 


36  Important  Federal  Laws 

shall  not  be  paid  after  the  assets  of  any  such  other  land  banks  shall  have 
been  liquidated  and  distributed:  Provided,  That  such  losses,  if  any, 
either  of  interest  or  of  principal,  shall  be  assessed  by  the  Federal  Farm 
Loan  Board  against  solvent  land  banks  liable  therefor  in  proportion  to 
the  amount  of  farm  loan  bonds  which  each  may  have  outstanding  at  the 
time  of  such  assessment. 

Every  Federal  land  bank  shall  by  appropriate  action  of  its  board  of 
directors,  duly  recorded  in  its  minutes,  obligate  itself  to  become  liable 
on  farm  loan  bonds  as  provided  in  this  section. 

Every  farm  loan  bond  issued  by  a  Federal  land  bank  shall  be  signed 
by  its  president  and  attested  by  its  secretary,  and  shall  contain  in  the 
face  thereof  a  certificate  signed  by  the  Farm  Loan  Commissioner  to  the 
efifect  that  it  is  issued  under  the  authority  of  the  Federal  Farm  Loan  Act, 
has  the  approval  in  form  and  issue  of  the  Federal  Farm  Loan  Board,  and 
is  legal  and  regular  in  all  respects;  that  it  is  not  taxable  by  National, 
State,  municipal  or  local  authority;  that  it  is  issued  against  collateral 
security  of  United  States  Government  bonds,  or  indorsed  first  mortgages 
on  farm  lands,  at  least  equal  in  amount  to  the  bonds  issued ;  and  that  all 
Federal  land  banks  are  liable  for  the  payment  of  each  bond.  • 

Application  of  Amortization  and  Interest  Payments. 

Sec.  22.  That  whenever  any  Federal  land  bank,  or  joint  stock  land 
bank,  shall  receive  any  interest,  amortization  or  other  payments  upon  any 
first  mortgage  or  bond  pledged  as  collateral  security  for  the  issue  of  farm 
loan  bonds,  it  shall  forthwith  notify  the  farm  loan  registrar  of  the  items 
so  received.  Said  registrar  shall  forthwith  cause  such  payment  to  be 
duly  credited  upon  the  mortgage  entitled  to  such  credit.  Whenever  any 
such  mortgage  is  paid  in  full,  said  registrar  shall  cause  the  same  to  be 
canceled  and  delivered  to  the  proper  land  bank,  which  shall  promptly 
satisfy  and  discharge  the  lien  of  record  and  transmit  such  canceled  mort- 
gage to  the  original  maker  thereof,  or  his  heirs,  administrators,  executors 
or  assigns. 

Upon  written  application  by  any  Federal  land  bank,  or  joint  stock 
land  bank,  to  the  farm  loan  registrar,  it  may  be  permitted,  in  the  discre- 
tion of  said  registrar,  to  withdraw  any  mortgages  or  bonds  pledged  as 
collateral  security  under  this  Act  and  to  substitute  therefor  other  similar 
mortgages  or  United  States  Government  bonds  not  less  in  amount  than 
the  mortgages  or  bonds  desired  to  be  withdrawn. 

Whenever  any  farm  loan  bonds,  or  coupons  or  interest  payments  of 
such  bonds  are  due  under  their  terms,  they  shall  be  payable  at  the  land 
bank  bv  which  they  were  issued,  in  gold  or  lawful  money,  and  upon  pay- 
ment shall  be  duly  canceled  by  said  bank.  At  the  discretion  of  the  Fed- 
eral Farm  Loan  Board,  payment  of  any  farm  loan  bond  or  coupon  or 
interest  payment  may,  however,  be  authorized  to  be  made  at  any  Federal 
land  bank,  any  joint' stock  land  bank,  or  any  other  bank,  under  rules  and 
regulations  to  be  prescribed  by  the  Federal  Farm  Loan  Board. 


Farm  Loan  Act  37 

When  any  land  bank  shall  surrender  to  the  proper  farm  loan  regis- 
trar any  farm  loan  bonds  of  any  series,  canceled  or  uncanceled,  said 
land  bank  shall  be  entitled  to  withdraw  first  mortgages  and  bonds  pledged 
as  collateral  security  for  any  of  said  series  of  farm  loan  bonds  to  an 
amount  equal  to  the  farm  loan  bonds  so  surrendered,  and  it  shall  be  the 
duty  of  said  registrar  to  permit  and  direct  the  delivery  of  such  mort- 
gages and  bonds  to  such  land  bank.  ,ti 

Interest  payments  on  hypothecated  first  mortgages  shall  be  at  the 
disposal  of  the  land  bank  pledging  the  same,  and  shall  be  available  for  the 
payment  of  coupons  and  the  interest  of  farm  loan  bonds  as  they  become 
due. 

Whenever  any  bond  matures,  or  the  interest  on  any  registered  bond 
is  due,  or  the  coupon  on  any  coupon  bond  matures,  and  the  same  shall 
be  presented  for  payment  as  provided  in  this  Act,  the  full  face  value 
thereof  shall  be  paid  to  the  holder. 

Amortization  and  other  payments  on  the  principal  of  first  mortgages 
held  by  a  farm  loan  registrar  as  collateral  security  for  the  issue  of  farm 
loan  bonds  shall  constitute  a  trust  fund  in  the  hands  of  the  Federal  land 
bank  or  joint  stock  land  bank  receiving  the  same,  and  shall  be  applied 
or  employed  as  follows  : 

In  the  case  of  a  Federal  land  bank — 

(a)  To  pay  ofif  farm  loan  bonds  issued  by  said  bank  as  thev  mature. 

(b)  To  purchase  at  or  below  par  farm  loan  bonds  issued  by  said 
bank  or  by  any  other  Federal  land  bank. 

_(c)  To  loan  on  first  mortgages  on  farm  lands  within  the  land  bank 
district,  qualified  under  this  Act  as  collateral  security  for  an  issue  of 
farm  loan  bonds. 

(d)     To  purchase  United  States  Government  bonds. 

In  the  case  of  a  joint  stock  land  bank — 

(a)  To  pay  off  farm  loan  bonds  issued  by  said  bank  as  they  mature. 

(b)  To  purchase  at  or  below  par  farm  loan  bonds. 

(c)  To  loan  on  first  mortgages  qualified  under  section  sixteen  of 
this  Act. 

(d)  To  purchase  United  States  Government  bonds. 

The  farm  loan  bonds,  first  mortgages,  United  States  Government 
bonds,  or  cash  constituting  the  trust  fund  aforesaid,  shall  be  forthwith 
deposited  with  the  farm  loan  registrar  as  substituted  collateral  security 
in  place  of  the  sums  paid  on  the  principal  of  indorsed  mortgages  held  by 
him  in  trust. 

Every  Federal  land  bank,  or  joint  stock  land  bank,  shall  notify  the 
farm  loan  registrar  of  the  disposition  of  all  payments  made  on  the  prin- 
cipal of  mortgages  held  as  collateral  security  for  an  issue  of  farm  loan 
bonds,  and  said  registrar  is  authorized,  at  his  discretion,  to  order  any  of 
such  payments,  or  the  proceeds  thereof,  wherever  deposited  or  however 
invested,  to  be  immediately  transferred  to  his  account  as  trustee  aforesaid. 


38  Important  Federal  Laws 

Reserves  and  Dividends  of  Land  Banks. 

Sec.  23.  That  every  Federal  land  bank,  and  every  joint  stock  land 
bank,  shall  semiannually  carry  to  reserve  account  twenty-five  per  centum 
of  its  net  earnings  until  said  reserve  account  shall  show  a  credit  balance 
equal  to  twenty  per  centum  of  the  outstanding  capital  stock  of  said  land 
bank.  Whenever  said  reserve  shall  have  been  impaired,  said  balance  of 
twenty  per  centum  shall  be  fully  restored  before  any  dividends  are  paid. 
After  said  reserve  has  reached  the  sum  of  twenty  per  centum  of  the  out- 
standing capital  stock,  five  per  centum  of  the  net  earnings  shall  be  an- 
nually added  thereto.  For  the  period  of  two  years  from  the  date  when 
any  default  occurs  in  the  payment  of  the  interest,  amortization  install- 
ments, or  principal  on  any  first  mortgage,  by  both  mortgagor  and  indorser, 
the  amount  so  defaulted  shall  be  carried  to  a  suspense  account,  and  at  the 
end  of  the  two-year  period  specified,  unless  collected,  shall  be  debited  to 
reserve  account. 

After  deducting  the  twenty-five  per  centum  or  the  five  per  centum 
hereinbefore  directed  to  be  deducted  for  credit  to  reserve  account,  any 
Federal  land  bank  or  joint  stock  land  bank  may  declare  a  dividend  to 
shareholders  of  the  whole  or  any  part  of  the  balance  of  its  net  earnings. 
The  reserves  of  land  banks  shall  be  invested  in  accordance  with  rules 
and  regulations  to  be  prescribed  by  the  Federal  Farm  Loan  Board. 
Reserve  and  Dividends  of  National  Farm  Loan  Associations. 

Sec.  24.  That  everv^  national  farm  loan  association  shall,  out  of  its 
net  earnings,  semi-annually  carry  to  reserve  account  a  sum  not  less  than 
ten  per  centum  of  such  net  earnings  until  said  reserve  account  shall  show 
a  credit  balance  equal  to  twenty  per  centum  of  the  outstanding  capital 
stock  of  said  association. 

Whenever  said  reserve  shall  have  been  impaired,  said  credit  balance 
of  twenty  per  centum  shall  be  fully  restored  before  any  dividends  are 
paid.  After  said  reserve  has  reached  said  sum  of  twenty  per  centum, 
two  per  centum  of  the  net  earnings  shall  be  annually  added  thereto. 

After  deducting  the  ten  per  centum  or  the  two  per  centum  herein- 
before directed  to  be  credited  to  reserve  account,  said  association  may, 
at  its  discretion,  declare  a  dividend  to  shareholders  of  the  whole  or  any 
part  of  the  balance  of  said  net  earnings. 

The  reserve  of  farm  loan  associations  shall  be  invested  in  accord- 
ance with  rules  and  regulations  to  be  prescribed  by  the  Federal  Farm 
Loan  Board. 

Whenever  any  farm  loan  association  shall  be  voluntarily  liquidated 
a  sum  equal  to  its  reserve  account  as  herein  required  shall  be  paid  to 
and  become  the  property  of  the  Federal  land  bank  in  which  such  loan 
association  may  be  a  shareholder. 

Defaulted  Loans. 

Sec.  25.  That  if  there  shall  be  default  under  the  terms  of  any  in- 
dorsed first  mortgage  held  by  a  Federal  land  bank  under  the  provisions 
of  this  Act,  the  national  farm  loan  association  or  agent  through  which 


Farm  Loan  Act  39 

said  mortgage  was  received  by  said  Federal  land  bank  shall  be  notified 
of  said  default.  Said  association  or  agent  may  thereupon  be  required, 
within  thirty  days  after  such  notice,  to  make  good  said  default,  either  by 
payment  of  the  amount  unpaid  thereon  in  cash,  or  by  the  substitution 
of  an  equal  amount  of  farm  loan  bonds  issued  by  said  land  bank,  with  all 
unmatured  coupons  attached. 

Exemption  From  Taxation, 

Sec.  26.  That  every  Federal  land  bank  and  every  national  farm 
loan  association,  including  the  capital  and  reserve  or  surplus  therein  and 
the  income  derived  therefrom,  shall  be  exempt  from  Federal,  State, 
municipal  and  local  taxation,  except  taxes  upon  real  estate  held,  pur- 
chased or  taken  by  said  bank  or  association  under  the  provisions  of  sec- 
tion eleven  and  section  thirteen  of  this  Act.  First  mortgages  executed 
to  Federal  land  banks  or  to  joint  stock  land  banks  and  farm  loan  bonds 
issued  under  the  provisions  of  this  Act,  shall  be  deemed  and  held  to  be 
instrumentalities  of  the  Government  of  the  United  States,  and  as  such 
they  and  the  income  derived  therefrom  shall  be  exempt  from  Federal, 
State,  municipal  and  local  taxation. 

Nothing  herein  shall  prevent  the  shares  in  any  joint  stock  land  bank 
from  being  included  in  the  valuation  of  the  personal  property  of  the 
owner  or  holder  of  such  shares,  in  assessing  taxes  imposed  by  authority 
of  the  State  within  which  the  bank  is  located ;  but  such  assessment  and 
taxation  shall  be  in  manner  and  subject  to  the  conditions  and  limitations 
contained  in  section  fifty-two  hundred  and  nineteen  of  the  Revised 
Statutes  with  reference  to  the  shares  of  national  banking  associations. 

Nothing  herein  shall  be  construed  to  exempt  the  real  property  of 
Federal  and  joint  stock  land  banks  and  national  farm  loan  associations 
from  either  State,  county,  or  municipal  taxes,  to  the  same  extent,  accord- 
ing to  its  value,  as  other  real  property  is  taxed. 

Investment  in  Farm  Loan  Bonds. 

Sec.  27.  That  farm  loan  bonds  issued  under  the  provisions  of  this 
Act  by  Federal  land  banks  or  joint  stock  land  banks  shall  be  a  lawful 
investment  for  all  fiduciary  and  trust  funds,  and  may  be  accepted  as 
security  for  all  public  deposits. 

Any  member  bank  of  the  Federal  Reserve  System  may  buy  and  sell 
farm  loan  bonds  issued  under  the  authority  of  this  Act. 

Any  Federal  reserve  bank  may  buy  and  sell  fami  loan  bonds  issued 
under  this  Act  to  the  same  extent  and  subject  to  the  same  limitations 
placed  upon  the  purchase  and  sale  by  said  banks  of  State,  county,  dis- 
trict and  municipal  bonds  under  subsection  (b)  of  section  fourteen  of 
the  Federal  Reserve  Act  approved  December  twenty-third,  nineteen  hun- 
dred and  thirteen. 

Examinations. 

Sec.  28.  That  the  Federal  Farm  Loan  Board  shall  appoint  as  many 
land  bank  examiners  as  in  its  judgment  may  be  required  to  make  careful 


40  Important  Federal  Laws 

examinations  of  the  banks  and  associations  permitted  to  do  business 
under  this  Act. 

Said  examiners  shall  be  subject  to  the  same  requirements,  responsi- 
bilities and  penalties  as  are  applicable  to  national  bank  examiners  under 
the  national  bank  Act,  the  Federal  Reserve  Act  and  other  provisions  of 
law.  Whenever  directed  by  the  Federal  Farm  Loan  Board,  said  examin- 
ers shall  examine  the  condition  of  any  national  farm  loan  association  and 
report  the  same  to  the  Farm  Loan  Commissioner.  They  shall  examine 
and  report  the  condition  of  every  Federal  land  bank  and  joint  stock  land 
bank  at  least  twice  each  year. 

Said  examiners  shall  receive  salaries  to  be  fixed  by  the  Federal  Farm 
Loan  Board. 

Dissolution  and  Appointment  of  Receivers. 

Sec.  29.  That  upon  receiving  satisfactory  evidence  that  any 
national  farm  loan  association  has  failed  to  meet  its  outstanding  obliga- 
tions of  any  description  the  Federal  Farm  Loan  Board  may  forthwith 
declare  such  association  insolvent  and  appoint  a  receiver  and  require  of 
him  such  bond  and  security  as  it  deems  proper:  Provided,  That  no 
national  farm  loan  association  shall  be  declared  insolvent  by  said  board 
until  the  total  amount  of  defaults  of  current  interest  and  amortization 
installments  on  loans  indorsed  by  national  farm  loan  associations  shall 
amount  to  at  least  $150,000  in  the  Federal  land  bank  district,  unless  such 
association  shall  have  been  in  default  for  a  period  of  two  years.  Such 
receiver,  under  the  direction  of  the  Federal  Farm  Loan  Board,  shall  take 
possession  of  the  books,  records  and  assets  of  every  description  of  such 
association,  collect  all  debts,  dues  and  claims  belonging  to  it,  and,  with 
the  approval  of  the  Federal  Farm  Loan  Board,  or  upon  the  order  of  a 
court  of  record  of  competent  jurisdiction,  may  sell  or  compound  all  bad 
or  doubtful  debts,  and,  on  a  like  approval  or  order,  may  sell  all  the  real 
and  personal  property  of  such  association,  on  such  terms  as  the  Federal 
Farm  Loan  Board  or  said  court  shall  direct. 

Such  receiver  shall  pay  over  all  money  so  collected  to  the  Treasurer 
of  the  United  States,  subject  to  the  order  of  the  Federal  P'arm  Loan 
Board,  and  also  make  report  to  said  board  of  all  his  acts  and  proceedings. 
The  Secretary  of  the  Treasury  shall  have  authority  to  deposit  at  interest 
any  money  so  received. 

Upon  default  of  any  obligation,  Federal  land  banks  and  joint  stock 
land  banks  may  be  declared  insolvent  and  placed  in  the  hands  of  a  receiver 
by  the  Federal  Farm  Loan  Board,  and  proceedings  shall  thereupon  be 
had  in  accordance  with  the  provisions  of  this  section  regarding  national 
farm  loan  associations. 

If  any  national  farm  loan  association  shall  be  declared  insolvent  and 
a  receiver  shall  be  appointed  therefor  by  the  Federal  Farm  Loan  Board, 
the  stock  held  by  it  in  the  Federal  land  bank  of  its  district  shall  be  can- 
celed without  impairment  of  its  liability  and  all  payments  on  such  stock, 


Farm  Loan  Act  41 

with  accrued  dividends,  if  any,  since  the  date  of  the  last  dividend  shall 
be  first  applied  to  all  debts  of  the  insolvent  farm  loan  association  to  the 
Federal  land  bank  and  the  balance,  if  any,  shall  be  paid  to  the  receiver 
of  said  farm  loan  association :  Provided,  That  in  estimating  said  debts 
contingent  liabilities  incurred  by  national  farm  loan  associations  under 
the  provisions  of  this  Act  on  account  of  default  of  principal  or  interest 
of  indorsed  mortgages  shall  be  estimated  and  included  as  a  debt,  and 
said  contingent  liabilities  shall  be  determined  by  agreement  between  the 
receiver  and  the  Federal  land  bank  of  the  district,  subject  to  the  approval 
of  the  Federal  Farm  Loan  Board,  and  if  said  receiver  and  said  land  bank 
can  not  agree,  then  by  the  decision  of  the  Farm  Loan  Commissioner,  and 
the  amount  thus  ascertained  shall  be  deducted  in  accordance  with  the  pro- 
visions of  this  section  from  the  amount  otherwise  due  said  national  farm 
loan  association  for  said  canceled  stock.  Whenever  the  capital  stock  of 
a  Federal  land  bank  shall  be  reduced,  the  board  of  directors  shall  cause 
to  be  executed  a  certificate  to  the  Federal  Farm  Loan  Board,  showing 
such  reduction  of  capital  stock,  and,  if  said  reduction  shall  be  due  to  the 
insolvency  of  a  national  farm  loan  association,  the  amount  repaid  to  such 
association. 

No  national  farm  loan  association,  Federal  land  bank  or  joint  stock 
land  bank  shall  go  into  voluntary  liquidation  w'ithout  the  written  consent 
of  the  Federal  Farm  Loan  Board,  but  national  farm  loan  associations 
may  consolidate  under  rules  and  regulations  promulgated  by  the  Federal 
Farm  Loan  Board. 

State  Legislation, 

Sec.  30.  That  it  shall  be  the  duty  of  the  Farm  Loan  Commissioner 
to  make  examination  of  the  laws  of  every  State  of  the  United  States 
and  to  inform  the  Federal  Farm  Loan  Board  as  rapidly  as  may  be 
whether  in  his  judgment  the  laws  of  each  State  relating  to  the  conveying 
and  recording  of  land  titles  and  the  foreclosure  of  mortgages  or  other 
instruments  securing  loans,  as  well  as  providing  homestead  and  other 
exemptions  and  granting  the  power  to  waive  such  exemptions  as  respects 
first  mortgages,  are  such  as  to  assure  the  holder  thereof  adequate  safe- 
guards against  loss  in  the  event  of  default  on  loans  secured  by  any  such 
mortgages. 

Pending  the  making  of  such  examination  in  the  case  of  any  State, 
the  Federal  Farm  Loan  Board  may  declare  first  mortgages  on  farm  lands 
situated  w'ithin  such  State  ineligible  as  the  basis  for  an  issue  of  farm 
loan  bonds ;  and  if  said  examination  shall  show  that  the  laws  of  any  such 
State  afford  insufficient  protection  to  the  holder  of  first  mortgages  of 
the  kinds  provided  in  this  Act,  said  Federal  Farm  Loan  Board  may  declare 
said  first  mortgages  on  land  situated  in  such  State  ineligible  during  the 
continuance  of  the  laws  in  question.  In  making  his  examination  of  the 
laws  of  the  several  States  and  forming  his  conclusions  thereon  said  Farm 
Loan  Commissioner  may  call  upon  the  office  of  the  Attorney-General  of 


42  Important  Federal  Laws 

the  United  States  for  any  needed  legal  advice  or  assistance,  or  may  em- 
ploy special  counsel  in  any  State  where  he  considers  such  action  necessary. 
At  the  request  of  the  Executive  of  any  State  the  Federal  Farm  Loan 
Board  shall  prepare  a  statement  setting  forth  in  what  respects  the  require- 
ments of  said  board  can  not  be  complied  with  under  the  existing  laws 
of  such  State. 

Penalties. 

Sec.  31.  That  any  applicant  for  a  loan  under  this  Act  who  shall 
knowingly  make  any  false  statement  in  his  application  for  such  loan,  and 
any  member  of  a  loan  committee  or  any  appraiser  provided  for  in  this 
Act  who  shall  willfully  overvalue  any  land  offered  as  security  for  loans 
under  this  Act,  shall  be  punished  by  a  fine  of  not  exceeding  $5,000,  or 
by  imprisonment  not  exceeding  one  year,  or  both.  Any  examiner  ap- 
pointed under  this  Act  who  shall  accept  a  loan  or  gratuity  from  any  land 
bank  or  national  farm  loan  association  examined  by  him,  or  from  any 
person  connected  with  any  such  bank  or  association  in  any  capacity,  shall 
be  punished  by  a  fine  of  not  exceeding  $5,000,  or  by  imprisonment  not 
exceeding  one  year,  or  both,  and  may  be  fined  a  further  sum  equal  to 
the  money  so  loaned  or  gratuity  given,  and  shall  forever  thereafter  be 
disqualified  from  holding  office  as  an  examiner  under  the  provisions  of 
this  Act.  No  examiner,  while  holding  such  office,  shall  perform  any 
other  service  for  compensation  for  any  bank  or  banking  or  loan  associa- 
tion, or  for  any  person  connected  therewith  in  any  capacity. 

Any  person  who  shall  falsely  make,  forge,  or  counterfeit,  or  cause 
or  procure  to  be  falsely  made,  forged,  or  counterfeited,  or  willingly  aid 
or  assist  in  falsely  making,  forging  or  counterfeiting  any  bond,  coupon,  or 
paper  in  imitation  of,  or  purporting  to  be  in  imitation  of,  the  bonds  or 
coupons  issued  by  any  land  bank  or  national  farm  loan  association,  now 
or  hereafter  authorized  and  acting  under  the  laws  of  the  United  States ; 
or  any  person  who  shall  pass,  utter,  or  publish,  or  attempt  to  pass,  utter, 
or  publish  any  false,  forged  or  counterfeited  bond,  coupon  or  paper  pur- 
porting to  be  issued  by  any  such  bank  or  association,  knowing  the  same 
to  be  falsely  made,  forged  or  counterfeited ;  or  whoever  shall  falsely 
alter,  or  cause  or  procure  to  be  falsely  altered,  or  shall  willingly  aid  or 
assist  in  falsely  altering  any  such  bond,  coupon  or  paper,  or  shall  pass, 
utter  or  publish  as  true  any  falsely  altered  or  spurious  bond,  coupon  or 
paper  issued,  or  purporting  to  have  been  issued  by  any  such  bank  or  asso- 
ciation, knowing  the  same  to  be  falsely  altered  or  spurious,  shall  be  pun- 
ished by  a  fine  of  not  exceeding  $5,000  or  by  imprisonment  not  exceeding 
five  years,  or  both. 

Other  than  the  usual  salary  or  director's  fee  paid  to  any  officer, 
director  or  employee  of  a  national  farm  loan  association,  a  Federal  land 
bank,  or  a  joint  stock  land  bank,  and  other  than  a  reasonable  fee  paid  by 
such  association  or  bank  to  any  officer,  director,  attorney  or  employee  for 
services  rendered,  no  officer,  director,  attorney  or  employee  of  an  associa- 


Farm  Loan  Act  43 

tion  or  bank  organized  under  this  Act  shall  be  a  beneficiary  of  or  receive, 
directly  or  indirectly,  any  fee,  commission,  gift,  or  other  consideration 
for  or  in  connection  with  any  transaction  or  business  of  such  association 
or  bank.  No  land  bank  or  national  farm  loan  association  organized 
under  this  Act  shall  charge  or  receive  any  fee,  commission,  bonus,  gift  or 
other  consideration  not  herein  specifically  authorized.  No  examiner, 
public  or  private,  shall  disclose  the  names  of  borrowers  to  other  than  the 
proper  officers  of  a  national  farm  loan  association  or  land  bank  without 
first  having  obtained  express  permission  in  writing  from  the  Farm  Loan 
Commissioner  or  from  the  board  of  directors  of  such  association  or  bank, 
except  when  ordered  to  do  so  by  a  court  of  competent  jurisdiction  or  by 
direction  of  the  Congress  of  the  United  States,  or  of  either  House  thereof, 
or  any  committee  of  Congress  or  of  either  House  duly  authorized.  Any 
person  violating  any  provision  of  this  paragraph  shall  be  punished  by  a 
line  of  not  exceeding  $5,000  or  by  imprisonment  not  exceeding  one  year, 
or  both. 

Any  person  connected  in  any  capacity  with  any  national  farm  loan 
association.  Federal  land  bank,  or  joint  stock  land  bank,  who  embezzles, 
abstracts,  or  willfully  misapplies  any  moneys,  funds,  or  credits  thereof, 
or  who  without  authority  from  the  directors  draws  any  order,  assigns 
any  note,  bond,  draft,  mortgage,  judgment  or  decree  thereof,  or  who 
makes  any  false  entry  in  any  book,  report  or  statement  of  such  associa- 
tion or  land  bank  with  intent  in  either  case  to  defraud  such  institution  or 
any  other  company,  body  politic  or  corporate,  or  any  individual  person, 
or  to  deceive  any  officer  of  a  national  farm  loan  association  or  land  bank 
or  any  agent  appointed  to  examine  into  the  affairs  of  any  such  association 
or  bank,  and  every  person  who  with  like  intent  aids  or  abets  any  officer, 
clerk,  or  agent  in  any  violation  of  this  section,  shall  be  punished  by  a  fine 
of  not  exceeding  $5,000  or  by  imprisonment  not  exceeding  five  years,  or 
both. 

Any  person  who  shall  deceive,  defraud  or  impose  upon,  or  who  shall 
attempt  to  deceive,  defraud  or  impose  upon,  any  person,  firm  or  corpora- 
tion by  making  any  false  pretense  or  representation  regarding  the  char- 
acter, issue,  security,  or  terms  of  any  farm  loan  bond,  or  coupon,  issued 
under  the  terms  of  this  Act ;  or  by  falsely  pretending  or  representing  that 
any  farm  loan  bond,  or  coupon,  issued  under  the  terms  of  this  Act  by 
one  class  of  land  banks  is  a  farm  loan  bond,  or  coupon,  issued  by  another 
class  of  banks ;  or  by  falsely  pretending  or  representing  that  any  farm 
loan  bond,  or  coupon,  issued  under  the  terms  of  this  Act,  or  anything 
contained  in  said  farm  loan  bond,  or  coupon,  is  anything  other  than,  or 
different  from,  what  it  purports  to  be  on  the  face  of  said  bond  or  coupon, 
shall  be  fined  not  exceeding  $500  or  imprisoned  not  exceeding  one  year, 
or  both. 

The  Secretary  of  the  Treasury  is  hereby  authorized  to  direct  and 
use  the  Secret  Service  Division  of  the  Treasury  Department  to  detect, 
arrest  and  deliver  into  custody  of  the  United  States  marshal  having  juris- 


44  Important  Federal  Laws 

diction,  any  person  or  persons  violating  any  of  the  provisions  of  this 
section. 

Government  Deposits. 

Sec.  32.  That  the  Secretary  of  the  Treasurv-  is  authorized,  in  his 
discretion,  upon  the  request  of  the  Federal  Fann  Loan  Board,  to  make 
deposits  for  the  temporary  use  of  any  Federal  land  bank,  out  of  any 
money  in  the  Treasury  not  otherwise  appropriated.  Such  Federal  land 
bank  shall  issue  to  the  Secretary  of  the  Treasury  a  certificate  of  indebted- 
ness for  any  such  deposit,  bearing  a  rate  of  interest  not  to  exceed  the 
current  rate  charged  for  other  Government  deposits,  to  be  secured  by 
farm  loan  bonds  or  other  collateral,  to  the  satisfaction  of  the  Secretary  of 
the  Treasury.  Any  such  certificate  shall  be  redeemed  and  paid  by  such 
land  bank  at  the  discretion  of  the  Secretary  of  the  Treasur}\  The  aggre- 
gate of  all  sums  so  deposited  by  the  Secretary  of  the  Treasury  shall  not 
exceed  the  sum  of  $6,000,000  at  any  one  time. 

Organization  Expenses. 

Sec.  33.  That  the  sum  of  $100,000,  or  so  much  thereof  as  may  be 
necessary,  is  hereby  appropriated,  out  of  any  money  in  the  Treasury  not 
otherwise  appropriated,  to  be  expended  under  the  direction  of  the  Federal 
Fann  Loan  Board,  for  the  purpose  of  carrying  into  effect  the  provisions 
of  this  Act,  including  the  rent  and  equipment  of  necessary  offices. 

Limitation  of  Court  Decisions. 

Sec.  34.  That  if  any  clause,  sentence,  paragraph,  or  part  of  this 
Act  shall  for  any  reason  be  adjudged  by  any  court  of  competent  juris- 
diction to  be  invalid,  such  judgment  shall  not  aft'ect,  impair,  or  invalidate 
the  remainder  of  this  Act,  but  shall  be  confined  in  its  operation  to  the 
clause,  sentence,  paragraph  or  part  thereof  directly  involved  in  the  contro- 
versy in  which  such  judgment  shall  have  been  rendered. 
Repealing  Clause. 

Sec.  35.  That  all  Acts  or  parts  of  Acts  inconsistent  with  this  Act 
are  hereby  repealed,  and  this  Act  shall  take  eft'ect  upon  its  passage. 
The  right  to  amend,  alter  or  repeal  this  Act  is  hereby  expressly  reserved. 


AGRICULTURAL  EDUCATION. 

Act  of  1862  donating  lands  for  agricultural  colleg'es. 

[First  Morrill  Act.] 

An  Act  donating  public  lands  to  the  several  States  and  Territories  which  may 
provide  colleges  for  the  benefit  of  agriculture  and  the  mechanic  arts. 

Grants  to  the  State. 

Sec.  L  That  there  be  granted  to  the  several  States,  for  the  pur- 
poses hereinafter  mentioned,  an  amount  of  public  land,  to  be  apportioned 
to  each  State  a  quantity  equal  to  thirty  thousand  acres  for  each  Senator 
and  Representative  in  Congress  to  which  the  States  are  respectively 
entitled  by  the  apportionment  under  the  census  of  eighteen  hundred  and 


Agricultural  Education  45 

sixty:     Provided,  That  no  mineral  lands  shall  be  selected  or  purchased 
under  the  provisions  of  this  act. 

Apportionment. 

Sec.  2.  That  the  land  aforesaid,  after  being  surveyed,  shall  be  ap- 
portioned to  the  several  States  in  sections  or  subdivisions  of  sections, 
not  less  than  one-quarter  of  a  section;  and  whenever  there  are  public 
lands  in  a  State  subject  to  sale  at  private  entry  at  one  dollar  and 
twenty-five  cents  per  acre,  the  quantity  to  which  said  State  shall  ,be 
entitled  shall  be  selected  from  such  lands  within  the  limits  of  such 
State,  and  the  Secretary  of  the  Interior  is  hereby  directed  to  issue 
to  each  of  the  States  in  which  there  is  not  the  quantity  of  public  lands 
subject  to  sale  at  private  entr}^  at  one  dollar  and  twenty-five  cents  per 
acre  to  which  said  vState  may  be  entitled  under  the  provisions  of  this  act 
land  scrip  to  the  amount  in  acres  for  the  deficiency  of  its  distributive 
share;  said  scrip  to  be  sold  by  said  States  and  the  proceeds  thereof  ap- 
plied to  the  uses  and  purposes  prescribed  in  this  act  and  for  no  other  use 
or  purpose  whatsoever :  Provided,  That  in  no  case  shall  any  State  to 
which  land  scrip  may  thus  be  issued  be  allowed  to  locate  the  same  within 
the  limits  of  any  other  State  or  of  any  Territory  of  the  United  States, 
but  their  assignees  may  thus  locate  said  land  scrip  upon  any  of  the  unap- 
propriated lands  of  the  United  States  subject  to  sale  at  private  entry  at 
one  dollar  and  twenty-five  cents,  or  less,  per  acre :  And  provided  further, 
That  not  more  than  one  million  acres  shall  be  located  by  such  assignees 
in  any  one  of  the  States :  And  provided  further.  That  no  such  location 
shall  be  made  before  one  year  from  the  passage  of  this  act. 

Expenses. 

Sec.  3.  That  all  the  expenses  of  management,  superintendence,  and 
taxes  from  date  of  selection  of  said  lands,  previous  to  their  sales,  and  all 
expenses  incurred  in  the  management  and  disbursement  of  the  moneys 
which  may  be  received  therefrom,  shall  be  paid  by  the  States  to  which 
they  may  belong,  out  of  the  treasury  of  said  States,  so  that  the  entire 
proceeds  of  the  sale  of  said  lands  shall  be  applied  without  any  diminution 
whatever  to  the  purposes  hereinafter  mentioned. 

Investment  of  Fund. 

Sec.  4.  That  all  moneys  derived  from  the  sale  of  lands  aforesaid 
by  the  States  to  which  lands  are  apportioned,  and  from  the  sales  of  land 
scrip  hereinbefore  provided  for,  shall  be  invested  in  stocks  of  the  United 
States  or  of  the  States,  or  some  other  safe  stocks ;  or  the  same  may  be 
invested  by  the  States  having  no  State  stocks  in  any  other  manner  after 
the  legislatures  of  such  States  shall  have  assented  thereto,  and  engaged 
that  such  funds  shall  yield  not  less  than  five  per  centum  upon  the  amount 
so  invested  and  that  the  principal  thereof  shall  forever  remain  unim- 
paired: Provided,  That  the  moneys  so  invested  or  loaned  shall  con- 
stitute a  perpetual  fund,  the  capital  of  which  shall  remain  forever  undi- 
minished (except  so  far  as  may  be  provided  in  section  five  of  this  act), 


46  Important  Federal  Laws 

and  the  interest  of  which  shall  be  inviolably  appropriated,  by  each  State 
which  may  take  and  claim  the  benefit  of  this  act,  to  the  endowment,  sup- 
port, and  maintenance  of  at  least  one  college  where  the  leading  object 
shall  be,  without  excluding  other  scientific  and  classical  studies,  and  in- 
cluding military  tactics,  to  teach  such  branches  of  learning  as  are  related 
to  agriculture  and  the  mechanic  arts,  in  such  manner  as  the  legislatures 
of  the  States  may  respectively  prescribe,  in  order  to  promote  the  liberal 
and  practical  education  of  the  industrial  classes  in  the  several  pursuits 
and  professions  in  life.      (As  amended  March  3,  1883.) 

Acceptance  by  the  State  of  Restrictions. 

Sec.  5.  That  the  grant  of  land  and  land  scrip  hereby  authorized 
shall  be  made  on  the  following  conditions,  to  which,  as  well  as  to  the 
provisions  hereinbefore  contained,  the  previous  assent  of  the  several 
States  shall  be  signified  by  legislative  acts : 

First.  If  any  portion  of  the  fund  invested,  as  provided  by  the  fore- 
going section,  or  any  portion  of  the  interest  thereon,  shall,  by  any  action 
or  contingency,  be  diminished  or  lost,  it  shall  be  replaced  by  the  State  to 
which  it  belongs,  so  that  the  capital  of  the  fund  shall  remain  forever 
undiminished ;  and  the  annual  interest  shall  be  regularly  applied  without 
diminution  to  the  purposes  mentioned  in  the  fourth  section  of  this  act, 
except  that  a  sum,  not  exceeding  ten  per  centum  upon  the  amount  received 
by  any  State  under  the  provisions  of  this  act,  may  be  expended  for  the 
purchase  of  lands  for  sites  or  experimental  farms  whenever  authorized 
by  the  respective  legislatures  of  said  States. 

Second.  No  portion  of  said  fund,  nor  the  interest  thereon,  shall  be 
applied,  directly  or  indirectly,  under  any  pretense  whatever,  to  the  pur- 
chase, erection,  preservation,  or  repair  of  any  building  or  buildings. 

Third.  Any  State  which  may  take  and  claim  the  benefit  of  the  pro- 
visions of  this  act  shall  provide,  within  five  years,  at  least  not  less  than 
one  college,  as  described  in  the  fourth  section  of  this  act,  or  the  grant  to 
such  State  shall  cease ;  and  said  State  shall  be  bound  to  pay  the  United 
States  the  amount  received  of  any  lands  previously  sold  and  that  the 
title  to  purchasers  under  the  State  shall  be  valid. 

Fourth.  An  annual  report  shall  be  made  regarding  the  progress  of 
each  college,  recording  any  improvements  and  experiments  made,  with 
their  cost  and  results,  and  such  other  matters,  including  State  industrial 
and  economical  statistics,  as  may  be  supposed  useful,  one  copy  of  which 
shall  be  transmitted  by  mail  free,  by  each,  to  all  the  other  colleges  which 
may  be  endowed  under  the  provisions  of  this  act,  and  also  one  copy  to 
the  Secretary  of  the  Interior. 

Fifth.  When  lands  shall  be  selected  from  those  which  have  been 
raised  to  double  the  minimum  price,  in  consequence  of  railroad  grants, 
they  shall  be  computed  to  the  States  at  the  maximum  price  and  the  num- 
ber of  acres  proportionately  diminished. 

Sixth.     No  State  while  in  a  condition  of  rebellion  or  insurrection 


Agricultural  Colleges  47 

against  the  Government  of  the  United  States  shall  be  entitled  to  the 
benefit  of  this  act. 

Seventh.  No  State  shall  be  entitled  to  the  benefits  of  this  act  unless 
it  shall  express  its  acceptance  thereof  by  its  legislature  within  two  years 
from  the  date  of  its  approval  by  the  President. 

Time  of  Locating  Lands. 

Sec.  6.  That  land  scrip  issued  under  the  provisions  of  this  act  shall 
not  be  subject  to  location  until  after  the  first  day  of  January,  one  thou- 
sand eight  hundred  and  sixty-three. 

Fees. 

Sec.  7.  That  the  land  officers  shall  receive  the  same  fees  for  locatmg 
land  scrip  issued  under  the  provisions  of  this  act  as  is  now  allowed  for 
the  location  of  military  bounty  land  warrants  under  existing  laws :  Pro- 
vided, That  their  maximum  compensation  shall  not  be  thereby  increased. 

Reports. 

Sec.  8.  That  the  governors  of  the  several  States  to  which  scrip 
shall  be  issued  under  this  act  shall  be  required  to  report  annually  to  Con- 
gress all  sales  made  of  such  scrip  until  the  whole  shall  be  disposed  of, 
the  amount  received  for  the  same,  and  what  appropriation  has  been  made 
of  the  proceeds. 

ACT    FOR    THE    FURTHER    ENDOWMENT    OF    AGRICUL- 
TURAL COLLEGES. 

Act  of  August  30,  1S90. 
[Second  Morrill  Act.] 
An  Act  to  apply  a  portion  of  the  proceeds  of  the  public  lands  to  the  more  com- 
plete endowment  and  support  of  the  colleges  for  the  benefit  of  agricul- 
ture and  the  mechanic  arts  established  under  the  provisions  of  an  act  of 
Congress  approved  July  second,  eighteen  hundred  and  sixty-two. 

Grants  to  the  States. 

Sec.  1.  That  there  shall  be,  and  hereby  is,  annually  appropriated, 
out  of  any  money  in  the  Treasury  not  otherwise  appropriated,  arising 
from  the  sales  of  public  lands,  to  be  paid  as  hereinafter  provided,  to  each 
State  and  Territory  for  the  more  complete  endowment  and  maintenance 
of  colleges  for  the  benefit  of  agriculture  and  the  mechanic  arts  now  estab- 
lished, or  which  may  be  hereafter  established,  in  accordance  with  an  act 
of  Congress  approved  July  second,  eighteen  hundred  and  sixty-two,  the 
sum  of  fifteen  thousand  dollars  for  the  year  ending  June  thirtieth,  eighteen 
hundred  and  ninety,  and  an  annual  increase  of  the  amount  of  such  ap- 
propriation thereafter  for  ten  years  by  an  additional  sum  of  one  thousand 
dollars  over  the  preceding  year,  and  the  annual  amount  to  be  paid  there- 
after to  each  State  and  Territory  shall  be  twenty-five  thousand  dollars, 
to  be  applied  only  to  instruction  in  agriculture,  the  mechanic  arts,  the  Eng- 
lish language,  and  the  various  branches  of  mathematical,  physical,  natural 


48  Important  Federal  Laws 

and  economic  science,  with  special  reference  to  their  apphcations  in  the 
industries  of  life  and  to  the  facilities  for  such  instruction :  Provided, 
That  no  money  shall  be  paid  out  under  this  act  to  any  State  or  Territory 
for  the  support  and  maintenance  of  a  college  where  a  distinction  of  race 
or  color  is  made  in  the  admission  of  students,  but  the  establishment  and 
maintenance  of  such  colleges  separately  for  white  and  colored  students 
shall  be  held  to  be  a  compliance  with  the  provisions  of  this  act  if  the 
funds  received  in  such  State  or  Territory  be  equitably  divided  as  herein- 
after set  forth :  Provided,  That  in  any  State  in  which  there  has  been 
one  college  established  in  pursuance  of  the  act  of  July  second,  eighteen 
hundred  and  sixty-two,  and  also  in  which  an  educational  institution  of 
like  character  has  been  established,  or  may  be  hereafter  established,  and 
is  now  aided  by  such  State  from  its  own  revenue,  for  the  education  of 
colored  students  in  agriculture  and  the  mechanic  arts,  however  named  or 
styled,  or  whether  or  not  it  has  received  money  heretofore  under  the  act 
to  which  this  act  is  an  amendment,  the  legislature  of  such  State  mav  pro- 
pose and  report  to  the  Secretary  of  the  Interior  a  just  and  equitable  divi- 
sion of  the  fund  to  be  received  under  this  act,  between  one  college  for 
white  students  and  one  institution  for  colored  students,  established  as 
aforesaid,  which  shall  be  divided  into  two  parts,  and  paid  accordingly, 
and  thereupon  such  institution  for  colored  students  shall  be  entitled  to 
the  benefits  of  this  act  and  subject  to  its  provisions,  as  much  as  it  would 
have  been  if  it  had  been  included  under  the  act  of  eighteen  hundred  and 
sixty-two,  and  the  fulfillment  of  the  foregoing  provisions  shall  be  taken 
as  a  compliance  with  the  provision  in  reference  to  separate  colleges  for 
white  and  colored  students. 

Payments  to  States. 

Sec.  2.  That  the  sums  hereby  appropriated  to  the  States  and  Terri- 
tories for  the  further  endowment  and  support  of  colleges  shall  be  annually 
paid  on  or  before  the  thirty-first  day  of  July  of  each  year,  by  the  Secre- 
tary of  the  Treasury,  upon  the  warrant  of  the  Secretary  of  the  Interior, 
out  of  the  Treasury  of  the  United  States,  to  the  State  or  Territorial 
treasurer,  or  to  such  officer  as  shall  be  designated  by  the  laws  of  such 
State  or  Territory  to  receive  the  same,  who  shall,  upon  the  order  of  the 
trustees  of  the  college  or  the  institution  for  colored  students,  immediately 
pay  over  said  sums  to  the  treasurers  of  the  respective  colleges  or  other 
institutions  entitled  to  receive  the  same,  and  such  treasurers  shall  be  re- 
quired to  report  to  the  Secretary'  of  Agriculture  and  to  the  Secretary  of 
the  Interior  on  or  before  the  first  day  of  September  of  each  year  a  de- 
tailed statement  of  the  amount  so  received  and  of  its  disbursement.  The 
grants  of  moneys  authorized  by  this  act  are  made  subject  to  the  legis- 
lative assent  of  the  several  States  and  Territories  to  the  purpose  of  said 
grants :  Provided,  That  payments  of  such  installments  of  the  appropria- 
tion herein  made  as  shall  become  due  to  any  State  before  the  adjourn- 
ment of  the  regular  session  of  legislature  meeting  next  after  the  passage 


Agricultural  Colleges  49 

of  this  act  shall  be  made  upon  the  assent  of  the  governor  thereof,  duly 
certified  to  the  Secretary  of  the  Treasury. 

State  Liable  for  Fund — Reports. 

Sec.  3.  That  if  any  portion  of  the  moneys  received  by  the  desig- 
nated officer  of  the  State  or  Territory  for  the  further  and  more  complete 
endowment,  support  and  maintenance  of  colleges,  or  of  institutions  for 
colored  students,  as  provided  in  this  act,  shall,  by  any  action  or  contin- 
gency, be  diminished  or  lost,  or  be  misapplied,  it  shall  be  replaced  by  the 
State  or  Territory  to  which  it  belongs,  and  until  so  replaced  no  subse- 
quent appropriation  shall  be  apportioned  or  paid  to  such  State  or  Terri- 
tory ;  and  no  portion  of  said  moneys  shall  be  applied,  directly  or  indirectly, 
under  any  pretense  whatever,  to  the  purchase,  erection,  preservation  or 
repair  of  any  building  or  buildings.  An  annual  report  by  the  president 
of  each  of  said  colleges  shall  be  made  to  the  Secretary  of  Agriculture,  as 
well  as  to  the  Secretary  of  the  Interior,  regarding  the  condition  and  prog- 
ress of  each  college,  including  statistical  information  in  relation  to  its 
receipts  and  expenditures,  its  library,  the  number  of  its  students  and  pro- 
fessors and  also  as  to  any  improvements  and  experiments  made  under  the 
direction  of  any  experiment  stations  attached  to  said  colleges,  with  their 
cost  and  results  and  such  other  industrial  and  economical  statistics  as 
may  be  regarded  as  useful,  one  copy  of  which  shall  be  transmitted  by 
mail  free  to  all  other  colleges  further  endowed  under  this  act. 

Apportionment. 

Sec.  4.  That  on  or  before  the  first  day  of  July  in  each  year,  after 
the  passage  of  this  act,  the  Secretary  of  the  Interior  shall  ascertain  and 
certify  to  the  Secretary  of  the  Treasury  as  to  each  State  and  Territory, 
whether  it  is  entitled  to  receive  its  share  of  the  annual  appropriation  for 
colleges,  or  of  institutions  for  colored  students,  under  this  act  and  the 
amount  which  thereupon  each  is  entitled,  respectively,  to  receive.  If  the 
Secretary  of  the  Interior  shall  withhold  a  certificate  from  any  State  or 
Territory  of  its  appropriation,  the  facts  and  reasons  therefor  shall  be  re- 
ported to  the  President,  and  the  amount  involved  shall  be  kept  separate 
in  the  Treasury  until  the  close  of  the  next  Congress,  in  order  that  the 
State  or  Territory  may,  if  it  should  so  desire,  appeal  to  Congress  from 
the  determination  of  the  Secretary  of  the  Interior.  If  the  next  Congress 
shall  not  direct  such  sum  to  be  paid  it  shall  be  covered  into  the  Treasury. 
And  the  Secretary  of  the  Interior  is  hereby  charged  with  the  proper  ad- 
ministration of  this  law. 

Report  to  Congress, 

Sec.  5.  That  the  Secretary  of  the  Interior  shall  annually  report  to 
Congress  the  disbursements  which  have  been  made  in  all  the  States  and 
Territories,  and  also  whether  the  appropriation  of  any  State  or  Territory- 
has  been  withheld,  and,  if  so,  the  reasons  therefor. 

Sec.  6.  Congress  may  at  any  time  amend,  suspend,  or  repeal  any  or 
all  of  the  provisions  of  this  act. 

(4) 


50  Important  Federal  Laws 

ESTABLISHING  AGRICULTURAL  EXPERIMENT  STATIONS. 

Act  of  March  2.  1887. 

[Hatch  Act.] 

An  Act  to  establish  agricultural  experiment  stations  in  connection  with  the 
colleges  established  in  the  several  States  under  the  provisions  of  an  act 
approved  July  second,  eighteen  hundred  and  sixty-two,  and  of  the  acts 
supplementary  thereto. 

Experiment  Stations  Established. 

Sec.  L  That  in  order  to  aid  in  acquiring  and  diffusing  among  the 
people  of  the  United  States  useful  and  practical  information  on  subjects 
connected  with  agriculture,  and  to  promote  scientific  investigation  and 
experiment  respecting  the  principles  and  applications  of  agricultural 
science,  there  shall  be  established  under  direction  of  the  college  or  col- 
leges or  agricultural  department  of  colleges  in  each  State  or  Territory 
established,  or  which  may  hereafter  be  established,  in  accordance  with  the 
provisions  of  an  act  approved  July  second,  eighteen  hundred  and  sixty- 
two,  entitled  "An  act  donating  public  lands  to  the  several  States  and  Ter- 
ritories which  may  provide  colleges  for  the  benefit  of  agriculture  and  the 
mechanic  arts,"  or  any  of  the  supplements  to  said  act,  a  department  to  be 
known  and  designated  as  an  "agricultural  experiment  station" :  Pro- 
vided, That  in  any  State  or  Territory  in  which  two  such  colleges  have 
been  or  may  be  so  established  the  appropriation  hereinafter  made  to  such 
State  or  Territory  shall  be  equally  divided  between  such  colleges,  unless 
the  legislature  of  such  State  or  Territory  shall  otherwise  direct. 

Purpose. 

Sec.  2.  That  it  shall  be  the  object  and  duty  of  said  experiment 
stations  to  conduct  original  researches  or  verify  experiments  on  the  physi- 
ology of  plants  and  animals ;  the  diseases  to  which  they  are  severally 
subject,  with  the  remedies  of  the  same;  the  chemical  composition  of  use- 
ful plants  at  their  dift'erent  stages  of  growth ;  the  comparative  advantages 
of  rotative  cropping  as  pursued  tmder  the  varying  series  of  crops ;  the 
capacity  of  new  plants  or  trees  for  acclimation ;  the  analysis  of  soils 
and  water ;  the  chemical  composition  of  manures,  natural  or  artificial,  with 
experiments  designed  to  test  the  comparative  effects  on  crops  of  differ- 
ent kinds;  the  adaptation  and  value  of  grasses  and  forage  plants;  the 
composition  and  digestibility  of  the  different  kinds  of  food  for  domestic 
animals ;  the  scientific  and  economic  questions  involved  in  the  production 
of  butter  and  cheese ;  and  such  other  researches  or  experiments  bearing 
directly  on  the  agricultural  industry  of  the  United  States  as  may  in  each 
case  be  deemed  advisable,  having  due  regard  to  the  varying  conditions 
and  needs  of  the  respective  States  or  Territories. 

Duty  of  Secretary  of  Agriculture. 

Sec.  3.  That  in  order  to  secure,  as  far  as  practicable,  uniformity  of 
methods  and  results  in  the  work  of  said  stations,  it  shall  be  the  duty  of 
the  United  States  Commissioner  [now  Secretary]  of  Agriculture  to  fur- 


Agricultural  Experiment  Stations  51 

nish  forms,  as  far  as  practicable,  for  the  tabulation  of  results  of  investi- 
gation or  experiments ;  to  indicate  from  time  to  time  such  lines  of  inquiry 
as  to  him  shall  seem  most  important,  and,  in  general,  to  furnish  such 
advice  and  assistance  as  will  best  promote  the  purpose  of  this  act.  It 
shall  be  the  duty  of  each  of  said  stations  annually,  on  or  before  the  first 
of  February,  to  make  to  the  governor  of  the  State  or  Territory  in  which 
it  is  located  a  full  and  detailed  report  of  its  operations,  including  a  state- 
ment of  receipts  and  expenditures,  a  copy  of  which  report  shall  be  sent 
to  each  of  said  stations,  to  the  said  Commissioner  [now  Secretary]  of 
Agriculture,  and  to  the  Secretary  of  the  Treasury  of  the  United  States. 

Publications. 

Sec.  4.  That  bulletins  or  reports  of  progress  shall  be  published  at 
said  stations  at  least  once  in  three  months,  one  copy  of  which  shall  be  sent 
to  each  newspaper  in  the  States  or  Territories  in  which  they  are  respec- 
tively located,  and  to  such  individuals  actually  engaged  in  farming  as 
may  request  the  same  and  as  far  as  the  means  of  the  station  will  permit. 
Such  bulletins  or  reports  and  the  annual  reports  of  said  stations  shall 
be  transmitted  in  the  mails  of  the  United  States  free  of  charge  for  post- 
age, under  such  regulations  as  the  Postmaster  General  may  from  time  to 
time  prescribe. 

Appropriations. 

Sec.  5.  That  for  the  purpose  of  paying  the  necessary  expenses  of 
conducting  investigations  and  experiments  and  printing  and  distributing 
the  results  as  hereinbefore  prescribed,  the  sum  of  fifteen  thousand  dol- 
lars per  annum  is  hereby  appropriated  to  each  State,  to  be  specially  pro- 
vided for  by  Congress  in  the  appropriations  from  year  to  year,  and  to 
each  Territory  entitled  under  the  provisions  of  section  eight  of  this  act, 
out  of  any  money  in  the  Treasury  proceeding  from  the  sales  of  public 
lands,  to  be  paid  in  equal  quarterly  payments  on  the  first  day  of  January, 
April,  July  and  October  in  each  year,  to  the  treasurer  or  other  officer 
duly  appointed  by  the  governing  boards  of  said  colleges  to  receive  the 
same,  the  first  payment  to  be  made  on  the  first  day  of  October,  eighteen 
hundred  and  eighty-seven :  Provided,  however.  That  out  of  the  first 
annual  appropriation  so  received  by  any  station  an  amount  not  exceeding 
one-fifth  may  be  expended  in  the  erection,  enlargement,  or  repair  of  a 
building  or  buildings  necessary  for  carrying  on  the  work  of  such  station; 
and  thereafter  an  amount  not  exceeding  five  per  centum  of  such  annual 
appropriation  may  be  so  expended. 

Unexpended  Balance  Deducted. 

Sec.  6.  That  whenever  it  shall  appear  to  the  Secretary  of  the  Treas- 
ury from  the  annual  statement  of  receipts  and  expenditures  of  any  of 
said  stations  that  a  portion  of  the  preceding  annual  appropriation  remains 
unexpended,  such  amount  shall  be  deducted  from  the  next  succeeding 
annual  appropriation  to  such  station,  in  order  that  the  amount  of  money 


52  Important  Federal  'Laws 

appropriated  to  any  station  shall  not  exceed  the  amount  actually  and 
necessarily  required  for  its  maintenance  and  support. 
Not  to  Affect  Relations  of  Colleges  to  States. 

Sec.  7.     That  nothing  in  this  act  shall  be  construed  to  impair  or 
modify  the  legal  relation  existing  between  any  of  the  said  colleges  and  the 
government  of  the  States  or  Territories  in  which  they  are  respectively 
located. 
Separate  Experiment  Stations. 

Sec.  8.  That  in  States  having  colleges  entitled  under  this  section  to 
the  benefits  of  this  act  and  having  also  agricultural  experiment  stations 
established  by  law  separate  from  said  colleges,  such  States  shall  be  author- 
ized to  apply  such  benefits  to  experiments  at  stations  so  established  by 
such  State ;  and  in  case  any  State  shall  have  established,  under  the  pro- 
visions of  said  act  of  July  second  aforesaid,  an  agricultural  department 
or  experimental  station  in  connection  with  any  university,  college,  or 
institution  not  distinctly  an  agricultural  college  or  school,  and  such  State 
shall  have  established  or  shah  hereafter  establish  a  separate  agricultural 
college  or  school,  which  shall  have  connected  therewith  an  experimental 
farm  or  station,  the  legislature  of  such  State  may  apply  in  whole  or  in 
part  the  appropriation  by  this  act  made  to  such  separate  agricultural  col- 
lege or  school,  and  no  legislature  shall  by  contract,  express  or  implied, 
disable  itself  from  so  doing. 

Acceptance  by  States. 

Sec.  9.  That  the  grants  of  moneys  authorized  by  this  act  are  made 
subiect  to  the  legislative  assent  of  the  several  States  and  Territories  to 
the  purposes  of  said  grants:  Provided,  That  payment  of  such  install- 
ments of  the  appropriation  herein  made  as  shall  become  due  to  any  State 
before  the  adjournment  of  the  regular  session  of  its  legislature  meeting 
next  after  the  passage  of  this  act  shall  be  made  upon  the  assent  of  the 
governor  thereof  duly  certified  to  the  Secretary  of  the  Treasury. 

Appropriation  May  Be  Repealed. 

Sec.  10.  Nothing  in  this  act  shall  be  held  or  construed  as  binding 
the  United  States  to  continue  any  payments  from  the  Treasury  to  any  or 
all  the  States  or  institutions  mentioned  in  this  act,  but  Congress  may  at 
any  time  amend,  suspend  or  repeal  any  or  all  the  provisions  of  this  act. 

THE  FURTHER  ENDOWMENT  OF  AGRICULTURAL  EXPER- 
IMENT STATIONS. 

Act  of  March  16.  1906. 
[Adams  Act.] 
An  Act  to  provide  for  an  increased  annual  appropriation  for  agricultural  ex- 
periment stations  and  regulating  the  expenditure  thereof. 

Grants  to  the  States. 

Sec.  1.  That  there  shall  be,  and  hereby  is,  annually  appropriated, 
out  of  any  money  in  the  Treasury  not  otherwise  appropriated,  to  be  paid 


Agricultural  Experiment  Stations  53 

as  hereinafter  provided,  to  each  State  and  Territory,  for  the  more  com- 
plete endowment  and  maintenance  of  agricultural  experiment  stations 
now  established  or  which  may  hereafter  be  established  in  accordance 
with  the  act  of  Congress  approved  March  second,  eighteen  hundred  and 
eighty-seven,  the  sum  of  five  thousand  dollars  in  addition  to  the  sum 
named  in  said  act  for  the  year  ending  June  thirtieth,  nineteen  hundred 
and  six,  and  an  annual  increase  of  the  amount  of  such  appropriation 
thereafter  for  five  years  by  an  additional  sum  of  two  thousand  dollars 
over  the  preceding  year,  and  the  annual  amount  to  be  paid  thereafter  to 
each  State  or  Territory  shall  be  thirty  thousand  dollars,  to  be  applied  only 
to  paying  the  necessary  expenses  of  conducting  original  researches  or  ex- 
periments bearing  directly  on  the  agricultural  industry  of  the  United 
States,  having  due  regard  to  the  varying  conditions  and  needs  of  the 
respective  States  or  Territories. 

Payments. 

Sec.  2.  That  the  sums  hereby  appropriated  to  the  States  and  Terri- 
tories for  the  further  endowment  and  support  of  agricultural  experiment 
stations  shall  be  annually  paid  in  equal  quarterly  payments  on  the  first 
day  of  January,  April,  July  and  October  of  each  year  by  the  Secretary 
of  the  Treasury,  upon  the  warrant  of  the  Secretary  of  Agriculture,  out 
of  the  Treasury  of  the  United  States,  to  the  treasurer  or  other  ofiicer 
duly  appointed  by  the  governing  boards  of  said  experiment  stations  to 
receive  the  same,  and  such  officers  shall  be  required  to  report  to  the 
Secretary  of  Agriculture  on  or  before  the  first  day  of  September  of  each 
year  a  detailed  statement  of  the  amount  so  received  and  of  its  disburse- 
ment, on  schedules  prescribed  by  the  Secretary  of  Agriculture.  The 
grants  of  money  authorized  by  this  act  are  made  subject  to  legislative 
assent  of  the  several  States  and  Territories  to  the  purpose  of  said  grants : 
Provided,  That  payment  of  such  installments  of  the  appropriation  herein 
made  as  shall  become  due  to  any  State  or  Territory  before  the  adjourn- 
ment of  the  regular  session  of  legislature  meeting  next  after  the  passage 
of  this  act  shall  be  made  upon  the  assent  of  the  governor  thereof,  duly 
certified  by  the  Secretary  of  the  Treasury. 

States  Liable  for  Fund. 

Sec.  3.  That  if  any  portion  of  the  moneys  received  by  the  designated 
officer  of  any  State  or  Territory  for  the  further  and  more  complete  en- 
dowment, support,  and  maintenance  of  agricultural  experiment  stations 
as  provided  in  this  act  shall  by  any  action  or  contingency  be  diminished 
or  lost  or  be  misapplied,  it  shall  be  replaced  by  said  State  or  Territory 
to  which  it  belongs,  and  until  so  replaced  no  subsequent  appropriation 
shall  be  apportioned  or  paid  to  such  State  or  Territory ;  and  no  portion 
of  said  moneys  exceeding  five  per  centum  of  each  annual  appropriation 
shall  be  applied,  directly  or  indirectly,  under  any  pretense  whatever,  to 
the  purchase,  erection,  preservation,  or  repair  of  any  building  or  build- 
ings, or  to  the  purchase  or  rental  of  land.     It  shall  be  the  dutv  of  each  of 


54  Important  Federal  Laws 

said  stations  annually,  on  or  before  the  first  day  of  February,  to  make  to 
the  governor  of  the  State  or  Territory  in  which  it  is  located  a  full  and 
detailed  report  of  its  operations,  including  a  statement  of  receipts  and 
expenditures,  a  copy  of  which  report  shall  be  sent  to  each  of  said  stations, 
to  the  Secretary  of  Agriculture  and  to  the  Secretary  of  the  Treasury  of 
the  United  States. 

Duties  of  Secretary  of  Agriculture. 

Sec.  4.  That  on  or  before  the  first  day  of  July  in  each  year  after 
the  passage  of  this  act  the  Secretary  of  Agriculture  shall  ascertain^  and 
certify  to  the  Secretary  of  the  Treasury  as  to  each  State  and  Territory 
whether  it  is  complying  with  the  provisions  of  this  act  and  is  entitled  to 
receive  its  share  of  the  annual  appropriation  for  agricultural  experiment 
stations  under  this  act  and  the  amount  which  thereupon  each  is  entitled, 
respectively,  to  receive.  If  the  Secretary  of  Agriculture  shall  withhold 
a  certificate  from  any  State  or  Territory  of  its  appropriations,  the  facts 
and  reasons  therefor  shall  be  reported  to  the  President,  and  the  amount 
involved  shall  be  kept  separate  in  the  Treasury  until  the  close  of  the 
next  Congress,  in  order  that  the  State  or  Territory  may,  if  it  shall  so 
desire,  appeal  to  Congress  from  the  determination  of  the  Secretary  of 
Agriculture.  If  the  next  Congress  shall  not  direct  such  sum  to  be  paid, 
it  shall  be  covered  into  the  Treasury;  and  the  Secretary  of  Agriculture  is 
hereby  charged  with  the  proper  administration  of  this  law. 

Report  by  the  Secretary  of  Agriculture. 

Sec.  5.  That  the  Secretary  of  Agriculture  shall  make  an  annual  re- 
port to  Congress  on  the  receipts  and  expenditures  and  work  of  the  agri- 
cultural experiment  stations  in  all  of  the  States  and  Territories,  and 
also  whether  the  appropriation  of  any  State  or  Territory  has  been  with- 
held, and  if  so,  the  reason  therefor. 

Sec.  6.  That  Congress  may  at  any  time  amend,  suspend,  or  repeal 
any  or  all  of  the  provisions  of  this  act. 


PROVIDING  FOR  COOPERATIVE  EXTENSION  WORK. 

Act  of  May  8.  1914. 
[Smith-Lever  Act.] 

An  Act  to  provide  for  cooperative  agricultural  extension  work  between  the 
agricultural  colleges  in  the  several  States  receiving  the  benefits  of  an  act 
of  Congress  approved  July  second,  eighteen  hundred  and  sixty-two,  and 
of  acts  supplementary  thereto,  and  the  United  States  Department  of  Agri- 
culture. 

Cooperative  Extension  Work. 

Sec.  1.  That  in  order  to  aid  in  diffusing  among  the  people  of  the 
United  States  useful  and  practical  information  on  subjects  relating  to 
ao-riculture  and  home  economics,  and  to  encourage  the  application  of  the 
same,  there  may  be  inaugurated  in  connection  with  the  college  or  colleges 


Cooperative  Agricultur-\l  Extension  Work  55 

in  each  State  now  receiving,  or  which  may  hereafter  receive,  the  benefits 
of  the  act  of  Congress  approved  July  second,  eighteen  hundred  and  sixty- 
two,  entitled  "An  act  donating  public  lands  to  the  several  States  and 
Territories  which  may  provide  colleges  for  the  benefit  of  agriculture  and 
the  mechanic  arts"  (Twelfth  Statutes  at  Large,  page  five  hundred  and 
three),  and  of  the  act  of  Congress  approved  August  thirtieth,  eighteen 
hundred  and  ninety  (Twenty-sixth  Statutes  at  Large,  page  four  hundred 
and  seventeen  and  chapter  eight  hundred  and  forty-one),  agricultural  ex- 
tension work  which  shall  be  carried  on  in  cooperation  with  the  United 
States  Department  of  Agriculture :  Provided,  That  in  any  State  in  which 
two  or  more  such  colleges  have  been  or  hereafter  may  be  established  the 
appropriations  hereinafter  made  to  such  State  shall  be  administered  by 
such  college  or  colleges  as  the  legislature  of  such  State  may  direct:  Pro- 
vided further,  That,  pending  the  inauguration  and  development  of  the 
cooperative  extension  work  herein  authorized,  nothing  in  this  act  shall  be 
construed  to  discontinue  either  the  farm  management  work  or  the  farm- 
ers' cooperative  demonstration  work  as  now  conducted  by  the  Bureau  of 
Plant  Industry  of  the  Department  of  Agriculture. 

Character  of  Instruction. 

Sec.  2.  That  cooperative  agricultural  extension  work  shall  consist 
of  the  giving  of  instruction  and  practical  demonstrations  in  agriculture 
and  home  economics  to  persons  not  attending  or  resident  in  said  colleges 
in  the  several  communities,  and  imparting  to  such  persons  information  on 
said  subjects  through  field  demonstrations,  publications  and  otherwise; 
and  this  work  shall  be  carried  on  in  such  manner  as  may  be  mutually 
agreed  upon  by  the  Secretary  of  Agriculture  and  the  State  agricultural 
college  or  colleges  receiving  the  benefits  of  this  act. 

Appropriations. 

Sec.  3.  That  for  the  purpose  of  paying  the  expenses  of  said  co- 
operative agricultural  extension  work  and  the  necessary  printing  and  dis- 
tributing of  information  in  connection  with  the  same,  there  is  permanently 
appropriated,  out  of  any  money  in  the  Treasury  not  otherwise  appro- 
priated, the  sum  of  $480.0CO  for  each  year,  $10,000  of  which  shall  be 
paid  annually,  in  the  manner  hereinafter  provided,  to  each  State  which 
shall  by  action  of  its  legislature  assent  to  the  provisions  of  this  act :  Pro- 
vided, That  payment  of  such  installments  of  the  appropriation  herein- 
before made  as  shall  become  due  to  any  State  before  the  adjournment 
of  the  regular  session  of  the  legislature  meeting  next  after  the  passage 
of  this  act  may,  in  the  absence  of  prior  legislative  assent,  be  made  upon 
the  assent  of  the  governor  thereof,  duly  certified  to  the  Secretary  of  the 
Treasury:  Provided  further.  That  there  is  also  appropriated  an  addi- 
tional sum  of  $600,000  for  the  fiscal  year  following  that  in  which  the 
foregoing  appropriation  first  becomes  available,  and  for  each  year  there- 
after for  seven  years  a  sum  exceeding  by  $500,000  the  sum  appropriated 
for  each  preceding  year,  and  for  each  year  thereafter  there  is  permanently 


56  Important  Federal  Laws 

appropriated  for  each  year  the  sum  of  $4,100,000  in  addition  to  the  sum 
of  $480,000  hereinbefore  provided:  Provided  further,  That  before  the 
funds  herein  appropriated  shall  become  available  to  any  college  for  any 
fiscal  year  plans  for  the  work  to  be  carried  on  under  this  act  shall  be 
submitted  by  the  proper  officials  of  each  college  and  approved  by  the 
Secretary  of  Agriculture.  Such  additional  sums  shall  be  used  only  for 
the  purposes  hereinbefore  stated,  and  shall  be  allotted  annually  to  each 
State  by  the  Secretary  of  Agriculture  and  paid  in  the  manner  hereinbefore 
provided,  in  the  proportion  which  the  rural  population  of  each  State 
bears  to  the  total  rural  population  of  all  the  States  as  determined  by  the 
next  preceding  Federal  census :  Provided  further.  That  no  payment  out 
of  the  additional  appropriations  herein  provided  shall  be  made  in  any 
year  to  any  State  until  an  equal  sum  has  been  appropriated  for  that  year 
by  the  legislature  of  such  State,  or  provided  by  State,  county,  college, 
local  authority,  or  individual  contributions  from  within  the  State,  for  the 
maintenance  of  the  cooperative  agricultural  extension  work  provided  for 
in  this  act. 

Payment. 

Sec.  4.  That  the  sums  hereby  appropriated  for  extension  work  shall 
be  paid  in  equal  semiannual  payments  on  the  first  day  of  January  and 
July  of  each  year  by  the  Secretary  of  the  Treasury  upon  the  warrant  of 
the  Secretary  of  Agriculture,  out  of  the  Treasury  of  the  United  States, 
to  the  treasurer  or  other  officer  of  the  State  duly  authorized  by  the  laws 
of  the  State  to  receive  the  same;  and  such  officer  shall  be  required  to 
report  to  the  Secretary  of  Agriculture,  on  or  before  the  first  day  of 
September  of  each  year,  a  detailed  statement  of  the  amount  so  received 
during  the  previous  fiscal  year,  and  of  its  disbursement,  on  forms  pre- 
scribed by  the  Secretary  of  Agriculture. 

States  Liable  for  Fund. 

Sec.  5.  That  if  any  portion  of  the  moneys  received  by  the  desig- 
nated officer  of  any  State  for  the  support  and  maintenance  of  cooperative 
agricultural  extension  work,  as  provided  in  this  act,  shall  by  any  action 
or  contingency  be  diminshed  or  lost  or  be  misapplied,  it  shall  be  replaced 
by  said  State  to  which  it  belongs,  and  until  so  replaced  no  subsequent 
appropriation  shall  be  apportioned  or  paid  to  said  State,  and  no  portion 
of  said  moneys  shall  be  applied,  directly  or  indirectly,  to  the  purchase, 
erection,  preservation,  or  repair  of  any  building  or  buildings,  or  the  pur- 
chase or  rental  of  land,  or  in  college-course  teaching,  lectures  in  colleges, 
promoting  agricultural  trains,  or  any  other  purpose  not  specified  in  this 
act,  and  not  more  than  five  per  centum  of  each  annual  appropriation  shall 
be  applied  to  the  printing  and  distribution  of  publications.  It  shall  be 
the  duty  of  each  of  said  colleges  annually,  on  or  before  the  first  day  of 
January,  to  make  to  the  governor  of  the  State  in  which  it  is  located  a 
full  and  detailed  report  of  its  operations  in  the  direction  of  extension 
work  as  defined  in  this  act,  including  a  detailed  statement  of  receipts 


Bureau  of  Animal  Industry  57 

and  expenditures  from  all  sources  for  this  purpose,  a  copy  of  which  re- 
port shall  be  sent  to  the  Secretary  of  Agriculture  and  to  the  Secretary 
of  the  Treasury  of  the  United  States. 

Duty  of  Secretary  of  Agriculture. 

Sec.  6.  That  on  or  before  the  first  day  of  July  in  each  year  after 
the  passage  of  this  act  the  Secretary  of  Agriculture  shall  ascertain  and 
certify  to  the  Secretary  of  the  Treasury  as  to  each  State  whether  it  is 
entitled  to  receive  its  share  of  the  annual  appropriation  for  cooperative 
agricultural  extension  work  under  this  act,  and  the  amount  which  it  is 
entitled  to  receive.  If  the  Secretary  of  Agriculture  shall  withhold  a 
certificate  from  any  State  of  its  appropriation,  the  facts  and  reasons 
therefor  shall  be  reported  to  the  President,  and  the  amount  involved  shall 
be  kept  separate  in  the  Treasury  until  the  expiration  of  the  Congress 
next  succeeding  a  session  of  the  legislature  of  any  State  from  which  a 
certificate  has  been  withheld,  in  order  that  the  State  may,  if  it  should 
so  desire,  appeal  to  Congress  from  the  determination  of  the  Secretary 
of  Agriculture.  If  the  next  Congress  shall  not  direct  such  sum  to  be 
paid,  it  shall  be  covered  into  the  Treasury. 

Report  of  the  Secretary  of  Agriculture. 

Sec.  7.  That  the  Secretary  of  Agriculture  shall  make  an  annual  re- 
port to  Congress  of  the  receipts,  expenditures  and  results  of  the  co- 
operative agricultural  extension  work  in  all  of  the  States  receiving  the 
benefits  of  this  act,  and  also  whether  the  appropriation  of  any  State  has 
been  withheld,  and  if  so,  the  reasons  therefor. 

Sec.  8.  That  Congress  may  at  any  time  alter,  amend,  or  repeal  any 
or  all  of  the  provisions  of  this  act. 


BUREAU  OF  ANIMAL  INDUSTRY. 

Act  of  May  29,  1884. 

An  Act  for  the  establishment  of  a  Bureau  of  Animal  Industry,  to  prevent  the 
exportation  of  diseased  cattle,  and  to  provide  means  for  the  suppression 
and  extirpation  of  pleuro-pneumonia  and  other  contagious  diseases  among 
domestic  animals. 

Creation  of  Bureau. 

Sec.  1.  That  the  Commissioner  of  Agriculture  shall  organize  in 
his  department  a  Bureau  of  Animal  Industry,  and  shall  appoint  a  chief 
thereof,  who  shall  be  a  competent  veterinary  surgeon,  and  whose  duty 
it  shall  be  to  investigate  and  report  upon  the  condition  of  domestic 
animals  of  the  United  States,  their  protection  and  use,  and  also  inquire 
into  and  report  the  causes  of  contagious,  infectious,  and  communicable 
diseases  among  them,  and  the  means  for  the  prevention  and  cure  of  the 
same,  and  to  collect  such  information  on  these  subjects  as  shall  be  valu- 
able to  the  agricultural  and  commercial  interests  of  the  country;  and  the 
Commissioner  of  Agriculture  is  hereby  authorized  to  employ  a  force  suffi- 


58  Important  Federal  Laws 

cient  for  this  purpose,  not  to  exceed  twenty  persons  at  any  one  time.  The 
salary  of  the  chief  of  said  bureau  shall  be  three  thousand  dollars  per 
annum ;  and  the  commissioner  shall  appoint  a  clerk  for  said  bureau,  with 
a  salary  of  one  thousand  five  hundred  dollars  per  annum. 

Appointment  of  Agents. 

Sec.  2.  That  the  Commissioner  of  Agriculture  is  authorized  to  ap- 
point two  competent  agents,  who  shall  be  practical  stock  raisers  or  experi- 
enced business  men  familiar  with  questions  pertaining  to  commercial 
transactions  in  live  stock  and  whose  duty  it  shall  be,  under  the  instructions 
of  the  Commissioner  of  Agriculture,  to  examine  and  report  upon  the  best 
methods  of  treating,  transporting,  and  caring  for  animals,  and  the  means 
to  be  adopted  for  the  suppression  and  extirpation  of  contagious  pleuro- 
pneumonia, and  to  provide  against  the  spread  of  other  dangerous,  conta- 
gious, infectious,  and  communicable  diseases.  The  compensation  of  said 
agents  shall  be  at  the  rate  of  ten  dollars  per  diem,  with  all  necessary 
expenses  while  engaged  in  the  actual  performance  of  their  duties  under 
this  act,  when  absent  from  their  usual  place  of  business  or  residence  as 
such  agent. 

Rules  and  Regulations. 

Sec.  3.  That  it  shall  be  the  duty  of  the  Commissioner  of  Agricul- 
ture to  prepare  such  rules  and  regulations  as  he  may  deem  necessary 
for  the  speedv  and  effectual  suppression  and  extirpation  of  said  diseases, 
and  to  certify  such  rules  and  regulations  to  the  executive  authority  of  each 
State  and  Territory,  and  invite  said  authorities  to  cooperate  in  the  execu- 
tion and  enforcement  of  this  Act.  Whenever  the  plans  and  methods  of 
the  Commissioner  of  Agriculture  shall  be  accepted  by  any  State  or  Terri- 
tory in  which  pleuro-pneumonia  or  other  contagious,  infectious,  or  com- 
municable disease  is  declared  to  exist,  or  such  State  or  Territory  shall 
have  adopted  plans  and  methods  for  the  suppression  and  extirpation  of 
said  diseases,  and  such  plans  and  methods  shall  be  accepted  by  the  Com- 
missioner of  Agriculture,  and  whenever  the  governor  of  a  State  or  other 
properly  constituted  authorities  signify  their  readiness  to  cooperate  for 
the  extinction  of  any  contagious,  infectious,  or  communicable  disease 
in  conformity  with  the  provisions  of  this  Act,  the  Commissioner  of 
Agriculture  is  hereby  authorized  to  expend  so  much  of  the  money  appro- 
priated bv  this  act  as  may  be  necessary  in  such  investigations  and  in  such 
disinfection  and  quarantine  measures  as  may  be  necessan,'  to  prevent  the 
spread  of  the  disease  from  one  State  or  Territory  into  another. 

Investigation  of  Contagious  Diseases. 

Sec.  4.  That  in  order  to  promote  the  exportation  of  live  stock  from 
the  United  States  the  Commissioner  of  Agriculture  shall  make  special 
investigation  as  to  the  existence  of  pleuro-pneumonia,  or  any  contagious, 
infectious,  or  communicable  disease,  along  the  dividing  lines  between  the 
United  States  and  foreign  countries,  and  along  the  lines  of  transportation 
from  all  parts  of  the  United  States  to  ports  from  which  live  stock  are 


Bureau  of  Animal  Industry  59 

exported,  and  make  report  of  the  results  of  such  investigation  to  the  Secre- 
tary of  the  Treasury,  who  shall  from  time  to  time  establish  such  regula- 
tions concerning  the  exportation  and  transportation  of  live  stock  as  the 
results  of  said  investigations  may  require. 

Power  of  Secretary  of  the  Treasury. 

Sec.  5.  That  to  prevent  the  exportation  from  any  port  of  the  United 
States  to  any  port  in  a  foreign  country  of  live  stock  affected  with  any 
contagious,  infectious,  or  communicable  disease,  and  especially  pleuro- 
pneumonia, the  Secretary  of  the  Treasury  be,  and  he  is  hereby,  authorized 
to  take  such  steps  and  adopt  such  measures,  not  inconsistent  with  the  pro- 
visions of  this  act,  as  he  may  deem  necessary. 

Infected  Stock  Not  to  be  Transported. 

Sec.  6.  That  no  railroad  company  within  the  United  States,  or  the 
owners  or  masters  of  any  steam  or  sailing  or  other  vessel  or  boat,  shall 
receive  for  transportation  or  transport,  from  one  State  or  Territory  to 
another,  or  from  any  State  into  the  District  of  Columbia,  or  from  the 
District  into  any  State,  any  live  stock  aft'ected  with  any  contagious,  infec- 
tious, or  communicable  disease,  and  especially  the  disease  known  as  pleuro- 
pneumonia ;  nor  shall  any  person,  company,  or  corporation  deliver  for  such 
transportation  to  any  railroad  company,  or  master  or  owner  of  any  boat  or 
vessel,  any  live  stock,  knowing  them  to  be  affected  with  any  contagious, 
infectious,  or  communicable  disease ;  nor  shall  any  person,  company,  or 
corporation  drive  on  foot  or  transport  in  private  conveyance  from  one 
State  or  Territory  to  another,  or  from  any  State  into  the  District  of  Co- 
lumbia, or  from  the  District  into  any  State,  any  live  stock,  knowing  them 
to  be  affected  with  any  contagious,  infectious,  or  conjmunicable  disease, 
and  especially  the  disease  known  as  pleuro-pneumonia :  Provided,  That  the 
so-called  splenetic,  or  Texas,  fever  shall  not  be  considered  a  contagious, 
infectious,  or  communicable  disease  within  the  meaning  of  sections  four, 
five,  six,  and  seven  of  this  Act,  as  to  cattle  being  transported  by  rail  to 
market  for  slaughter,  when  the  same  are  unloaded  only  to  be  fed  and 
watered  in  lots  on  the  way  thereto. 

Notification  to  Carrier. 

Sec.  7.  That  it  shall  be  the  duty  of  the  Commissioner  of  Agriculture 
to  notify,  in  writing,  the  proper  officials  or  agents  of  any  railroad,  steam- 
boat, or  other  transportation  company  doing  business  in  or  through  any 
infected  locality,  and  by  publication  in  such  newspapers  as  he  may  select, 
of  the  existence  of  said  contagion ;  and  any  person  or  persons  operating 
any  such  railroad,  or  master  or  owner  of  any  boat  or  vessel,  or  owner  or 
custodian  of  or  person  having  control  over  such  cattle  or  other  live  stock 
within  such  infected  district,  who  shall  knowingly  violate  the  provisions 
of  section  six  of  this  Act,  shall  be  guilty  of  a  misdemeanor,  and,  upon  con- 
viction, shall  be  punished  by  a  fine  of  not  less  than  one  hundred  dollars  nor 
more  than  five  thousand  dollars,  or  be  imprisoned  for  not  more  than  one 
year,  or  by  both  such  fine  and  imprisonment. 


60  Important  Federal  Laws 

Power  of  Quarantine. 

Sec.  8.  That  whenever  any  contagious,  infectious,  or  communicable 
disease  affecting  domestic  animals,  and  especially  the  disease  known  as 
pleuro-pneumonia,  shall  be  brought  into  or  shall  break  out  in  the  District 
of  Columbia,  it  shall  be  the  duty  of  the  Commissioners  of  said  District  to 
take  measures  to  suppress  the  same  promptly  and  to  prevent  the  same 
from  spreading;  and  for  this  purpose  the  said  Commissioners  are  hereby 
empowered  to  order  and  require  that  any  premises,  farm,  or  farms,  where 
such  disease  exists,  or  has  existed,  be  put  in  quarantine ;  to  order  all  or 
any  animals  coming  into  the  District  to  be  detained  at  any  place  or  places 
for  the  purpose  of  inspection  and  examination ;  to  prescribe  regulations 
for  and  require  the  destruction  of  animals  affected  with  contagious,  infec- 
tious, and  communicable  disease,  and  for  the  .proper  disposition  of  their 
hides  and  carcasses ;  to  prescribe  regulations  for  disinfection,  and  such 
other  regulations  as  they  may  deem  necessary  to  prevent  infection  or 
contagion  being  communicated,  and  shall  report  to  the  Commissioner  of 
Agriculture  whatever  they  may  do  in  pursuance  of  the  provisions  of  this 
section. 

Prosecutions. 

Sec.  9.  That  it  shall  be  the  duty  of  the  several  United  States  dis- 
trict attorneys  to  prosecute  all  violations  of  this  act  which  shall  be  brought 
to  their  notice  or  knowledge  by  any  person  making  the  complaint  under 
oath;  and  the  same  shall  be  heard  before  any  district  or  circuit  court  of 
the  United  States  or  Territorial  court  holden  within  the  district  in  which 
the  violation  of  this  act  has  been  committed. 

Appropriations. 

Sec.  10.  That  the  sum  of  one  hundred  and  fifty  thousand  dollars, 
to  be  immediately  available,  or  so  much  thereof  as  may  be  necessary,  is 
hereby  appropriated,  out  of  any  moneys  in  the  Treasury  not  otherwise 
appropriated,  to  carry  into  effect  the  provisions  of  this  act. 

Report. 

Sec.  11.  That  the  Commissioner  of  Agriculture  shall  report  annually 
to  Congress,  at  the  commencement  of  each  session,  a  list  of  the  names 
of  all  persons  employed,  an  itemized  statement  of  all  expenditures  under 
this  act,  and  full  particulars  of  means  adopted  and  carried  into  effect 
for  the  suppression  of  contagious,  infectious,  or  communicable  diseases 
among  domestic  animals. 

SUPPRESSION  OF  ANIMAL  DISEASES. 

Act  of  February  2,  1903. 
An  Act  to  enable  the  Secretary  of  Agriculture  to  more  effectually  suppress  and 
prevent  the   spread   of   contagious   and   infectious   diseases   of   live   stock, 
and  for  other  purposes. 

Rules  and  Regulations  for  Transporting  Stock. 

Sec.  1.  That  in  order  to  enable  the  Secretary  of  Agriculture  to 
effectually  suppress  and  extirpate  contagious  pleuro-pneumonia,  foot-and- 


Animal  Diseases  61 

mouth  disease,  and  other  dangerous,  contagious,  infectious,  and  com- 
municable diseases  in  cattle  and  other  live  stock,  and  to  prevent  the 
spread  of  such  diseases,  the  powers  conferred  on  the  Secretary  of  the 
Treasury  by  sections  four  and  five  of  an  Act  entitled  "An  Act  for  the 
establishment  of  a  Bureau  of  Animal  Industry,  to  prevent  the  exportation 
of  diseased  cattle,  and  to  provide  means  for  the  suppression  and  extirpa- 
tion of  pleuro-pneumonia  and  other  contagious  diseases  among  domestic 
animals,"  approved  May  twenty-ninth,  eighteen  hundred  and  eighty-four 
(twenty-third  United  States  Statutes,  thirty-one),  are  hereby  conferred  on 
the  Secretary  of  Agriculture,  to  be  exercised  exclusively  by  him.  He  is 
hereby  authorized  and  directed,  from  time  to  time,  to  establish  such  rules 
and  regulations  concerning  the  exportation  and  transportation  of  live 
stock  from  any  place  within  the  United  States  where  he  may  have  reason 
to  believe  such  diseases  may  exist  into  and  through  any  State  or  Terri- 
tory, including  the  Indian  Territory,  and  into  and  through  the  District 
of  Columbia,  and  to  foreign  countries,  as  he  may  deem  necessary,  and  all 
such  rules  and  regulations  shall  have  the  force  of  law.  Whenever 
any  inspector  or  assistant  inspector  of  the  Bureau  of  Animal  Industry 
shall  issue  a  certificate  showing  that  such  officer  had  inspected  any  cattle 
or  other  live  stock  which  were  about  to  be  shipped,  driven,  or  transported 
from  such  locality  to  another,  as  above  stated,  and  had  found  them  free 
from  Texas,  or  splenetic,  fever  infection,  pleuro-pneumonia,  foot-and- 
mouth  disease,  or  any  other  infectious,  contagious,  or  communicable  dis- 
ease, such  animals  so  inspected  and  certified  may  be  shipped,  driven,  or 
transported  from  such  place  into  and  through  any  State  or  Territory,  in- 
cluding the  Indian  Territory,  and  into  and  through  the  District  of  Colum- 
bia, or  they  may  be  exported  from  the  United  States  without  further  in- 
spection or  the  exaction  of  fees  of  any  kind,  except  such  as  may  at  any 
time  be  ordered  or  exacted  by  the  Secretary  of  Agriculture ;  and  all  such 
animals  shall  at  all  times  be  under  the  control  and  supervision  of  the 
Bureau  of  Animal  Industry  of  the  Agricultural  Department  for  the  pur- 
poses of  such  inspection. 

Power  to  Seize  Goods  or  Stock. 

Sec.  2.  That  the  Secretary  of  Agriculture  shall  have  authority  to 
make  such  regulations  and  take  such  measures  as  he  may  deem  proper  to 
prevent  the  introduction  or  dissemination  of  any  contagious,  infectious, 
or  communicable  disease  of  animals  from  a  foreign  country  into  the 
United  States  or  from  one  State  or  Territory  of  the  United  States  or  the 
District  of  Columbia  to  another,  and  to  seize,  quarantine,  and  dispose  of 
any  hay,  straw,  forage,  or  similar  material,  or  any  meats,  hides,  or  other 
animal  products  coming  from  an  infected  foreign  country  to  the  United 
States,  or  from  one  State  or  Territory  or  the  District  of  Columbia  in 
transit  to  another  State  or  Territory  or  the  District  of  Columbia  when- 
ever in  his  judgment  such  action  is  advisable  in  order  to  guard  against 
the  introduction  or  spread  of  such  contagion. 


62  Important  Federal  Laws 

Penalty. 

Sec.  3.  That  any  person,  company,  or  corporation  knowingly  vio- 
lating the  provisions  of  this  act  or  the  orders  or  regulations  made  in 
pursuance  thereof  shall  be  guilty  of  a  misdemeanor,  and  on  conviction 
shall  be  punished  by  a  fine  of  not  less  than  one  hundred  dollars  nor  more 
than  one  thousand  dollars,  or  by  imprisonment  not  more  than  one  year, 
or  by  both  such  fine  and  imprisonment. 


QUARANTINE  OF  ANIMALS. 

Act  of  May  3,  1905. 
An  Act  to  enable  the  Secretary  of  Agriculture  to  establish  and  maintain  quar- 
antine districts,  to  permit  and  regulate  the  movement  of  cattle  and  other 
live  stock  therefrom,  and  for  other  purposes. 

Quarantine. 

Sec.  1.  That  the  Secretary  of  Agriculture  is  authorized  and 
directed  to  quarantine  any  State  or  Territory  or  the  District  of  Columbia, 
or  any  portion  of  any  State  or  Territory  or  the  District  of  Columbia, 
when  he  shall  determine  the  facts  that  cattle  or  other  live  stock  in  such 
State  or  Territory  or  District  of  Columbia  are  affected  with  any  conta- 
gious, infectious,  or  communicable  disease ;  and  the  Secretary  of  Agri- 
culture is  directed  to  give  written  or  printed  notice  of  the  establishment 
of  quarantine  to  the  proper  officers  of  railroad,  steamboat,  or  other  trans- 
portation companies  doing  business  in  or  through  any  quarantined  State 
or  Territory  or  the  District  of  Columbia,  and  to  publish  in  such  news- 
papers in  the  quarantined  State  or  Territory  or  the  District  of  Columbia, 
as  the  Secretary  of  Agriculture  may  select,  notice  of  the  establishment 
of  quarantine. 

Transportation  Prohibited  in  Certain  Cases. 

Sec.  2.  That  no  railroad  company  or  the  owners  or  masters  of  any 
steam  or  sailing  or  other  vessel  or  boat  shall  receive  for  transportation 
or  transport  from  any  quarantined  State  or  Territory  or  the  District  of 
Columbia,  or  from  the  quarantined  portion  of  any  State  or  Territory  or 
the  District  of  Columbia,  into  any  other  State  or  Territory  or  the  Dis- 
trict of  Columbia,  any  cattle  or  other  live  stock,  except  as  hereinafter 
provided ;  nor  shall  any  person,  company,  or  corporation  deliver  for  such 
transportation  to  any  railroad  company,  or  to  the  master  or  owner  of  any 
boat  or  vessel  any  cattle  or  other  live  stock,  except  as  hereinafter  pro- 
vided ;  nor  shall  any  person,  company,  or  corporation  drive  on  foot,  or 
cause  to  be  driven  on  foot,  or  transport  in  private  conveyance  or  cause 
to  be  transported  in  private  conveyance,  from  a  quarantined  State  or 
Territory  or  the  District  of  Columbia,  or  from  the  quarantined  portion 
of  any  State  or  Territory  or  the  District  of  Columbia,  into  anv  other 
State  or  Territory  or  the  District  of  Columbia,  any  cattle  or  other  live 
stock,  except  as  hereinafter  provided. 

Rules  and  Regulations. 

Sec.  3.     That  it  shall  be  the  duty  of  the  Secretary  of  Agriculture, 


Animal  Diseases  63 

and  he  is  hereby  authorized  and  directed,  when  the  public  safety  will 
permit,  to  make  and  promulgate  rules  and  regulations  which  shall  per- 
mit and  govern  the  inspection,  disinfection,  certification,  treatment, 
handling,  and  method  and  manner  of  delivery  and  shipment  of  cattle  or 
other  live  stock  from  a  quarantined  State  or  Territory  or  the  District  of 
Columbia,  and  from  the  quarantined  portion  of  any  State  or  Territory 
or  the  District  of  Columbia,  into  any  other  State  or  Territory  or  the 
District  of  Columbia ;  and  the  Secretary  of  Agriculture  shall  give  notice 
of  such  rules  and  regulations  in  the  manner  provided  in  section  two  of 
this  act  for  notice  of  establishment  of  quarantine. 

Transportation  Only  as  Approved. 

Sec.  4.  That  cattle  or  other  live  stock  may  be  moved  from  a  quar- 
antined State  or  Territory  or  the  District  of  Columbia,  or  from  the  quar- 
antined portion  of  any  State  or  Territory  or  the  District  of  Columbia, 
into  any  other  State  or  Territory  or  the  District  of  Columbia,  under  and 
in  compliance  with  the  rules  and  regulations  of  the  Secretary  of  Agricul- 
ture, made  and  promulgated  in  pursuance  of  the  provisions  of  section  three 
of  this  act;  but  it  shall  be  unlawful  to  move,  or  to  allow  to  be  moved,  any 
cattle  or  other  live  stock  from  any  quarantined  State  or  Territory  or  the 
District  of  Columbia,  or  from  the  quarantined  portion  of  any  State  or 
Territory  or  the  District  of  Columbia,  into  any  other  State  or  Territory 
or  the  District  of  Columbia,  in  manner  or  method  or  under  conditions 
other  than  those  prescribed  by  the  Secretary  of  Agriculture. 

Resistance  to  Enforcement. 

Sec.  5.  That  every  person  who  forcibly  assaults,  resists,  opposes, 
prevents,  impedes,  or  interferes  with  any  officer  or  employee  of  the 
Bureau  of  Animal  Industry  of  the  United  States  Department  of  Agri- 
culture in  the  execution  of  his  duties,  or  on  account  of  the  execution  of 
his  duties,  shall  be  fined  not  less  than  one  hundred  dollars  nor  more  than 
one  thousand  dollars,  or  be  imprisoned  not  less  than  one  month  nor  more 
than  one  year,  or  by  both  such  fine  and  imprisonment ;  and  every  person 
who  discharges  any  deadly  weapon  at  any  officer  or  employee  of  the 
Bureau  of  Animal  Industry  of  the  United  States  Department  of  Agri- 
culture, or  uses  any  dangerous  or  deadly  weapon  in  resisting  him  in  the 
execution  of  his  duties,  with  intent  to  commit  a  bodily  injury  upon  him 
or  to  deter  or  prevent  him  from  discharging  his  duties,  or  on  account  of 
the  performance  of  his  duties,  shall,  upon  conviction,  be  imprisoned  at 
hard  labor  for  a  term  not  more  than  five  years  or  fined  not  to  exceed 
one  thousand  dollars. 

Penalty. 

Sec.  6.  That  any  person,  company  or  corporation  violating  the  pro- 
visions of  sections  two  or  four  of  this  act  shall  be  guilty  of  a  misde- 
meanor, and  on  conviction  shall  be  punished  by  a  fine  of  not  less  than 
one  hundred  dollars  nor  more  than  one  thousand  dollars,  or  by  imprison- 
ment not  more  than  one  year,  or  by  both  such  fine  and  imprisonment. 


64  Important  Federal  Laws 

CRUELTY  TO  ANIMALS. 

Act  of  June  29,  1906. 
An  Act  to  prevent  cruelty  to  animals  while  in  transit  by  railroad  or  other 
means  of  transportation  from  one  State  or  Territory  or  the  District  of 
Columbia  into  or  through  another  State  or  Territory  or  the  District  of 
Columbia,  and  repealing  sections  forty-three  hundred  and  eighty-six,  forty- 
three  hundred  and  eighty-seven,  forty-three  hundred  and  eighty-eight, 
forty-three  hundred  and  eighty-nine,  and  forty-three  hundred  and  ninety  of 
the  United  States  Revised  Statutes. 

Cruelty  to  Animals  Transported. 

Sec.  1.  That  no  railroad,  express  company,  car  company,  common 
carrier  other  than  by  water,  or  the  receiver,  trustee,  or  lessee  of  any  of 
them,  whose  road  forms  any  part  of  a  line  of  road  over  which  cattle, 
sheep,  swine,  or  other  animals  shall  be  conveyed  from  one  State  or  Ter- 
ritory or  the  District  of  Columbia  into  or  through  another  State  or  Ter- 
ritory or  the  District  of  Columbia,  or  the  owners  or  masters  of  steam, 
sailing,  or  other  vessels  carrying  or  transporting  cattle,  sheep,  swine,  or 
other  animals  from  one  State  or  Territory  or  the  District  of  Columbia 
into  or  through  another  State  or  Territory  or  the  District  of  Columbia, 
shall  confine  the  same  in  cars,  boats,  or  vessels  of  any  description  for  a 
period  longer  than  twenty-eight  consecutive  hours  without  unloading  the 
same  in  a  humane  manner,  into  properly  equipped  pens  for  rest,  water, 
and  feeding,  for  a  period  of  at  least  five  consecutive  hours,  unless  pre- 
vented by  storm  or  by  other  accidental  or  unavoidable  causes  which  can 
not  be  anticipated  or  avoided,  by  the  exercise  of  due  diligence  and  fore- 
sight :  Provided,  That  upon  the  written  request  of  the  owner  or  person 
in  custody  of  that  particular  shipment,  which  written  request  shall  be 
separate  and  apart  from  any  printed  bill  of  lading,  or  other  railroad  form, 
the  time  of  confinement  may  be  extended  to  thirty-six  hours.  In  esti- 
mating such  confinement,  the  time  consumed  in  loading  and  unloading 
shall  not  be  considered,  but  the  time  during  which  the  animals  have  been 
confined  without  such  rest  or  feed  or  water  on  connecting  roads  shall  be 
included,  it  being  the  intent  of  this  act  to  prohibit  their  continuous  con- 
finement beyond  the  period  of  twenty-eight  hours,  except  upon  the  con- 
tingencies hereinbefore  stated :  Provided,  That  it  shall  not  be  required 
that  sheep  be  unloaded  in  the  nighttime,  but  where  the  time  expires  in 
the  nighttime  in  case  of  sheep  the  same  may  continue  in  transit  to  a  suit- 
able place  for  unloading,  subject  to  the  aforesaid  limitation  of  thirty- 
six  hours. 

Feeding  and  Watering. 

Sec.  2.  That  animals  so  unloaded  shall  be  properly  fed  and  watered 
during  such  rest  either  by  the  owner  or  person  having  the  custody  there- 
of, or  in  case  of  his  default  in  so  doing  then  by  the  railroad,  express 
company,  car  company,  common  carrier  other  than  by  water,  or  the  re- 
ceiver, trustee,  or  lessee  of  any  of  them,  or  by  the  owners  or  masters  of 
boats  or  vessels  transporting  the  same,  at  the  reasonable  expense  of  the 
owner  or  person  in  custody  thereof,  and  such  railroad,  express  com- 


Cruelty  to  Animals  65 

pany,  car  company,  common  carrier  other  than  by  water,  receiver,  trus- 
tee, or  lessee  of  any  of  them,  owners  or  masters,  shall  in  such  case  have 
a  lien  upon  such  animals  for  food,  care,  and  custody  furnished,  collect- 
ible at  their  destination  in  the  same  manner  as  the  transportation  charges 
are  collected,  and  shall  not  be  liable  for  any  detention  of  such  animals, 
when  such  detention  is  of  reasonable  duration,  to  enable  compliance  with 
section  one  of  this  act;  but  nothing  in  this  section  shall  be  construed  to 
prevent  the  owner  or  shipper  of  animals  from  furnishing  food  therefor 
if  he  so  desires. 

Penalty. 

Sec.  3.  That  any  railroad,  express  company,  car  company,  common 
carrier  other  than  by  water,  or  the  receiver,  trustee,  or  lessee  of  any  of 
them,  or  the  master  or  owner  of  any  steam,  sailing,  or  other  vessel  who 
knowingly  and  wilfully  fails  to  comply  with  the  provisions  of  the  two 
preceding  sections  shall  for  every  such  failure  be  liable  for  and  forfeit 
and  pay  a  penalty  of  not  less  than  one  hundred  nor  more  than  five  hun- 
dred dollars :  Provided,  That  when  animals  are  carried  in  cars,  boats, 
or  other  vessels  in  which  they  can  and  do  have  proper  food,  water,  space, 
and  opportunity  to  rest  the  provisions  in  regard  to  their  being  unloaded 
shall  not  apply. 

Civil  Action. 

Sec.  4.  That  the  penalty  created  by  the  preceding  section  shall  be 
recovered  by  civil  action  in  the  name  of  the  United  States  in  the  circuit 
or  district  court  holden  within  the  district  where  the  violation  may  have 
been  committed  or  the  person  or  corporation  resides  or  carries  on  busi- 
ness ;  and  it  shall  be  the  duty  of  United  States  attorneys  to  prosecute  all 
violations  of  this  act  reported  by  the  Secretary  of  Agriculture,  or  which 
come  to  their  notice  or  knowledge  by  other  means. 

Repeal. 

Sec.  5.  That  sections  forty-three  hundred  and  eighty-six,  forty- 
three  hundred  and  eighty-seven,  forty-three  hundred  and  eighty-eight, 
forty-three  hundred  and  eighty-nine,  and  forty-three  hundred  and  ninety 
of  the  Revised  Statutes  of  the  United  States  be,  and  the  same  are,  hereby 

repealed. 

Extract  from  act  approved  March  4,  1913  (37  Stat.,  831). 
That  hereafter  all  the  provisions  of  the  said  act  approved  March 
third,  nineteen  hundred  and  five,  shall  apply  to  any  railroad  company 
or  other  common  carrier,  whose  road  or  line  forms  any  part  of  a  route 
over  which  cattle  or  other  live  stock  are  transported  in  the  course  of 
shipment  from  any  quarantined  State  or  Territory  or  the  District  of 
Columbia,  or  from  the  quarantined  portion  of  any  State  or  Territory  or 
the  District  of  Columbia,  into  any  other  State  or  Territory  or  the  Dis- 
trict of  Columbia ;     *     *     * 

(5) 


66  Important  Federal  Laws 

THE  GRAIN  STANDARDS  ACT. 

Act  of  August  11,  1916. 
Part  B. 
That  this  Part,  to  be  known  as  the  United  States  grain  standards 
Act,   be  and  is  hereby   enacted,   to   read  and  be  effective   hereafter   as 
follows : 

Definitions. 

"That  this  Act  shall  be  known  by  the  short  title  of  the  'United 
States  grain  standards  Act.'  The  word  'person,'  wherever  used  in 
this  Act,  shall  be  construed  to  import  the  plural  or  singular,  as  the  case 
demands,  and  shall  include  individuals,  associations,  partnerships,  and 
corporations;  the  words  'in  interstate  or  foreign  commerce.'  wherever 
used  in  this  Act,  mean,  'from  any  State,  Territory,  or  District  to  or 
throtigh  any  other  State,  Territory,  or  District,  or  to  or  through  any 
foreign  country,  or  within  any  Territory  or  District.'  When  construing 
and  enforcing  the  provisions  of  this  Act,  the  act,  omission,  or  failure  of 
any  official,  agent,  or  other  person  acting  for  or  employed  by  any  asso- 
ciation, partnership,  or  corporation  within  the  scope  of  his  employment 
or  office  shall,  in  every  case,  also  be  deemed  the  act,  omission,  or  failure 
of  such  association,  partnership,  or  corporation  as  well  as  that  of  the 
person. 

Standards  to  be  Fixed. 

"Sec.  2.  That  the  Secretary  of  Agriculture  is  hereby  authorized  to 
investigate  the  handling,  grading,  and  transportation  of  grain  and  to 
fix  and  establish  as  soon  as  may  be  after  the  enactment  hereof  standards 
of  quality  and  condition  for  corn  (maize),  wheat,  rye,  oats,  barley,  flax- 
seed, and  such  other  grains  as  in  his  judgment  the  usages  of  the  trade 
may  warrant  and  permit,  and  the  Secretary  of  Agriculture  shall  have 
power  to  alter  or  modify  such  standards  whenever  the  necessities  of  the 
trade  may  require.  In  promulgating  the  standards,  or  any  alteration  or 
modification  of  such  standards,  the  Secretary  shall  specify  the  date  or 
dates  when  the  same  shall  become  effective,  and  shall  give  public  notice, 
not  less  than  ninety  days  in  advance  of  such  date  or  dates,  by  such  means 
as  he  deems  proper. 

Official  Grain  Standards. 

"Sec.  3.  That  the  standards  so  fixed  and  established  shall  be  known 
as  the  official  grain  standards  of  the  United  States. 

Grain  to  be  Graded. 

"Sec.  4.  That  whenever  standards  shall  have  been  fixed  and  estab- 
lished under  this  Act  for  any  grain  no  person  thereafter  shall  ship  or 
deliver  for  shipment  in  interstate  or  foreign  commerce  any  such  grain 
which  is  sold,  offered  for  sale,  or  consigned  for  sale  by  grade  unless  the 
grain  shall  have  been  inspected  and  graded  by  an  inspector  licensed  under 
this  Act  and  the  grade  by  which  it  is  sold,  offered  for  sale,  or  consigned 


Grain  Standards  Act  67 

for  sale  be  one  of  the  grades  fixed  therefor  in  the  official  grain  standards 
of  the  United  States :  Provided,  That  any  person  may  sell,  offer  for  sale, 
or  consign  for  sale,  ship  or  deliver  for  shipment  in  interstate  or  foreign 
commerce  any  such  grain  by  sample  or  by  type,  or  under  any  name,  ■ 
description,  or  designation  which  is  not  false  or  misleading,  and  which 
name,  description,  or  designation  does  not  include  in  whole  or  in  part 
the  terms  of  any  official  grain  standard  of  the  United  States :  Provided 
further,  That  Tiny  such  grain  sold,  offered  for  sale,  or  consigned  for  sale 
by  grade  may  be  shipped  or  delivered  for  shipment  in  interstate  or  for- 
eign commerce  without  inspection  at  point  of  shipment  by  an  inspector 
licensed  under  this  Act,  to  or  through  any  place  at  which  an  inspector 
Hcensed  under  this  Act  is  located,  subject  to  be  inspected  by  a  licensed 
inspector  at  the   place   to   which   shipped   or  at   some   convenient   point 
through  which  shipped  for  inspection,  which  inspection  shall  be  under 
such  rules  and  regulations  as  the  Secretary  of  Agriculture  shall  prescribe, 
and  subject  further  to  the  right  of  appeal  from  such  inspection,  as  pro- 
vided in  section  six  of  this  Act:  And  provided  further.  That  any  such 
grain  sold,  offered  for  sale,  or  consigned  for  sale  by  any  of  the  grades 
fixed  therefor  in  the  official  grain  standards  may,  upon  compliance  with 
the  rules  and  regulations  prescribed  by  the  Secretary  of  Agriculture,  be 
shipped  in   interstate  or   foreign   commerce   without   inspection    from   a 
place  at  which  there  is  no  inspector  licensed  under  this  Act.  to  a  place 
at  which  there  is  no  such  inspector,  subject  to  the  right  of  either  party  to 
the  transaction  to  refer  any  dispute  as  to  the  grade  of  the  grain  to  the 
Secretary  of  Agriculture,  who  may  determine  the  true  grade  thereof. 
No  person  shall  in  any  certificate  or  in  any  contract  or  agreement  of 
sale  or  agreement  to  sell  by  grade,  either  oral  or  written,  involving,  or  in 
any  invoice  or  bill  of  lading  or  other  shipping  document  relating  to,  the 
shipment  or  delivery  for  shipment,  in  interstate  or  foreign  commerce,  of 
any  grain  for  which  standards  shall  have  been  fixed  and  established  under. 
this  Act,  describe,  or  in  any  way  refer  to,  any  of  such  grain  as  being  of 
any  grade  other  than  a  grade  fixed  therefor  in  the  official  grain  standards 
of  the  United  States. 

Misrepresentation.  • 

'■'Sec.  5.  That  no  person,  except  as  permitted  in  section  four,  shall 
represent  that  any  grain  shipped  or  delivered  for  shipment  in  interstate 
or  foreign  commerce  is  of  a  grade  fixed  in  the  official  grain  standards 
other  than  as  shown  by  a  certificate  therefor  issued  in  compliance  with 
this  Act ;  and  the  Secretary  of  Agriculture  is  authorized  to  cause  exam- 
inations to  be  made  of  any  grain  for  which  standards  shall  have  been 
fixed  and  established  under  this  Act,  and  which  has  been  certified  to  con- 
form to  anv  grade  fixed  therefor  in  such  official  grain  standards,  or  which 
has  been  shipped  or  delivered  for  shipment  in  interstate  or  foreign  com- 
merce. Whenever,  after  opportunity  for  hearing  is  given  to  the  owner  or 
shipper  of  the  grain  involved,  and  to  the  inspector  thereof  if  the  same 


68  Important  Federal  Laws 

has  been  inspected,  it  is  determined  by  the  Secretary  that  any  quantity 
of  grain  has  been  incorrectly  certified  to  conform  to  a  specified  grade, 
or  has  been  sold,  offered  for  sale,  or  consigned  for  sale  under  any  name, 
description,  or  designation  which  is  false  or  misleading,  he  may  publish 
his  findings. 

Appeals  to  Secretary  of  Agriculture. 

"Sec.  6.  That  whenever  standards  shall  have  been  fix<ed  and  estab- 
lished under  this  Act  for  any  grain  and  any  quantity  of  such  grain  sold, 
offered  for  sale,  or  consigned  for  sale,  or  which  has  been  shipped,  or 
delivered  for  shipment  in  interstate  or  foreign  commerce  shall  have 
been  inspected  and  a  dispute  arises  as  to  whether  the  grade  as  deter- 
mined by  such  inspection  of  any  such  grain  in  fact  conforms  to  the 
standard  of  the  specified  grade,  any  interested  party  may,  either  with  or 
without  reinspection,  appeal  the  question  to  the  Secretary  of  Agriculture, 
and  the  Secretary  of  Agriculture  is  authorized  to  cause  such  investigation 
to  be  made  and  such  tests  to  be  applied  as  he  may  deem  necessary  and  to 
determine  the  true  grade :  Provided,  That  any  appeal  from  such  inspec- 
tion and  grading  to  the  Secretary  of  Agriculture  shall  be  taken  before 
the  grain  leaves  the  place  where  the  inspection  appealed  from  was  made 
and  before  the  identity  of  the  grain  has  been  lost,  under  such  rules  and 
regulations  as  the  Secretary  of  Agriculture  shall  prescribe.  Whenever 
an  appeal  shall  be  taken  or  a  dispute  referred  to  the  Secretary  of  Agri- 
culture under  this  Act,  he  shall  charge  and  assess,  and  cause  to  be  col- 
lected, a  reasonable  fee,  in  amount  to  be  fixed  by  him,  which  fee,  in  case 
■of  an  appeal,  shall  be  refunded  if  the  appeal  is  sustained.  All  such  fees, 
not  so  refunded,  shall  be  deposited  and  covered  into  the  Treasury  as  mis- 
-cellaneous  receipts.  The  findings  of  the  Secretary  of  Agriculture  as  to 
■grade,  signed  by  him  or  by  such  officer  or  officers,  agent  or  agents,  of  the 
Department  of  Agriculture  as  he  may  designate,  made  after  the  parties 
in  interest  have  had  opportunity  to  be  heard,  shall  be  accepted  in  the 
courts  of  the  United  States  as  prima  facie  evidence  of  the  true  grade  of 
the  grain  determined  by  him  at  the  time  and  place  specified  in  the  findings. 

License  to  Inspect. 

"Sec.  7.  The  Secretary  of  Agriculture  may  issue  a  license  to  any 
person,  upon  presentation  to  him  of  satisfactory  evidence  that  such  person 
is  competent,  to  inspect  and  grade  grain  and  to  certificate  the  grade 
thereof  for  shipment  or  delivery  for  shipment  in  interstate  or  foreign 
commerce,  under  this  Act  and  the  rules  and  regulations  prescribed  there- 
under. No  person  authorized  or  employed  by  any  State,  county,  city, 
town,  board  of  trade,  chamber  of  commerce,  corporation,  society,  part- 
nership, or  association  to  inspect  or  grade  grain  shall  certify,  or  other- 
wise state  or  indicate  in  writing,  that  any  grain  for  shipment  or  deliv- 
ery for  shipment  in  interstate  or  foreign  commerce,  which  has  been 
inspected  or  graded  by  him,  or  by  any  person  acting  under  his  author- 


Grain  Standards  Act  69 

ity,  is  of  one  of  the  grades  of  the  official  grain  standards  of  the  United 
States,  unless  he  holds  an  unsuspended,  and  unrevoked  license  issued 
by  the  Secretary  of  Agriculture :  Provided,  That  in  any  State  which  has, 
or  which  may  hereafter  have  a  State  grain  inspection  department  estab- 
lished by  the  laws  of  such  State,  the  Secretary  of  Agriculture  shall  issue 
licenses  to  the  persons  duly  authorized  and  employed  to  inspect  and 
grade  grain  under  the  laws  of  such  State.  The  Secretary  of  Agriculture 
may  suspend  or  revoke  any  license  issued  by  him  under  this  Act  when- 
ever, after  opportunity  for  hearing  has  been  given  to  the  licensee,  the 
Secretary  shall  determine  that  such  licensee  is  incompetent  or  has  know- 
ingly or  carelessly  graded  grain  improperly  or  by  any  other  standard 
than  is  authorized  under  this  Act,  or  has  issued  any  false  certificate  of 
grade,  or  has  accepted  any  money  or  other  consideration,  directly  or 
indirectly,  for  any  neglect  or  improper  performance  of  duty,  or  has  vio- 
lated any  provision  of  this  Act  or  of  the  rules  and  regulations  made  here- 
under. Pending  investigation  the  Secretary  of  Agriculture,  whenever 
he  deems  necessary,  may  suspend  a  license  temporarily  without  hearing: 
Provided  further.  That  no  person  licensed  by  the  Secretary  of  Agricul- 
ture to  inspect  or  grade  grain  or  employed  by  him  in  carrying  out  any  of 
the  provisions  of  this  Act  shall,  during  the  term  of  such  license  or  em- 
ployment, be  interested,  financially  or  otherwise,  directly  or  indirectly, 
in  any  grain  elevator  or  warehouse,  or  in  the  merchandising  of  grain, 
nor  shall  he  be  in  the  employment  of  any  person  or  corporation  owning 
or  operating  any  grain  elevator  or  warehouse. 

"The  Secretary  of  Agriculture  shall  require  every  inspector  licensed 
under  this  Act  to  keep  complete  and  correct  records  of  all  grain  graded 
and  inspected  by  him,  and  to  make  reports  to  the  Secretary  of  Agri- 
culture, in  such  forms  and  at  such  times  as  he  may  require,  showing  the 
place  of  inspection,  the  date  of  inspection,  the  name  of  the  elevator  or 
v^^arehouse,  if  any,  to  which  the  grain  was  delivered  or  from  wdiich  it 
was  shipped,  the  kind  of  grain,  the  quantity  of  each  kind,  the  grade 
thereof,  and  such  other  information  as  the  Secretary  of  Agriculture  may 
deem  necessary.  The  Secretary  of  Agriculture,  on  each  first  Tuesday 
in  January  and  each  first  Tuesday  in  July  of  each  year  shall  make  publi- 
cation of  a  summary  of  such  facts  as  are  ascertained,  showing  in  as 
great  detail  as  possible  all  the  facts,  including  a  summary  as  to  the  amount 
and  grade  of  grain  delivered  to  the  elevator  or  warehouse  and  the  amount 
and  o-rade  of  grain  delivered  from  such  elevator  or  warehouse,  and  the 
estimated  amount  received  on  sample  or  type  by  such  elevator  or  ware- 
house, and  the  estimated  amount  delivered  therefrom  on  sample  or  type. 

Rules  and  Regulations. 

"Sec.  8.  That  the  Secretary  of  Agriculture  shall,  from  time  to  time, 
make  such  rules  and  regulations  as  he  may  deem  necessary  for  the  effi- 
cient execution  of  the  provisions  of  this  Act. 


70  Important  Federal  Laws 

Penalty. 

"Sec.  9.  That  any  person  who  shall  knowingly  violate  any  of  the 
provisions  of  sections  four  or  seven  of  this  Act,  or  any  inspector  licensed 
under  this  Act  who  shall  knowingly  inspect  or  grade  improperly  any 
grain  which  has  been  shipped  or  delivered  for  shipment  in  interstate  or 
foreign  commerce,  or  shall  knowingly  give  any  false  certificate  of  grade, 
or  shall  accept  money  or  other  consideration,  directly  or  indirectly,  for 
any  neglect  or  improper  performance  of  duty,  and  any  person  who  shall 
improperly  influence  or  attempt  to  improperly  influence  any  such  inspec- 
tor in  the  performance  of  his  duty,  shall  be  guilty  of  a  misdemeanor,  and 
upon  conviction  thereof  shall  be  fined  not  more  than  $1,000,  or  be  im- 
prisoned not  more  than  one  year,  or  both. 

Interference  with  Enforcement. 

"Sec.  10.  That  every  person  who  forcibly  assaults,  resists,  im- 
pedes, or  interferes  with  any  officer  or  employee  of  the  United  States 
Department  of  Agriculture  in  the  execution  of  any  duties  authorized 
to  be  performed  by  this  Act  or  the  rules  and  regulations  made  here- 
under shall,  upon  conviction  thereof,  be  fined  not  more  than  $1,000,  or  be 
imprisoned  not  more  than  one  year,  or  both. 

Saving  Clause. 

"Sec.  U.  That  if  any  clause,  sentence,  paragraph,  or  part  of  this 
Act  shall,  for  any  reason,  be  adjudged  by  any  court  of  competent  juris- 
diction to  be  invalid,  such  judgment  shall  not  aft'ect,  impair,  or  invali- 
date the  remainder  thereof,  but  shall  be  confined  in  its  operation  to  the 
clause,  sentence,  paragraph,  or  part  thereof,  directly  involved  in  the  con- 
troversy in  which  such  judgment  shall  be  rendered. 

Appropriations. 

"Sec.  12.  That  there  is  hereby  appropriated,  out  of  any  money  in 
the  Treasury  not  otherwise  appropriated,  the  sum  of  $250,000,  which 
shall  be  available  until  expended,  for  the  expenses  of  carrying  into  efit'ect 
the  provisions  of  this  Act,  including  such  rent  and  the  employment  of 
such  persons  and  means  as  the  Secretary  of  Agriculture  may  deem  nec- 
essary in  the  city  of  Washington  and  elsewhere."   . 


THE  WAREHOUSE  ACT. 

Act  of  August  11,  1916. 
Part  C. 

That  this  part,  to  be  known  as  the  United  States  warehouse  Act, 
be  and  is  hereby  enacted,  to  read  and  be  effective  hereafter  as  follows : 

"That  this  Act  shall  be  known  by  the  short  title  of  'United  States 
warehouse  Act.' 

Definitions. 

"Sec.  2.     That  the  term  'warehouse'  as  used  in  this  Act  shall  be 


Warehouse  Act  .71 

deemed  to  mean  every  building,  structure,  or  other  protected  inclosure 
in  which  any  agricultural  product  is  or  may  be  stored  for  interstate  or 
foreign  commerce,  or,  if  located  within  any  place  under  the  exclusive 
jurisdiction  of  the  United  States,  in  which  any  agricultural  product  is  or 
may  be  stored.  The  term  'agricultural  product'  wherever  used  in  this 
Act  shall  be  deemed  to  mean  cotton,  wool,  grains,  tobacco,  and  flaxseed, 
or  any  of  them.  As  used  in  this  Act,  'person'  includes  a  corporation  or 
partnership  or  two  or  more  persons  having  a  joint  or  common  interest ; 
'warehouseman'  means  a  person  lawfully  engaged  in  the  business  of  stor- 
ing agricultural  products ;  and  'receipt'  means  a  warehouse  receipt. 

Investigation  of  Storage,  Etc. 

"Sec.  3.  That  the  Secretary  of  Agriculture  is  authorized  to  inves- 
tigate the  storage,  warehousing,  classifying  according  to  grade  and  other- 
wise, weighing,  and  certification  of  agricultural  products;  upon  applica- 
tion to  him  by  any  person  applying  for  license  to  conduct  a  warehouse 
under  this  Act,  to  inspect  such  warehouse  or  cause  it  to  be  inspected ;  at 
any  time,  with  or  without  application  to  him,  to  inspect  or  cause  to  be 
inspected  all  warehouses  licensed  under  this  Act;  to  determine  whether 
warehouses  for  which  licences  are  applied  for  or  have  been  issued  under 
this  Act  are  suitable  for  the  proper  storage  of  any  agricultural  product  or 
products;  to  classify  warehouses  licensed  or  applying  for  a  license  in 
accordance  with  their  ownership,  location,  surroundings,  capacity,  condi- 
tions, and  other  qualities,  and  as  to  the  kinds  of  licenses  issued  or  that 
may  be  issued  for  them  pursuant  to  this  Act;  and  to  prescribe,  within 
the  limitations  of  this  Act,  the  duties  of  the  warehousemen  conducting 
warehouses  licensed  under  this  Act  with  respect  to  their  care  of  and 
responsibility  for  agricultural  products  stored  therein. 

Licenses. 

"Sec.  4.  That  the  Secretary  of  Agriculture  is  authorized,  upon  appli- 
cation to  him,  to  issue  to  any  warehouseman  a  license  for  the  conduct 
of  a  warehouse  or  warehouses  in  accordance  with  this  Act  and  such 
rules  and  regulations  as  may  be  made  hereunder:  Provided,  That  each 
such  warehouse  be  found  suitable  for  the  proper  storage  of  the  particular 
agricultural  product  or  products  for  which  a  license  is  applied  for,  and 
that  such  warehouseman  agree,  as  a  condition  to  the  granting  of  the 
license,  to  comply  with  and  abide  by  all  the  terms  of  this  Act  and  the  rules 
and  regulations  prescribed  hereunder. 

Term  of  License. 

"Sec.  5.  That  each  license  issued  under  sections  four  and  nine  of 
this  Act  shall  be  issued  for  a  period  not  exceeding  one  year  and  shall 
specify  the  date  upon  which  it  is  to  terminate,  and  upon  showing  satis- 
factory to  the  Secretary  of  Agriculture  may  from  time  to  time  be  renewed 
or  extended  by  a  written  instrument,  which  shall  specify  the  date  of  its 
termination. 


72  Important  Federal  Laws 

Bond  of  Licensee. 

"Sec.  6.  That  each  warehouseman  applying  for  a  license  to  con- 
duct a  warehouse  in  accordance  with  this  Act  shall,  as  a  condition  to  the 
granting  thereof,  execute  and  file  with  the  Secretary  of  Agriculture  a 
good  and  sufficient  bond  other  than  personal  security  to  the  United 
States  to  secure  the  faithful  performance  of  his  obligations  as  a  ware- 
houseman under  the  laws  of  the  State,  District,  or  Territory  in  which  he 
is  conducting  such  warehouse,  as  well  as  under  the  terms  of  this  Act  and 
the  rules  and  regulations  prescribed  hereunder,  and  of  such  additional 
obligations  as  a  warehouseman  as  may  be  assumed  by  him  under  contracts 
with  the  respective  depositors  of  agricultural  products  in  such  warehouse. 
Said  bond  shall  be  in  such  form  and  amount,  shall  have  such  surety  or 
sureties,  subject  to  service  of  process  in  suits  on  the  bond  within  the 
State,  District,  or  Territory  in  which  the  warehouse  is  located,  and  shall 
contain  such  terms  and  conditions  as  the  Secretary  of  Agriculture  may 
prescribe  to  carry  out  the  purposes  of  this  Act,  including  the  require- 
ments of  fire  insurance.  Whenever  the  Secretary  of  Agriculture  shall 
determine  that  a  bond  approved  by  him  is,  or  for  any  cause  has  become, 
insufficient,  he  may  require  an  additional  bond  or  bonds  to  be  given  by 
the  warehouseman  concerned,  conforming  \tith  the  requirements  of  this 
section,  and  unless  the  same  be  given  within  the  time  fixed  by  a  written 
demand  therefor  the  license  of  such  warehouseman  may  be  suspended  or 
revoked. 

Suit  on  Bond. 

"Sec.  7.  That  any  person  injured  by  the  breach  of  any  obligation 
to  secure  which  a  bond  is  given,  under  the  provisions  of  sections  six  or 
nine,  shall  be  entitled  to  sue  on  the  bond  in  his  own  name  in  any  court  of 
competent  jurisdiction  to  recover  the  damages  he  may  have  sustained 
by  such  breach. 

Bonded  Warehouses. 

"Sec.  8.  That  upon  the  filing  with  and  approval  by  the  Secretary 
of  Agriculture  of  a  bond,  in  compliance  with  this  Act,  for  the  conduct 
of  a  warehouse,  such  warehouse  shall  be  designated  as  bonded  here- 
under ;  but  no  warehouse  shall  be  designated  as  bonded  under  this  Act, 
and  no  name  or  description  conveying  the  impression  that  it  is  so  bonded, 
shall  be  used,  until  a  bond,  such  as  provided  for  in  section  six,  has  been 
filed  with  and  approved  by  the  Secretary  of  Agriculture,  nor  unless  the 
license  issued  under  this  Act  for  the  conduct  of  such  warehouse  remains 
unsuspended  and  unrevoked. 

Agricultural  Products. 

"Sec.  9.  That  the  Secretary  of  Agriculture  may,  under  such  rules 
and  regulations  as  he  shall  prescribe,  issue  a  license  to  any  person  not  a 
warehouseman  to  accept  the  custody  of  agricultural  products  and  to  store 
the  same  in  a  warehouse  or  warehouses  owned,  operated,  or  leased  by 
any  State,  upon  condition  that  such  person  agree  to  comply  with  and 


Warehouse  Act  Z3  • 

abide  by  the  terms  of  this  Act  and  the  rules  and  regulations  prescribed 
hereunder.  Each  person  so  licensed  shall  issue  receipts  for  the  agri- 
cultural products  placed  in  his  custody,  and  shall  give  bond,  in  accord- 
ance with  the  provisions  of  this  Act  and  the  rules  and  regulations  here- 
under ati'ecting  warehousemen  licensed  under  this  Act,  and  shall  other- 
wise be  subject  to  this  Act  and  such  rules  and  regulations  to  the  same 
extent  as  is  provided  for  warehousemen  licensed  hereunder. 

Fees  for  License. 

"Sec.  10.  That  the  Secretary  of  Agriculture  shall  charge,  assess, 
and  cause  to  be  collected  a  reasonable  fee  for  every  examination  or  inspec- 
tion of  a  warehouse  under  this  Act  when  such  examination  or  inspection 
is  made  upon  application  of  a  warehouseman,  and  a  fee  not  exceeding 
$2  per  annum  for  each  license  or  renewal  thereof  issued  to  a  warehouse- 
man under  this  Act.  All  such  fees  shall  be  deposited  and  covered  into 
the  Treasury  as  miscellaneous  receipts. 

License  as  Classifiers. 

"Sec.  11.  That  the  Secretary  of  Agriculture  may,  upon  presentation 
of  satisfactory  proof  of  competency,  issue  to  any  person  a  license  to 
classify  any  agricultural  product  or  products,  stored  or  to  be  stored  in 
a  warehouse  licensed  under  this  Act,  according  to  grade  or  otherwise  and 
to  certificate  the  grade  or  other  class  thereof,  or  to  weigh  the  same  and 
certificate  the  weight  thereof,  or  both  to  classify  and  weigh  the  same  and 
to  certificate  the  grade  or  other  class  and  the  weight  thereof,  upon  condi- 
tion that  such  person  agree  to  comply  with  and  abide  by  the  terms  of  this 
Act  and  of  the  rules  and  regulations  prescribed  hereunder  so  far  as  the 
same  relate  to  him. 

License  as  Classifier  May  be  Revoked. 

"Sec.  12.  That  any  license  issued  to  any  person  to  classify  or  to 
weigh  any  agricultural  product  or  products  under  this  Act  may  be  sus- 
pended or  revoked  by  the  Secretary  of  Agriculture  whenever  he  is 
satisfied,  after  opportunity  afforded  to  the  licensee  concerned  for  a  hear- 
ing, that  such  licensee  has  failed  to  classify  or  to  weigh  any  agricultural 
product  or  products  correctly,  or  has  violated  any  of  the  provisions  of 
this  Act  or  of  the  rules  and  regulations  prescribed  hereunder,  so  far  as 
the  same  may  relate  to  him,  or  that  he  has  used  his  license  or  allowed  it 
to  be  used  for  any  improper  purpose  whatsoever.  Pending  investigation, 
the  Secretary  of  Agriculture,  whenever  he  deems  necessary,  may  suspend 
a  license  temporarily  without  hearing. 

No  Discrimination. 

"Sec.  13.  That  every  warehouseman  conducting  a  warehouse 
licensed  under  this  Act  shall  receive  for  storage  therein,  so  far  as  its 
capacitv  permits,  any  agricultural  product  of  the  kind  customarily  stored 
therein  by  him  which  may  be  tendered  to  him  in  a  suitable  condition  for 
warehousing,  in  the  usual  manner  in  the  ordinary  and  usual  course  of 


^4  Important  Federal  Laws 

business,  without  making  any  discrimination  between  persons  desiring  to 
avail  themselves  of  warehouse  facilities. 

Storage  Deemed  Subject  to  This  Act. 

"Sec.  14.  That  any  person  who  deposits  agricultural  products  for 
storage  in  a  warehouse  licensed  under  this  Act  shall  be  deemed  to  have 
deposited  the  same  subject  to  the  terms  of  this  Act  and  the  rules  and 
regulations  prescribed  hereundee. 

Flaxseed. 

"Sec.  15.  That  grain,  flaxseed,  or  any  other  fungible  agricultural 
product  stored  for  interstate  or  foreign  commerce,  or  in  any  place  under 
the  exclusive  jurisdiction  of  the  United  States,  in  a  warehouse  licensed 
under  this  Act  shall  be  inspected  and  graded  by  a  person  duly  licensed  to 
grade  the  same  under  this  Act. 

Separate  Storage  for  Identification. 

"Sec.  16.  That  every  warehouseman  conducting  a  warehouse 
licensed  under  this  Act  shall  keep  the  agricultural  products  therein  of  one 
depositor  so  far  separate  from  agricultural  products  of  other  depositors, 
and  from  other  agricultural  products  of  the  same  depositor  for  which  a 
separate  receipt  has  been  issued,  as  to  permit  at  all  times  the  identification 
and  redelivery  of  the  agricultural  products  deposited ;  but  if  authorized  by 
agreement  or  by  custom,  a  warehouseman  may  mingle  fungible  agricul- 
tural products  with  other  agricultural  products  of  the  same  kind  and 
grade,  and  shall  be  severally  liable  to  each  depositor  for  the  care  and  re- 
delivery of  his  share  of  such  mass,  to  the  same  extent  and  under  the  same 
circumstances  as  if  the  agricultural  products  had  been  kept  separate,  but 
he  shall  at  no  time  while  they  are  in  his  custody  mix  fungible  agricultural 
products  of  different  grades. 

Original  Receipts. 

"Sec.  17.  That  for  all  agricultural  products  stored  for  interstate 
or  foreign  commerce,  or  in  any  place  under  the  exclusive  jurisdiction  of 
the  United  States,  in  a  warehouse  licensed  under  this  Act  original  receipts 
shall  be  issued  by  the  warehouseman  conducting  the  same,  but  no  receipts 
shall  be  issued  except  for  agricultural  products  actually  stored  in  the 
warehouse  at  the  time  of  the  issuance  thereof. 

Form  of  Receipt. 

"Sec.  18.  That  every  receipt  issued  for  agricultural  products  stored 
in  a  warehouse  licensed  under  this  Act  shall  embody  within  its  written  or 
printed  terms  (a)  the  location  of  the  warehouse  in  which  the  agricultural 
products  are  stored  ;  (b)  the  date  of  issue  of  the  receipt ;  (c)  the  consecu- 
tive number  of  the  receipt ;  (d)  a  statement  whether  the  agricultural  prod- 
ucts received  will  be  delivered  to  the  bearer,  to  a  specified  person,  or  to 
a  specified  person  or  his  order;  (e)  the  rate  of  storage  charges;  (f)  a 
description  of  the  agricultural  products  received,  showing  the  quantity 
thereof,  or,  in  case  of  agricultural  products  customarily  put  up  in  bales 


Warehouse  Act  75 

or  packages,  a  description  of  such  bales  or  packages  by  marks,  numbers, 
or  other  means  of  identification  and  the  weight  of  such  bales  or  packages ; 
(g)  the  grade  or  other  class  of  the  agricultural  products  received  and  the 
standard  or  description  in  accordance  with  which  such  classification  has 
been  made :  Provided,  That  such  grade  or  other  class  shall  be  stated  ac- 
cording to  the  official  standard  of  the  United  States  applicable  to  such 
agricultural  products  as  the  same  may  be  fixed  and  promulgated  under 
authority  of  law:  Provided  further,  That  until  such  official  standards  of 
the  United  States  for  any  agricultural  product  or  products  have  been 
fixed  and  promulgated,  the  grade  or  other  class  thereof  may  be  stated  in 
accordance  with  any  recognized  standard  or  in  accordance  with  such  rules 
and  regulations  not  inconsistent  herewith  as  may  be  prescribed  by  the 
Secretary  of  Agricuhure;  (h)  a  statement  that  the  receipt  is  issued  sub- 
ject to  the  United  States  warehouse  Act  and  the  rules  and  regulations 
prescribed  thereunder;  (i)  if  the  receipt  be  issued  for  agricultural  prod- 
ucts of  which  the  warehouseman  is  owner,  either  solely  or  jointly  or  in 
common  with  others,  the  fact  of  such  ownership;  (j)  a  statement  of  the 
amount  of  advances  made  and  of  liabilities  incurred  for  which  the  ware- 
houseman claims  a  lien:  Provided,  That  if  the  precise  amount  of  such 
advances  made  or  of  such  liabilities  incurred  be  at  the  time  of  the  issue 
of  the  receipt  unknown  to  the  warehouseman  or  his  agent  who  issues  it,  a 
statement  of  the  fact  that  advances  have  been  made  or  liabilities  incurred 
and  the  purpose  thereof  shall  be  sufficient;  (k)  such  other  terms  and  con- 
ditions within  the  limitations  of  this  Act  as  may  be  required  by  the  Secre- 
tary of  Agriculture;  and  (1)  the  signature  of  the  warehouseman,  which 
may  be  made  by  his  authorized  agent :  Provided,  That  unless  otherwise 
required  by  the  law  of  the  State  in  which  the  warehouse  is  located,  when 
requested  by  the  depositor  of  other  than  fungible  agricultural  products,  a 
receipt  omitting  compliance  with  subdivision  (g)  of  this  section  may  be 
issued  if  it  have  plainly  and  conspicuously  embodied  in  its  written  or 
printed  terms  a  provision  that  such  receipt  is  not  negotiable. 

Standards  of  Quality  to  be  Fixed  by  Secretary  of  Agriculture. 

"Sec.  19.  That  the  Secretary  of  Agriculture  is  authorized,  from 
time  to  time,  to  establish  and  promulgate  standards  for  agricultural  prod- 
ucts in  this  Act  defined  by  which  their  quality  or  value  may  be  judged  or 
determined :  Provided,  That  the  standards  for  any  agricultural  products 
which  have  been,  or  which  in  future  may  be.  established  by  or  under 
authority  of  any  other  Act  of  Congress  shall  be,  and  are  hereby,  adopted 
for  the  purposes  of  this  Act  as  the  official  standards  of  the  United  States 
for  the  agricultural  products  to  which  they  relate. 

No  Further  Receipt  Until  Original  is  Canceled. 

"Sec.  20.  That  while  an  original  receipt  issued  under  this  Act  is  out- 
standing and  uncanceled  by  the  warehouseman  issuing  the  same  no  other 
or  further  receipt  shall  be  issued  for  the  agricultural  product  covered 
thereby  or  for  any  part  thereof,  except  that  in  the  case  of  a  lost  or 


76  Important  Federal  Laws 

destroyed  receipt  a  new  receipt,  upon  the  same  terms  and  subject  to  the 
same  conditions  and  bearing  on  its  face  the  number  and  date  of  the  re- 
ceipt in  lieu  of  which  it  is  issued,  may  be  issued  upon  compliance  with 
the  statutes  of  the  United  States  applicable  thereto  in  places  under  the 
exclusive  jurisdiction  of  the  United  States  or  upon  compliance  with  the 
laws  of  any  State  applicable  thereto  in  any  place  not  under  the  exclusive 
jurisdiction  of  the  United  States :  Provided,  That  if  there  be  in  such 
case  no  statute  of  the  United  States  or  law  of  a  State  applicable  thereto 
such  new  receipts  may  be  issued  upon  the  giving  of  satisfactory  security 
in  compliance  with  the  rules  and  regulations  made  pursuant  to  this  Act. 

Delivery. 

"Sec.  21.  That  a  warehouseman  conducting  a  warehouse  licensed 
under  this  Act,  in  the  absence  of  some  lawful  excuse,  shall,  without  un- 
necessary delay,  deliver  the  agricultural  products  stored  therein  upon  a 
demand  made  either  by  the  holder  of  a  receipt  for  such  agricultural  prod- 
ucts or  by  the  depositor  thereof  if  such  demand  be  accompanied  with 
(a)  an  otter  to  satisfy  the  warehouseman's  lien;  (b)  an  ofifer  to  surrender 
the  receipt,  if  negotiable,  with  such  indorsements  as  would  be  necessary 
for  the  negotiation  of  the  receipt;  and  (c)  a  readiness  and  willingness  to 
sign,  when  the  products  are  delivered,  an  acknowledgment  that  they  have 
been  delivered  if  such  signature  is  requested  by  the  warehouseman. 

Cancellation  of  Receipts. 

"Sec.  22.  That  a  warehouseman  conducting  a  warehouse  licensed 
under  this  Act  shall  plainly  cancel  upon  the  face  thereof  each  receipt  re- 
turned to  him  upon  the  delivery  by  him  of  the  agricultural  products  for 
which  the  receipt  was  issued. 

Records. 

"Sec.  23.  That  every  warehouseman  conducting  a  warehouse 
licensed  under  this  Act  shall  keep  in  a  place  of  safety  complete  and  cor- 
rect records  of  all  agricultural  products  stored  therein  and  withdrawn 
therefrom,  of  all  warehouse  receipts  issued  by  him,  and  of  the  receipts 
returned  to  and  canceled  by  him,  shall  make  reports  to  the  Secretary  of 
Agriculture  concerning  such  warehouse  and  the  condition,  contents, 
operation  and  business  thereof  in  such  form  and  at  such  times  as  he  may 
require,  and  shall  conduct  said  warehouse  in  all  other  respects  in  com- 
pliance with  this  Act  and  the  rules  and  regulations  made  hereunder. 

Examination. 

"Sec.  24.  That  the  Secretary  of  Agriculture  is  authorized  to  cause 
examinations  to  be  made  of  any  agricultural  product  stored  in  any  ware- 
house licensed  under  this  Act.  Whenever,  after  opportunity  for  hear- 
ing is  given  to  the  warehouseman  conducting  such  warehouse,  it  is  deter- 
mined that  he  is  not  performing  fully  the  duties  imposed  on  him  by  this 
Act  and  the  rules  and  regulations  made  hereunder,  the  Secretary  may 
publish  his  findings. 


Warehouse  Act  "77 

Revocation  of  License. 

"Sec.  25.  That  the  Secretary  of  Agriculture  may,  after  opportunity 
for  hearing  has  been  afforded  to  the  licensee  concerned,  suspend  or  revoke 
any  license  issued  to  any  warehouseman  conducting  a  warehouse  under 
this  Act,  for  any  violation  of  or  failure  to  comply  with  any  provision  of 
this  Act  or  of  the  rules  and  regulations  made  hereunder  or  upon  the 
ground  that  unreasonable  or  exorbitant  charges  have  been  made  for 
services  rendered.  Pending  investigation,  the  Secretary  of  Agriculture, 
whenever  he  deems  necessary,  may  suspend  a  license  temporarily  with- 
out hearing. 

Publication  of  Investigation,  Etc. 

"Sec.  26.  That  the  Secretary  of  Agriculture  from  time  to  time  may 
publish  the  results  of  any  investigations  made  under  section  three  of 
this  Act ;  and  he  shall  publish  the  names  and  locations  of  warehouses 
licensed  and  bonded  and  the  names  and  addresses  of  persons  licensed 
imder  this  Act  and  lists  of  all  licenses  terminated  under  this  Act  and 
the  causes  therefor.  , 

Power  to  Examine  Books,  Etc. 

"Sec.  27.  That  the  Secretary  of  Agriculture  is  authorized  through 
officials,  employees,  or  agents  of  the  Department  of  Agriculture  desig- 
nated by  him  to  examine  all  books,  records,  papers  and  accounts  of  ware- 
houses licensed  under  this  Act  and  of  the  warehousemen  conducting  such 
warehouses  relating  thereto. 

Rules  and  Regulations. 

"Sec.  28.  That  the  Secretary  of  Agriculture  shall  from  time  to 
time  make  such  rules  and  regulations  as  he  may  deem  necessary  for  the 
efficient  execution  of  the  provisions  of  this  Act. 

Not  to  Affect  State  Laws. 

"Sec.  29.  That  nothing  in  this  Act  shall  be  construed  to  conflict 
with,  or  to  authorize  any  conflict  with,  or  in  any  way  to  impair  or  limit 
the  effect  or  operation  of  the  laws  of  any  State  relating  to  warehouses, 
warehousemen,  weighers,  graders,  or  classifiers ;  but  the  Secretary  of 
Agriculture  is  authorized  to  cooperate  with  such  officials  as  are  charged 
with  the  enforcement  of  such  State  laws  in  such  States  and  through  such 
cooperation  to  secure  the  enforcement  of  the  provisions  of  this  Act ; 
nor  shall  this  Act  be  construed  so  as  to  limit  the  operation  of  any  statute 
of  the  United  States  relating  to  warehouses  or  warehousemen,  weighers, 
graders,  or  classifiers  now  in  force  in  the  District  of  Columbia  or  in  any 
Territory  or  other  place  under  the  exclusive  jurisdiction  of  the  United 
States. 

Forgery,  Counterfeiting,  Etc. 

"Sec.  30.  That  every  person  who  shall  forge,  alter,  counterfeit, 
simulate  or  falsely  represent,  or  shall  without  proper  authority  use,  any 
license  issued  by  the  Secretary  of  Agriculture  under  this  Act,  or  who 


78  Important  Federal  Laws 

shall  violate  or  fail  to  comply  with  any  provision  of  section  eight  of  this 
Act,  or  who  shall  issue  or  utter  a  false  or  fraudulent  receipt  or  cer- 
tificate, shall  be  deemed  guilty  of  a  misdemeanor  and  upon  conviction 
thereof  shall  be  fined  not  more  than  $500  or  imprisoned  not  more  than 
six  months,  or  both,  in  the  discretion  of  the  court. 

Appropriation. 

"Sec.  31.  That  there  is  hereby  appropriated,  out  o_f  any  money  m 
the  Treasury  not  otherwise  appropriated,  the  sum  of  $50,000,  available 
until  expended,  for  the  expenses  of  carrying  into  elTect  the  provisions 
of  this  Act,  including  the  payment  of  such  rent  and  the  employment  of 
such  persons  and  means  as  the  Secretary  of  Agriculture  may  deem  neces- 
sary in  the  city  of  Washington  and  elsewhere,  and  he  is  authorized,  in 
his  discretion,  to  employ  qualified  persons  not  regularly  in  the  service  of 
the  United  States  for  temporary  assistance  in  carrying  out  the  purposes 
of  this  Act,  and  out  of  the  moneys  appropriated  by  this  Act  to  pay  the 
salaries  and  expenses  thereof. 

Saving  Clause. 

"Sec.  32.  That  if  any  clause,  sentence,  paragraph,  or  part  of  this 
Act  shall,  for  any  reason,  be  adjudged  by  any  court  of  competent  juris- 
diction to  be  invalid,  such  judgment  shall  not  affect,  impair,  or  invalidate 
the  remainder  thereof,  but  shall  be  confined  in  its  operation  to  the  clause 
sentence,  paragraph,  or  part  thereof  directly  involved  in  the  controversy 
in  which  such  judgment  shall  have  been  rendered. 

"Sec.  33.  That  the  right  to  amend,  alter  or  repeal  this  Act  is  here- 
by expressly  reserved." 

THE    PLANT    QUARANTINE    ACT. 

Act  of  August  20,  1912,  as  amended  March  4,  1913. 

An  act  to  regulate  the  importation  of  nursery  stock  and  other  plants  and  plant 
products;  to  enable  the  Secretary  of  Agriculture  to  establish  and  maintain 
quarantine  districts  for  plant  diseases  and  insect  pests;  to  permit  and 
regulate  the  movement  of  fruits,  plants,  and  vegetables  therefi-om,  and 
for  other  purposes. 

Unlawful  to  Import  Without  Permit. 

Section  1.  That  it  shall  be  unlawful  for  any  person  to  import  or 
offer  for  entry  into  the  United  States  any  nursery  stock  unless  and  until 
a  permit  shall  have  been  issued  therefor  by  the  Secretary  of  Agriculture, 
under  such  conditions  and  regulations  as  the  said  Secretary  of  Agricul- 
ture may  prescribe,  and  unless  such  nursery  stock  shall  be  accompanied 
by  a  certificate  of  inspection,  in  manner  and  form  as  required  by  the 
Secretary  of  Agriculture,  of  the  proper  official  of  the  country  from 
which  the  importation  is  made,  to  the  effect  that  the  stock  has  been  thor- 
oughly inspected  and  is  believed  to  be  free  from  injurious  plant  diseases 
and  insect  pests:  Provided,  That  the  Secretary  of  Agriculture  shall  issue 


Plant  Quarantine  Act  79 

the  permit  for  any  particular  importation  of  nursery  stock  when  the 
conditions  and  regulations  as  prescribed  in  this  act  shall  have  been  com- 
plied with :  Provided  further.  That  nursery  stock  may  be  imported  for 
experimental  or  scientific  purposes  by  the  Department  of  Agriculture 
upon  such  conditions  and  under  such  regulations  as  the  said  Secretary  of 
Agriculture  may  prescribe:  And  provided  further.  That  nursery  stock 
imported  from  countries  where  no  official  system  of  inspection  for  such 
stock  is  maintained  may  be  admitted  upon  such  conditions  and  under 
such  regulations  as  the  Secretary  of  Agriculture  may  prescribe. 

Duties  of  Officers. 

Sec.  2.  That  it  shall  be  the  duty  of  the  Secretary  of  the  Treasury 
promptly  to  notify  the  Secretary  of  Agriculture  of  the  arrival  of  any 
nursery  stock  at  port  of  entry;  that  the  person  receiving  such  stock  at 
port  of  entry  shall,  immediately  upon  entry  and  before  such  stock  is 
delivered  for  shipment  or  removed  from  the  port  of  entry,  advise  the 
Secretary  of  Agriculture  or,  at  his  direction,  the  proper  State,  Territorial, 
or  District  official  of  the  State  or  Territory  or  the  District  to  which  such 
nursery  stock  is  destined,  or  both,  as  the  Secretary  of  Agriculture  may 
elect,  of  the  name  and  address  of  the  consignee,  the  nature  and  quantity 
of  the  stock  it  is  proposed  to  ship,  and  the  country  and  locality  where 
the  same  was  grown.  That  no  person  shall  ship  or  ofifer  for  shipment 
from  one  State  or  Territory  or  District  of  the  United  States  into  any 
other  State  or  Territory  or  District,  any  nursery  stock  imported  into  the 
United  States  without  notifying  the  Secretary  of  Agriculture  or,  at  his 
direction,  the  proper  State,  Territorial,  or  District  official  of  the  State  or 
Territory  or  District  to  which  such  nursery  stock  is  destined,  or  both,  as 
the  Secretary  of  Agriculture  may  elect,  immediately  upon  the  delivery 
of  the  said  stock  for  shipment,  of  the  name  and  address  of  the  consignee, 
of  the  nature  and  quantity  of  stock  it  is  proposed  to  ship,  and  the  country 
and  locality  where  the  same  was  grown,  unless  and  until  such  imported 
stock  has  been  inspected  by  the  proper  official  of  a  State,  Territory,  or 
District  of  the  United  States. 

Labelling  and  Marking. 

Sec.  3.  That  no  person  shall  import  or  ofifer  for  entry  into  the 
United  States  any  nursery  stock  unless  the  case,  box,  package,  crate,  bale, 
or  bundle  thereof  shall  be  plainly  and  correctly  marked  to  show  the  gen- 
eral nature  and  quantity  of  the  contents,  the  country  and  locality  where 
the  same  was  grown,  the  name  and  address  of  the  shipper,  owner,  or 
person  shipping  or  forwarding  the  same,  and  the  name  and  address  of 
the  consignee. 

Sec.  4.  That  no  person  shall  ship  or  deliver  for  shipment  from  one 
State  or  Territory  or  District  of  the  United  States  into  any  other  State 
or  Territory  or  District  any  such  imported  nursery  stock  the  case,  box, 
package,  crate,  bale  or  bundle  whereof  is  not  plainly  marked  so  as  to 
show  the  general  nature  and   quantity  of  the  contents,   the  name  and 


80  Important  Federal  Laws 

address  of  the  consignee,  and  the  country  and  locahty  where  such  stock 
was  grown,  unless  and  until  such  imported  stock  has  been  inspected  by 
the  proper  official  of  a  State,  Territory,  or  District  of  the  United  States. 

Restrictions. 

Sec.  5.  That  whenever  the  Secretary  of  Agriculture  shall  determine 
that  the  unrestricted  importation  of  any  plants,  fruits,  vegetables,  roots, 
bulbs,  seeds,  or  other  plant  products  not  included  by  the  term  "nursery 
stock"  as  defined  in  section  six  of  this  act  may  result  in  the  entry  into 
the  United  States  or  any  of  its  Territories  or  Districts  of  injurious  plant 
diseases  or  insect  pests,  he  shall  promulgate  his  determination,  specifying 
the  class  of  plants  and  plant  products  the  importation  of  which  shall  be 
restricted  and  the  country  and  locality  where  they  are  grown,  and  there- 
after, and  until  such  promulgation  is  withdrawn,  such  plants  and  plant 
products  imported  or  offered  for  import  into  the  United  States  or  any 
of  its  Territories  or  Districts  shall  be  subject  to  all  the  provisions  of  the 
foregoing  sections  of  this  act:  Provided,  That  before  the  Secretary  of 
Agriculture  shall  promulgate  his  determination  that  the  unrestricted 
importation  of  any  plants,  fruits,  vegetables,  roots,  bulbs,  seeds,  or  other 
plant  products  not  included  by  the  term  "nursery  stock"  as  defined  in 
section  six  of  this  act  may  result  in  the  entry  into  the  United  States  or 
any  of  its  Territories  or  Districts  of  injurious  plant  diseases  or  insect 
pests  he  shall,  after  due  notice,  give  a  public  hearing,  under  such  rules 
and  regulations  as  he  shall  prescribe,  at  which  hearing  any  interested 
party  may  appear  and  be  heard,  either  in  person  or  by  attorney. 

Definitions. 

Sec.  6.  That  for  the  purpose  of  this  act  the  term  "nursery  stock" 
shall  include  all  field  grown  florists'  stock,  trees,  shrubs,  vines,  cuttings, 
grafts,  scions,  buds,  fruit  pits  and  other  seeds  of  fruit  and  ornamental 
trees  or  shrubs,  and  other  plants  and  plant  products  for  propagation,  ex- 
cept field,  vegetable  and  flower  seeds,  bedding  plants  and  other  herba- 
ceous plants,  bulbs,  and  roots. 

Quarantine  Against  Foreign  Stock. 

Sec.  7.  That  whenever,  in  order  to  prevent  the  introduction  into  the 
United  States  of  any  tree,  plant,  or  fruit  disease  or  of  any  injurious  in- 
sect, new  to  or  not  theretofore  widely  prevalent  or  distributed  within  and 
throughout  the  United  States,  the  Secretary  of  Agriculture  shall  deter- 
mine that  it  is  necessary  to  forbid  the  importation  into  the  United  States 
of  any  class  of  nursery  stock  or  of  any  other  class  of  plants,  fruits,  veg- 
etables, roots,  bulbs,  seeds,  or  other  plant  products  from  a  country  or 
locality  where  such  disease  or  insect  infestation  exists,  he  shall  promul- 
gate such  determination,  specifying  the  country  and  locality  and  the  class 
of  nursery  stock  or  other  class  of  plants,  fruits,  vegetables,  roots,  bulbs, 
seeds,  or  other  plant  products  which,  in  his  opinion,  should  be  excluded. 
Following  the  promulgation  of  such  determination  by  the  Secretary  of 
Agriculture,  and  until  the  withdrawal  of  the  said  promulgation  by  him, 


Plant  Quarantine  Act  81 

the  importation  of  the  class  of  nursery  stock  or  of  other  class  of  plants, 
fruits,  vegetables,  roots,  bulbs,  seeds,  or  other  plant  products  specified  in 
the  said  promulgation  from  the  country  and  locality  therein  named,  re- 
gardless of  the  use  for  which  the  same  is  intended,  is  hereby  prohibited; 
and  until  the  withdrawal  of  the  said  promulgation  by  the  Secretary  of 
Agriculture,  and  notwithstanding  that  such  class  of  nursery  stock,  or 
other  class  of  plants,  fruits,  vegetables,  roots,  bulbs,  seeds,  or  other  plant 
products  be  accompanied  by  a  certificate  of  inspection  from  the  country 
of  importation,  no  person  shall  import  or  ofifer  for  entry  into  the  United 
States  from  any  country  or  locality  specified  in  such  promulgation,  any 
of  the  class  of  nursery  stock  or  of  other  class  of  plants,  fruits,  vegetables, 
roots,  bulbs,  seeds,  or  other  plant  products  named  therein,  regardless  of 
the  use  for  which  the  same  is  intended :  Provided,  That  before  the  Sec- 
retary of  Agriculture  shall  promulgate  his  determination  that  it  is  nec- 
essary to  forbid  the  importation  into  the  United  States  of  the  articles 
named  in  this  section  he  shall,  after  due  notice  to  interested  parties,  give 
a  public  hearing,  under  such  rules  and  regulations  as  he  shall  prescribe, 
at  which  hearing  any  interested  party  may  appear  and  be  heard,  either 
in  person  or  by  attorney :  Provided  further,  That  the  quarantine  provi- 
sions of  this  section,  as  applying  to  the  white-pine  blister  rust,  potato 
wart,  and  the  Mediterannean  fruit  fly,  shall  become  and  be  efifective  upon 
the  passage  of  this  act :  Provided  further.  That  hereafter  any  class  of 
nursery  stock,  of  any  other  class  of  plants,  fruits,  vegetables,  roots,  bulbs, 
seeds  or  other  plant  products  of  which  the  importation  may  be  forbidden 
from  anv  country  or  locality  under  the  provisions  of  section  seven  of  the 
Plant  Quarantine  Act  approved  August  twentieth,  nineteen  hundred  and 
twelve  (Thirty-seventh  Statutes,  page  three  hundred  and  fifteen),  may 
be  imported  for  experimental  or  scientific  purposes  by  the  Department  of 
Agriculture  upon  such  conditions  and  under  such  regulations  as  the  said 
Secretary  of  Agriculture  may  prescribe.     (As  amended  March  4,  1913.) 

Quarantine — Interstate. 

Sec.  8.  That  the  Secretary  of  Agriculture  is  authorized  and  directed 
to  quarantine  any  State,  Territory,  or  District  of  the  United  States, 
or  any  portion  thereof,  when  he  shall  determine  the  fact  that  a  danger- 
ous plant  disease  or  insect  infestation,  new  to  or  not  theretofore 
widely  prevalent  or  distributed  within  and  throughout  the  United  States, 
exists  in  such  State  or  Territory  or  District ;  and  the  Secretary  of 
Agriculture  is  directed  to  give  notice  of  the  establishment  of  such  quar- 
antine to  common  carriers  doing  business  in  or  through  such  quaran- 
tined area,  and  shall  publish  in  such  newspapers  in  the  quarantined  area 
as  he  shall  select  notice  of  the  establishment  of  quarantine.  That  no 
person  shall  ship  or  ofi:'er  for  shipment  to  any  common  carrier,  nor  shall 
any  common  carrier  receive  for  transportation  or  transport,  nor  shall  any 
person  carry  or  transport  from  any  quarantined  State  or  Territory  or 
District  of  the  United  States,  or  from  any  quarantined  portion  thereof, 

(6) 


82  Important  Federal  Laws 

into  or  through  any  other  State  or  Territory  or  District,  any  class  of 
nursery  stock  or  any  other  class  of  plants,  fruits,  vegetables,  roots,  bulbs, 
seeds,  or  other  plant  products  specified  in  the  notice  of  quarantine  except 
as  hereinafter  provided.  That  it  shall  be  unlawful  to  move  or  allow  to 
be  moved  any  class  of  nursery  stock  or  any  other  class  of  plants,  fruits, 
vegetables,  roots,  bulbs,  seeds,  or  other  plant  products  specified  in  the 
notice  of  quarantine  hereinbefore  provided,  and  regardless  of  the  use 
for  which  the  same  is  intended,  from  any  quarantined  State  or  Territory 
or  District  of  the  United  States,  or  quarantined  portion  thereof,  into  or 
through  any  other  State  or  Territory  or  District,  in  manner  or  method 
or  under  conditions  other  than  those  prescribed  by  the  Secretary  of  Agri- 
culture. That  it  shall  be  the  duty  of  the  Secretary  of  Agriculture  to 
make  and  promulgate  rules  and  regulations  which  shall  permit  and 
govern  the  inspection,  disinfection,  certification,  and  method  and  manner 
of  delivery  and  shipment  of  the  class  of  nursery  stock  or  of  any  other  class 
of  plants,  fruits,  vegetables,  roots,  bulbs,  seeds  or  other  plant  products 
specified  in  the  notice  of  quarantine  hereinbefore  provided,  and  regardless 
of  the  use  for  which  the  same  is  intended,  from  a  quarantined  State  or 
Territory  or  District  of  the  United  States,  or  quarantined  portion  thereof, 
into  or  through  any  other  State  or  Territory  or  District ;  and  the  Secretary 
of  Agriculture  shall  give  notice  of  such  rules  and  regulations  as  hereinbe- 
fore provided  in  this  section  for  the  notice  of  the  establishment  of  quar- 
antine :  Provided,  That  before  the  Secretary  of  Agricultre  shall  promul- 
gate his  determination  that  it  is  necessary  to  quarantine  any  State,  Terri- 
tory, or  District  of  the  United  States,  or  portion  thereof,  under  the  author- 
ity given  in  this  section,  he  shall,  after  due  notice  to  interested  parties, 
give  a  public  hearing  under  such  rules  and  regulations  as  he  shall  prescribe, 
at  which  hearing  any  interested  party  may  appear  and  be  heard,  either 
in  person  or  by  attorney. 

Rules. 

Sec.  9.  That  the  Secretary'  of  Agriculture  shall  make  and  promul- 
gate such  rules  and  regulations  as  may  be  necessary  for  carrying  out  the 
purposes  of  this  act. 

Penalties. 

Sec.  10.  That  any  person  who  shall  violate  any  of  the  provisions  of 
this  act,  or  who  shall  forge,  counterfeit,  alter,  deface,  or  destroy  any  cer- 
tificate provided  for  in  this  act  or  in  the  regulations  of  the  Secretarv  of 
Agriculture,  shall  be  deemed  guilty  of  a  misdemeanor  and  shall,  upon 
conviction  thereof,  be  punished  by  a  fine  not  exceeding  $500  or  by  im- 
prisonment not  exceeding  one  year,  or  both  such  fine  and  imprisonment, 
in  the  discretion  of  the  court :  Provided,  That  no  common  carrier  shall 
be  deemed  to  have  violated  the  provisions  of  any  of  the  foregoing  sections 
of  this  act  on  proof  that  such  carrier  did  not  knowingly  receive  for  trans- 
portation or  transport  nursery  stock  or  other  plants  or  plant  products  as 
such  from  one  State,  Territory,  or  District  of  the  United  States  into  or 


Pure  Seeds  83 

through  any  other  State,  Territory,  or  District ;  and  it  shall  be  the  duty 
of  the  United  States  attorneys  diligently  to  prosecute  any  violations  of 
this  act  which  are  brought  to  their  attention  by  the  Secretary  of  Agricul- 
ture or  which  come  to  their  notice  by  other  means. 

Persons  and  Corporations. 

Sec.  11.  That  the  word  "person"  as  used  in  this  act  shall  be  con- 
strued to  import  both  the  plural  and  the  singular,  as  the  case  demands, 
and  shall  include  corporations,  companies,  societies,  and  associations. 
When  construing  and  enforcing  the  provisions  of  this  act,  the  act, 
omission,  or  failure  of  any  officer,  agent,  or  other  person  acting  for  or 
employed  by  any  corporation,  company,  society,  dr  association,  within 
the  scope  of  his  employment  or  office,  shall  in  every  case  be  also  deemed 
to  be  the  act,  omission,  or  failure  of  such  corporation,  company,  society, 
or  association  as  well  as  that  of  the  person. 

Federal  Horticultural  Board. 

Sec.  12.  That  for  the  purpose  of  carrying  out  the  provisions  of  this 
act  there  shall  be  appointed  by  the  Secretary  of  Agriculture  from  existing 
bureaus  and  offices  in  the  Department  of  Agriculture,  including  the  Bu- 
reau of  Entomology,  the  Bureau  of  Plant  Industry,  and  the  Forest 
Service,  a  Federal  Horticultural  Board  consisting  of  five  members,  of 
whom  not  more  than  two  shall  be  appointed  from  any  one  bureau  or 
office,  and  who  shall  serve  without  additional  compensation. 

Sec.  14.  That  this  act  shall  become  and  be  efifective  from  and  after 
the  first  day  of  October,  nineteen  hundred  and  twelve,  except  as  herein 
otherwise  provided. 


PURE  SEEDS. 

Act  of  August  24.  1912. 

An  Act  to  regulate  foreign  commerce  by  prohibiting  the  admission  into  the 
United  States  of  certain  adulterated  grain  and  seeds  unfit  for  seeding  pur- 
poses. 

Grain  and  Seeds;  Importing  Adulterated,  for  Seeding,  Prohibited. 

Sec.  1.  That  from  and  after  six  months  after  the  passage  of  this 
Act  the  importation  into  the  United  States  of  seeds  of  alfalfa,  barley, 
Canadian  blue  grass,  Kentucky  blue  grass,  awnless  brome  grass,  buck- 
wheat, clover,  field  corn,  Kaffir  corn,  meadow  fescue,  flax,  millet,  oats, 
orchard  grass,  rape,  redtop,  rye,  sorghum,  timothy,  and  wheat  or  mixtures 
of  seeds  containing  any  of  such  seeds  as  one  of  the  principal  component 
parts,  which  are  adulterated  or  unfit  for  seeding  purposes  under  the  terms 
of  this  Act,  is  hereby  prohibited ;  and  the  Secretary  of  the  Treasury  and 
the  Secretary  of  Agriculture  shall,  jointly  or  severally,  make  such  rules 
and  regulations  as  will  prevent  the  importation  of  such  seeds  into  the 
United  States :  Provided,  however,  That  such  seed  may  be  delivered 
to  the  owner  or  consignee  thereof  under  bond,  to  be  recleaned  in  accord- 


84  Important  Federal  Laws 

ance  with  and  subject  to  such  regulations  as  the  Secretary  of  the  Treas- 
ury may  prescribe,  and  when  cleaned  to  the  standard  of  purity  specified 
in  this  Act  for  admission  into  the  United  States  such  seed  may  be 
released  to  the  owner  or  consignee  thereof  after  the  screenings  and 
other  refuse  removed  from  such  seed  shall  have  been  disposed  of  in 
a  manner  prescribed  by  the  Secretary  of  Agriculture:  Provided  further, 
That  this  Act  shall  not  apply  to  the  importation  of  barley,  buckwheat, 
field  corn,  Kafir  corn,  sorghum,  flax,  oats,  rye,  or  wheat  not  intended 
for  seeding  purposes,  when  shipped  in  bond  through  the  United  States 
or  imported  for  the  purposes  of  manufacture,  but  such  shipment  shall 
be  subject  to  provisions  of  the  Act  of  August  fifth,  nineteen  hundred 
and  nine. 

Adulteration. 

Sec.  2.  That  seed  shall  be  considered  adulterated  within  the  mean- 
ing of  this  Act — 

First.  When  seed  of  red  clover  contains  more  than  three  per 
centum  by  weight  of  seed  of  yellow  trefoil,  or  any  other  seed  of  similar 
appearance  to  and  of  lower  market  value  than  seed  of  red  clover. 

Second.  When  seed  of  alfalfa  contains  more  than  three  per  centum 
by  weight  of  seed  of  yellow  trefoil,  burr  clover  and  sweet  clover, 
singly  or  combined. 

Third.  When  any  kind  or  variety  of  the  seeds,  or  any  mixture 
described  in  section  one  of  this  Act,  contains  more  than  five  per 
centum  by  weight  of  seed  of  any  other  kind  or  variety  of  lower  market 
value  and  of  similar  appearance:  Provided,  That  the  mixture  of  the  seed 
of  white  and  alsike  clover,  red  and  alsike  clover,  or  alsike  clover  and 
timothy,  shall  not  be  deemed  an  adulteration  under  this  section. 

Sec.  3.  That  seed  shall  be  considered  unfit  for  seeding  purposes 
within  the  meaning  of  this  Act — 

First.  When  any  kind  or  variety  of  clover  or  alfalfa  seed  con- 
tains more  than  one  seed  of  dodder  to  five  grams  of  clover  or  alfalfa 
seed,  respectively. 

Second.  When  any  kind  or  variety  of  the  seeds  or  any  mixture 
described  in  section  one  of  this  Act  contains  more  than  three  per  centum 
by  weight  of  seeds  of  weeds. 

Sec.  4.  That  any  person  or  persons  who  shall  knowingly  violate 
the  provisions  of  this  Act,  shall  be  deemed  guilty  of  a  misdemeanor 
and  shall  pay  a  fine  of  not  exceeding  five  hundred  dollars  and  not 
less  than  two  hundred  dollars :  Provided,  That  any  person  or  persons 
who  shall  knowingly  sell  for  seeding  purposes  seeds  or  grain  which  were 
imported  under  the  provisions  of  this  Act  for  the  purpose  of  manufac- 
ture shall  be  deemed  guilty  of  a  violation  of  this  Act. 


_  Standard  Apple  Barrels  85 

STANDARD  APPLE  BARRELS. 

Act  of  August  3,  1912. 
An  Act  to  establish  a  standard  barrel   and  standard  grades  for  apples  when 
packed  in  barrels,  and  for  other  purposes. 

Apples — Standard  Barrel  Established  for. 

Sec.  1.  That  the  standard  barrel  for  apples  shall  be  of  the  follow- 
ing dimensions  when  measured  without  distention  of  its  parts :  Length 
of  stave,  twenty-eight  and  one-half  inches;  diameter  of  head,  seventeen 
and  one-eighth  inches;  distance  between  heads,  twenty-six  inches;  cir- 
cumference of  bulge,  sixty-four  inches  outside  measurement,  repre- 
senting as  nearly  as  possible  seven  thousand  and  fifty-six  cubic  inches: 
Provided,  That  steel  barrels  containing  the  interior  dimensions  pro- 
vided for  in  this  section  shall  be  construed  as  a  compliance  therewith. 

Grades  Established  for  Apples. 

Sec.  2.  That  the  standard  grades  for  apples  when  packed  in  bar- 
rels which  shall  be  shipped  or  delivered  for  shipment  in  interstate  or 
foreign  commerce,  or  which  shall  be  sold  or  offered  for  sale  within  the 
District  of  Columbia  or  the  Territories  of  the  United  States  shall  be 
as  follows:  Apples  of  one  variety,  which  are  well-grown  specimens, 
hand  picked,  of  good  color  for  the  variety,  normal  shape,  practically 
free  from  insect  and  fungous  injury,  bruises,  and  other  defects,  except 
such  as  are  necessarily  caused  in  the  operation  of  packing,  or  apples 
of  one  variety  which  are  not  more  than  ten  per  centum  below  the  fore- 
going specifications  shall  be  "Standard  grade  minimum  size  two  and  one- 
half  inches,"  if  the  minimum  size  of  the  apples  is  two  and  one-half 
inches  in  transverse  diameter ;  "Standard  grade  minimum  size  two  and 
one-fourth  inches,"  if  the  minimum  size  of  the  apples  is  two  and  one- 
fourth  inches  in  transverse  diameter ;  or  "Standard  grade  minimum  size 
two  inches,"  if  the  minimum  size  of  the  apples  is  two  inches  in  trans- 
verse diameter. 
Branding  of  Barrels. 

Sec.  3.  That  the  barrels  in  which  apples  are  packed  in  accordance 
with  the  provision  of  this  Act  may  be  branded  in  accordance  with  sec- 
tion two  of  this  Act. 

Requirements  for  Barrels. 

Sec.  4.  That  all  barrels  packed  with  apples  shall  be  deemed  to 
be  below  standard  if  the  barrel  bears  any  statement,  design,  or  device 
indicating  that  the  barrel  is  a  standard  barrel  of  apples,  as  herein  de- 
fined, and  the  capacity  of  the  barrel  is  less  than  the  capacity  prescribed 
by  section  one  of  this  Act,  unless  the  barrel  shall  be  plainly  marked 
on  end  and  side  with  words  or  figures  showing  the  fractional  relation 
which  the  actual  capacity  of  the  barrel  bears  to  the  capacity  prescribed 
by  section  one  of  this  Act.  The  marking  required  by  this  paragraph 
shall  be  in  block  letters  of  size  not  less  than  seventy-two  point  one-inch 
gothic. 


86  Important  Federal  Laws 

Misbranding, 

Sec  5.  That  barrels  packed  with  apples  shall  be  deemed  to  be 
misbranded  within  the  meaning  of  this  Act — 

First.  If  the  barrel  bears  any  statement,  design,  or  device  indicat- 
ing that  the  apples  contained  therein  are  "Standard"  grade  and  the 
apples  when  packed  do  not  conform  to  the  requirements  prescribed  by 
section  two  of  this  Act. 

Second.  If  the  barrel  bears  any  statement,  design,  or  device  indi- 
cating that  the  apples  contained  therein  are  "Standard"  grade  and  the 
barrel  fails  to  bear  also  a  statement  of  the  name  of  the  variety,  the 
name  of  the  locality  where  grown,  and  the  name  of  the  packer  or  the 
person  by  whose  authority  the  apples  were  packed  and  the  barrel  marked. 

Penalty  for  Violations. 

Sec.  6.  That  any  person,  firm  or  corporation,  or  association  who 
shall  knowingly  pack  or  cause  to  be  packed  apples  in  barrels  or  who 
shall  knowingly  sell  or  offer  for  sale  such  barrels  in  violation  of  the 
provisions  of  this  Act  shall  be  liable  to  a  penalty  of  one  dollar  and 
costs  for  each  such  barrel  so  sold  or  offered  for  sale,  to  be  recovered  at 
the  suit  of  the  United  States  in  any  court  of  the  United  States  having 
jurisdiction. 

Sec.  7.  That  this  Act  shall  be  in  force  and  effect  from  and  after 
the  first  day  of  July,  nineteen  hundred  and  thirteen. 


STANDARD  FRUIT  BASKETS. 

Act  of  August  31,  1916. 

An  Act  to  fix  standards  for  Climax  baskets  for  grapes  and  other  fruits  and 
vegetables,  and  to  fix  standards  for  baskets  and  other  containers  for  small 
fruits,  berries,  and  vegetables,  and  for  other  purposes. 

Climax  Fruit  Baskets,  Standards  Established. 

Sec.  1.  That  standards  for  Climax  baskets  for  grapes  and  other 
fruits  and  vegetables  shall  be  the  two-quart  basket,  four-quart  basket, 
and  twelve-quart  basket,  respectively : 

(a)  The  standard  two-quart  Climax  basket  shall  be  of  the  follow- 
ing dimensions :  Length  of  bottom  piece,  nine  and  one-half  inches ; 
width  of  bottom  piece,  three  and  one-half  inches ;  thickness  of  bot- 
tom piece,  three-eighths  of  an  inch;  height  of  basket,  three  and  seven- 
eighths  inches,  outside  measurement ;  top  of  basket,  length  eleven  inches 
and  width  five  inches,  outside  measurement.  Basket  to  have  a  cover 
five  by  eleven  inches,  when  a  cover  is  used. 

(b)  The  standard  four-quart  Climax  basket  shall  be  of  the  fol- 
lowing dimensions :  Length  of  bottom  piece,  twelve  inches ;  width  of 
bottom  piece,  four  and  one-half  inches ;  thickness  of  bottom  piece, 
three-eighths  of  an  inch ;  height  of  basket,  four  and  eleven-sixteenths 
inches,    outside   measurement;   top   of   basket,    length    fourteen    inches, 


Standard  Fruit  Baskets  87 

width  six  and  one-fourth  inches,  outside  measurement.  Basket  to 
have  cover  six  and  one-fourth  inches  by  fourteen  inches,  when  cover 
is  used. 

(c)  The  standard  twelve-quart  CHmax  basket  shall  be  of  the  fol- 
lowing dimensions:  Length  of  bottom  piece,  sixteen  inches;  width 
of  bottom  piece,  six  and  one-half  inches;  thickness  of  bottorn  piece, 
seven-sixteenths  of  an  inch;  height  of  basket,  seven  and  one-sixteenth 
inches,  outside  measurement;  top  of  basket,  length  nineteen  inches, 
width  nine  inches,  outside  measurement.  Basket  to  have  cover  nine 
inches  by  nineteen  inches,  when  cover  is  used. 

Smaller  Baskets  for  Fruits,  Berries,  and  Vegetables. 

Sec.  2.  That  the  standard  basket  or  other  container  for  small 
fruits,  berries,  and  vegetables  shall  be  of  the  following  capacities, 
namely,  dry  one-half  pint,  dry  pint,  dry  quart,  or  multiples  of  the 
dry  quart. 

(a)  The  dry  half  pint  shall  contain  sixteen  and  eight-tenths  cubic 
inches. 

(b)  The  dry  pint  shall  contain  thirty-three  and  six-tenths  cubic 
inches. 

(c)  The  dry  quart  shall  contain  sixty-seven  and  two-tenths  cubic 
inches. 

Interstate  Shipments,  not  Conforming  to  Standards,  Unlawful. 

Sec.  3.  That  it  shall  be  unlawful  to  manufacture  for  shipment,  or 
to  sell  for  shipment,  or  to  ship  from  any  State  or  Territory  of  the 
United  States  or  the  District  of  Columbia  to  any  other  State  or  Terri- 
tory of  the  United  States  or  the  District  of  Columbia,  any  Climax 
baskets  or  other  containers  for  small  fruits,  berries,  or  vegetables, 
whether  filled  or  unfilled,  which  do  not  conform  to  the  provisions 
of  this  Act ;  and  any  person  guilty  of  a  willful  violation  of  any  of  the 
provisions  of  this  Act  shall  be  deemed  guilty  of  a  misdemeanor,  and 
upon  conviction  thereof  shall  be  fined  in  any  sum  not  exceeding  $25 : 
Provided,  That  nothing  herein  contained  shall  apply  to  the  manufac- 
ture, sale,  or  shipment  of  Climax  baskets,  baskets,  or  other  containers 
for  small  fruits,  berries,  and  vegetables  when  intended  for  export  to 
foreign  countries  when  such  Climax  baskets,  baskets,  or  other  con- 
tainers for  small  fruits,  berries,  and  vegetables  accord  with  the  speci- 
fications of  the  foreign  purchasers  or  comply  with  the  law  of  the  coun- 
try to  which  shipment  is  made  or  to  be  made. 

Tests  by  Department  of  Agriculture. 

Sec.  4.  That  the  examination  and  test  of  Climax  baskets,  baskets, 
or  other  containers  for  small  fruits,  berries,  and  vegetables,  for  the 
purpose  of  determining  whether  such  baskets  or  other  containers  com- 
ply with  the  provisions  of  this  Act,  shall  be  made  by  the  Department 
of  Agriculture,   and   the   Secretary   of   Agriculture    shall   establish   and 


88  Important  Federal  Laws 

promulgate    rules   and,  regulations    allowing   such    reasonable   tolerances 
and  variations  as  may  be  found  necessary. 

Prosecution  of  Violations. 

Sec.  5.  That  it  shall  be  the  duty  of  each  district  attorney,  to 
whom  satisfactory  evidence  of  any  violation  of  the  Act  is  presented, 
to  cause  appropriate  proceedings  to  be  commenced  and  prosecuted  in 
the  proper  court  of  the  United  States  for  the  enforcement  of  the 
penalties  as  in  such  case  herein  provided. 

Immunity  of  Guaranty  from  Purchaser. 

Sec.  6.  That  no  dealer  shall  be  prosecuted  under  the  provisions 
of  this  Act  when  he  can  establish  a  guaranty  signed  by  the  manufac- 
turer, wholesaler,  jobber,  or  other  party  residing  within  the  United 
States  from  whom  such  Climax  baskets,  baskets,  or  other  contain- 
ers, as  defined  in  this  Act,  were  purchased,  to  the  efifect  that  said 
Climax  baskets,  baskets,  or  other  containers  are  correct  within  the 
meaning  of  this  Act.  Said  guaranty,  to  afford  protection,  shall  con- 
tain the  name  and  address  of  the  party  or  parties  making  the  sale  of 
Climax  baskets,  baskets,  or  other  containers  to  such  dealer,  and  in 
such  case  said  party  or  parties  shall  be  amenable  to  the  prosecutions, 
fines,  and  other  penalties  which  would  attach  in  due  course  to  the 
dealer  under  the  provisions  of  this  Act. 

Sec.  7.  That  this  Act  shall  be  in  force  and  effect  from  and  after 
the  first  day  of  November,  nineteen  hundred  and  seventeen. 


STANDARD  LIME  BARRELS. 

Act  of  August  23,  1916. 
An  Act  to  standardize  lime  barrels. 

Standard  Sizes  Established. 

That  there  is  hereby  established  a  large  and  a  small  barrel  of  lime, 
the  large  barrel  to  consist  of  two  hundred  and  eighty  pounds  and  the 
small  barrel  to  consist  of  one  hundred  and  eighty  pounds,  net  weight. 

Sales  in  Interstate  and  Foreign  Commerce  Without  Specified  Mark- 
ing, Unlawful. 
Sec.  2.  That  it  shall  be  unlawful  for  any  person  to  sell  or  offer  for 
sale  lime  imported  in  barrels  from  a  foreign  country,  or  to  sell  or  offer 
for  sale  lime  in  barrels  for  shipmewt  from  any  State  or  Territory  or 
the  District  of  Columbia,  to  any  other  State  or  Territory  or  the  District 
of  Columbia,  unless  there  shall  be  stencilled  or  otherwise  clearlv  marked 
on  one  or  both  heads  of  the  small  barrel  the  figures  "180  lbs.  net"  and 
of  the  large  barrel  the  figures  "280  lbs.  net"  before  the  importation  or 
shipment,  .and  on  either  barrel  in  addition  the  name  of  the  manu- 
facturer of  the  lime  and  where  manufactured,  and,  if  imported,  the 
name  of  the  country  from  which  it  is  imported. 


Standard  Lime  Barrels — Insecticides  89 

Marking  Required  if  Fractional  Parts  of  Small  Barrel. 

Sec.  3.  When  lime  is  sold  in  interstate  or  foreign  commerce  in 
containers  of  less  capacity  than  the  standard  small  barrel,  it  shall  be 
sold  in  fractional  parts  of  said  standard  small  barrel,  and  the  net  weight 
of  lime  contained  in  such  container  shall  by  stencil  or  otherwise  be 
clearly  marked  thereon,  together  with  the  name  of  the  manufacturer 
thereof,  and  the  name  of  the  brand,  if  any,  under  which  it  is  sold,  and, 
if  imported,  the  name  of  the  country  from  which  it  is  imported. 

Regulations,  etc.,  to  Be  Made. 

Sec.  4.  That  rules  and  regulations  for  the  enforcement  of  this  Act, 
not  inconsistent  with  the  provisions  of  the  Act,  shall  be  made  by  the 
Director  of  the  Bureau  of  Standards  and  approved  by  the  Secretary 
of  Commerce,  and  that  such  rules  and  regulations  shall  include  reason- 
able variations  or  tolerances  which  may  be  allowed. 

Interstate  Shipments  Unmarked,  Unlawful. 

Sec.  5.  That  it  shall  be  unlawful  to  pack,  sell,  or  ofifer  for  sale  for 
shipment  from  any  State  or  Territory  or  the  District  of  Columbia  to 
anv  other  State  or  Territory  or  the  District  of  Columbia,  any  barrels 
or' other  containers  of  lime  wdiich  are  not  marked  as  provided  in  sec- 
tions two  and  three  of  this  Act.  or  to  sell,  charge  for,  or  purport  to 
deliver  from  any  State  or  Territory  or  the  District  of  Columbia  to 
any  other  State  or  Territory  or  the  District  of  Columbia,  as  a  large  or 
small  barrel  or  a  fractional  part  of  said  small  barrel  of  lime,  any  less 
weight  of  lime  than  is  established  by  the  provisions  of  this  Act ;  and 
any  person  guilty  of  a  violation  of  the  provisions  of  this  Act  shall  be 
deemed  guilty  of  a  misdemeanor  and  be  liable  to  a  fine  not  exceeding 
$100. 
Prosecutions. 

Sec.  6.  That  it  shall  be  the  duty  of  each  district  attorney,  to  whom 
satisfactory  evidence  of  any  violation  of  this  Act  is  presented,  to  cause 
appropriate  proceedings  to  be  commenced  and  prosecuted  in  the  United 
States  court  having  jurisdiction  of  such  offense:  Provided,  however, 
That  the  penal  provisions  of  this  Act  shall  not  take  effect  until  January 
first,  nineteen  hundred  and  seventeen. 

Effect. 

Sec.  7.  That  this  Act  shall  be  in  force  and  effect  from  and  after 
its  passage. 


INSECTICIDE  ACT. 

Act  of  April  26.  1910. 

An  Act  for  preventing  the  manufacture,  sale,  or  transportation  of  adulterated 
or  misbranded  Paris  greens,  lead  arsenates,  and  other  insecticides,  and 
also  fungicides,  and  for  regulating  trathc  therein,  and  for  other  purposes. 

Manufacture  of  Adulterated  Insecticides  Unlawful. 

Section  1.     That  it  shall  be  unlawful  for  any  person  to  manufac- 


90  Important  Federal  Laws 

ture  within  any  Territory  or  the  District  of  Columbia  any  insecticide, 
Paris  green,  lead  arsenate,  or  fungicide  which  is  adulterated  or  mis- 
branded  within  the  meaning  of  this  Act ;  and  any  person  who  shall  vio- 
late any  of  the  provisions  of  this  section  shall  be  guilty  of  a  misdemeanor, 
and  shall,  upon  conviction  thereof,  be  fined  not  to  exceed  two  hundred 
dollars  for  the  first  offense,  and  upon  conviction  for  each  subsequent 
offense  be  fined  not  to  exceed  three  hundred  dollars,  or  sentenced  to 
imprisonment  for  not  to  exceed  one  year,  or  both  such  fine  and  imprison- 
ment, in  the  discretion  of  the  court. 

Shipment  in  Interstate  Commerce  Prohibited. 

Sec.  2.     That  the  introduction  into  any  State  or  Territory  or  the 
District  of   Columbia   from  any   State  or  Territory   or  the   District   of 
Columbia,   or   from   anv    foreign   country,   or   shipment   to   any    foreign 
country,  of  any  insecticide,  or  Paris  green,  or  lead  arsenate,  or  fungicide 
which  is  adulterated  or  misbranded  within  the  meaning  of  this  Act  is 
hereby  prohibited;  and  any  person  who  shall  ship  or  deliver  for  ship- 
ment'from  any  State  or  Territory  or  the  District  of  Columbia  to  any 
other  State  or  Territory  or  the  District  of  Columbia,  or  to  a  foreign 
country,  or  who  shall  receive  in  any  State  or  Territory  or  the  District 
of  Columbia  from  any  other  State  or  Territory  or  the  District  of  Colum- 
bia, or  foreign  country,  and  having  so  received,  shall  deliver,  in  original 
unbroken  packages,  for  pay  or  otherwise,  or  offer  to  deliver,  to  any  other 
person,  any  such  article  so  adulterated  or  misbranded  within  the  meaning 
of  this'  Act,  or  anv  person  who  shall  sell  or  offer  for  sale  in  the  District 
of  Columbia  or  any  Territory  of  the  United  States  any  such  adulterated 
or  misbranded  insecticide,  or  Paris  green,  or  lead  arsenate,  or  fungicide, 
or  export  or  offer  to  export  the  same  to  any  foreign  country,  shall  be 
guilty  of  a  misdemeanor,  and  for  such  offense  be  fined  not  exceeding  two 
hundred  dollars  for  the  first  offense,  and  upon  conviction  for  each  sub- 
sequent offense  not  exceeding  three  hundred  dollars,  or  be  imprisoned 
not  exceeding  one  year,  or  both,  in  the  discretion  of  the  court :    Provided, 
That  no  article  shall  be  deemed  misbranded  or  adulterated  within  the 
provisions  of  this  Act  when  intended  for  export  to  any  foreign  country 
and  prepared  or  packed  according  to  the  specifications  or  directions  of  the 
foreign  purchaser ;  but  if  said  articles  shall  be  in  fact  sold  or  offered  for 
sale  for  domestic  use  or  consumption,  then  this  proviso  shall  not  exempt 
said  article  from  the  operation  of  any  of  the  other  provisions  of  this  Act. 

Regulations  for  Examination. 

Sec.  3.  That  the  Secretary  of  the  Treasury,  the  Secretary  of  Agri- 
culture, and  the  Secretary  of  Commerce  and  Labor  shall  make  uniform 
rules  and  regulations  for  carrying  out  the  provisions  of  this  Act,  includ- 
ing the  collection  and  examination  of  specimens  of  insecticides,  Paris 
greens,  lead  arsenates,  and  fungicides  manufactured  or  offered  for  sale 
in  the  District  of  Columbia  or  in  any  Territory  of  the  United  States, 
or  which  shall  be  offered  for  sale  in  unbroken  packages  in  any  State 


Insecticides  91 

other  than  that  in  which  they  shall  have  been  respectively  manufactured 
or  produced,  or  which  shall  be  received  from  any  foreign  country  or 
intended  for  shipment  to  any  foreign  country,  or  which  may  be  sub- 
mitted for  examination  by  the  director  of  the  experiment  station  of  any 
State,  Territory,  or  the  District  of  Columbia  (acting  under  the  direction 
of  the  Secretary  of  Agriculture),  or  at  any  domestic  or  foreign  port 
through  which  such  product  is  ofifered  for  interstate  commerce,  or  for 
export  or  import  between  the  United  States  and  any  foreign  port  or 
country. 

Examination  by  Department  of  Agriculture. 

Sec.  4.  That  the  examination  of  specimens  of  insecticides,  Paris 
greens,  lead  arsenates,  and  fungicides  shall  be  made  in  the  Department 
of  Agriculture,  by  such  existing  bureau  or  bureaus  as  may  be  directed 
by  the  Secretary,  for  the  purpose  of  determining  from  such  examination 
whether  such  articles  are  adulterated  or  misbranded  within  the  meaning 
of  this  Act;  and  if  it  shall  appear  from  any  such  examination  that  any 
of  such  specimens  are  adulterated  or  misbranded  within  the  meaning  of 
this  Act,  the  Secretary  of  Agriculture  shall  cause  notice  thereof  to  be 
given  to  the  party  from  whom  such  sample  was  obtained.  Any  party  so 
notified  shall  be  given  an  opportunity  to  be  heard,  under  such  rules  and 
regulations  as  may  be  prescribed  as  aforesaid,  and  if  it  appears  that  any 
of  the  provisions  of  this  Act  have  been  violated  by  such  party,  then  the 
Secretary  of  Agriculture  shall  at  once  certify  the  facts  to  the  proper 
United  States  district  attorney,  with  a  copy  of  the  results  of  the  analysis 
or  the  examination  of  such  article  duly  authenticated  by  the  analyst  or 
officer  making  such  examination,  under  the  oath  of  such  officer.  After 
judgment  of  the  court,  notice  shall  be  given  by  publication  in  such 
manner  as  may  be  prescribed  by  the  rules  and  regulations  aforesaid. 

Prosecutions. 

Sec.  5.  That  it  shall  be  the  duty  of  each  district  attorney  to  whom 
the  Secretary  of  Agriculture  shall  report  any  violation  of  this  Act,  or 
to  whom  any  director  of  experiment  station  or  agent  of  any  State, 
Territory,  or  the  District  of  Columbia,  under  authority  of  the  Secre- 
tary of  Agriculture,  shall  present  satisfactory  evidences  of  any  such 
violation,  to  cause  appropriate  proceedings  to  be  commenced  and  pros- 
ecuted in  the  proper  courts  of  the  United  States,  without  delay,  for  the 
enforcement  of  the  penalties  as  in  such  case  herein  provided. 

Definitions. 

Sec.  6.  That  the  term  "insecticide"  as  used  in  this  Act  shall  in- 
clude any  substance  or  mixture  of  substances  intended  to  be  used  for 
preventing,  destroying,  repelling,  or  mitigating  any  insects  which  may 
infest  veo-etation,  man  or  other  animals,  or  households,  or  be  present  in 
any  environment  whatsoever.  The  term  "Paris  green"  as  used  in  this 
Act  shall  include  the  product  sold  in  commerce  as  Paris  green  and  chem- 
ically known  as  the  aceto-arsenite  of  copper.    The  term  "lead  arsenate" 


92  Important  Federal  Laws 

as  used  in  this  Act  shall  include  the  product  or  products  sold  in  com- 
merce as  lead  arsenate  and  consisting  chemically  of  products  derived 
from  arsenic  acid  (H.^AsOJ  by  replacing  one  or  more  hydrogen  atoms 
by  lead.  That  the  term  "fungicide"  as  used  in  this  Act  shall  include 
any  substance  or  mixture  of  substances  intended  to  be  used  for  prevent- 
ing, destroving,  repelling,  or  mitigating  any  and  all  fungi  that  may  infest 
vegetation  or  be  present  in  any  environment  whatsoever. 

Adulterated  Articles  Defined. 

Sec.  7.  That  for  the  purpose  of  this  Act  an  article  shall  be  deemed 
to  be  adulterated — 

In  the  case  of  Paris  green:  First,  if  it  does  not  contain  at  least 
fifty  per  centum  of  arsenious  oxide;  second,  if  it  contains  arsenic  in 
w^ater-soluble  forms  equivalent  to  more  than  three  and  one-half  per 
centum  of  arsenious  oxide;  third,  if  any  substance  has  been  mixed  and 
packed  with  it  so  as  to  reduce  or  lower  or  injuriously  affect  its  quality 
or  strength. 

In  the  case  of  lead  arsenate:  First,  if  it  contains  more  than  fifty 
per  centum  of  water;  second,  if  it  contains  total  arsenic  equivalent  to 
less  than  twelve  and  one-half  per  centum  of  arsenic  oxid  (As.Og)  ; 
third,  if  it  contains  arsenic  in  water-soluble  forms  equivalent  to  more 
than  seventy-five  one-hundredths  per  centum  of  arsenic  oxid  (AsoOg)  ; 
fourth,  if  any  substances  have  been  mixed  and  packed  with  it  so  as  to 
reduce,  lower,  or  injuriously  aft'ect  its  quality  or  strength:  Provided, 
however,  That  extra  water  may  be  added  to  lead  arsenate  (as  described 
in  this  paragraph)  if  the  resulting  mixture  is  labeled  lead  arsenate  and 
water,  the  percentage  of  extra  water  being  plainly  and  correctly  stated 
on  the  label. 

In  the  case  of  insecticides  or  fungicides,  other  than  Paris  green  and 
lead  arsenate:  First,  if  its  strength  or  purity  fall  below  the  professed 
standard  or  quality  under  which  it  is  sold;  second,  if  any  substance  has 
been  substituted  wholly  or  in  part  for  the  article ;  third,  if  any  valuable 
constituent  of  the  article  has  been  wholly  or  in  part  abstracted;  fourth, 
if  it  is  intended  for  use  on  vegetation  and  shall  contain  any  substance 
or  substances  which,  although  preventing,  destroying,  repelling,  or  mit- 
igating insects,  shall  be  injurious  to  such  vegetation  when  used. 

Misbranded  Articles  Defined. 

Sec.  8.  That  the  term  "misbranded"  as  used  herein  shall  apply  to 
all  insecticides,  Paris  greens,  lead  arsenates,  or  fungicides,  or  articles 
which  enter  into  the  composition  of  insecticides  or  fungicides,  the  pack- 
age or  label  of  which  shall  bear  any  statement,  design,  or  device  regard- 
ing such  article  or  the  ingredients  or  substances  contained  therein  which 
shall  be  false  or  misleading  in  any  particular,  and  to  all  insecticides, 
Paris  greens,  lead  arsenates,  or  fungicides  which  are  falsely  branded  as 
to  the^'State,'  Territory,  or  country  in  which  they  are  manufactured  or 
produced. 


IXSECTICIDES  93 

That  for  the  purpose  of  this  Act  an  article  shall  be  deemed  to  be 
misbranded — 

In  the  case  of  insecticides.  Paris  greens,  lead  arsenates,  and  fungi- 
cides :  First,  if  it  be  an  imitation  or  offered  for  sale  under  the  name 
of  another  article;  second,  if  it  be  labeled  or  branded  so  as  to  deceive 
or  mislead  the  purchaser,  or  if  the  contents  of  the  package  as  originally 
put  up  shall  have  been  removed  in  whole  or  in  part  and  other  contents 
shall  have  been  placed  in  such  package ;  third,  if  in  package  form,  and 
the  contents  are  stated  in  terms  of  weight  or  measure,  they  are  not 
plainly  and  correctly  stated  on  the  outside  of  the  package. 

In  the  case  of  insecticides  (other  than  Paris  greens  and  lead  arsen- 
nates)  and  fungicides:  First,  if  it  contains  arsenic  in  any  of  its  com- 
binations or  in  the  elemental  form  and  the  total  amount  of  arsenic 
present  (expressed  as  per  centum  of  metallic  arsenic)  is  not  stated  on 
the  label;  second,  if  it  contains  arsenic  in  any  of  its  combinations  or  in 
the  elemental  form  and  the  amount  of  arsenic  in  water-soluble  forms 
(expressed  as  per  centum  of  metallic  arsenic)  is  not  stated  on  the  label; 
third,  if  it  consists  partially  or  completely  of  an  inert  substance  or  sub- 
stances which  do  not  prevent,  destroy,  repel,  or  mitigate  insects  or  fungi 
and  does  not  have  the  names  and  percentage  amounts  of  each  and  every 
one  of  such  inert  ingredients  plainly  and  correctly  stated  on  the  label : 
Provided,  however,  That  in  lieu  of  naming  and  stating  the  percentage 
amount  of  each  and  every  inert  ingredient  the  producer  may  at  his 
discretion  state  plainly  upon  the  label  the  correct  names  and  percentage 
amounts  of  each  and  every  ingredient  of  the  insecticide  or  fungicide 
having  insecticidal  or  fungicidal  properties,  and  make  no  mention  of  the 
inert  ingredients,  except  in  so  far  as  to  state  the  total  percentage  of 
inert  ingredients  present. 

Dealer  Protected  by  Guaranty  of  Wholesaler. 

Sec.  9.  That  no  dealer  shall  be  prosecuted  under  the  provisions  of 
this  Act  when  he  can  establish  a  guaranty  signed  by  the  wholesaler, 
jobber,  manufacturer,  or  other  party  residing  in  the  United  States,  from 
whom  he  purchased  such  articles,  to  the  eft'ect  that  the  same  is  not 
adulterated  or  misbranded  within  the  meaning  of  this  Act,  designating 
it.  Said  guaranty,  to  afford  protection,  shall  contain  the  name  and  ad- 
dress of  the  party  or  parties  making  the  sale  of  such  articles  to  such 
dealer,  and  in  such  case  said  party  or  parties  shall  be  amenable  to  the 
prosecutions,  fines,  and  other  penalties  which  would  attach  in  due  course 
to  the  dealer  under  the  provisions  of  this  Act. 

Original  Packages — Seizure  of. 

Sec.  10.  That  any  insecticide,  Paris  green  (lead  arsenate,  or  fungi- 
cide that  is  adulterated  or  misbranded  within  the  meaning  of  this  Act 
and  is  being  transported  from  one  State,  Territory,  or  District,  to  an- 
other for  sale,  or,  having  been  transported,  remains  unloaded,  unsold, 
or  in  original  unbroken  packages,  or  if  it  be  sold  or  offered  for  sale  in 


94  Important  Federal  Laws 

the  District  of  Columbia  or  any  Territory  of  the  United  States,  or  if  it 
be  imported  from  a  foreign  country  for  sale,  shall  be  liable  to  be  pro- 
ceeded against  in  any  district  court  of  the  United  States  within  the 
district  wherein  the  same  is  found  and  seized  for  confiscation  by  a 
process  of  libel  for  condemnation. 

And  if  such  article  is  condemned  as  being  adulterated  or  misbranded, 
within  the  meaning  of  this  Act,  the  same  shall  be  disposed  of  by  de- 
struction or  sale  as  the  said  court  may  direct,  and  the  proceeds  thereof, 
if  sold,  less  the  legal  costs  and  charges,  shall  be  paid  into  the  Treasury 
of  the  United  States,  but  such  goods  shall  not  be  sold  in  any  jurisdiction 
contrary  to  the  provisions  of  this  Act  or  the  laws  of  that  jurisdiction: 
Provided,  however.  That  upon  the  payment  of  the  costs  of  such  libel 
proceedings  and  the  execution  and  delivery  of  a  good  and  sufficient  bond 
to  the  effect  that  such  articles  shall  not  be  sold  or  otherwise  disposed  of 
contrary  to  the  provisions  of  this  Act  or  the  laws  of  any  State,  Terri- 
tory, or  District,  the  court  may  by  order  direct  that  such  articles  be 
delivered  to  the  owner  thereof,  the  proceedings  of  such  libel  cases 
shall  conform,  as  near  as  may  be.  to  the  proceedings  in  admiralty,  except 
that  either  party  may  demand  trial  by  jur>'  of  any  issue  of  fact  joined 
in  any  such  case,  and  all  such  proceedings  shall  be  at  the  suit  of  and  in 
the  name  of  the  United  States. 

Regulation  of  Importation. 

Sec.  11.  That  the  Secretary  of  the  Treasury  shall  deliver  to  the 
Secretary  of  Agriculture,  upon  his  request,  from  time  to  time,  samples 
of  insecticides,  Paris  greens,  lead  arsenates,  and  fungicides  which  are 
being  imported  into  the  United  States  or  offered  for  import,  giving  notice 
thereof  to  the  owner  or  consignee,  who  may  appear  before  the  Secretary 
of  Agriculture  and  have  the  right  to  introduce  testimony;  and  if  it 
appear  from  the  examination  of  such  samples  that  any  insecticides,  or 
Paris  green,  or  lead  arsenate,  or  fungicide  offered  to  be  imported  into 
the  United  States  is  adulterated  or  misbranded  within  the  meaning  of 
this  Act,  or  is  otherwise  dangerous  to  the  health  of  the  people  of  the 
United  States,  or  is  of  a  kind  forbidden  entry  into  or  forbidden  to  be 
sold  or  restricted  in  sale  in  the  country  in  which  it  is  made  or  from 
which  it  is  exported,  or  is  otherwise  falsely  labeled  in  any  respect,  the 
said  article  shall  be  refused  admission,  and  the  Secretary  of  the  Treasury 
shall  refuse  delivery  to  the  consignee  and  shall  cause  the  destruction  of 
any  goods  refused  delivery  which  shall  not  be  exported  by  the  consignee 
within  three  months  from  the  date  of  notice  of  such  refusal  under  such 
regulations  as  the  Secretary  of  the  Treasury  may  prescribe:  Provided, 
That  the  Secretary  of  the  Treasury  may  deliver  to  the  consignee  such 
goods  pending  examination  and  decision  in  the  matter  on  execution  of 
a  penal  bond  for  the  amount  of  the  full  invoice  value  of  such  goods, 
together  with  the  duty  thereon,  and  on  refusal  to  return  such  goods  for 
any  cause  to  the  custody  of  the  Secretar}^  of  the  Treasury,  when  de- 


Insecticides  95 

manded,  for  the  purpose  of  excluding  them  from  the  country,  or  for 
any  other  purpose,  said  consignee  shall  forfeit  the  full  amount  of  the 
bond:  And  provided  further,  That  all  charges  for  storage,  cartage,  and 
labor  on  goods  which  are  refused  admission  or  delivery  shall  be  paid 
by  the  owner  or  consignee,  and  in  default  of  such  payment  shall  con- 
stitute a  lien  against  any  future  importation  made  by  such  owner  or 
consignee. 

Definitions. 

Sec.  12.  That  the  term  "Territory,"  as  used  in  this  Act,  shallin- 
clude  the  District  of  Alaska  and  the  insular  possessions  of  the  United 
States.  The  word  "person,"  as  used  in  this  Act,  shall  be  construed  to 
import  both  the  plural  and  the  singular,  as  the  case  demands,  and  shall 
include  corporations,  companies,  societies,  and  associations.  When  con- 
struing and  enforcing  the  provisions  of  this  Act,  the  act,  omission,  or 
failure  of  any  officer,  agent,  or  other  person  acting  for  or  employed  by 
any  corporation,  company,  society,  or  association,  within  the  scope  of 
his  employment  or  office,  shall  in  every  case  be  also  deemed  to  be  the 
act,  omission,  or  failure  of  such  corporation,  company,  society,  or  asso- 
ciation, as  well  as  that  of  the  other  person. 

Title  of  Act. 

Sec.  13.  That  this  Act  shall  be  known  and  referred  to  as  "The 
insecticide  Act  of  1910." 

Date  of  Effect. 

Sec.  14.  That  this  Act  shall  be  in  force  and  effect  from  and  after 
the  first  day  of  January,  nineteen  hundred  and  eleven. 


VOCATIONAL  EDUCATION  ACT. 

Act  of  February  23,  1917. 

An  Act  to  provide  for  the  promotion  of  vocational  education;  to  provide  for 
co-operation  with  the  States  in  the  promotion  of  such  education  In  agricul- 
ture and  the  trades  and  industries;  to  provide  for  co-operation  v^^ith  the 
States  in  the  preparation  of  teachers  of  vocational  subjects;  and  to  appro- 
priate money  and  regulate  Its  expenditure. 

Appropriation. 

Sec.  1.  That  there  is  hereby  annually  appropriated,  out  of  any 
money  in  the  Treasury  not  otherwise  appropriated,  the  sums  provided  in 
sections  two,  three,  and  four  of  this  Act,  to  be  paid  to  the  respective  States 
for  the  purpose  of  co-operating  with  the  States  in  paying  the  salaries  of 
teachers,  supervisors,  and  directors  of  agricultural  subjects,  and  teachers 
of  trade,  home  economics,  and  industrial  subjects,  and  in  the  prepara- 
tion of  teachers  of  agricultural,  trade,  industrial,  and  home  economics 
subjects ;  and  the  sum  provided  for  in  section  seven  for  the  use  of  the 
Federal  Board  for  Vocational  Education  for  the  administration  of  this 
Act  and  for  the  purpose  of  making  studies,  investigations,  and  reports 
to  aid  in  the  organization  and  conduct  of  vocational  education,  which 
sums  shall  be  expended  as  hereinafter  provided. 

Appropriations  for  Agricultural  Education. 

Sec.  2.  That  for  the  purpose  of  co-operating  with  the  States  in 
paying  the  salaries  of  teachers,  supervisors,  or  directors  of  agricultural 
subjects  there  is  hereby  appropriated  for  the  use  of  the  States,  subject 
to  the  provisions  of  this  Act,  for  the  fiscal  year  ending  June  thirtieth, 
nineteen  hundred  and  eighteen,  the  sum  of  $500,000;  for  the  fiscal  year 
ending  June  thirtieth,  nineteen  hundred  and  nineteen,  the  sum  of 
$750,000;  for  the  fiscal  year  ending  June  thirtieth,  nineteen  hundred 
and  twenty,  the  sum  of  $1,000,000;  for  the  fiscal  year  ending  June 
thirtieth,  nineteen  hundred  and  twenty-one,  the  sum  of  $1,250,000;  for 
the  fiscal  year  ending  June  thirtieth,  nineteen  hundred  and  twenty-two, 
the  sum  of  $1,500,000;  for  the  fiscal  year  ending  June  thirtieth,  nine- 
teen hundred  and  twenty-three,  the  sum  of  $1,750,000;  for  the  fiscal 
year  ending  June  thirtieth,  nineteen  hundred  and  twenty-four,  the  sum 
of  $2,000,000;  for  the  fiscal  year  ending  June  thirtieth,  nineteen  hun- 
dred and  twenty-five,  the  sum  of  $2,500,000;  for  the  fiscal  year  ending 
June  thirtieth,  nineteen  hundred  and  twenty-six,  and  annually  there- 
after, the  sum  of  $3,000,000.  Said  sums  shall  be  allotted  to  the  States 
in  the  proportion  which  their  rural  population  bears  to  the  total  rural 
population    in    the    United    States,    not    including    outlying    possessions, 


VocATiONAi.  Education  97 

according  to  the  last  preceding  United  States  census :  Provided,  That 
the  allotment  of  funds  to  any  State  shall  be  not  less  than  a  minimum 
of  $5,000  for  any  fiscal  year  prior  to  and  including  the  fiscal  year  ending 
June  thirtieth,  nineteen  hundred  and  twenty-three,  nor  less  than  $10,000 
for  any  fiscal  year  thereafter,  and  there  is  hereby  appropriated  the  fol- 
lowing sums,  or  so  much  thereof  as  may  be  necessary,  which  shall  be 
used  for  the  purpose  of  providing  the  minimum  allotment  to  the  States 
provided  for  in  this  section :  For  the  fiscal  year  ending  June  thirtieth, 
nineteen  hundred  and  eighteen,  the  sum  of  $48,000;  for  the  fiscal  year 
ending  June  thirtieth,  nineteen  hundred  and  nineteen,  the  sum  of 
$34,000 :  for  the  fiscal  year  ending  June  thirtieth,  nineteen  hundred  and 
twenty,  the  sum  of  $24,000;  for  the  fiscal  year  ending  June  thirtieth, 
nineteen  hundred  and  twenty-one,  the  sum  of  $18,000;  for  the  fiscal 
year  ending  June  thirtieth,  nineteen  hundred  and  twenty-two,  the  sum 
of  $14,000;  for  the  fiscal  year  ending  June  thirtieth,  nineteen  hundred 
and  twenty-three,  the  sum  of  $11,000;  for  the  fiscal  year  ending  June 
thirtieth,  nineteen  hundred  and  twenty-four,  the  sum  of  $9,000;  for  the 
fiscal  year  ending  June  thirtieth,  nineteen  hundred  and  twenty-five,  the 
sum  of  $34,000 ;  and  annually  thereafter  the  sum  of  $27,000. 

Appropriations  for  Industrial  Education. 

Sec.  3.  That  for  the  purpose  of  co-operating  with  the  States  in 
paying  the  salaries  of  teachers  of  trade,  home  economics,  and  industrial 
subjects  there  is  hereby  appropriated  for  the  use  of  the  States,  for  the 
fiscal  year  ending  June  thirtieth,  nineteen  hundred  and  eighteen,  the 
sum  of  $500,000 ;  for  the  fiscal  year  ending  June  thirtieth,  nineteen 
hundred  and  nineteen,  the  sum  of  $750,000;  for  the  fiscal  year  ending 
June  thirtieth,  nineteen  hundred  and  twenty,  the  sum  of  $1,000,000; 
for  the  fiscal  year  ending  June  thirtieth,  nineteen  hundred  and  twenty- 
one,  the  sum  of  $1,250,000;  for  the  fiscal  year  ending  June  thirtieth, 
nineteen  hundred  and  twenty-two,  the  sum  of  $1,500,000;  for  the  fiscal 
year  ending  June  thirtieth,  nineteen  hundred  and  twenty-three,  the  sum 
of  $1,750,000;  for  the  fiscal  year  ending  June  thirtieth,  nineteen  hun- 
dred and  twenty-four,  the  sum  of  $2,000,000;  for  the  fiscal  year  ending 
June  thirtieth,  nineteen  hundred  and  twenty-five,  the  sum  of  $2,500,000; 
for  the  fiscal  year  ending  June  thirtieth,  nineteen  hundred  and  twenty- 
six,  the  sum  of  $3.000.000 ;  and  annually  thereafter  the  sum  of  $3,000,- 
000.  Said  sums  shall  be  allotted  to  the  States  in  the  proportion  which 
their  urban  population  bears  to  the  total  urban  population  in  the  United 
States,  not  including  outlying  possessions,  according  to  the  last  preced- 
ing United  States  census :  Provided,  That  the  allotment  of  funds  to  any 
State  shall  be  not  less  than  a  minimum  of  $5,000  for  any  fiscal  year 
prior  to  and  including  the  fiscal  year  ending  June  thirtieth,  nineteen 
hundred  and  twenty-three,  nor  less  than  $10,000  for  any  fiscal  year 
thereafter,  and  there  is  hereby  appropriated  the  following  sums,  or  so 
much  thereof  as  may  be  needed,  which  shall  be  used  for  the  purpose 

(7) 


98  Important  Federal  Laws 

of  providing  the  minimum  allotment  to  the  States  provided  for  in  this 
section :  For  the  fiscal  year  ending  June  thirtieth,  nineteen  hundred  and 
eighteen,  the  sum  of  $66,000;  for  the  fiscal  year  ending  June  thirtieth, 
nineteen  hundred  and  nineteen,  the  sum  of  $46,000;  for  the  fiscal  year 
ending  June  thirtieth,  nineteen  hundred  and  twenty,  the  sum  of  $34,000 ; 
for  the  fiscal  vear  ending  June  thirtieth,  nineteen  hundred  and  twenty- 
one,  the  sum  of  $28,000 ;  for  the  fiscal  year  ending  June  thirtieth,  nine- 
teen hundred  and  twenty-two,  the  sum  of  $25,000;  for  the  fiscal  year 
ending  June  thirtieth,  nineteen  hundred  and  twenty-three,  the  sum  of 
$22,000;  for  the  fiscal  year  ending  June  thirtieth,  nineteen  hundred  and 
twenty-four,  the  sum  of  $19,000;  for  the  fiscal  year  ending  June 
thirtieth,  nineteen  hundred  and  twenty-five,  the  sum  of  $56,000;  for  the 
fiscal  year  ending  June  thirtieth,  nineteen  hundred  and  twenty-six,  and 
annually  thereafter,  the  sum  of  $50,000. 

That  not  more  than  twenty  per  centum  of  the  money  appropriated 
under  this  Act  for  the  payment  of  salaries  of  teachers  of  trade,  home 
economics,  and  industrial  subjects,  for  any  year,  shall  be  expended  for 
the  salaries  of  teachers  of  home  economics  subjects. 

Appropriations  for  Training  Vocational  Teachers. 

Sec.  4.  That  for  the  purpose  of  co-operating  with  the  States  in 
preparing  teachers,  supervisors,  and  directors  of  agricultural  subjects 
and  teachers  of  trade  and  industrial  and  home  economics  subjects  there 
is  hereby  appropriated  for  the  use  of  the  States  for  the  fiscal  year 
ending  June  thirtieth,  nineteen  hundred  and  eighteen,  the  sum  of  $500,- 
000;  for  the  fiscal  year  ending  June  thirtieth,  nineteen  hundred  and 
nineteen,  the  sum  of' $700,000;  for  the  fiscal  year  ending  June  thirtieth, 
nineteen  hundred  and  twenty,  the  sum  of  $900,000;  for  the  fiscal  year 
ending  June  thirtieth,  nineteen  hundred  and  twenty-one,  and  annually 
thereafter,  the  sum  of  $1,000,000.  Said  sums  shall  be  allotted  to  the 
States  in  the  proportion  which  their  population  bears  to  the  total  popu- 
lation of  the  United  States,  not  including  outlying  possessions,  accord- 
ing to  the  last  preceding  United  States  census :  Provided,  That  the 
allotment  of  funds  to  any  State  shall  be  not  less  than  a  minimum  of 
$5,000  for  any  fiscal  year  prior  to  and  including  the  fiscal  year  ending 
June  thirtieth,  nineteen  hundred  and  nineteen,  nor  less  than  $10,000 
"for  any  fiscal  year  thereafter.  And  there  is  hereby  appropriated  the 
following  sums,  or  so  much  thereof  as  may  be  needed,  which  shall  be 
used  for  the  purpose  of  providing  the  minimum  allotment  provided  for 
in  this  section :  For  the  fiscal  year  ending  June  thirtieth,  nineteen 
hundred  and  eighteen,  the  sum  of  $46,000;  for  the  fiscal  year  ending 
June  thirtieth,  nineteen  hundred  and  nineteen,  the  sum  of  $32,000;  for 
the  fiscal  year  ending  June  thirtieth,  nineteen  hundred  and  twenty,  the 
sum  of  $24,000;  for  the  fiscal  year  ending  June  thirtieth,  nineteen  hun- 
dred and  twenty-one,  and  annually  thereafter,  the  sum  of  $90,000. 


Vocational  Education  99 

Acceptance  by  States. 

Sec.  5.  That  in  order  to  secure  the  benefits  of  the  appropriations 
provided  for  in  sections  two,  three,  and  four  of  this  Act,  any  State 
shall,  through  the  legislative  authority  thereof,  accept  the  provisions 
of  this  Act  and  designate  or  create  a  State  board,  consisting  of  not  less 
than  three  members,  and  having  all  necessary  power  to  co-operate,  as 
herein  provided,  with  the  Federal  Board  for  Vocational  Education  in 
the  administration  of  the  provisions  of  this  Act.  The  State  board  of 
education,  or  other  board  having  charge  of  the  administration  of  public 
education  in  the  State,  or  any  State  board  having  charge  of  the  admin- 
istration of  any  kind  of  vocatio.nal  education  in  the  State  may,  if  the 
State  so  elect,  be  designated  as  the  State  board,  for  the  purposes  of  this 
Act.  ,    t 

In  any  State  the  legislature  of  which  does  not  meet  in  nineteen 
hundred  and  seventeen,  if  the  governor  of  that  State,  so  far  as  he  is 
authorized  to  do  so,  shall  accept  the  provisions  of  this  Act  and  desig- 
nate or  create  a  State  board  of  not  less  than  three  members  to  act  in 
co-operation  with  the  Federal  Board  for  Vocational  Education,  the 
Federal  board  shall  recognize  such  local  board  for  the  purposes  of  this 
Act  until  the  legislature  of  such  State  meets  in  due  course  and  has 
been  in  session  sixty  days. 

Any  State  may  accept  the  benefits  of  any  one  or  more  of  the  re- 
spective funds  herein  appropriated,  and  it  may  defer  the  acceptance 
of  the  benefits  of  any  one  or  more  of  such  funds,  and  shall  be  required 
to  meet  only  the  conditions  relative  to  the  fund  or  funds  the  benefits 
of  which  it  has  accepted :  Provided,  That  after  June  thirtieth,  nineteen 
hundred  and  twenty,  no  State  shall  receive  any  appropriation  for  sal- 
aries of  teachers,  supervisors,  or  directors  of  agricultural  subjects,  until 
it  shall  have  taken  advantage  of  at  least  the  minimum  amount  appro- 
priated for  the  training  of  teachers,  supervisors,  or  directors  of  agri- 
cultural subjects,  as  provided  for  in  this  Act,  and  that  after  said  date 
no  State  shall  receive  any  appropriation  for  the  salaries  of  teachers 
of  trade,  home  economics,  and  industrial  subjects  until  it  shall  have 
taken  advantage  of  at  least  the  minimum  amount  appropriated  for  the 
training  of  teachers  of  trade,  home  economics,  and  industrial  subjects, 
as  provided  for  in  this  Act. 

Federal  Board  for  Vocational  Education. 

Sec.  6.  That  a  Federal  Board  for  Vocational  Education  is  hereby 
created,  to  consist  of  the  Secretary  of  Agriculture,  the  Secretary  of 
Commerce,  the  Secretary  of  Labor,  the  United  States  Commissioner 
of  Education,  and  three  citizens  of  the  United  States  to  be  appointed 
by  the  President,  by  and  with  the  advice  and  consent  of  the  Senate. 
One  of  said  three  citizens  shall  be  a  representative  of  the  manufac- 
turing and  commercial  interests,  one  a  representative  of  the  agricul- 
tural interests,  and  one  a  representative  of   labor.       The  board   shall 


100  Important  Federal  Laws 

elect  annually  one  of  its  members  as  chairman.  In  the  first  instance, 
one  of  the  citizen  members  shall  be  appointed  for  one  year,  one  for  two 
years,  and  one  for  three  years,  and  thereafter  for  three  years  each. 
The  members  of  the  board  other  than  the  members  of  the  Cabinet  and 
the  United  States  Commissioner  of  Education  shall  receive  a  salary  of 
$5,000  per  annum. 

The  board  shall  have  power  to  co-operate  with  State  boards  in 
carrying  out  the  provisions  of  this  Act.  It  shall  be  the  duty  of  the 
Federal  Board  for  Vocational  Education  to  make,  or  cause  to  have 
made  studies,  investigations,  and  reports,  with  particular  reference  to 
their  use  in  aiding  the  States  in  the  establishment  of  vocational  schools 
and  classes  and  in  giving  instruction  in  agriculture,  trades  and  indus- 
tries, commerce  and  commercial  pursuits,  and  home  economics.  Such 
studies,  investigations,  and  reports  shall  include  agriculture  and  agri- 
cultural processes  and  requirements  upon  agricultural  workers ;  trades, 
industries,  and  apprenticeships,  trade  and  industrial  requirements  upon 
industrial  workers,  and  classification  of  industrial  processes  and  pur- 
suits ;  commerce  and  commercial  pursuits  and  requirements  upon  com- 
mercial workers;  home  management,  domestic  science,  and  the  study 
of  related  facts  and  principles ;  and  problems  of  administration  of  voca- 
tional schools  and  of  courses  of  study  and  instruction  in  vocational 
subjects. 

When  the  board  deems  it  advisable  such  studies,  investigations, 
and  reports  concerning  agriculture,  for  the  purposes  of  agricultural 
education,  may  be  made  in  co-operation  with  or  through  the  Depart- 
ment of  Agriculture;  such  studies,  investigations,  and  reports  concern- 
ing trades  and  industries,  for  the  purposes  of  trade  and  industrial  edu- 
cation, may  be  made  in  co-operation  with  or  through  the  Department 
of  Labor;  such  studies,  investigations,  and  reports  concerning  com- 
merce and  commercial  pursuits,  for  the  purposes  of  commercial  educa- 
tion, may  be  made  in  co-operation  with  or  through  the  Department  of 
Commerce ;  such  studies,  investigations,  and  reports  concerning  the  ad- 
ministration of  vocational  schools,  courses  of  study  and  instruction  in 
vocational  subjects,  may  be  made  in  co-operation  with  or  through  the 
Bureau  of  Education. 

Thfe  Commissioner  of  Education  may  make  such  recommendations 
to  the  board  relative  to  the  administration  of  this  Act  as  he  may  from 
time  to  time  deem  advisable.  It  shall  be  the  duty  of  the  chairman  of 
the  board  to  carry  out  the  rules,  regulations,  and  decisions  which  the 
board  may  adopt.  The  Federal  Board  for  Vocational  Education  shall 
have  power  to  employ  such  assistants  as  may  be  necessary  to  carry 
out  the  provisions  of  this  Act. 

Appropriation  for  Federal  Board. 

Sec.  7.  That  there  is  hereby  appropriated  to  the  Federal  Board 
for  Vocational  Education  the  sum  of  $200,000  annually,  to  be  available 


Vocational  Education  101 

from  and  after  the  passage  of  this  Act,  for  the  purpose  of  making  or 
co-operating  in  making  the  studies,  investigations,  and  reports  provided 
for  in  section  six  of  this  Act,  and  for  the  purpose  of  paying  tlie  sal- 
aries of  the  officers,  the  assistants,  and  such  office  and  other  expenses 
as  the  board  may  deem  necessary  to  the  execution  and  administration 
of  this  Act. 

States  to  Prepare  Plans. 

Sec.  8.  That  in  order  to  secure  the  benefits  of  the  appropriation 
for  any  purpose  specified  in  this  Act,  the  State  board  shall  prepare 
plans,  showing  the  kinds  of  vocational  education  for  which  it  is  pro- 
posed that  the  appropriation  shall  be  used ;  the  kinds  of  schools  and 
equipment ;  courses  of  study ;  methods  of  instruction  ;  qualifications  of 
teachers ;  and,  in  the  case  of  agricultural  subjects,  the  qualifications  of 
supervisors  or  directors  ;  plans  for  the  training  of  teachers ;  and,  in  the 
case  of  agricultural  subjects,  plans  for  the  supervision  of  agricultural 
education,  as  provided ^  for  in  section  ten.  Such  plans  shall  be  sub- 
mitted by  the  State  board  to  the  Federal  Board  for  Vocational  Edu- 
cation, and  if  the  Federal  board  finds  the  same  to  be  in  confonnity 
with  the  provisions  and  purposes  of  this  Act,  the  same  shall  be  ap- 
proved. The  State  board  shall  make  an  annual  report  to  the  Federal 
Board  for  Vocational  Education,  on  or  before  September  first  of  each 
year,  on  the  work  done  in  the  State  and  the  receipts  and  expenditures 
of  money  under  the  provisions  of  this  Act. 

Conditions  on  Grants. 

Sec.  9.  That  the  appropriation  for  the  salaries  of  teachers,  super- 
visors, or  directors  of  agricultural  subjects  and  of  teachers  of  trade, 
home  economics,  and  industrial  subjects  shall  be  devoted  exclusively 
to  the  payment  of  salaries  of  such  teachers,  supervisors,  or  directors 
having  the  minimum  qualifications  set  up  for  the  State  by  the  State 
board,  with  the  approval  of  the  Federal  Board  for  Vocational  Edu- 
cation. The  cost  of  instruction  supplementary  to  the  instruction  in 
agricultural  and  in  trade,  home  economics,  and  industrial  subjects 
provided  for  in  this  Act,  necessary  to  build  a  well-rounded  course  of 
training,  shall  be  borne  by  the  State  and  local  communities,  and  no 
part  of  the  cost  thereof  shall  be  borne  out  of  the  appropriations  herein 
made.  The  moneys  expended  under  the  provisions  of  this  Act,  in 
co-operation  with  the  States,  for  the  salaries  of  teachers,  supervisors, 
or  directors  of  agricultural  subjects,  or  for  the  salaries  of  teachers  of 
trade,  home  economics,  and  industrial  subjects,  shall  be  conditioned 
that  for  each  dollar  of  Federal  money  expended  for  such  salaries  the 
State  or  local  community,  or  both,  shall  expend  an  equal  amount  for 
such  salaries ;  and  that  appropriations  for  the  training  of  teachers  of 
vacational  subjects,  as  herein  provided,  shall  be  conditioned  that  such 
money  be  expended  for  maintenance  of  such  training  and  that  for 
each  dollar  of  Federal  money  so  expended  for  maintenance,  the  State 


102  Important  Federal  Laws 

or  local  community,  or   both,   shall   expend   an   equal   amount   for  the 
maintenance  of  ssch  training. 

Requirements  for  Agricultural  Education. 

Sec.  10.  That  any  State  may  use  the  appropriation  for  agricultural 
purposes,  or  any  part  thereof  allotted  to  it,  under  the  provisions  of  this 
Act,  for  the  salaries  of  teachers,  supervisors,  or  directors  of  agricultural 
subjects,  either  for  the  salaries  of  teachers  of  such  subjects  in  schools 
or  classes  or  for  the  salaries  of  supervisors  or  directors  of  such  subjects 
under  a  plan  of  supervision  for  the  State  to  be  set  up  by  the  State 
board,  with  the  approval  of  the  Federal  Board  for  Vocational  Educa- 
tion. That  in  order  to  receive  the  benefits  of  such  appropriation  for 
ttie  salaries  of  teachers,  supervisors,  or  directors  of  agricultural  sub- 
jects the  State  board  of  any  State  shall  provide  in  its  plan  for  agri- 
cultural education  that  such  education  shall  be  that  which  is  under 
public  supervision  or  control ;  that  the  controlling  purpose  of  such 
education  shall  be  to  fit  for  useful  employment ;  that  such  education 
shall  be  of  less  than  college  grade  and  be  designed  to  meet  the  needs 
of  persons  over  fourteen  years  of  age  who  have  entered  upon  or  who 
are  preparing  to  enter  upon  the  work  of  the  farm  or  of  the  farm  home ; 
that  the  State  or  local  community,  or  both,  shall  provide  the  neces- 
sary plant  and  equipment  determined  upon  by  the  State  board,  with 
the  approval  of  the  Federal  Board  for  Vocational  Education,  as  the 
minimum  requirement  for  such  education  in  schools  and  classes  in 
the  State ;  that  the  amount  expended  for  the  maintenance  of  such 
education  in  any  school  or  class  receiving  the  benefit  of  such  appro- 
priation shall  be  not  less  annually  than  the  amount  fixed  by  the  State 
board,  with  the  approval  of  the  Federal  board  as  the  minimum  for 
such  schools  or  classes  in  the  State ;  that  such  schools  shall  provide 
for  directed  or  supervised  practice  in  agriculture,  either  on  a  farm 
provided  for  by  the  school  or  other  farm,  for  at  least  six  months  per 
year;  that  the  teachers,  supervisors,  or  directors  of  agricultural  sub- 
jects shall  have  at  least  the  minimum  qualifications  determined  for 
the  State  by  the  State  board,  with  the  approval  of  the  Federal  Board 
for  Vocational  Education. 

Requirements  for  Industrial  and  Home  Economics  Education. 

Sec.  11.  That  in  order  to  receive  the  benefits  of  the  appropria- 
tion for  the  salaries  of  teachers  of  trade,  home  economics,  and  indus- 
trial subjects  the  State  board  of  any  State  shall  provide  in  its  plan 
for  trade,  home  economics,  and  industrial  education  that  such  edu- 
cation shall  be  given  in  schools  or  classes  under  public  supervision 
or  control ;  that  the  controlling  purpose  of  such  education  shall  be 
to  fit  for  useful  employment ;  that  such  education  shall  be  of  less 
than  college  grade  and  shall  be  designed  to  meet  the  needs  of  per- 
sons over  fourteen  years  of  age  who  are  preparing  for  a  trade  or 
industrial  pursuit  or  who  have  entered  upon  the  work  of  a  trade  or 


Vocational  Education  103 

industrial   pursuit;  that   the   State   or   local   community,   or  both,   shall 
provide   the   necessary   plant   and   equipment   determined   upon   by   the 
State  board,  with  the   approval  of  the  Federal  Board   for  Vocational 
Education,  as  the   minimum   requirement   in   such   State   for  education 
for  any  given  trade  or  industrial  pursuit;  that  the  total   amount  ex- 
pended for  the  maintenance  of  such  education  in  any  school  or  class 
receiving  the  benefit  of  such  appropriation   shall  be  not  less  annually 
than  the  amount  fixed  by  the  State  board,  with  the  approval  of  the 
Federal    board,    as   the   minimum    for   such    schools   or   classes    in   the 
State;  that  such  schools  or  classes  giving  instruction  to  persons  who 
have  not  entered  upon  employment  shall  require  that  at  least  half  of 
the  time  of  such  instruction  be  given  to  practical  work  on  a  useful  or 
productive  basis,    such   instruction   to   extend   over  not   less   than   nine 
m-onths  per  vear  and  not  less  than  thirty  hours  per  week ;  that  at  least 
one-third  of  the  sum  appropriated  to  any  State  for  the  salaries  of  teach- 
ers of  trade,  home  economics,  and  industrial  subjects  shall,  if  expended, 
be  applied  to  part-time   schools   or  classes   for  workers  over  fourteen 
years  of  age  who  have  entered  upon   employment,   and   such   subjects 
in  a  part-time  school  or  class  may  mean  any  subject  given  to  enlarge 
the  civic  or  vocational  intelligence  of  such  workers  over  fourteen  and 
less  than  eighteen  vears  of  age;  that  such  part-time  schools  or  classes 
shall  provide   for  not  less   than  one  hundred   and   forty-four  hours   of 
classroom    instruction    per   year;    that    evening   industrial    schools    shall 
fix  the  age  of  sixteen  years  as  a  minimum  entrance   requirement   and 
shall    confine    instruction    to    that    which    is    supplemental   to   the    daily 
employment;   that   the   teachers   of    any   trade    or   industrial    subject    in 
any  State  shall  have  at  least  the  minimum  qualifications  for  teachers  oi 
such  subject  determined  upon  for  such  State  by  the  State  board,  with 
the  approval  of  the  Federal  Board  for  Vocational  Education :  Provided, 
That   for  cities   and  towns  of  less  than  twenty-five  thousand   popula- 
tion,  according  to  the  last  preceding  United   States   census,   the   State 
board,   with  the  approval  of  the  Federal   Board   for  Vocational   Edu- 
cation, mav  modify  the  conditions  as  to  the  length  of  course  and  hours 
of  instruction  per  we^k   for  schools  and  classes  giving  instruction  to 
those  who  have  not  entered  upon  employment,   in   order  to  meet   the 
particular  needs  of  such  cities  and  towns. 

Requirements  for  Training  Teachers. 

Sec.  12.  That  in  order  for  any  State  to  receive  the  benefits  of  the 
appropriation  in  this  Act  for  the  training  of  teachers,  supervisors,  or 
directors  of  agricultural  subjects,  or  of  teachers  of  trade,  industrial  or 
home  economics  subjects,  the  State  board  of  such  State  shall  provide 
in  its  plan  for  such  training  that  the  same  shall  be  carried  out  under 
the  supervision  of  the  State  board ;  that  such  training  shall  be  given  in 
schools  or  classes  under  public  supervision  or  control ;  that  such  train- 
ing shall  be  given  only  to  persons  who  have  had  adequate  vocational 


104  Important  Federal  Laws 

experience  or  contact  in  the  line  of  work  for  which  they  are  preparing 
themselves  as  teachers,  supervisors,  or  directors,  or  who  are  acquiring 
such  experience  or  contact  as  a  part  of  their  training;  and  that  the 
State  board,  with  the  approval  of  the  Federal  board,  shall  establish 
minimum  requirements  for  such  experience  or  contact  for  teachers, 
supervisors,  or  directors  of  agricultural  subjects  and  for  teachers  of 
trade,  industrial,  and  home  economics  subjects ;  that  not  more  than 
sixty  per  centum  nor  less  than  twenty  per  centum  of  the  money 
appropriated  under  this  Act  for  the  training  of  teachers  of  voca- 
tional subjects  to  any  State  for  any  year  shall  be  expended  for  any 
one  of  the  following  purposes :  For  the  preparation  of  teachers,  super- 
visors, or  directors  of  agricultural  subjects,  or  the  preparation  of 
teachers  of  trade  and  industrial  subjects,  or  the  preparation  of  teachers 
of  home  economics  subjects. 

State  Treasurer  Custodian  of  Fund. 

Sec.  13.  That  in  order  to  secure  the  benefits  of  the  appropriations 
for  the  salaries  of  teachers,  supervisors,  or  directors  of  agricultural 
subjects,  or  for  the  salaries  of  teachers  of  trade,  home  economics,  and 
industrial  subjects,  or  for  the  training  of  teachers  as  herein  provided, 
any  State  shall,  through  the  legislative  authority  thereof,  appoint  as 
custodian  for  said  appropriations  its  State  treasurer,  who  shall  receive 
and  provide  for  the  proper  custody  and  disbursements  of  all  money 
paid  to  the  State  from  said  appropriations. 

Investigation  by  Federal  Board. 

Sec.  14.  That  the  Federal  Board  for  Vocational  Education  shall 
annually  ascertain  whether  the  several  States  are  using,  or  are  pre- 
pared to  use,  the  money  received  by  them  in  accordance  with  the  pro- 
visions of  this  Act.  On  or  before  the  first  day  of  January  of  each  year 
the  Federal  Board  for  Vocational  Education  shall  certify  to  the  Sec- 
retary of  the  Treasury  each  State  which  has  accepted  the  provisions 
of  this  Act  and  complied  therewith,  certifying  the  amounts  which  each 
State  is  entitled  to  receive  under  the  provisions  of  this  Act.  Upon 
such  certificate  the  Secretary  of  the  Treasury  shall  pay  quarterly  to 
the  custodian  for  vocational  education  of  each  State  the  moneys  to 
which  it  is  entitled  under  the  provisions  of  this  Act.  The  moneys  so 
received  by  the  custodian  for  vocational  education  for  any  State  shall 
be  paid  out  on  the  requisition  of  the  State  board  as  reimbursement  for 
expenditures  already  incurred  to  such  schools  as  are  approved  by  said 
State  board  and  are  entitled  to  receive  such  moneys  under  the  provi- 
sions of  this  Act. 

Deduction  from  Allotment. 

Sec.  15.  That  whenever  any  portion  of  the  fund  annually  allotted 
to  any  State  has  not  been  expended  for  the  purpose  provided  for  in 
this  Act,  a  sum  equal  to  such  portion  shall  be  deducted  by  the  Federal 


Vocational  Education  105 

board   from  the  next   succeeding  annual  allotment    from   such    fund   to 
such  State. 

Federal  Board  May  Withhold  Allotment. 

Sec  16.  That  the  Federal  Board  for  Vocational  Education  may 
withhold  the  allotment  of  moneys  to  any  State  whenever  it  shall  be 
determined  that  such  moneys  are  not  being  expended  for  the  pur- 
poses  and  under  the  conditions  of  this  Act. 

If  any  allotment  is  withheld  from  any  State,  the  State  board  of 
such  State  may  appeal  to  the  Congress  of  the  United  States,  and  if 
the  Congress  shall  not  direct  such  sum  to  be  paid  it  shall  be  covered 
into  the  Treasury. 

Safeguarding  the  Trust. 

Sec.  17.  That  if  any  portion  of  the  moneys  received  by  the  custo- 
dian for  vocational  education  of  any  State  under  this  Act,  for  any 
given  purpose  named  in  this  Act,  shall,  by  any  action  or  contingency, 
be  diminished  or  lost,  it  shall  be  replaced  by  such  State,  and  until  so 
replaced  no  subsequent  appropriation  for  such  education  shall  be  paid 
to  such  State.  No  portion  of  any  moneys  appropriated  under  this  Act 
for  the  benefit  of  the  States  shall  be  applied,  directly  or  indirectly,  to 
the  purchase,  erection,  preservation,  or  repair  of  any  building  or  build- 
ings or  equipment,  or  for  the  purchase  or  rental  of  lands,  or  for  the 
support  of  any  religious  or  privately  owned  or  conducted  school  or 
college. 

Report. 

Sec.  18.  That  the  Federal  Board  for  Vocational  Education  shall 
make  an  annual  report  to  Congress  on  or  before  December  first,  on  the 
administration  of  this  Act  and  shall  include  in  such  report  the  reports 
made  by  the  State  boards  on  the  administration  of  this  Act  by  each 
State  and  the  expenditure  of  the  money  allotted  to  each  State. 


BANKING. 


THE  FEDERAL  RESERVE  ACT. 

Act  of  December  23,  1913. 
Sec.  1.  '  That  the  short  title  of  this  Act  shall  be  the  "Federal  Re- 
serve Act." 

Definition  of  Terms. 

Wherevea-  the  word  "bank"  is  used  in  this  Act,  the  word  shall  be 
held  to  include  State  bank,  banking  association  and  trust  company,  ex- 
cept where  national  banks  or  Federal  reserve  banks  are  specifically  re- 
ferred to. 

The  terms  "national  bank"  and  "national  banking  association"  used 
in  this  Act  shall  be  held  to  be  synonymous  and  interchangeable.  The 
term  "member  bank"  shall  be  held  to  mean  any  national  bank,  State 
bank,  or  bank  or  trust  company  which  has  become  a  member  of  one  of 
the  reserve  banks  created  by  this  Act.  The  term  "board"  shall  be  held 
to  mean  Federal  Reserve  Board ;  the  term  "district"  shall  be  held  to  mean 
Federal  reserve  district;  the  term  "reserve  bank"  shall  be  held  to  mean 
Federal  reserve  bank. 

Federal  Reserve  Districts — Organization  Committee. 

Sec.  2.  As  soon  as  practicable,  the  Secretary  of  the  Treasury,  the 
Secretary  of  Agriculture  and  the  Comptroller  of  the  Currency,  acting  as 
"The  Reserve  Bank  Organization  Committee,"  shall  designate  not  less 
than  eight  nor  more  than  twelve  cities  to  be  known  as  Federal  reserve 
cities,  and  shall  divide  the  continental  United  States,  excluding  Alaska, 
into  districts,  each  district  to  contain  only  one  of  such  Federal  reserve 
cities.  The  determination  of  said  organization  committee  shall  not  be 
subject  to  review  except  by  the  Federal  Reserve  Board  when  organized: 
Provided,  That  the  districts  shall  be  apportioned  with  due  regard  to 
the  convenience  and  customary  course  of  business  and  shall  not  neces- 
sarily be  coterminous  with  any  State  or  States.  The  districts  thus  cre- 
ated may  be  readjusted  and  new  districts  may  from  time  to  time  be  cre- 
ated by  the  Federal  Reserve  Board,  not  to  exceed  twelve  in  all.  Such 
districts  shall  be  known  as  Federal  reserve  districts  and  may  be  desig- 
nated by  number.  A  majority  of  the  organization  committee  shall  con- 
stitute a  quorum  with  authority  to  act. 

Said  organization  committee  shall  be  authorized  to  employ  counsel 
arid  expert  aid,  to  take  testimony,  to  send  for  persons  and  papers,  to 
administer  oaths  and  to  make  such  investigation  as  may  be  deemed  neces- 
sary by  the  said  committee  in  determining  the  reserve  districts  and  in 
designating  the  cities  within  such  districts  where  such  Federal  reserve 


Federal  Reserve  Act  107 

banks  shall  be  severally  located.  The  said  committee  shall  supervise  the 
organization  in  each  of  the  cities  designated  of  a  Federal  reserve  bank, 
which  shall  include  in  its  title  the  name  of  the  city  in  which  it  is  situated, 
as  "Federal  Reserve  Bank  of  Chicago." 

Under  regulations  to  be  prescribed  by  the  organization  committee, 
every  national  banking  association  in  the  United  States  is  hereby  required, 
and  every  eligible  bank  in  the  United  States  and  every  trust  company 
within  the  District  of  Columbia,  is  hereby  authorized  to  signify  in  writ- 
ing, within  sixty  days  after  the  passage  of  this  Act,  its  acceptance  of  the 
terms  and  provisions  hereof. 

Subscriptions  to  Capital  Stock. 

When  the  organization  committee  shall  have  designated  the  cities  in 
which  Federal  reserve  banks  are  to  be  organized  and  fixed  the  geograph- 
ical limits  of  the  Federal  reserve  districts,  every  national  banking  asso- 
ciation within  that  district  shall  be  required  within  thirty  days  after  notice 
from  the  organization  committee,  to  subscribe  to  the  capital  stock  of  such 
Federal  reserve  bank  in  a  sum  equal  to  six  per  centum  of  the  paid-up 
capital  stock  and  surplus  of  such  bank,  one-sixth  of  the  subscription  to 
be  payable  on  call  of  the  organization  committee  or  of  the  Federal  Re- 
serve Board,  one-sixth  within  three  months  and  one-sixth  within  six 
months  thereafter,  and  the  remainder  of  the  subscription,  or  any  part 
thereof,  shall  be  subject  to  call  when  deemed  necessary  by  the  Federal 
Reserve  Board,  said  payments  to  be  in  gold  or  gold  certificates. 

Responsibility  of  Shareholders. 

The  shareholders  of  every  Federal  reserve  bank  shall  be  held  indi- 
vidually responsible,  equally  and  ratably,  and  not  one  for  another,  for 
all  contracts,  debts  and  engagements  of  such  bank  to  the  extent  of  the 
amount  of  their  subscriptions  to  such  stock  at  the  par  value  thereof  in 
addition  to  the  amount  subscribed,  whether  such  subscriptions  have  been 
paid  up  in  whole  or  in  part,  under  the  provisions  of  this  Act. 

Failure  of  National  Banks  to  Accept  Terms  of  Act — Penalty. 

Any  national  bank  failing  to  signify  its  acceptance  of  the  terms  of 
this  Act  within  the  sixty  days  aforesaid,  shall  cease  to  act  as  a  reserve 
agent,  upon  thirty  days'  notice,  to  be  given  within  the  discretion  of  the 
said  organization  committee  or  of  the  Federal  Reserve  Board. 

Failure  of  National  Banks  to  Become  Member  Banks — Penalty. 

Should  any  national  banking  association  in  the  United  States  now 
organized  fail  within  one  year  after  the  passage  of  this  Act  to  become 
a  member  bank  or  fail  to  comply  with  any  of  the  provisions  of  this  Act 
applicable  thereto,  all  of  the  rights,  privileges  and  franchises  of  such 
association  granted  to  it  under  the  national  bank  Act,  or  under  the  pro- 
visions of  this  Act,  shall  be  thereby  forfeited.  Any  noncompliance  with 
or  violation  of  this  Act  shall,  however,  be  determined  and  adjudged  by 
any  court  of  the  United  States  of  competent  jurisdiction  in  a  suit  brought 


108  Important  Federal  Laws 

for  that  purpose  in  the  district  or  territory  in  which  such  bank  is  located, 
under  direction  of  the  Federal  Reserve  Board,  by  the  Comptroller  of  the 
Currency  in  his  own  name  before  the  association  shall  be  declared  dis- 
solved. In  cases  of  such  noncompliance  or  violation,  other  than  the 
failure  to  become  a  member  bank  under  the  provisions  of  this  Act,  every 
director  who  participated  in  or  assented  to  the  same  shall  be  held  liable 
in  his  personal  or  individual  capacity  for  all  damages  which  said  bank, 
its  shareholders  or  any  other  person  shall  have  sustained  in  consequence 
of  such  violation. 

Such  dissolution  shall  not  take  away  or  impair  any  remedy  against 
such  corporation,  its  stockholders  or  officers,  for  any  liability  or  penalty 
which  shall  have  been  previously  incurred. 

Public  Subscriptions. 

Should  the  subscriptions  by  banks  to  the  stock  of  said  Federal  re- 
serve banks  or  any  one  or  more  of  them  be,  in  the  judgment  of  the  organ- 
ization committee,  insufficient  to  provide  the  amount  of  capital  required 
therefor,  then  and  in  that  event  the  said  organization  committee  may, 
under  conditions  and  regulations  to  be  prescribed  by  it,  offer  to  public 
subscription  at  par  such  an  amount  of  stock  in  said  Federal  reserve  banks, 
or  any  one  or  more  of  them,  as  said  committee  shall  determine,  subject 
to  the  same  conditions  as  to  payment  and  stock  liability  as  provided  for 
member  banks. 

Limit  to  Stock. 

No  individual,  copartnership  or  corporation  other  than  a  member 
bank  of  its  district  shall  be  permitted  to  subscribe  for  or  to  hold  at  any 
time  more  than  $25,000  par  value  of  stock  in  any  Federal  reserve  bank. 
Such  stock  shall  be  known  as  public  stock  and  may  be  transferred  on  the 
books  of  the  Federal  reserve  bank  by  the  chairman  of  the  board  of 
directors  of  such  bank. 

Allotment  of  Stock  to  United  States. 

Should  the  total  subscriptions  by  banks  and  the  public  to  the  stock 
of  said  Federal  reserve  banks,  or  any  one  or  more  of  them,  be,  in  the 
judgment  of  the  organization  committee,  insufficient  to  provide  the 
amount  of  capital  required  therefor,  then  and  in  that  event  the  said 
organization  committee  shall  allot  to  the  United  States  such  an  amount 
of  said  stock  as  said  committee  shall  determine.  Said  United  States 
stock  shall  be  paid  for  at  par  out  of  any  money  in  the  Treasury  not 
otherwise  appropriated,  and  shall  be  held  by  the  Secretary  of  the  Trea- 
sury and  disposed  of  for  the  benefit  of  the  United  States  in  such  manner, 
at  such  times,  and  at  such  price,  not  less  than  par,  as  the  Secretary  of 
the  Treasury  shall  determine. 

Voting  Power. 

Stock  not  held  by  member  banks  shall  not  be  entitled  to  voting  power. 


Federal  Reserve  Act  109 

Transfer  of  Stock. 

The  Federal  Reserve  Board  is  hereby  empowered  to  adopt  and 
promulgate  rules  and  regulations  governing  the  transfers  of  said  stock. 

Minimum  Capital  of  Federal  Reserve  Bank. 

Xo  Federal  reserve  bank  shall  commence  business  with  a  subscribed 
capital  less  than  $4,000,000. 

Reserve  Cities,  Status  of. 

The  organization  of  reserve  districts  and  Federal  reserve  cities  shall 
not  be  construed  as  changing  the  present  status  of  reserve  cities  and  cen- 
tral reserve  cities,  except  in  so  far  as  this  Act  changes  the  amount  of 
reserves  that  may  be  carried  with  approved  reserve  agents  located  therein. 

Authority  of  Organization  Committee  to  Employ  Assistants. 

The  organization  committee  shall  have  power  to  appoint  such  assist- 
ants and  incur  such  expenses  in  carrying  out  the  provisions  of  this  Act 
as  it  shall  deem  necessary,  and  such  expenses  shall  be  payable  by  the 
Treasurer  of  the  United  States  upon  voucher  approved  by  the  Secretary 
of  the  Treasury,  and  the  sum  of  $100,000,  or  so  much  thereof  as  may  be 
necessary,  is  hereby  appropriated,  out  of  any  moneys  in  the  Treasury  not 
otherwise  appropriated,  for  the  payment  of  such  expenses. 

Branches  of  Federal  Reserve  Banks. 

"Sec.  3.  The  Federal  Reserve  Board  may  permit  or  require  any 
Federal  reserve  bank  to  establish  branch  banks  within  the  Federal  reserve 
district  in  which  it  is  located  or  within  the  district  of  any  Federal  reserve 
bank  which  may  have  been  suspended.  Such  branches,  subject  to  such 
rules  and  regulations  as  the  Federal  Reserve  Board  may  prescribe,  shall 
be  operated  under  the  supervision  of  a  board  of  directors  to  consist  of 
not  more  than  seven  nor  less  than  three  directors,  of  whom  a  majority 
of  one  shall  be  appointed  by  the  Federal  reserve  bank  of  the  district, 
and  the  remaining  directors  by  the  Federal  Reserve  Board.  Directors  of 
branch  banks  shall  hold  oflfice  during  the  pleasure  of  the  Federal  Reserve 
Board."     (As  amended  June  21,  1917.) 

Organization  of  Federal  Reserve  Banks. 

Sec.  4.  When  the  organization  committee  shall  have  established 
Federal  reserve  districts  as  provided  in  section  two  of  this  Act,  a  cer- 
tificate shall  be  filed  with  the  Comptroller  of  the  Currency  showing  the 
geographical  limits  of  such  districts  and  the  Federal  reserve  city  desig- 
nated in  each  of  such  districts.  Tlie  Comptroller  of  the  Currency  shall 
thereupon  cause  to  be  forwarded  to  each  national  bank  located  in  each 
district,  and  to  such  other  banks  declared  to  be  eligible  by  the  organization 
committee  which  may  apply  therefor,  an  application  blank  in  form  to  be 
approved  by  the  organization  committee,  which  blank  shall  contain  a 
resolution  to  be  adopted  by  the  board  of  directors  of  each  bank  executing 
such  application,  authorizing  a  subscription  to  the  capital  stock  of  the 


110  Important  Federal  Laws 

Federal  reserve  bank  organizing  in  that  district  in  accordance  with  the 
provisions  of  this  Act. 

Organization  Certificate. 

When  the  minimum  amount  of  capital  stock  prescribed  by  this  Act 
for  the  organization  of  any  Federal  reserve  bank  shall  have  been  sub- 
scribed and  allotted,  the  organization  committee  shall  designate  any  five 
banks  of  those  whose  applications  have  been  received,  to  execute  a  cer- 
tificate of  organization,  and  thereupon  the  banks  so  designated  shall, 
under  their  seals,  make  an  organization  certificate  which  shall  specifically 
state  the  name  of  such  Federal  reserve  bank,  the  territorial  extent  of  the 
district  over  which  the  operations  of  such  Federal  reserve  bank  are  to 
be  carried  on,  the  city  and  State  in  which  said  bank  is  to  be  located,  the 
amount  of  capital  stock  and  the  number  of  shares  into  which  the  same 
is  divided,  the  name  and  place  of  doing  business  of  each  bank  executing 
such  certificate  and  of  all  banks  which  have  subscribed  to  the  capital 
stock  of  such  Federal  reserve  bank  and  the  number  of  shares  subscribed 
by  each,  and  the  fact  that  the  certificate  is  made  to  enable  those  banks 
executing  same,  and  all  banks  which  have  subscribed  or  may  thereafter 
subscribe  to  the  capital  stock  of  such  Federal  reserve  bank,  to  avail  them- 
selves of  the  advantages  of  this  Act. 

The  said  organization  certificate  shall  be  acknowledged  before  a 
judge  of  some  court  of  record  or  notary  public;  and  shall  be,  together 
with  the  acknowledgment  thereof,  authenticated  by  the  seal  of  such  court, 
or  notary,  transmitted  to  the  Comptroller  of  the  Currency,  who  shall  file, 
record  and  carefully  preserve  the  same  in  his  office. 

Powers  of  Federal  Reserve  Banks. 

Upon  the  filing  of  such  certificate  with  the  Comptroller  of  the  Cur- 
rency as  aforesaid,  the  said  Federal  reserve  bank  shall  become  a  body 
corporate  and  as  such,  and  in  the  name  designated  in  such  organization 
certificate,  shall  have  power — 

First.     To  adopt  and  use  a  corporate  seal. 

Second.  To  have  succession  for  a  period  of  twenty  years  from  its 
organization  unless  it  is  sooner  dissolved  by  an  Act  of  Congress,  or  unless 
its  franchise  becomes  forfeited  by  some  violation  of  law. 

Third.     To  make  contracts. 

Fourth.  To  sue  and  be  sued,  complain  and  defend,  in  any  court 
of  law  or  equity. 

Fifth.  To  appoint  by  its  board  of  directors,  such  officers  and  em- 
ployees as  are  not  otherwise  provided  for  in  this  Act,  to  define  their 
duties,  require  bonds  of  them  and  fix  the  penalty  thereof,  and  to  dismiss 
at  pleasure  such  officers  or  employees. 

Sixth.  To  prescribe  by  its  board  of  directors,  by-laws  not  incon- 
sistent with  law,  regulating  the  manner  in  which  its  general  business 
may  be  conducted,  and  the  privileges  granted  to  it  by  law  may  be  exer- 
cised and  enjoyed. 


Federal  Reserve  Act  111 

Seventh.  To  exercise  by  its  board  of  directors,  or  duly  authorized 
officers  or  agents,  all  powers  specifically  granted  by  the  provisions  of 
this  Act  and  such  incidental  powers  as  shall  be  necessary  to  carry  on  the 
business  of  banking  within  the  limitations  prescribed  by  this  Act. 

Eighth.  Upon  deposit  with  the  Treasurer  of  the  United  States  of 
any  bonds  of  the  United  States  in  the  manner  provided  by  existing  law 
relating  to  national  banks,  to  receive  from  the  Comptroller  of  the  Cur- 
rency circulating  notes  in  blank,  registered  and  countersigned  as  pro- 
vided by  law,  equal  in  amount  to  the  par  value  of  the  bonds  so  deposited, 
such  notes  to  be  issued  under  the  same  conditions  and  provisions  of  law 
as  relate  to  the  issue  of  circulating  notes  of  national  banks  secured  by 
bonds  of  the  United  States  bearing  the  circulating  privilege,  except  that 
the  issue  of  such  notes  shall  not  be  limited  to  the  capital  stock  of  such 
Federal  reserve  bank. 

But  no  Federal  reserve  bank  shall  transact  any  business  except  such 
as  is  incidental  and  necessarily  preliminary  to  its  organization  until  it 
has  been  authorized  by  the  Comptroller  of  the  Currency  to  commence 
business  under  the  provisions  of  this  Act. 

Directors  of  Federal  Reserve  Banks. 

Every  Federal  reserve  bank  shall  be  conducted  under  the  supervision 
and  control  of  a  board  of  directors. 

The  board  of  directors  shall  perform  the  duties  usually  appertaining 
to  the  office  of  directors  of  banking  associations  and  all  such  duties  as 
are  prescribed  by  law. 

Said  board  shall  administer  the  affairs  of  said  bank  fairly  and  im- 
partially and  without  discrimination  in  favor  of  or  against  any  member 
bank  or  banks  and  shall,  subject  to  the  provisions  of  law  and  the  orders 
of  the  Federal  Reserve  Board,  extend  to  each  member  bank  such  dis- 
counts, advancements  and  accommodations  as  may  be  safely  and  reason- 
ably made  with  due  regard  for  the  claims  and  demands  of  other  member 
banks. 

Classification  of  Directors. 

Such  board  of  directors  shall  be  selected  as  hereinafter  specified  and 
shall  consist  of  nine  members,  holding  office  for  three  years,  and  divided 
into  three  classes,  designated  as  classes  A,  B  and  C. 

Class  A  shall  consist  of  three  members,  who  shall  be  chosen  by  and 
be  representative  of  the  stock-holding  banks. 

Class  B  shall  consist  of  three  members,  who  at  the  time  of  their  elec- 
tion shall  be  actively  engaged  in  their  district  in  commerce,  agriculture  or 
some  other  industrial  pursuit. 

Class  C  shall  consist  of  three  members  who  shall  be  designated  by 
the  Federal  Reserve  Board.  When  the  necessary  subscriptions  to  the 
capital  stock  have  been  obtained  for  the  organization  of  any  Federal  re- 
serve bank,  the  Federal  Reserve  Board  shall  appoint  the  class  C  directors 
and  shall  designate  one  of  such  directors  as  chairman  of  the  board  to  be 


112  Important  Federal  Laws 

selected.  Pending  the  designation  of  such  chairman,  the  organization 
committee  shall  exercise  the  powers  and  duties  appertaining  to  the  office 
of  chairman  in  the  organization  of  such  Federal  reserve  bank. 

No  Senator  or  Representative  in  Congress  shall  be  a  member  of  the 
Federal  Reserve  Board  or  an  officer  or  a  director  of  a  Federal  reserve 
bank. 

No  director  of  class  B  shall  be  an  officer,  director  or  employee  of 
any  bank. 

No  director  of  class  C  shall  be  an  officer,  director,  employee  or 
stockholder  of  any  bank. 

Election  of  Class  A  and  Class  B  Directors. 

Directors  of  class  A  and  class  B  shall  be  chosen  in  the  following 
manner : 

The  chairman  of  the  board  of  directors  of  the  Federal  reserve  bank 
of  the  district  in  which  the  bank  is  situated  or,  pending  the  appointment 
of  such  chairman,  the  organization  committee  shall  classify  the  member 
banks  of  the  district  into  three  general  groups  or  divisions.  Each  group 
shall  contain  as  nearly  as  may  be  one-third  of  the  aggregate  number  of 
the  member  banks  of  the  district  and  shall  consist,  as  nearly  as  may  be, 
of  banks  of  similar  capitalization.  The  groups  shall  be  designated  by 
number  by  the  chairman. 

At  a  regularly  called  meeting  of  the  board  of  directors  of  each  mem- 
ber bank  in  the  district  it  shall  elect  by  ballot  a  district  reserve  elector 
and  shall  certify  his  name  to  the  chairman  of  the  board  of  directors  of 
the  Federal  reserve  bank  of  the  district.  The  chairman  shall  make  lists 
of  the  district  reserve  electors  thus  named  by  banks  in  each  of  the  afore- 
said three  groups  and  shall  transmit  one  list  to  each  elector  in  each  group. 

Each  member  bank  shall  be  permitted  to  nominate  to  the  chairman 
-one  candidate  for  director  of  class  A  and  one  candidate  for  director  of 
<:lass  B.  The  candidates  so  nominated  shall  be  listed  by  the  chairman, 
indicating  by  whom  nominated  and  a  copy  of  said  list  shall,  within  fifteen 
days  after  its  completion,  be  furnished  by  the  chairman  to  each  elector. 

Every  elector  shall,  within  fifteen  days  after  the  receipt  of  the  said 
list,  certify  to  the  chairman  his  first,  second,  and  other  choices  of  a 
director  of  class  A  and  class  B,  respectively,  upon  a  preferential  ballot, 
on  a  form  furnished  by  the  chairman  of  the  board  of  directors  of  the 
Federal  reserve  bank  of  the  district.  Each  elector  shall  make  a  cross 
opposite  the  name  of  the  first,  second  and  other  choices  for  a  director 
of  class  A  and  for  a  director  of  class  B,  but  shall  not  vote  more  than  one 
choice  for  any  one  candidate. 

Anv  candidate  having  a  majority  of  all  votes  cast  in  the  column  of 
first  choice  shall  be  declared  elected.  If  no  candidate  have  a  majority  of 
all  the  votes  in  the  first  column,  then  there  shall  be  added  together  the 
votes  cast  by  the  electors  for  such  candidates  in  the  second  column  and 
the  votes  cast  for  the  several  candidates  in  the  first  column.     If  anv 


Federal  Reserve  Act  113 

candidate  then  have  a  majority  of  the  electors  voting,  by  adding  together 
the  first  and  second  choices,  he  shall  be  declared  elected.  If  no  candidate 
have  a  majority  of  electors  voting  when  the  first  and  second  choices  shall 
have  been  added,  then  the  votes  cast  in  the  third  column  for  other  choices 
shall  be  added  together  in  like  manner  and  the  candidate  then  having  the 
highest  number  of  votes  shall  be  declared  elected.  An  immediate  report 
of  election  shall  be  declared. 

Appointment  of  Class  C  Directors — Federal  Reserve  Agents,  Duties  of. 

Class  C  directors  shall  be  appointed  by  the  Federal  Reserve  Board. 
They  shall  have  been  for  at  least  two  years  residents  of  the  district  for 
which  they  are  appointed,  one  of  whom  shall  be  designated  by  said  board 
as  chairman  of  the  board  of  directors  of  the  Federal  reserve  bank  and 
as  'Federal  reserve  agent.'  He  shall  be  a  person  of  tested  banking  expe- 
rience, and  in  addition  to  his  duties  as  chainnan  of  the  board  of  directors 
of  the  Federal  reserve  bank  he  shali  be  required  to  maintain,  under 
regulations  to  be  established  by  the  Federal  Reserve  Board,  a  local  office 
of  said  board  on  the  premises  of  the  Federal  reserve  bank.  He  shall 
make  regular  reports  to  the  Federal  Reserve  Board  and  shall  act  as  its 
official  representative  for  the  performance  of  the  functions  conferred 
upon  it  by  this  Act.  He  shall  receive  an  annual  compensation  to  be  fixed 
by  the  Federal  Reserve  Board  and  paid  monthly  by  the  Federal  reserve 
bank  to  which  he  is  designated.  One  of  the  directors  of  class  C  shall  be 
appointed  by  the  Federal  Reserve  Board  as  deputy  chairman  to  exercise 
the  powers  of  the  chairman  of  the  board  when  necessary.  In  case  of  the 
absence  of  the  chairman  and  deputy  chairman,  the  third  class  C  director 
shall  preside  at  meetings  of  the  board. 

Subject  to  the  approval  of  the  Federal  Reserve  Board,  the  Federal 
reserve  agent  shall  appoint  one  or  more  assistants.  Such  assistants,  who 
shall  be  persons  of  tested  banking  experience,  shall  assist  the  Federal 
reserve  agent  in  the  performance  of  his  duties  and  shall  also  have  power 
to  act  in  his  name  and  stead  during  his  absence  or  disability.  The  Federal 
Reserve  Board  shall  require  such  bonds  of  the  assistant  Federal  reserve 
agents  as  it  may  deem  necessary  for  the  protection  of  the  United  States. 
Assistants  to  the  Federal  reserve  agent  shall  receive  an  annual  compen- 
sation, to  be  fixed  and  paid  in  the  same  manner  as  that  of  the  Federal 
reserve  agent.     (As  amended  June  21,  1917.) 

Compensation  of  Directors. 

Directors  of  Federal  reserve  banks  shall  receive,  in  addition  to  any 
compensation  otherwise  provided,  a  reasonable  allowance  for  necessary 
expenses  in  attending  meetings  of  their  respective  boards,  which  amount 
shall  be  paid  by  the  respective  Federal  reserve  banks.  Any  compensation 
that  may  be  provided  by  boards  of  directors  of  Federal  reserve  banks  for 
directors,  officers  or  employees  shall  be  subject  to  the  approval  of  the 
Federal  Reserve  Board. 

(8) 


114  Important  Federal  Laws 

Organization  of  Federal  Reserve  Banks — Authority  of  Organization 
Committee. 

The  Reserve  Bank  Organization  Committee  may,  in  organizing  Fed- 
eral reserve  banks,  call  such  meetings  of  bank  directors  in  the  several  dis- 
tricts as  may  be  necessary  to  carry  out  the  purposes  of  this  Act,  and  may 
exercise  the  functions  herein  conferred  upon  the  chairman  of  the  board 
of  directors  of  each  Federal  reserve  bank  pending  the  complete  organ- 
ization of  such  bank. 

First  Meeting  of  Directors — Designation  of  Terms  of  Office. 

At  the  first  meeting  of  the  full  board  of  directors  of  each  Federal 
reserve  bank,  it  shall  be  the  duty  of  the  directors  of  Classes  A,  B  and 
C,  respectively,  to  designate  one  of  the  members  of  each  class  whose  term 
of  office  shftll  expire  in  one  year  from  the  first  of  January-  nearest  the 
date  of  such  meeting,  one  whose  term  of  office  shall  expire  at  the  end  of 
two  years  from  said  date,  and  one  whose  term  of  office  shall  expire  at 
the  end  of  three  years  from  said  date.  Thereafter  every  director  of  a 
Federal  reser\%  bank  chosen  as  hereinbefore  provided  shall  hold  office 
for  a  term  of  three  years.  Vacancies  that  may  occur  in  the  several 
classes  of  directors  of  Federal  reserve  banks  may  be  filled  in  the  manner 
provided  for  the  original  selection  of  such  directors,  such  appointees  to 
hold  office  for  the  unexpired  terms  of  their  predecessors. 

Increase  and  Decrease  of  Capital  Stock. 

Sec.  5.  The  capital  stock  of  each  Federal  reserve  bank  shall  be 
divided  into  shares  of  $100  each.  The  outstanding  capital  stock  shall  be 
increased  from  time  to  time  as  member  banks  increase  their  capital  stock 
and  surplus  or  as  additional  banks  become  members,  and  may  be  de- 
creased as  member  banks  reduce  their  capital  stock  or  surplus  or  cease 
to  be  members. 

Increase  of  Capital  Stock. 

Shares  of  the  capital  stock  of  Federal  reserve  banks  owned  by  mem- 
ber banks  shall  not  be  transferred  or  hypothecated.  When  a  member 
bank  increases  its  capital  stock,  or  surplus,  it  shall  thereupon  subscribe 
for  an  additional  amount  of  capital  stock  of  the  Federal  reserve  bank  of 
its  district  equal  to  six  per  centum  of  the  said  increase,  one-half  of  said 
subscription  to  be  paid  in  the  manner  hereinbefore  provided  for  original 
subscription,  and  one-half  subject  to  call  of  the  Federal  Reserve  Board. 

Applications  for  Capital  Stock. 

A  bank  applying  for  stock  in  a  Federal  reserve  bank  at  any  time 
after  the  organization  thereof  must  subscribe  for  an  amount  of  the  cap- 
ital stock  of  the  Federal  reserve  bank  equal  to  six  per  centum  of  the  paid- 
up  capital  stock  and  surplus  of  said  applicant  bank,  paying  therefor  its 
par  value  plus  one-half  of  one  per  centum  a  month  from  the  period  of 
the  last  dividend. 


Federal  Reserve  Act  115 

Certificate  of  Increase  in  Stock  of  Federal  Reserve  Bank. 

When  the  capital  stock  of  any  Federal  reserve  bank  shall  have  been 
increased  either  on  account  of  the  increase  of  capital  stock  of  member 
banks  or  on  account  of  the  increase  in  the  number  of  member  banks,  the 
board  of  directors  shall  cause  to  be  executed  a  certificate  to  the  Comp- 
troller of  the  Currency  showing  the  increase  in  capital  stock,  the  amount 
paid  in,  and  by  whom  paid. 

Reduction  of  Capital  Stock. 

When  a  member  bank  reduces  its  capital  stock  it  shall  surrender  a 
proportionate  amount  of  its  holdings  in  the  capital  of  said  Federal  re- 
serve bank,  and  when  a  member  bank  voluntarily  liquidates  it  shall  sur- 
render all  of  its  holdings  of  the  capital  stock  of  said  Federal  reserve 
bank  and  be  released  from  its  stock  subscription  not  previously  called. 
In  either  case  the  shares  surrendered  shall  be  canceled  and  the  member 
bank  shall  receive  in  payment  therefor,  under  regulations  to  be  prescribed 
by  the  Federal  Reserve  Board,  a  sum  equal  to  its  cash-paid  subscriptions 
on  the  shares  surrendered  and  one-half  of  one  per  centum  per  month 
from  the  period  of  the  last  dividend,  not  to  exceed  the  book  value  thereof, 
less  any  liability  of  such  member  bank  to  the  Federal  reserve  bank. 

Insolvency  of  Member  Bank. 

Sec.  6.  If  any  member  bank  shall  be  declared  insolvent  and  a  re- 
ceiver appointed  therefor,  the  stock  held  by  it  in  said  Federal  reserve 
bank  shall  be  canceled,  without  impairment  of  its  liability,  and  all  cash- 
paid  subscriptions  on  said  stock,  with  one-half  of  one  per  centum  per 
month  from  the  period  of  last  dividend,  not  to  exceed  the  book  value 
thereof,  shall  be  first  applied  to  all  debts  of  the  insolvent  member  bank 
to  the  Federal  reserve  bank,  and  the  balance,  if  any,  shall  be  paid  to  the 
receiver  of  the  insolvent  bank.  Whenever  the  capital  stock  of  a  Federal 
reserve  bank  is  reduced,  either  on  account  of  a  reduction  in  capital 
stock  of  any  member  bank  or  of  the  liquidation  or  insolvency  of  such 
bank,  the  board  of  directors  shall  cause  to  be  executed  a  certificate  to  the 
Comptroller  of  the  Currency  showing  such  reduction  of  capital  stock  and 
the  amount  repaid  to  such  bank. 

Division  of  Earnings. 

Sec.  7.  After  all  necessary  expenses  of  a  Federal  reserve  bank 
have  been  paid  or  provided  for,  the  stockholders  shall  be  entitled  to  re- 
ceive an  annual  dividend  of  six  per  centum  on  the  paid-in  capital  stock, 
which  dividend  shall  be  cumulative.  After  the  aforesaid  dividend  claims 
have  been  fully  met,  all  the  net  earnings  shall  be  paid  to  the  United  States 
as  a  franchise  tax,  except  that  one-half  of  such  net  earnings  shall  be  paid 
into  a  surplus  fund  until  it  shall  amount  to  forty  per  centum  of  the  paid- 
in  capital  stock  of  such  banft. 

The  net  earnings  derived  by  the  United  States  from  Federal  reserve 
banks  shall,  in  the  discretion  of  the  Secretary,  be  used  to  supplement  the 
gold  reserve  held  against  outstanding  United  States  notes,  or  shall  be  ap- 


116  Important  Federal  Laws 

plied  to  the  reduction  of  the  outstanding  bonded  indebtedness  of  the 
United  States  under  regulations  to  be  prescribed  by  the  Secretary  of  the 
Treasur}\  Should  a  Federal  reserve  bank  be  dissolved  or  go  into  liquida- 
tion, any  surplus  remaining,  after  the  payment  of  all  debts,  dividend  re- 
quirements as  hereinbefore  provided,  and  the  par  value  of  the  stock, 
shall  be  paid  to  and  become  the  property  of  the  United  States  and  shall 
be  similarly  applied. 

Tax  Exemptions. 

Federal  reserve  banks,  including  the  capital  stock  and  surplus  therein, 
and  the  income  derived  therefrom  shall  be  exempt  from  Federal,  State 
and  local  taxation,  except  taxes  upon  real  estate. 

Conversion  of  State  Banks  Into  National  Banks. 

Sec.  8.  Section  fifty-one  hundred  and  fifty-four.  United  States  Re- 
vised Statutes,  is  hereby  amended  to  read  as  follows : 

Any  bank  incorporated  by  special  law  of  any  State  or  of  the  United 
States  or  organized  under  the  general  laws  of  any  State  or  of  the  United 
States  and  having  an  unimpaired  capital  sufficient  to  entitle  it  to  become 
a  national  banking  association  under  the  provisions  of  the  existing  laws 
may,  by  the  vote  of  the  shareholders  owning  not  less  than  fifty-one  per 
centum  of  the  capital  stock  of  such  bank  or  banking  association,  with 
the  approval  of  the  Comptroller  of  the  Currency  be  converted  into  a 
national  banking  association,  with  any  name  approved  by  the  Comp- 
troller of  the  Currency:  Provided,  however.  That  said  conversion  shall 
not  be  in  contravention  of  the  State  law.  In  such  case  the  articles  of 
association  and  organization  certificate  may  be  executed  by  a  majority 
of  the  directors  of  the  bank  or  banking  institution,  and  the  certificate 
shall  declare  that  the  owners  of  fifty-one  per  centum  of  the  capital  stock 
have  authorized  the  directors  to  make  such  certificate  and  to  change  or 
convert  the  bank  or  banking  institution  into  a  national  association.  A 
majority  of  the  directors,  after  executing  the  articles  of  association  and 
the  organization  certificate,  shall  have  power  to  execute  all  other  papers 
and  to  do  whatever  may  be  required  to  make  its  organization  perfect 
and  complete  as  a  national  association.  The  shares  of  any  such  bank 
may  continue  to  be  for  the  same  amount  each  as  they  were  before  the 
conversion,  and  the  directors  may  continue  to  be  directors  of  the  associa- 
tion until  others  are  elected  or  appointed  in  accordance  with  the  pro- 
visions of  the  statutes  of  the  United  States.  When  the  Comptroller  has 
given  to  such  bank  or  banking  association  a  certificate  that  the  provisions 
of  this  Act  have  been  complied  with,  such  bank  or  banking  association, 
and  all  its  stockholders,  officers  and  employees,  shall  have  the  same 
powers  and  privileges  and  shall  be  subject  to  the  same  duties,  liabilities 
and  regulations,  in  all  respects,  as  shall  have  been  prescribed  by  the 
Federal  Reserve  Act  and  by  the  national  banking  Act  for  associations 
originally  organized  as  national  banking  associations. 


Federal  Reserve  Act  117 

State  Banks  May  Subscribe. 

Sec.  9.  Any  bank  incorporated  by  special  law  of  any  State,  or 
organized  under  the  general  laws  of  any  State  or  of  the  United  States, 
desiring  to  become  a  member  of  the  Federal  Reserve  System,  may  make 
application  to  the  Federal  Reserve  Board,  under  such  rules  and  regula- 
tions as  it  may  prescribe,  for  the  right  to  subscribe  to  the  stock  of  the 
Federal  reserve  bank  organized  within  the  district  in  which  the  applying 
bank  is  located.  Such  application  shall  be  for  the  same  amount  of  stock 
that  the  applying  bank  would  be  required  to  subscribe  to  as  a  national 
bank.  The  Federal  Reserve  Board,  subject  to  such  conditions  as  it  may 
prescribe,  may  permit  the  applying  bank  to  become  a  stockholder  of  such 
Federal  reserve  bank. 

In  acting  upon  such  applications  the  Federal  Reserve  Board  shall 
consider  the  financial  condition  of  the  applying  bank,  the  general  char- 
acter of  its  management,  and  whether  or  not  the  corporate  powers  exer- 
cised are  consistent  with  the  purposes  of  this  Act. 

Whenever  the  Federal  Reserve  Board  shall  permit  the  applying 
bank  to  become  a  stockholder  in  the  Federal  reserve  bank  of  the  district 
its  stock  subscription  shall  be  payable  on  call  of  the  Federal  Reserve 
Board,  and  stock  issued  to  it  shall  be  held  subject  to  the  provisions  of  this 
Act. 

All  banks  admitted  to  membership  under  authority  of  this  section 
shall  be  required  to  comply  with  the  reserve  and  capital  requirements  of 
this  Act  and  to  conform  to  those  provisions  of  law  imposed  on  national 
banks  which  prohibit  such  banks  from  lending  on  or  purchasing  their  own 
stock,  which  relate  to  the  withdrawal  or  impairment  of  their  capital  stock, 
and  which  relate  to  the  payment  of  unearned  dividends.  Such  banks  and 
the  officers,  agents,  and  employees  thereof  shall  also  be  subject  to  the 
provisions  of  and  to  the  penalties  prescribed  by  section  fifty-two  hundred 
and  nine  of  the  Revised  Statutes,  and  shall  be  required  to  make  reports  of 
condition  and  of  the  payment  of  dividends  to  the  Federal  reserve  bank  of 
which  they  become  a  member.  Not  less  than  three  of  such  reports  shall 
be  made  annually  on  call  of  the  Federal  reserve  bank  on  dates  to  be 
fixed  by  the  Federal  Reserve  Board.  Failure  fo  make  such  reports  within 
ten  days  after  the  date  they  are  called  for  shall  subject  the  ofi'ending 
bank  to  a  penalty  of  $100  a  day  for  each  day  that  it  fails  to  transmit 
such  report ;  such  penalty  to  be  collected  by  the  Federal  reserve  bank  by 
suit  or  otherwise. 

As  a  condition  of  membership  such  banks  shall  likewise  be  subject 
to  examinations  made  by  direction  of  the  Federal  Reserve  Board  or  of 
the  Federal  reserve  bank  by  examiners  selected  or  approved  by  the  Fed- 
eral Reserve  Board. 

Whenever  the  directors  of  the  Federal  reserve  bank  shall  approve 
the  examinations  made  by  the  State  authorities,  such  examinations  and 
the  reports  thereof  may  be  accepted  in  lieu  of  examinations  made  by 
examiners   selected  or  approved  by  the  Federal  Reserve  Board.     Pro- 


118  Important  Federal  Laws 

vided.  however,  That  when  it  deems  it  necessary  the  board  may  order 
special  examinations  by  examiners  of  its  own  selection  and  shall  in  all 
cases  approve  the  form  of  the  report.  The  expenses  of  all  examinations, 
other  than  those  made  by  State  authorities,  shall  be  assessed  against  and 
paid  by  the  banks  examined. 

If  at  any  time  it  shall  appear  to  the  Federal  Reserve  Board  that  a 
member  bank  has  failed  to  comply  with  the  provisions  of  this  section  or 
the  regulations  of  the  Federal  Reserve  Board  made  pursuant  thereto,  it 
shall  be  within  the  power  of  the  board  after  hearing  to  require  such  bank 
to  surrender  its  stock  in  the  Federal  reserve  bank  and  to  forfeit  all  rights 
and  privileges  of  membership.  The  Federal  Reserve  Board  may  restore 
membership  upon  due  proof  of  compliance  with  the  conditions  imposed 
by  this  section. 

Any  State  bank  or  trust  company  desiring  to  withdraw  from  mem- 
bership in  a  Federal  reserve  bank  may  do  so,  after  six  months'  written 
notice  shall  have  been  filed  with  the  Federal  Reserve  Board,  upon  the 
surrender  and  cancellation  of  all  of  its  holdings  of  capital  stock  in  the 
Federal  reserve  bank :  Provided,  however,  That  no  Federal  reserve  bank 
shall,  except  under  express  authority  of  the  Federal  Reserve  Board,  cancel 
within  the  same  calendar  year  more  than  twenty-five  per  centum  of  its 
capital  stock  for  the  purpose  of  effecting  voluntary  withdrawals  during 
that  year.  All  such  applications  shall  be  dealt  with  in  the  order  in  which 
they  are  filed  with  the  board.  Whenever  a  member  bank  shall  surrender 
its  stock  holdings  in  a  Federal  reserve  bank,  or  shall  be  ordered  to  do  so 
by  the  Federal  Reserve  Board,  under  authority  of  law,  all  of  its  rights 
and  privileges  as  a  member  bank  shall  thereupon  cease  and  determine, 
and  after  due  provision  has  been  made  for  any  indebtedness  due  or  to 
become  due  to  the  Federal  reserve  bank  it  shall  be  entitled  to  a  refund  of 
its  cash  paid  subscription  with  interest  at  the  rate  of  one-half  of  one  per 
centum  per  month  from  date  of  last  dividend,  if  earned,  the  amount 
refunded  in  no  event  to  exceed  the  book  value  of  the  stock  at  that  time, 
and  shall  likewise  be  entitled  to  repayment  of  deposits  and  of  any  other 
balance  due  from  the  Federal  reserve  bank. 

No  applying  bank  shall  be  admitted  to  membership  in  a  Federal 
reserve  bank  unless  it  possesses  a  paid-up,  unimpaired  capital  suflficient 
to  entitle  it  to  become  a  national  banking  association  in  the  place  where 
it  is  situated  under  the  provisions  of  the  national-bank  Act. 

Banks  becoming  members  of  the  Federal  Reserve  System  under 
authoritv  of  this  section  shall  be  subject  to  the  provisions  of  this  section 
and  to  those  of  this  Act  which  relate  specifically  to  member  banks,  but 
shall  not  be  subject  to  examination  under  the  provisions  of  the  first  two 
paragraphs  of  section  fifty-two  hundred  and  forty  of  the  Revised  Statutes 
as  amended  by  section  tw'entv-one  of  this  Act.  Subject  to  the  provisions 
of  this  Act  and  to  the  regulations  of  the  board  made  pursuant  thereto. 
any  bank  becoming  a  member  of  the  Federal  Reserve  System  shall  retain 
its  full  charter  and  statutory  rights  as  a  State  bank  or  trust  company, 


Federal  Reserve  Act  119 

and  may  continue  to  exercise  all  corporate  powers  granted  it  by  the  State 
in  which  it  was  created,  and  shall  be  entitled  to  all  privileges  of  member 
banks :  Provided,  however,  That  no  Federal  reserve  bank  shall  be  per- 
mitted to  discount  for  any  State  bank  or  trust  company  notes,  drafts,  or 
bills  of  exchange  of  any  one  borrower  who  is  liable  for  borrowed  money 
to  &uch  State  bank  or  trust  company  in  an  amount  greater  than  ten  per 
centum  of  the  capital  and  surplus  of  such  State  bank  or  trust  company, 
but  the  discount  of  bills  of  exchange  drawn  against  actually  existing  value 
and  the  discount  of  commercial  or  business  paper  actually  owned  by  the 
person  negotiating  the  same  shall  not  be  considered  as  borrowed  money 
within  the  meaning  of  this  section.  The  Federal  reserve  bank,  as  a 
condition  of  the  discount  of  notes,  drafts,  and  bills  of  exchange  for  such 
State  bank  or  trust  company,  shall  require  a  certificate  or  guaranty  to 
the  effect  that  the  borrower  is  not  Hable  to  such  bank  hi  excess  of  the 
amount  provided  by  this  section,  and  will  not  be  permitted  to  become 
liable  in  excess  of  this  amount  while  such  notes,  drafts,  or  bills  of 
exchange  are  under  discount  with  the  Federal  reserve  bank. 

It  shall  be  unlawful  for  any  officer,  clerk,  or  agent  of  any  bank 
admitted  to  membership  under  authority  of  this  section  to  certify  any 
check  drawn  upon  such  bank  unless  the  person  or  company  drawing  the 
check  has  on  deposit  therewith  at  the  time  such  check  is  certified  an 
amount  of  money  equal  to  the  amount  specified  in  such  check.  xA.ny 
check  so  certified  by  duly  authorized  officers  shall  be  a  good  and  valid 
obligation  against  such  bank,  but  the  act  of  any  such  officer,  clerk,  or 
agent  in  violation  of  this  section  may  subject  such  bank  to  a.  forfeiture 
of  its  membership  in  the  Federal  Reserve  System  upon  hearing  by  the 
Federal  Reserve  Board.     (As  amended  June  21,  1917.) 

Federal  Reserve  Board. 

Sec.  10.  A  Federal  Reserve  Board  is  hereby  created  which  shall 
consist  of  seven  members,  including  the  Secretary  of  the  Treasury  and 
the  Comptroller  of  the  Currency,  who  shall  be  members  ex  officio  and 
five  members  appointed  by  the  President  of  the  United  States,  by  and 
with  the  advice  and  consent  of  the  Senate.  In  selecting  the  five  ap- 
pointive members  of  the  Federal  Reserve  Board,-  not  more  than  one  of 
whom  shall  be  selected  from  any  one  Federal  reserve  district,  the  Presi- 
dent shall  have  due  regard  to  a 'fair  representation  of  the  different  com- 
mercial, industrial  and  geographical  divisions-  of  the  country.  The  five 
members  of  the  Federal  Reserve  Board  appointed  by  the  President  and 
confirmed  as  aforesaid  shall  devote  their  entire  time  to  the  business  of 
the  Federal  Reserve  Board  and  shall  each  receive  an  annual  salary  of 
$12,000,  payable  monthly  together  with  actual  necessary  traveling  ex; 
penses,  and  the  Comptroller  of  the  Currency,  as  ex  officio  member  of  the 
Federal  Reserve  Board,  shall,  in  addition  to  the' salary  now  paid  him  as 
Comptroller  of  the  Currency,  receive  the  sum  of  $7,000  annually  f'6'rTiis 
services  as  a  member  of  said  Board.  '  '    „, '^ 

The  members  of  said  board,  the  Secretary  of  the  Treasury,  tlie  'As- 


120  Important  Federal  Laws 

sistant  Secretaries  of  the  Treasury,  and  the  Comptroller  of  the  Currency 
shall  be  ineligible  during  the  time  they  are  in  office  and  for  two  years 
thereafter  to  hold  any  office,  position,  or  employment  in  any  member 
bank.  Of  the  five  members  thus  appointed  by  the  President  at  least 
two  shall  be  persons  experienced  in  banking  or  finance.  One  shall  be 
designated  by  the  President  to  serve  for  two.  one  for  four,  one  for  six, 
one  for  eight  and  one  for  ten  years  and  thereafter  each  member  so  ap- 
pointed shall  serve  for  a  term  of  ten  years  unless  sooner  removed  for 
cause  by  the  President. 

Governor  and  Vice  Governor ;  Officers ;  Qualification  of  Members. 

Of  the  five  persons  thus  appointed,  one  shall  be  designated  by  the 
President  as  governor  and  one  as  vice-governor  of  the  Federal  Reserve 
Board.  The  governor  of  the  Federal  Reserve  Board,  subject  to  its  super- 
vision, shall  be  the  active  executive  officer.  The  Secretary  of  the  Trea- 
sury may  assign  offices  in  the  Department  of  the  Treasviry  for  the  use  of 
the  Federal  Reserve  Board.  Each  member  of  the  Federal  Reserve  Board 
shall  within  fifteen  days  after  notice  of  appointment  make  and  subscribe 
to  the  oath  of  office. 

Provision  for  Expenses. 

The  Federal  Reserve  Board  shall  have  power  to  levy  semi-annually 
upon  the  Federal  reserve  banks,  in  proportion  to  their  capital  stock  and 
surplus,  an  assessment  sufficient  to  pay  its  estimated  expenses  and  the 
salaries  of  its  members  and  employees  for  the  half  year  succeeding  the 
levying  of  such  assessment,  together  with  any  deficit  carried  forward 
from  the  preceding  half  year. 

First  Meeting  of  Board — Secretary  of  Treasury  Chairman  of  Board. 

The  first  meeting  of  the  Federal  Reserve  Board  shall  be  held  in 
Washington,  District  of  Columbia,  as  soon  as  may  be  after  the  passage 
of  this  Act,  at  a  date  to  be  fixed  by  the  Reserve  Bank  Organization  Com- 
mittee. The  Secretary  of  the  Treasury  shall  be  ex  officio  chairman  of 
the  Federal  Reserve  Board. 

Member  of  Federal  Reserve  Board  Not  to  be  Officer,  Director,  or 
Stockholder  in  Any  Banking  Institution  or  Trust  Company. 
No  member  of  the  Federal  Reserve  Board  shall  be  an  officer  or 
director  of  any  bank,  banking  institution,  trust  company,  or  Federal  re- 
serve bank  nor  hold  stock  in  any  bank,  banking  institution,  or  trust  com- 
pany; and  before  entering  upon  his  duties  as  a  member  of  the  Federal 
Reserve  Board  he  shall  certify  under  oath  to  the  Secretary  of  the  Trea- 
sury that  he  has  complied  with  this  requirement. 

Vacancies  on  Board — How  Filled. 

Whenever  a  vacancy  shall  occur,  other  than  by  expiration  of  term, 
among  the  five  members  of  the  Federal  Reserve  Board  appointed  by  the 
President,  as  above  provided,  a  successor  shall  be  appointed  by  the  Presi- 
dent, with  the  advice  and  consent  of  the  Senate  to  fill  such  vacancy  and 


Federal  Reserve  Act  121 

when  appointed  he  shall  hold  office  for  the  unexpired  term  of  the  mem- 
ber whose  place  he  is  selected  to  fill. 

The  President  shall  have  power  to  fill  all  vacancies  that  may  happen 
on  the  Federal  Reserve  Board  during  the  recess  of  the  Senate,  by  grant- 
ing commissions  which  shall  expire  thirty  days  after  the  next  session  of 
the  Senate  convenes. 

Powers  of  Secretary  of  Treasury. 

Nothing  in  this  Act  contained  shall  be  construed  as  taking  away  any 
powers  heretofore  vested  by  law  in  the  Secretary  of  the  Treasury  which 
relate  to  the  supervision,  management  and  control  of  the  Treasury  De- 
partment and  bureaus  under  such  department  and  wherever  any  power 
vested  by  this  Act  in  the  Federal  Reserve  Board  or  the  Federal  reserve 
agent  appears  to  conflict  with  the  powers  of  the  Secretary  of  the  Treasury, 
such  powers  shall  be  exercised  subject  to  the  supervision  and  control  of 
the  Secretary. 

Federal  Reserve  Board  to  Make  Annual  Report  to  Speaker  of  the 
House  of  Representatives. 

The  Federal  Reserve  Board  shall  annually  make  a  full  report  of  its 
operations  to  the  Speaker  of  the  House  of  Representatives,  who  shall 
cause  the  same  to  be  printed  for  the  information  of  the  Congress. 

Comptroller  of  the  Currency. 

Section  three  hundred  and  twenty-four  of  the  Revised  Statutes  of 
the  United  States  shall  be  amended  so  as  to  read  as  follows :  There 
shall  be  in  the  Department  of  the  Treasury  a  bureau  charged  with  the 
execution  of  all  laws  passed  by  Congress  relating  to  the  issue  and  regu- 
lation of  national  currenxry  secured  by  United  States  bonds  and,  under 
the  general  supervision  of  the  Federal  Reserve  Board,  of  all  Federal 
reserve  notes,  the  chief  officer  of  which  bureau  shall  be  called  the  Comp- 
troller of  the  Currency  and  shall  perform  his  duties  under  the  general 
directions  of  the  Secretary  of  the  Treasury. 

Powers  of  Federal  Reserve  Board. 

Sec.  11.  The  Federal  Reserve  Board  shall  be  authorized  and  em- 
powered : 

(a)  To  examine  at  its  discretion  the  accounts,  books  and  affairs 
of  each  Federal  reserve  bank  and  of  each  member  bank  and  to  require 
such  statements  and  reports  as  it  may  deem  necessary.  The  said  board 
shall  publish  once  each  week  a  statement  showing  the  condition  of  each 
Federal  reserve  bank  and  a  consolidated  statement  for  all  Federal  re- 
serve banks.  Such  statements  shall  show  in  detail  the  assets  and  liabil- 
ities of  the  Federal  reserve  banks,  single  and  combined,  and  shall  furnish 
full  information  regarding  the  character  of  the  money  held  as  reserve 
and  the  amount,  nature  and  maturities  of  the  paper  and  other  investments 
owned  or  held  by  Federal  reserve  banks. 

(b)  To  permit,  or,  on  the  affirmative  vote  of  at  least  five  members 
of  the  Reserve  Board  to  require  Federal  reserve  banks  to  rediscount  the 


122  Important  Federal  Laws 

discounted  paper  of  other  Federal  reserve  banks  at  rates  of  interest  to  be 
fixed  by  the  Federal  Reserve  Board. 

(c)  To  suspend  for  a  period  not  exceeding  thirty  days,  and  from 
time  to  time  to  renew  such  suspension  for  periods  not  exceeding  fifteen 
days,  any  reserve  requirement  specified  in  this  Act:  Provided,  That  it 
shall  establish  a  graduated  tax  upon  the  amounts  by  which  the  reserve 
requirements  of  this  Act  may  be  permitted  to  fall  below  the  level  herein- 
after specified :  And  provided  further,  That  when  the  gold  reserve  held 
against  Federal  reserve  notes  falls  below  forty  per  centum,  the  Federal 
Reserve  Board  shall  establish  a  graduated  tax  of  not  more  than  one  per 
centum  per  annum  upon  such  deficiency  until  the  reserves  fall  to  thirty- 
two  and  one-half  per  centum,  and  when  said  reserve  falls  below  thirty- 
two  and  one-half  per  centum,  a  tax  at  the  rate  increasingly  of  not  less 
than  one  and  one-half  per  centum  per  annum  upon  each  two  and  one- 
half  per  centum  or  fraction  thereof  that  such  reserve  falls  below  thirty- 
two  and  one-half  per  centum.  The  tax  shall  be  paid  by  the  reserve  bank, 
but  the  reserve  bank  shall  add  an  amount  equal  to  said  tax  to  the  rates 
of  interest  and  discount  fixed  by  the  Federal  Reserve  Board. 

(d)  To  supervise  and  regulate  through  the  bureau  under  the  charge 
of  the  Comptroller  of  the  Currency  the  issue  and  retirement  of  Federal 
reserve  notes,  and  to  prescribe  rules  and  regulations  under  which  such 
notes  may  be  delivered  by  the  Comptroller  to  the  Federal  reserve  agents 
.applying  therefor. 

(e)  To  add  to  the  number  of  cities  classified  as  reserve  and  central 
reserve  cities  under  existing  law  in  which  national  banking  associations 
are  subject  to  the  reserve  requirements  set  forth  in  section  twenty  of  this 
Act :  or  to  reclassify  existing  reserve  and  central  reserve  cities  or  to 
terminate  their  designation  as  such. 

(f)  To  suspend  or  remove  any  officer  or  director  of  any  Federal 
reserve  bank,  the  cause  of  such  removal  to  be  forthwith  communicated  in 
writing  by  the  Federal  Reserve  Board  to  the  removed  officer  or  director 
and  to  said  bank. 

(g)  To  require  the  writing  off  of  doubtful  or  worthless  assets  upon 
the  books  and  balance  sheets  of  Federal  reserve  banks. 

(h)  To  suspend,  for  the  violation  of  any  of  the  provisions  of  this 
Act,  the  operations  of  any  Federal  reserve  bank,  to  take  possession 
thereof,  administer  the  same  during  the  period  of  suspension,  and,  when 
deemed  advisable,  to  liquidate  or  reorganize  such  bank. 

(i)  To  require  bonds  of  Federal  reserve  agents,  to  make  regula- 
tions for  the  safeguarding  of  all  collateral,  bonds,  Federal  reserve  notes, 
money  or  property  of  any  kind  deposited  in  the  hands  of  such  agents, 
and  said  board  shall  perform  the  duties,  functions  or  services  specified 
in  this  Act,  and  make  all  rules  and  regulations  necessary  to  enable  said 
board  effectively  to  perform  the  same. 

(i)  To  exercise  general  supervision  over  said  Federal  reserve 
banks. 


Federal  Reserve  Act  123 

(k)  To  grant  by  special  permit  to  national  banks  applying  therefor, 
when  not  in  contravention  of  State  or  local  law,  the  right  to  act  as  trustee, 
executor,  administrator  or  registrar  of  stocks  and  bonds  under  such  rules 
and  regulations  as  the  said  board  may  prescribe. 

(1)  To  employ  such  attorneys,  experts,  assistants,  clerks,  or  other 
employees  as  may  be  deemed  necessary  to  conduct  the  business  of  the 
board.  All  salaries  and  fees  shall  be  fixed  in  advance  by  said  board  and 
shall  be  paid  in  the  same  manner  as  the  salaries  of  the  meriibers  of  said 
board.  All  such  attorneys,  experts,  assistants,  clerks  and  other  employees 
shall  be  appointed  without  regard  to  the  provisions  of  the  /Vet  of  January 
sixteenth,  eighteen  hundred  and  eighty-three  (volume  twenty-two,  United 
States  Statutes  at  Large,  page  four  hundred  and  three),  and  amendments 
thereto,  or  any  rule  or  regulation  made  in  pursuance  thereof :  Provided, 
That  nothing  herein  shall  prevent  the  President  from  placing  said  em- 
ployees in  the  classified  service. 

(m)  Upon  the  affirmative  vote  of  not  less  than  five  of  its  members 
the  Federal  Reserve  Board  shall  have  power,  from  time  to  time,  by  gen- 
eral ruling,  covering  all  districts  alike,  to  permit  member  banks  to  carry 
in  the  Federal  reserve  banks  of  their  respective  districts  any  portion  of 
their  reserves  now  required  by  section  nineteen  of  this  Act  to  be  held  in 
their  own  vaults. 

Federal  Advisory  Council. 

Sec.  12.  There  is  hereby  created  a  Federal  Advisory  Council,  which 
shall  consist  of  as  many  members  as  there  are  Federal  reserve  districts. 
Each  Federal  reserve  bank  by  its  board  of  directors  shall  annually  select 
from  its  own  Federal  reserve  district  one  member  of  said  council,  who 
shall  receive  such  compensation  and  allowances  as  may  be  fixed  by  his 
board  of  directors  subject  to  the  approval  of  the  Federal  Reserve  Board. 
The  meetings  of  said  advisory  council  shall  be  held  at  Washington,  Dis- 
trict of  Columbia,  at  least  four  times  each  year,  and  oftener  if  called  by 
the  Federal  Reserve  Board.  The  council  may  in  addition  to  the  meetings 
above  provided  for  hold  such  other  meetings  in  Washington,  District  of 
Columbia,  or  elsewhere,  as  it  may  deem  necessary,  may  select  its  own 
officers  and  adopt  its  own  methods  of  procedure,  and  a  majority  of  its 
members  shall  constitute  a  quorum  for  the  transaction  of  business.  Vac- 
ancies in  the  council  shall  be  filled  by  the  respective  reserve  banks,  and 
members  sielected  to  fill  vacancies,  shall  serve   for  the  unexpired  term. 

The  Federal  Advisory  Council  shall  have  power,  by  itself  or  through 
its  officers  (1)  to  confer  directly  with  the  Federal  Reserve  Board  on  gen- 
eral business  conditions;  (2)  to  make  oral  or  written  representations 
concerning  matters  within  the  jurisdiction  of  said  board;  (3)  to  call  for 
information  and  to  make  recommendations  in  regard  to  discount  rates, 
rediscount  business,  note  issues,  reserve  conditions  in  the  various  districts, 
the  purchase  and  sale  of  gold  or  securities  by  reserve  banks,  open-market 


124  Important  Federal  Laws 

operations  by  said  banks,  and  the  general  affairs  of  the  reserve  banking 

system. 

Powers  of  Federal  Reserve  Bank. 

Sec.  13.  Any  Federal  reserve  bank  may  receive  from  any  of  its 
member  banks,  and  from  the  United  States,  deposits  of  current  funds  in 
lawful  money,  national-bank  notes,  Federal  reserve  notes,  or  checks,  and 
drafts,  payable  upon  presentation,  and  also,  for  collection,  maturing  notes 
and  bills ;  or,  solely  for  purposes  of  exchange  or  of  collection  may  receive 
from  other  Federal  reserve  banks  deposits  of  current  funds  in  lawful 
money,  national-bank  notes,  or  checks  upon  other  Federal  reserve  banks, 
and  checks  and  drafts,  payable  upon  presentation  within  its  district,  and 
maturing  notes  and  bills  payable  within  its  district ;  or,  solely  for  the 
purposes  of  exchange  or  of  collection,  may  receive  from  any  nonmember 
bank  or  trust  company  deposits  of  current  funds  in  lawful  money, 
national-bank  notes,  Federal  reserve  notes,  checks  and  drafts  payable 
upon  presentation,  or  maturing  notes  and  bills :  Provided,  Such  non- 
member  bank  or  trust  company  maintains  with  the  Federal  reserve  bank 
of  its  district  a  balance  sufficient  to  offset  the  items  in  transit  held  for  its 
account  by  the  Federal  reserve  bank :  Provided  further.  That  nothing 
in  this  or  any  other  section  of  this  Act  shall  be  construed  as  prohibiting 
a  member  or  nonmember  bank  from  making  reasonable  charges,  to  be 
determined  and  regulated  by  the  Federal  Reserve  Board,  but  in  no  case 
to  exceed  10  cents  per  $100  or  fraction  thereof,  based  on  the  total  of 
checks  and  drafts  presented  at  any  one  time,  for  collection  or  payment  of 
checks  and  drafts  and  remission  therefor  by  exchange  or  otherwise ;  but 
no  such  charges  shall  be  made  against  the  Federal  reserve  banks.  (As 
amended  June  21,  1917.) 

Upon  the  indorsement  of  any  of  its  member  banks,  which  shall  be 
deemed  a  waiver  of  demand,  notice  and  protest  by  such  bank  as  to  its 
own  indorsement  exclusively,  any  Federal  reserve  bank  may  discount 
notes,  drafts  and  bills  of  exchange  arising  out  of  actual  commercial  trans- 
actions;  that  is,  notes,  drafts  and  bills  of  exchange  issued  or  drawn  for 
agricultural,  industrial  or  commercial  purposes,  or  the  proceeds  of  which 
have  been  used,  or  are  to  be  used,  for  such  purposes,  the  Federal  Re- 
serve Board  to  have  the  right  to  determine  or  define  the  character  of  the 
paper  thus  eligible  for  discount,  within  the  meaning  of  this  Act.  Nothing 
in  this  Act  contained  shall  be  construed  to  prohibit  such  notes,  drafts  and 
bills  of  exchange,  secured  by  staple  agricultural  products,  or  other  goods, 
wares  or  merchandise  from  being  eligible  for  such  discount ;  but  such 
definition  shall  not  include  notes,  drafts  or  bills  covering  merely  invest- 
ments or  issued  or  drawn  for  the  purpose  of  carrying  or  trading  in  stocks, 
bonds  or  other  investment  securities,  except  bonds  and  notes  of  the  Gov- 
ernment of  the  United  States.  Notes,  drafts  and  bills  admitted  to  dis- 
count under  the  terms  of  this  paragraph  must  have  a  maturity  at  the 
time  of  discount  of  not  more  than  ninety  days,  exclusive  of  days  of  grace: 
Provided,  That  notes,  drafts  and  bills  drawn  or  issued  for  agricultural 


Federal  Reserve  Act  125 

purposes  or  based  on  live  stock  and  having  a  maturity  not  exceeding  six 
months,  exclusive  of  days  of  grace,  may  be  discounted  in  an  amount  to  be 
limited  to  a  percentage  of  the  assets  of  the  Federal  reserve  bank,  to  be 
ascertained  and  fixed  by  the  Federal  Reserve  Board. 

The  aggregate  of  such  notes,  drafts  and  bills  bearing  the  signature 
or  indorsement  of  any  one  borrower,  whether  a  person,  company,  firm  or 
corporation,  rediscounted  for  any  one  bank  shall  at  no  time  exceed  ten 
per  centum  of  the  unimpaired  capital  and  surplus  of  said  bank ;  but  this 
restriction  shall  not  apply  to  the  discount  of  bills  of  exchange  drawn  in 
good  faith  against  actually  existing  values. 

Any  Federal  reserve  bank  may  discount  acceptances  of  the  kinds 
hereinafter  described,  which  have  a  maturity  at  the  time  of  discount  of 
not  more  than  three  months'  sight,  exclusive  of  days  of  grace,  and  which 
are  indorsed  by  at  least  one  member  bank. 

Any  member  bank  may  accept  drafts  or  bills  of  exchange  drawn 
upon  it  having  not  more  than  six  months  sight  to  run,  exclusive  of  days 
of  grace,  which  grow  out  of  transactions  involving  the  importation  or 
•exportation  of  goods  ;  or  which  grow  out  of  transactions  involving  the 
domestic  shipment  of  goods  provided  shipping  documents  conveying  or 
securing  title  are  attached  at  the  time  of  acceptance ;  or  which  are  secured 
at  the  time  of  acceptance  by  a  warehouse  receipt  or  other  such  document 
conveying  or  securing  title  covering  readily  marketable  staples.  No  mem- 
l»er  bank  shall  accept,  whether  in  a  foreign  or  domestic  transaction,  for 
any  one  person,  company,  firm,  or  corporation  to  an  amount  equal  at  any 
time  in  the  aggregate  to  more  than  ten  per  centum  of  its  paid-up  and 
miimpaired  capital  stock  and  surplus,  unless  the  bank  is  secured  either  by 
attached  documents  or  by  some  other  actual  security  growing  out  of  the 
same  transaction  as  the  acceptance  ;  and  no  bank  shall  accept  such  bills  to 
an  amount  equal  at  any  time  in  the  aggregate  to  more  than  one-half  of 
its  paid-up  and  unimpaired  capital  stock  and  surplus :  Provided,  how- 
ever, That  the  Federal  Reserve  Board,  under  such  general  regulations 
as  it  may  prescribe,  which  shall  apply  to  all  banks  alike  regardless  of 
the  amount  of  capital  stock  and  surplus,  may  authorize  any  member 
bank  to  accept  such  bills  to  an  amount  not  exceeding  at  anv  time  in  the 
aggregate  one  hundred  per  centum  of  its  paid-up  and  unimpaired  capital 
stock  and  surplus:  Provided,  further,  That  the  aggregate  of  acceptances 
growing  out  of  domestic  transactions  shall  in  no  event  exceed  fifty  per 
centum  of  such  capital  stock  and  surplus.     (As  amended  June  21,  1917.) 

Any  Federal  reserve  bank  may  make  advances  to  its  member  banks 
on  their  promissory  notes  for  a  period  not  exceeding  fifteen  days  at  rates 
to  be  established  by  such  Federal  reserve  banks,  subject  to  the  review 
and  determination  of  the  Federal  Reserve  Board,  provided  such  promis- 
sory notes  are  secured  by  such  notes,  drafts,  bills  of  exchange,  or  bank- 
ers' acceptances  as  are  eligible  for  rediscount  or  for  purchase  by  Federal 
reserve  banks  under  the  provisions  of  this  Act,  or  by  the  deposit  or  pledge 
of  bonds  or  notes  of  the  United  States. 


126  Important  Federal  Laws 

Section  fifty-two  hundred  and  two  of  the  Revised  Statutes  of  the 
United  States  is  hereby  amended  so  as  to  read  as  follows :  No  national 
banking  association  shall  at  any  time  be  indebted,  or  in  any  way  liable 
to  an  amount  exceeding  the  amount  of  its  capital  stock  at  such  time 
actually  paid  in  and  remaining  undiminished  by  losses  or  otherwise,  ex- 
cept on  account  of  demands  of  the  nature  following: 

First.     Notes  of  circulation. 

Second.     Moneys  deposited  with  or  collected  by  the  association. 

Third.  Bills  of  exchange  or  drafts  drawm  against  money  actually 
on  deposit  to  the  credit  of  the  association  or  due  thereto. 

Fourth.  Liabilities  to  the  stockholders  of  the  association  for  divi- 
dends and  reserve  profits. 

Fifth.  Liabilities  incurred  under  the  provisions  of  the  Federal  re- 
serve Act. 

The  discount  and  rediscount  and  the  purchase  and  sale  by  any  Fed- 
eral reserve  bank  of  any  bills  receivable  and  of  domestic  and  foreign  bills 
of  exchange,  and  of  acceptances  authorized  by  this  Act,  shall  be  subject  to 
such  restrictions,  limitations  and  regulations  as  may  be  imposed  by  the 
Federal  Reserve  Board. 

That  in  addition  to  the  powers  now  vested  by  law  in  national  bank- 
ing associations  organized  under  the  laws  of  the  United  States  any  such 
association  located  and  doing  business  in  any  place  the  population  of 
which  does  not  exceed  five  thousand  inhabitants,  as  shown  by  the  last 
preceding  decennial  census,  may,  under  such  rules  and  regulations  as 
may  be  prescribed  by  the  Comptroller  of  the  Currency,  act  as  the  agent 
for' any  fire,  life  or  other  insurance  company  authorized  by  the  authorities 
of  the' State  in  which  said  bank  is  located  to  do  business  in  said  State,  by 
soliciting  and  selling  insurance  and  collecting  premiwms  on  policies  issued 
by  such  company ;  and  may  receive  for  services  so  rendered  such  fees  or 
commissions  as  may  be  agreed  upon  between  the  said  association  and  the 
insurance  company  for  wdiich  it  may  act  as  agent;  and  may  also  act  as 
the  broker  or  agent  for  others  in  making  or  procuring  loans  on  real  estate 
located  within  one  hundred  miles  of  the  place  in  which  said  bank  may  be 
located,  receiving  for  such  services  a  reasonable  fee  or  commission :  Pro- 
vided, however.  That  no  such  bank  shall  in  any  case  guarantee  either 
the  principal  or  interest  of  any  such  loans  or  assume  or  guarantee  the 
payment  of  any  premium  on  insurance  policies  issued  through  its  agency 
by  its  principal :  And  provided  further,  That  the  bank  shall  not  guar- 
antee the  truth  of  any  statement  made  by  an  assured  in  filing  his  applica- 
tion for  insurance. 

Any  member  bank  may  accept  drafts  or  bills  of  exchange  drawn 
upon  it  having  not  more  than  three  months'  sight  to  run,  exclusive  of 
days  of  grace,  drawn  under  regulations  to  be  prescribed  by  the  Federal 
Reserve  Board  by  banks  or  bankers  in  foreign  countries  or  dependencies 
or  insular  possessions  of  the  United  States  for  the  purpose  of  furnishing 


Federal  Reserve  Act  127 

dollar  exchange  as  required  by  the  usages  of  trade  in  the  respective 
countries,  dependencies  or  insular  possessions.  Such  drafts  or  bills  may 
be  acquired  by  Federal  reserve  banks  in  such  amounts  and  subject  to 
such  regulations,  restrictions  and  limitations  as  may  be  prescribed  by  the 
Federal  Reserve  Board :  Provided,  however.  That  no  member  bank  shall 
accept  such  drafts  or  bills  of  exchange  referred  to  in  this  paragraph  for 
any  one  bank  to  an  amount  exceeding  in  the  aggregate  ten  per  centum  of 
the  paid-up  and  unimpaired  capital  and  surplus  of  the  accepting  bank  un- 
less the  draft  or  bill  of  exchange  is  accompanied  by  documents  conveying 
or  securing  title  or  by  some  other  adequate  security :  Provided  further, 
That  no  member  bank  shall  accept  such  drafts  or  bills  in  an  amount 
exceeding  at  any  time  the  aggregate  of  one-half  of  its  paid-up  and  unim- 
paired capital  and  surplus. 

Open  Market  Operations. 

Sec.  14.  Any  Federal  reserve  bank  may,  under  rules  and  regula- 
tions prescribed  by  the  Federal  Reserve  Board,  purchase  and  sell  in  the 
open  market,  at  home  or  abroad,  either  from  or  to  domestic  or  foreign 
banks,  firms,  corporations  or  individuals,  cable  transfers  and  bankers' 
acceptances  and  bills  of  exchange  of  the  kinds  and  maturities  by  this  Act 
made  eligible  for  rediscount,  with  or  without  the  indorsement  of  a  mem- 
ber bank. 

Every  Federal  reserve  bank  shall  have  power: 

(a)  To  deal  in  gold  coin  and  bullion  at  home  or  abroad,  to  make 
loans  thereon,  exchange  Federal  reserve  notes  for  gold,  gold  coin,  or 
gold  certificates,  and  to  contract  for  loans  of  gold  coin  or  bullion,  giving 
therefor,  when  necessary,  acceptable  security,  including  the  hypothecation 
of  United  States  bonds  or  other  securities  which  Federal  reserve  banks 
are  authorized  to  hold ; 

(b)  To  buy  and  sell,  at  home  or  abroad,  bonds  and  notes  of  the 
United  States,  and  bills,  notes,  revenue  bonds,  and  warrants  wnth  a  ma- 
turity from  date  of  purchase  of  not  exceeding  six  months,  issued  in  an- 
ticipation of  the  collection  of  taxes  or  in -anticipation  of  the  receipt  of 
assured  revenues  by  any  State,  county,  district,  political  subdivision,  or 
municipality  in  the  continental  United  States,  including  irrigation,  drain- 
age and  reclamation  districts,  such  purchases  to  be  made  in  accordance 
with  rules  and  regulations  prescribed  by  the  Federal  Reserve  Board  ; 

(c)  To  purchase  from  member  banks  and  to  sell,  with  or  without 
its  endorsement,  bills  of  exchange  arising  out  of  commercial  transac- 
tions, as  hereinbefore  defined ; 

(d)  To  establish  from  time  to  time,  subject  to  review  and  deter- 
mination of  the  Federal  Reserve  Board,  ratee  of  discount  to  be  charged 
by  the  Federal  reserve  bank  for  each  class  of  paper,  which  shall  be 
fixed  with  a  view  of  accommodating  commerce  and  business; 

(e)  To  establish  accounts  with  other  Federal  reserve  banks  for 
exchange  purposes  and,  with  the  consent  or  upon  the  order  and  direction 


128  Important  Federal  Laws 

of  the  Federal  Reserve  Board  and  under  regulations  to  be  prescribed  by 
said  board,  to  open  and  maintain  accounts  in  foreign  couatries,  appoint 
correspondents,  and  establish  agencies  in  such  countries  wheresoever  it 
may  be  deemed  best  for  the  purpose  of  purchasing,  selling,  and  collecting 
bills  of  exchange,  and  to  buy  and  sell,  with  or  without  its  indorsement, 
through  such  correspondents  or  agencies,  bills  of  exchange  (or  accept- 
ances) arising  out  of  actual  commercial  transactions  which  have  not  more 
than  ninety  days  to  run,  exclusive  of  days  of  grace,  and  which  bear  the 
signature  of  two  or  more  responsible  parties,  and,  with  the  consent  of 
the  Federal  Reserve  Board,  to  open  and  maintain  banking  accounts  for 
such  foreign  correspondents  or  agencies.  Whenever  any  such  account 
has  been  opened  or  agency  or  correspondent  has  been  appointed  by  a 
Federal  reserve  bank,  with  the  consent  of  or  under  the  order  and  direction 
of  the  Federal  Reserve  Board,  any  other  Federal  reserve  bank  may,  with 
the  consent  and  approval  of  the  Federal  Reserve  Board,  be  permitted  to 
carry  on  or  conduct,  through  the  Federal  reserve  bank  opening  such 
account  or  appointing  such  agency  or  correspondent,  any  transaction 
authorized  by  this  section  under  rules  and  regulations  to  be  prescribed 
by  the  board.  (As  amended  June  21,  1917.) 
Government  Deposits. 

Sec.  15.  The  moneys  held  in  the  general  fund  of  the  Treasury, 
except  the  five  per  centum  fund  for  the  redemption  of  outstanding  na- 
tional-bank notes  and  the  funds  provided  in  this  Act  for  the  redemption 
of  Federal  reserve  notes  may,  upon  the  direction  of  the  Secretary  of  the 
Treasury,  be  deposited  in  Federal  reserve  banks,  which  banks,  when 
required  by  the  Secretary  of  the  Treasury,  shall  act  as  fiscal  agents  of 
the  United  States ;  and  the  revenues  of  the  Government  or  any  part 
thereof  may  be  deposited  in  such  banks,  and  disbursements  may  be  made 
by  checks  drawn  against  such  deposits. 

No  public  funds  of  the  Philippine  Islands,  or  of  the  postal  savings, 
or  any  Government  funds,  shall  be  deposited  in  the  continental  United 
States  in  any  bank  not  belonging  to  the  system  established  by  this  Act : 
Provided,  however,  That  nothing  in  this  Act  shall  be  construed  to  deny 
the  right  of  the  Secretary  of  the  Treasury  to  use  member  banks  as  de- 
positories. 

Federal  Reserve  Notes  Authorized. 

Sec.  16.  Federal  reserve  notes,  to  be  issued  at  the  discretion  of 
the  Federal  Reserve  Board  for  the  purpose  of  making  advances  to  Fed- 
eral reserve  banks  through  the  Federal  reserve  agents  as  hereinafter  set 
forth  and  for  no  other  purpose,  are  hereby  authorized.  The  said  notes 
shall  be  obligations  of  the  United  States  and  shall  be  receivable  by  all 
national  and  member  banks  and  Federal  reserve  banks  and  for  all  taxes, 
customs,  and  other  public  dues.  They  shall  be  redeemed  in  gold  on  de- 
mand at  the  Treasury  Department  of  the  United  States,  in  the  city  of 
Washington,  District  of  (Columbia,  or  in  gold  or  lawful  money  at  any 
Federal  reserve  bank. 


Federal  Reserve  Act  129 

Applications  for  Federal  Reserve  Notes. 

Any  Federal  reserve  bank  may  make  application  to  the  local  Fed- 
eral reserve  agent  for  such  amount  of  the  Federal  reserve  notes  herein- 
before provided  for  as  it  may  require.  Such  application  shall  be  accom- 
panied with  a  tender  to  the  local  Federal  reserve  agent  of  collateral  in 
amount  equal  to  the  sum  of  the  Federal  reserve  notes  thus  applied  for  and 
issued  pursuant  to  such  application.  The  collateral  security  thus  offered 
shall  be  notes,  drafts,  bills  of  exchange,  or  acceptances  acquired  under 
the  provisions  of  section  thirteen  of  this  Act,  or  bills  of  exchange  in- 
dorsed by  a  member  bank  of  any  Federal  reserve  district  and  purchased 
under  the  provisions  of  section  fourteen  of  this  Act,  or  bankers'  accept- 
ances purchased  under  the  provisions  of  said  section  fourteen,  or  gold 
or  gold  certificates ;  but  in  no  event  shall  such  collateral  security,  whether 
gold,  gold  certificates,  or  eligible  paper,  be  less  than  the  amount  of  Fed- 
eral reserve  notes  applied  for.  The  Federal  reserve  agent  shall  each  day 
notify  the  Federal  Reserve  Board  of  all  issues  and  withdrawals  of  Fed- 
eral reserve  notes  to  and  by  the  Federal  reserve  bank  to  which  he  is 
accredited.  The  said  Federal  Reserve  Board  may  at  any  time  call  upon  a 
Federal  reserve  bank  for  additional  security  to  protect  the  Federal 
reserve  notes  issued  to  it.     (As  amended  September  7,  1916.) 

Reserve  Requirements  for  Federal  Reserve  Banks. 

Every  Federal  reserve  bank  shall  maintain  reserves  in  gold  or  law- 
ful money  of  not  less  than  thirty-five  per  centum  against  its  deposits  and 
reserves  in  gold  of  not  less  than  forty  per  centum  against  its  Federal 
reserve  notes  in  actual  circulation:  Provided,  however.  That  when  the 
Federal  reserve  agent  holds  gold  or  gold  certificates  as  collateral  for  Fed- 
eral reserve  notes  issued  to  the  bank  such  gold  or  gold  certificates  shall 
be  counted  as  part  of  the  gold  reserve  which  such  bank  is  required  to 
maintain  against  its  Federal  reserve  notes  in  actual  circulation.  Notes  so 
paid  out  shall  bear  upon  their  faces  a  distinctive  letter  and  serial  number 
which  shall  be  assigned  by  the  Federal  Reserve  Board  to  each  Federal 
reserve  bank.  Whenever  Federal  reserve  notes  issued  through  one  Fed- 
eral reserve  bank  shall  be  received  by  another  Federal  reserve  bank,  they 
shall  be  promptly  returned  for  credit  or  redemption  to  the  Federal  reserve 
bank  through  which  they  were  originally  issued  or,  upon  direction  of  such 
Federal  reserve  bank,  they  shall  be  forwarded  direct  to  the  Treasurer  of 
the  United  States  to  be  retired.  No  Federal  reserve  bank  shall  pay  out 
notes  issued  through  another  under  penalty  of  a  tax  of  ten  per  centum 
upon  the  face  value  of  notes  so  paid  out.  Notes  presented  for  redemp- 
tion at  the  Treasury  of  the  United  States  shall  be  paid  out  of  the  redemp- 
tion fund  and  returned  to  the  Federal  reserve  banks  through  which  thev 
were  originally  issued,  and  thereupon  such  Federal  reserve  bank  shall, 
upon  demand  of  the  Secretary  of  the  Treasury,  reimburse  such  redemp- 
tion fund  in  lawful  money  or,  if  such  Federal  reserve  notes  have  been 
redeemed  by  the  Treasurer  in  gold  or  gold  certificates,  then  such  funds 
shall  be  reimbursed  to  the  extent  deemed  necessary  by  the  Secretary  of 

(9) 


130  Important  Federal  Laws 

the  Treasury  in  gold  or  gold  certificates,  and  such  Federal  reserve  bank 
shall,  so  long  as  any  of  its  Federal  reserve  notes  remain  outstanding, 
maintain  with  the  Treasurer  in  gold  an  amount  sufficient  in  the  judgment 
of  the  Secretary  to  provide  for  all  redemptions  to  be  made  by  the  Treas- 
urer. Federal  reserve  notes  received  by  the  Treasurer  otherwise  than  for 
redemption  may  be  exchanged  for  gold  out  of  the  redemption  fund  here- 
inafter provided  and  returned  to  the  reserve  bank  through  which  they 
were  originally  issued,  or  they  may  be  returned  to  such  bank  for  the 
credit  of  the  United  States.  Federal  reserve  notes  unfit  for  circulation 
shall  be  returned  by  the  Federal  reserve  agents  to  the  Comptroller  of  the 
Currency  for  cancellation  and  destruction. 

Issuance  and  Redemption  of  Federal  Reserve  Notes. 

The  Federal  Reserve  Board  shall  require  each  Federal  reserve  bank 
to  maintain  on  deposit  in  the  Treasury  of  the  United  States  a  sum  in  gold 
sufficient  in  the  judgment  of  the  Secretary  of  the  Treasury  for  the  re- 
demption of  the  Federal  reserve  notes  issued  to  such  bank,  but  in  no  event 
less  than  five  per  centum  of  the  total  amount  of  notes  issued  less  the 
amount  of  gold  or  gold  certificates  held  by  the  Federal  reserve  agent  as 
collateral  security ;  but  such  deposit  of  gold  shall  be  counted  and  included 
as  part  of  the  forty  per  centum  reserve  hereinbefore  required.  The  board 
shall  have  the  right,  acting  through  the  Federal  reserve  agent,  to  grant, 
in  whole  or  in  part,  or  to  reject  entirely  the  application  of  any  Federal 
reserve  bank  for  Federal  reserve  notes ;  but  to  the  extent  that  such  appli- 
cation may  be  granted  the  Federal  Reserve  Board  shall,  through  its  local 
Federal  reserve  agent,  supply  Federal  reserve  notes  to  the  banks  so  apply- 
ing, and  such  bank  shall  be  charged  with  the  amount  of  notes  issued  to  it 
and  shall  pay  such  rate  of  interest  as  may  be  established  by  the  Federal 
Reserve  Board  on  only  that  amount  of  such  notes  which  equals  the  total 
amount  of  its  outstanding  Federal  reserve  notes  less  the  amount  of  gold 
or  gold  certificates  held  by  the  Federal  reserve  agent  as  collateral  security. 
Federal  reserve  notes  issued  to  any  such  bank  shall,  upon  delivery,  to- 
gether with  such  notes  of  such  Federal  reserve  bank  as  may  be  issued 
under  section  eighteen  of  this  Act  upon  security  of  United  States  two 
per  centum  Government  bonds,  become  a  first  and  paramount  lien  on  all 
the  assets  of  such  bank. 

Any  Federal  reserve  bank  may  at  any  time  reduce  its  liability  for 
outstanding  Federal  reserve  notes  by  depositing  with  the  Federal  reserve 
agent  its  Federal  reserve  notes,  gold,  gold  certificates,  or  lawful  money  of 
the  United  States.  Federal  reserve  notes  so  deposited  shall  not  be  re- 
issued, except  upon  compliance  with  the  conditions  of  an  original  issue. 

The  Federal  reserve  agent  shall  hold  such  gold,  gold  certificates,  or 
lawful  money  available  exclusively  for  exchange  for  the  outstanding  Fed- 
eral reserve  notes  when  oft'ered  by  the  reserve  bank  of  which  he  is  a 
director.  Upon  the  request  of  the  Secretary  of  the  Treasury  the  Federal 
Reserve  Board  shall  require  the  Federal  reserve  agent  to  transmit  to  the 
Treasurer  of  the  United  States  so  much  of  the  gold  held  by  I'im  as  col- 


Federal  Reserve  Act  131 

lateral  security  for  Federal  reserve  notes  as  may  be  required  for  the 
exclusive  purpose  of  the  redemption  of  such  Federal  reserve  notes,  but 
such  gold  when  deposited  with  the  Treasurer  shall  be  counted  and  con- 
sidered as  if  collateral  security  on  deposit  with  the  Federal  reserve  agent. 

Any  Federal  reserve  bank  may  at  its  discretion  withdraw  collateral 
deposited  with  the  local  Federal  reserve  agent  for  the  protection  of  its 
Federal  reserve  notes  issued  to  it  and  shall  at  the  same  time  substitute 
therefor  other  collateral  of  equal  amount  with  the  approval  of  the  Fed- 
eral reserve  agent  under  regulations  to  be  prescribed  by  the  Federal  Re- 
serve Board.  Any  Federal  reserve  bank  may  retire  any  of  its  Federal 
reserve  notes  by  depositing  them  with  the  Federal  reserve  agent  or  with 
the  Treasurer  of  the  United  States,  and  such  Federal  reserve  bank  shall 
thereupon  be  entitled  to  receive  back  the  collateral  deposited  with  the 
Federal  reserve  agent  for  the  security  of  such  notes.  Federal  reserve 
banks  shall  not  be  required  to  maintain  the  reserve  or  the  redemption 
fund  heretofore  provided  for  against  Federal  reserve  notes  which  have 
been  retired.  Federal  reserve  notes  so  deposited  shall  not  be  reissued 
except  upon  compliance  with  the  conditions  of  an  original  issue. 

All  Federal  reserve  notes  and  all  gold,  gold  certificates,  and  lawful 
money  issued  to  or  deposited  with  any  Federal  reserve  agent  under  the 
provisions  of  the  Federal  reserve  Act  shall  hereafter  be  held  for  such 
agent,  under  such  rules  and  regulations  as  the  Federal  Reserve  Board  may 
prescribe,  in  the  joint  custody  of  himself  and  the  Federal  reserve  bank 
to  which  he  is  accredited.  Such  agent  and  such  Federal  reserve  bank 
shall  be  jointly  liable  for  the  safe-keeping  of  such  Federal  reserve  notes, 
gold,  gold  certificates,  and  lawful  money.  Nothing  herein  contained,  how- 
ever, shall  be  construed  to  prohibit  a  Federal  reserve  agent  from  deposit- 
ing gold  or  gold  certificates  with  the  Federal  Reserve  Board,  to  be  held 
by  such  board  subject  to  his  order,  or  with  the  Treasurer  of  the  United 
States  for  the  purposes  authorized  by  law.     (As  amended  June  21,  1917.) 

Preparation  of  Federal  Reserve  Notes, 

In  order  to  furnish  suitable  notes  for  circulation  as  Federal  reserve 
notes,  the  Comptroller  of  the  Currency  shall,  under  the  direction  of  the 
Secretary  of  the  Treasury,  cause  plates  and  dies  to  be  engraved  in  the 
best  manner  to  guard  against  counterfeits  and  fraudulent  alterations, 
and  shall  have  printed  therefrom  and  numbered  such  quantities  of  such 
notes  of  the  denominations  of  $5,  $10,  $20,  $50,  $100,  as  may  be  re- 
quired to  supply  the  Federal  reserve  banks.  Such  notes  shall  be  in  form 
and  tenor  as  directed  by  the  Secretary  of  the  Treasury  under  the  pro- 
visions of  this  Act  and  shall  bear  the  distinctive  numbers  of  the  several 
Federal  reserve  banks  through  which  they  are  issued. 

When  such  notes  have  been  prepared,  they  shall  be  deposited  in  the 
Treasury,  or  in  the  subtreasury  or  mint  of  the  United  States  nearest  the 
place  of  business  of  each  Federal  reserve  bank  and  shall  be  held  for  the 
use  of  such  bank  subject  to  the  order  of  the  Comptroller  of  the  Cur- 
rency for  tleir  delivery,  as  provided  by  this  Act. 


132  Important  Federal  Laws 

The  plates  and  dies  to  be  procured  by  the  Comptroller  of  the  Cur- 
rency for  the  printing  of  such  circulating  notes  shall  remain  under  his 
control  and  direction,  and  the  expenses  necessarily  incurred  in  executing 
the  laws  relating  to  the  procuring  of  such  notes,  and  all  other  expenses 
incidental  to  their  issue  and  retirement,  shall  be  paid  by  the  Federal  re- 
serve banks,  and  the  Federal  Reserve  Board  shall  include  in  its  estimate 
of  expenses  levied  against  the  Federal  reserve  banks  a  sufficient  amount 
to  cover  the  expenses  herein  provided  for. 

The  examination  of  plates,  dies,  bed  pieces,  and  so  forth,  and  regu- 
lations relating  to  such  examination  of  plates,  dies,  and  so  forth,  of  na- 
tional-bank notes  provided  for  in  section  fifty-one  hundred  and  seventy- 
four  Revised  Statutes,  is  hereby  extended  to  include  notes  herein  pro- 
vided for. 

Any  appropriation  heretofore  made  out  of  the  general  funds  of 
the  Treasury  for  engraving  plates  and  dies,  the  purchase  of  distinctive 
paper,  or  to  cover  any  other  expense  in  connection  with  the  printing  of 
national-bank  notes  or  notes  provided  for  by  the  Act  of  May  thirtieth, 
nineteen  hundred  and  eight,  and  any  distinctive  paper  that  may  be  on 
hand  at  the  time  of  the  passage  of  this  Act  may  be  used  in  the  discre- 
tion of  the  Secretary  for  the  purposes  of  this  Act,  and  should  the  appro- 
priations heretofore  made  be  insufficient  to  meet  the  requirements  of 
this  Act  in  addition  to  circulating  notes  provided  for  by  existing  law, 
the  Secretary  is  hereby  authorized  to  use  so  much  of  any  funds  in  the 
Treasury  not  otherwise  appropriated  for  the  purpose  of  furnishing  the 
notes  aforesaid :  Provided,  however,  That  nothing  in  this  section  con- 
tained shall  be  construed  as  exempting  national  banks  or  Federal  reserve 
banks  from  their  liability  to  reimburse  the  United  States  for  any  ex- 
penses incurred  in  printing  and  issuing  circulating  notes. 

When  Federal  Reserve  Bank  Shall  Receive  Checks  and   Drafts  on 
Deposit  at  Par. 

Every  Federal  reserve  bank  shall  receive  on  deposit  at  par  from 
member  banks  or  from  Federal  reserve  banks  checks  and  drafts  drawn 
upon  any  of  its  depositors,  and  when  remitted  by  a  Federal  reserve  bank, 
checks  and  drafts  drawn  by  any  depositor  in  any  other  Federal  reserve 
bank  or  member  bank  upon  funds  to  the  credit  of  said  depositor  in  said 
reserve  bank  or  member  bank. 

Charges  for  Collection  and  For  Sale  of  Exchange. 

Nothing  herein  "contained  shall  be  construed  as  prohibiting  a  mem- 
ber bank  from  charging  its  actual  expense  incurred  in  collecting  and  re- 
mitting funds,  or  for  exchange  sold  to  its  patrons.  The  Federal  Reserve 
Board  shall,  by  rule,  fix  the  charges  to  be  collected  by  the  member  banks 
from  its  patrons  whose  checks  are  cleared  through  the  Federal  reserve 
bank  and  the  charge  which  may  be  imposed  for  the  service  of  clearing 
or  collection  rendered  by  the  Federal  reserve  bank. 

The  Federal  Reserve  Board  shall  make  and  promulgate  from  time 


Federal  Reserve  Act  133 

to  time  regulations  governing  the  transfer  of  funds  and  charges  there- 
for among  Federal  reserve  banks  and  their  branches,  and  may  at  its  dis- 
cretion exercise  the  functions  of  a  clearing  house  for  such  Federal  re- 
serve banks,  or  may  designate  a  Federal  reserve  bank  to  exercise  such 
functions,  and  may  also  require  each  such  bank  to  exercise  the  functions 
of  a  clearing  house  for  its  member  banks.  ' 

That  the  Secretary  of  the  Treasury  is  hereby  authorized  and 
directed  to  receive  deposits  of  gold  coin  or  of  gold  certificates  with  the 
Treasurer  or  any  assistant  treasurer  of  the  United  States  when  tendered 
by  any  Federal  reserve  bank  or  Federal  reserve  agent  for  credit  to  its  or 
his  account  with  the  Federal  Reserve  Board.  The  Secretary  shall  pre- 
scribe by  regulation  the  form  of  receipt  to  be  issued  by  the  Treasurer  or 
Assistant  Treasurer  to  the  Federal  reserve  bank  or  Federal  reserve  agent 
making  the  deposit,  and  a  duplicate  of  such  receipt  shall  be  delivered  to 
the  Federal  Reserve  Board  by  the  Treasurer  at  Washington  upon  proper 
advices  from  any  assistant  treasurer  that  such  deposit  has  been  made. 
Deposits  so  made  shall  be  held  subject  to  the  orders  of  the  Federal  Re- 
serve Board  and  shall  be  payable  in  gold  coin  or  gold  certificates  on  the 
order  of  the  Federal  Reserve  Board  to  any  Federal  reserve  bank  or  Fed- 
eral reserve  agent  at  the  Treasury  or  at  the  Subtreasury  of  the  United 
States  nearest  the  place  of  business  of  such  Federal  reserve  bank  or  such 
Federal  reserve  agent :  Provided,  however.  That  any  expense  incurred  in 
shipping  gold  to  or  from  the  Treasury  or  Subtreasuries  in  order  to  make 
such  payments,  or  as  a  result  of  making  such  payments,  shall  be  paid  by 
the  Federal  Reserve  Board  and  assessed  against  the  Federal  reserve 
banks.  The  order  used  by  the  Federal  Reserve  Board  in  making  such 
payments  shall  be  signed  by  the  governor  or  vice  governor,  or  such  other 
officers  or  members  as  the  board  may  by  regulation  prescribe.  The  form 
of  such  order  shall  be  approved  by  the  Secretary  of  the  Treasury. 

The  expenses  necessarily  incurred  in  carrying  out  these  provisions, 
including  the  cost  of  the  certificates  or  receipts  issued  for  deposits  re- 
ceived, and  all  expenses  incident  to  the  handling  of  such  deposits  shall  be 
paid  by  the  Federal  Reserve  Board  and  included  in  its  assessments  against 
the  several  Federal  reserve  banks. 

Gold  deposits  standing  to  the  credit  of  any  Federal  reserve  bank 
with  the  Federal  Reserve  Board  shall,  at  the  option  of  said  bank,  be 
counted  as  part  of  the  lawful  reserve  which  it  is  required  to  maintain 
against  outstanding  Federal  reserve  notes,  or  as  a  part  of  the  reserve  it 
is  required  to  maintain  against  deposits. 

Nothing  in  this  section  shall  be  construed  as  amending  section  six 
of  the  Act  of  March  fourteenth,  nineteen  hundred,  as  amended  by 
the  Acts  of  March  fourth,  nineteen  hundred  and  seven,  March  second, 
nineteen  hundred  and  eleven,  and  June  twelfth,  nineteen  hundred  and 
sixteen,  nor  shall  the  provisions  of  this  section  be  construed  to  apply  to 
the  deposits  made  or  to  the  receipts  or  certificates  issued  under  those 
Acts.     (Added  by  Act  of  June  21,  1917.) 


134  Important  Federal  Laws 

National  Banks  not  Required  to  Make  Deposit  of  United  States  Bonds 
Prior  to  Commencement  of  Business. 

Sec.  17.  So  much  of  the  provisions  of  section  fifty-one  hundred 
and  fifty-nine  of  the  Revised  Statutes  of  the  United  States,  and  section 
four  of  the  Act  of  June  twentieth,  eighteen  hundred  and  seventy-four, 
and  section  eight  of  the  Act  of  July  twelfth,  eighteen  hundred  and  eighty- 
two,  and  of  any  other  provisions  of  existing  statutes  as  require  that  before 
any  national  banking  association  shall  be  authorized  to  commence  banking 
business  it  shall  transfer  and  deliver  to  the  Treasurer  of  the  United 
States  a  stated  amount  of  United  States  registered  bonds,  and  so  much  of 
those  provisions  or  of  any  other  provisions  of  existing  statutes  as  require 
any  national  banking  association  now  or  hereafter  organized  to  maintain 
a  minimum  deposit  of  such  bonds  w^ith  the  Treasurer  is  hereby  repealed. 
(As  amended  June  21,  1917.) 

Refunding  Bonds,  Retirement  of  Circulating  Notes. 

Sec.  18.  After  two  years  from  the  passage  of  this  Act,  and  at  any 
time  during  a  period  of  twenty  years  thereafter,  any  member  bank  de- 
siring to  retire  the  whole  or  any  part  of  its  circulating  notes,  may  file 
with  the  Treasurer  of  the  United  States  an  application  to  sell  for  its 
account,  at  par  and  accrued  interest.  United  States  bonds  securing  cir- 
culation to  be  retired. 

Purchase  of  United  States  Bonds  by  Federal  Reserve  Banks. 

The  Treasurer  shall,  at  the  end  of  each  quarterly  period,  furnish 
the  Federal  Reserve  Board  with  a  list  of  such  applications,  and  the  Fed- 
eral Reserve  Board  may,  in  its  discretion,  require  the  Federal  reserve 
banks  to  purchase  such  bonds  from  the  banks  whose  applications  have 
been  filed  with  the  Treasurer  at  least  ten  days  before  the  end  of  any 
quarterly  period  at  which  the  Federal  Reserve  Board  may  direct  the 
purchase  to  be  made :  Provided,  That  Federal  reserve  banks  shall  not  be 
permitted  to  purchase  an  amount  to  exceed  $25,000,000  of  such  bonds 
in  any  one  year,  and  which  amount  shall  include  bonds  acquired  under 
section  four"  of  this  Act  by  the  Federal  reserve  bank. 

Provided  further.  That  the  Federal  Reserve  Board  shall  allot  to 
each  Federal  reserve  bank  such  proportion  of  such  bonds  as  the  capital 
and  surplus  of  such  bank  shall  bear  to  the  aggregate  capital  and  surplus 
of  all  the  Federal  reserve  banks. 

Upon  notice  from  the  Treasurer  of  the  amount  of  bonds  so  sold  for 
its  account,  each  member  bank  shall  duly  assign  and  transfer,  in  writing, 
such  bonds  to  the  Federal  reserve  bank  purchasing  the  same,  and  such 
Federal  reserve  bank  shall,  thereupon,  deposit  law^ful  money  with  the 
Treasurer  of  the  United  States  for  the  purchase  price  of  such  bonds, 
and  the  Treasurer  shall  pay  to  the  member  bank  selling  such  bonds  any 
balance  due  after  deducting  a  sufficient  sum  to  redeem  its  outstanding 
notes  secured  by  such  bonds,  which  notes  shall  be  canceled  and  perma- 
nently retired  when  redeemed. 


Federal  Reserve  Act  135 

Issue  of  Circulating  Notes  to  Federal  Reserve  Banks. 

The  Federal  reserve  banks  purchasing  such  bonds  shall  be  permitted 
to  take  out  an  amount  of  circulating  notes  equal  to  the  par  value  of 
such  bonds. 

Upon  the  deposit  with  the  Treasurer  of  the  United  States  of  bonds 
so  purchased,  or  any  bonds  with  the  circulating  privilege  acquired  under 
section  four  of  this  Act,  any  Federal  reserve  bank  making  such  deposit 
in  the  manner  provided  by  existing  law,  shall  be  entitled  to  receive  from 
the  Comptroller  of  the  Currency  circulating  notes  in  blank,  registered 
and  countersigned  as  provided  by  law,  equal  in  amount  to  the  par  value 
of  the  bonds  so  deposited.  Such  notes  shall  be  the  obligations  of  the 
Federal  reserve  bank  procuring  the  same,  and  shall  be  in  form  pre- 
scribed by  the  Secretary  of  the  Treasury,  and  to  the  same  tenor  and 
effect  as  national-bank  notes  now  provided  by  law.  They  shall  be  issued 
and  redeemed  under  the  same  terms  and  conditions  as  national-bank 
notes  except  that  they  shall  not  be  limited  to  the  amount  of  the  capital 
stock  of  the  Federal  reserve  bank  issuing  them. 

Issue  of  Gold  Notes  of  the  United  States  in  Exchange  for  Certain 
United  States  Bonds. 

Upon  application  of  any  Federal  reserve  bank,  approved  by  the 
Federal  Reserve  Board,  the  Secretary  of  the  Treasury  may  issue,  in  ex- 
change for  United  States  two  per  centum  gold  bonds  bearing  the  circu- 
lation privilege,  but  against  which  no  circulation  is  outstanding,  one- 
year  gold  notes  of  the  United  States  without  the  circulation  privilege, 
to  an  amount  not  to  exceed  one-half  of  the  two  per  centum  bonds  so 
tendered  for  exchange,  and  thirty-year  three  per  centum  gold  bonds 
without  the  circulation  privilege  for  the  remainder  of  the  two  per 
centum  bonds  so  tendered :  Provided,  That  at  the  time  of  such  exchange 
the  Federal  reserve  bank  obtaining  such  one-year  gold  notes  shall  enter 
into  an  obligation  with  the  Secretary  of  the  Treasury  binding  itself  to 
purchase  from  the  United  States  for  gold  at  the  maturity  of  such  one- 
year  notes,  an  amount  equal  to  those  delivered  in  exchange  for  such 
bonds,  if  so  requested  by  the  Secretary,  and  at  each  maturity  of  one- 
year  notes  so  purchased  by  such  Federal  reserve  bank,  to  purchase  from 
the  United  States  such  an  amount  of  one-year  notes  as  the  Secretary 
may  tender  to  such  bank,  not  to  exceed  the  amount  issued  to  such  bank 
in  the  first  instance,  in  exchange  for  the  two  per  centum  United  States 
gold  bonds :  said  obligation  to  purchase  at  maturity  such  notes  shall  con- 
tinue in  force  for  a  period  not  to  exceed  thirty  years. 

For  the  purpose  of  making  the  exchange  herein  provided  for,  the 
Secretary  of  the  Treasury  is  authorized  to  issue  at  par  Treasury  notes 
in  coupon  or  registered  form  as  he  may  prescribe  in  denominations  of 
one  hundred  dollars,  or  any  multiple  thereof,  bearing  interest  at  the  rate 
of  three  per  centum  per  annum,  payable  quarterly,  such  Treasury  notes 
to  be  payable  not  more  than  one  year  from  the  date  of  their  issue  in  gold 


136  Important  Federal  Laws 

coin  of  the  present  standard  value,  and  to  be  exempt  as  to  principal  and 
interest  from  the  payment  of  all  taxes  and  duties  of  the  United  States 
except  as  provided  by  this  Act,  as  well  as  from  taxes  in  any  form  by  or 
under  State,  municipal,  or  local  authorities.  And  for  the  same  purpose, 
the  Secretary  is  authorized  and  empowered  to  issue  United  States  gold 
bonds  at  par,  bearing  three  per  centum  interest  payable  thirty  years 
from  date  of  issue,  such  bonds  to  be  of  the  same  general  tenor  and  effect 
and  to  be  issued  under  the  same  general  terms  and  conditions  as  the 
United  States  three  per  centum  bonds  without  the  circulation  privilege 
now  issued  and  outstanding. 

In  its  vaults  for  a  period  of  thirty-six  months  after  said  date,  six- 
fifteenths  thereof,  and  permanently  thereafter  five-fifteenths. 

In  the  Federal  reserve  bank  of  its  district  for  a  period  of  twelve 
months  after  the  date  aforesaid,  at  least  three-fifteenths,  and  for  each 
succeeding  six  months  an  additional  one-fifteenth,  until  six-fifteenths 
have  been  so  deposited,  which  shall  be  the  amount  permanently  required. 

For  a  period  of  thirty-six  months  after  said  date  the  balance  of  the 
reserves  may  be  held  in  its  own  vaults,  or  in  the  Federal  reserve  bank, 
or  in  national  banks  in  central  reserve  cities,  as  now  defined  by  law. 

After  said  thirty-six  months'  period  all  of  said  reserves,  except 
those  hereinbefore  required  to  be  held  permanently  in  the  vaults  of  the 
member  bank  and  in  the  Federal  reserve  bank,  shall  be  held  in  its  vaults 
or  in  the  Federal  reserve  bank  or  in  both,  at  the  option  of  the  member 
bank. 

Reserve  Requirements. 

(c)  A  bank  in  a  central  reserve  city,  as  now  or  hereafter  defined, 
shall  hold  and  maintain  a  reserve  equal  to  eighteen  per  centum  of  the 
aggregate  amount  of  its  demand  deposits  and  five  per  centum  of  its  time 
deposits,  as  follows : 

In  its  vaults,  six-eighteenths  thereof. 

In  the  Federal  reserve  bank,  seven-eighteenths. 

The  balance  of  said  reserves  shall  be  held  in  its  own  vaults  or  in 
the  Federal  reserve  bank,  at  its  option. 

Any  Federal  reserv^e  bank  may  receive  from  the  member  banks  as 
reserves  not  exceeding  one-half  of  each  installment,  eligible  paper  as 
described  in  section  thirteen  properly  indorsed  and  acceptable  to  the  said 
reserve  bank. 

If  a  State  bank  or  trust  company  is  required  or  permitted  by  the 
law  of  its  State  to  keep  its  reserves  either  in  its  own  vaults  or  with  an- 
other State  bank  or  trust  company  or  with  a  national  bank,  such  reserve 
deposits  so  kept  in  such  State  bank,  trust  company,  or  national  bank 
shall  be  construed  within  the  meaning  of  this  section  as  if  they  were  re- 
serve deposits  in  a  national  bank  in  a  reserve  or  central  reserve  city  for 
a  period  of  three  years  after  the  Secretary  of  the  Treasury  shall  have 
ofificially  announced  the  establishment  of  a  Federal  reserve  bank  in  the 
district  in  which  such  State  bank  or  trust  company  is  situate. 

Upon  application  of  any  Federal  reserve  bank,  approved  by  the  Fed- 


Federal  Reserve  Act  137 

eral  Reserve  Board,  the  Secretary  may  issue  at  par  such  three  per 
centum  bonds  in  exchange  for  the  one-year  gold  notes  herein  provided 
for.     (As  amended  Aug.  14,  1914.) 

Demand  and  Time  Deposits  Defined. 

Sec.  19.  Demand  deposits  within  the  meaning  of  this  Act  shall 
comprise  all  deposits  payable  within  thirty  days,  and  time  deposits  shall 
comprise  all  deposits  payable  after  thirty  days,  all  savings  accounts  and 
certificates  of  deposit  which  are  subject  to  not  less  than  thirty  days'  notice 
before  payment,  and  all  postal  savings  deposits. 

Reserve  Requirements. 

Every  bank,  banking  association,  or  trust  company  which  is  or 
which  becomes  a  member  of  any  Federal  reserve  bank  shall  establish  and 
maintain  reserve  balances  with  its  Federal  reserve  bank  as  follows : 

(a)  If  not  in  a  reserve  or  central  reserve  city,  as  now  or  hereafter 
defined,  it  shall  hold  and  maintain  with  the  Federal  reserve  bank  of  its 
district  an  actual  net  balance  equal  to  not  less  than  seven  per  centum  of 
the  aggregate  amount  of  its  demand  deposits  and  three  per  centum  of  its 
time  deposits. 

(b)  If  in  a  reserve  city,  as  now  or  hereafter  defined,  it  shall  hold 
and  maintain  with  the  Federal  reserve  bank  of  its  district  an  actual  net 
balance  equal  to  not  less  than  ten  per  centum  of  the  aggregate  amount  of 
its  demand  deposits  and  three  per  centum  of  its  time  deposits. 

(c)  If  in  a  central  reserve  city,  as  now  or  hereafter  defined,  it 
shall  hold  and  maintain  with  the  Federal  reserve  bank  of  its  district  an 
actual  net  balance  equal  to  not  less  than  thirteen  per  centum  of  the  aggre- 
gate amount  of  its  demand  deposits  and  three  per  centum  of  its  time 
deposits. 

No  member  bank  shall  keep  on  deposit  with  any  State  bank  or  trust 
company  which  is  not  a  member  bank  a  sum  in  excess  of  ten  per  centum 
of  its  own  paid-up  capital  and  surplus.  No  member  bank  shall  act  as 
the  medium  or  agent  of  a  nonmember  bank  in  applying  for  or  receiving 
discounts  from  a  Federal  reserve  bank  under  the  provisions  of  this  Act, 
except  by  permission  of  the  Federal  Reserve  Board. 

The  required  balance  carried  by  a  member  bank  with  a  Federal 
reserve  bank  may,  under  the  regulations  and  subject  to  such  penalties 
as  may  be  prescribed  by  the  Federal  Reserve  Board,  be  checked  against 
and  withdrawn  by  such  member  bank  for  the  purpose  of  meeting  existing 
liabilities :  Provided,  however.  That  no  bank  shall  at  any  time  make  new 
loans  or  shall  pay  any  dividends  unless  and  until  the  total  balance  by  law 
is  fully  restored. 

In  estimating  the  balances  required  by  this  Act,  the  net  difference 
of  amounts  due  to  and  from  other  banks  shall  be  taken  as  the  basis  for 
ascertaining  the  deposits  against  which  required  balances  with  Federal 
reserve  banks  shall  be  determined. 

National  banks,  or  banks  organized  under  local  laws,  located  in 
Alaska  or  in  a  dependency  or  insular  possession  or  any  part  of  the  United 


138  Important  Federal  Laws 

States  outside  the  continental  United  States  may  remain  non-member 
banks,  and  shall  in  that  event  maintain  reserves  and  comply  with  all  the 
conditions  now  provided  by  law  regulating  them ;  or  said  banks  may, 
with  the  consent  of  the  Reserve  Board,  become  member  banks  of  any 
one  of  the  reserv-e  districts,  and  shall  in  that  event  take  stock,  maintain 
reserves,  and  be  subject  to  all  the  other  provisions  of  this  Act."  As 
amended  June  21,  1917. 

Other  than  the  usual  salary  or  director's  fee  paid  to  any  officer, 
director,  employee,  or  attorney  of  a  member  bank,  and  other  than  a  rea- 
sonable fee  paid  by  said  bank  to  such  officer,  director,  employee,  or  attor- 
ney for  services  rendered  to  such  bank,  no  officer,  director,  employee,  or 
attorney  of  a  member  bank  shall  be  a  beneficiary  of  or  receive,  directly  or 
indirectly,  any  fee,  commission,  gift,  or  other  consideration  for  on  in  con- 
nection with  any  transaction  or  business  of  the  bank :  Provided,  how- 
ever, That  nothing  in  this  Act  contained  shall  be  construed  to  prohibit 
a  director,  officer,  employee,  or  attorney  from  receiving  the  same  rate  of 
interest  paid  to  other  depositors  for  similar  deposits  made  with  such 
bank :  And  provided  further,  That  notes,  drafts,  bills  of  exchange,  or 
other  evidences  of  debt  executed  or  indorsed  by  directors  or  attorneys 
of  a  member  bank  may  be  discounted  with  such  member  bank  on  the 
same  terms  and  conditions  as  other  notes,  drafts,  bills  of  exchange,  or 
evidences  of  debt  upon  the  affinnative  vote  or  written  assent  of  at  least 
a  majority  of  the  members  of  the  board  of  directors  of  such  member 
bank.      (As  amended  June  21,  1917.) 

Redemption  Fund  With  Treasurer  Not  to  be  Counted  as  Reserve. 

Sec.  20.  So  much  of  sections  two  and  three  of  the  Act  of 
June  twentieth,  eighteen  hundred  and  seventy-four,  entitled  "An  Act 
fixing  the  amount  of  United  Stales  notes,  providing  for  a  redistribution 
of  the  national-bank  currency,  and  for  other  purposes,"  as  provides  that 
the  fund  deposited  by  any  national  banking  association  with  the  Treas- 
urer of  the  United  States  for  the  redemption  of  its  notes  shall  be  counted 
as  a  part  of  its  lawful  reserve  as  provided  in  the  Act  aforesaid,  is  hereby 
repealed.  And  from  and  after  the  passage  of  this  Act  such  fund  of  five 
per  centum  shall  in  no  case  be  counted  by  any  national  banking  associa- 
tion as  a  part  of  its  lawful  reserve. 

Examination — Appointment  and  Powers  of  Examiners. 

Sec.  21.  Section  fifty-two  hundred  and  forty,  United  States  Re- 
vised Statutes,  is  amended  to  read  as  follows : 

The  Comptroller  of  the  Currency,  with  the  approval  of  the  Secre- 
tary of  the  Treasury,  shall  appoint  examiners  who  shall  examine  every 
member  bank  at  least  twice  in  each  calendar  year  and  oftener  if  consid- 
ered necessary :  Provided,  however.  That  the  Federal  Reserve  Board 
may  authorize  examination  by  the  State  authorities  to  be  accepted  in  the 
case  of  State  banks  and  trust  companies  and  may  at  any  time  direct  the 
holding  of  a  special  examination  of  State  banks  or  trust  companies  that 
are  stockholders  in  any  Federal  reserve  bank.     The  examiner  making 


Federal  Reserve  Act  139 

the  examination  of  any  national  bank,  or  of  any  other  member  bank, 
shall  have  power  to  make  a  thorough  examination  of  all  the  affairs  of  the 
bank  and  in  doing  so  he  shall  have  power  to  administer  oaths  and  to  ex- 
amine any  of  the  officers  and  agents  thereof  under  oath  and  shall  make 
a  full  and  detailed  report  of  the  condition  of  said  bank  to  the  Comp- 
troller of  the  Currency. 

The  Federal  Reserve  Board,  upon  the  recommendation  of  the  Comp- 
troller of  the  Currency,  shall  fix  the  salaries  of  all  bank  examiners  and 
make  report  thereof  to  Congress.  The  expense  of  the  examinations 
herein  provided  for  shall  be  assessed  by  the  Comptroller  of  the  Cur- 
rency upon  the  banks  examined  in  proportion  to  assets  or  resources  held 
by  the  banks  upon  the  dates  of  examination  of  the  various  banks. 

In  addition  to  the  examinations  made  and  conducted  by  the  Comp- 
troller of  the  Currency,  every  Federal  reserve  bank  may,  with  the  ap- 
proval of  the  Federal  reserve  agent  or  the  Federal  Reserve  Board,  pro- 
vide for  special  examination  of  member  banks  within  its  district.  The 
expense  of  such  examinations  shall  be  borne  by  the  bank  examined. 
Such  examinations  shall  be  so  conducted  as  to  inform  the  Federal  re- 
sen-e  bank  of  the  condition  of  its  member  banks  and  of  the  lines  of 
credit  which  are  being  extended  by  them.  Every  Federal  reserv^e  bank 
shall  at  all  times  furnish  to  the  Federal  Reserve  Board  such  information 
as  mav  be  demanded  concerning  the  condition  of  any  member  bank 
within  the  district  of  the  said  Federal  reserve  bank. 

No  bank  shall  be  subject  to  any  visitatorial  powers  other  than  such 
as  are  authorized  by  law,  or  vested  in  the  courts  of  justice  or  such  as 
shall  be  or  shall  have  been  exercised  or  directed  by  Congress,  or  by 
either  House  thereof  or  by  any  committee  of  Congress  or  of  either 
House  duly  authorized. 

The  Federal  Reserve  Board  shall,  at  least  once  each  year,  order  an 
examination  of  each  Federal  reserve  bank,  and  upon  joint  application  of 
ten  member  banks  the  Federal  Reserve  Board  shall  order  a  special  ex- 
amination and  report  of  the  condition  of  any  Federal  reserve  bank. 

Loans  and  Gratuities  to  Bank  Examiners  Forbidden. 

Sec.  22.  No  member  bank  or  any  officer,  director,  or  employee 
thereof  shall  hereafter  make  any  loan  or  grant  any  gratuity  to  any  bank 
examiner.  Any  bank  officer,  director,  or  employee  violating  this  provi- 
sion shall  be  deemed  guilty  of  a  misdemeanor  and  shall  be  imprisoned 
not  exceeding  one  year  or  fined  not  more  than  $5,000,  or  both ;  and  may 
be  fined  a  further  sum  equal  to  the  money  so  loaned  or  gratuity  given. 
Any  examiner  accepting  a  loan  or  gratuity  from  any  bank  examined 
by  him  or  from  an  officer,  director,  or  employee  thereof  shall  be  deemed 
guilty  of  a  misdemeanor  and  shall  be  imprisoned  not  exceeding  one  year 
or  fined  not  more  than  $5,000,  or  both ;  and  may  be  fined  a  further  sum 
equal  to  the  money  so  loaned  or  gratuity  given ;  and  shall  forever  there- 
after be  disqualified  from  holding  office  as  a  national  bank  examiner. 
No  national-bank  examiner  shall  perform  any  other  service   for  com- 


140  Important  Federal  Laws 

pensation  while  holding  such  office  for  any  bank  or  officer,  director,  or 
employee  thereof. 

Other  than  the  usual  salary  or  director's  fee  paid  to  any  officer, 
director,  or  employee  of  a  member  bank  and  other  than  a  reasonable  fee 
paid  by  said  bank  to  such  officer,  director,  or  employee  for  services  rend- 
ered to  such  bank,  no  officer,  director,  employee,  or  attorney  of  a  mem- 
ber bank  shall  be  a  beneficiary  of  or  receive,  directly  or  indirectly,  any 
fee,  commission,  gift,  or  other  consideration  for  or  in  connection  with 
any  transaction  or  business  of  the  bank.  No  examiner,  public  or  private, 
shall  disclose  the  names  of  borrowers  or  the  collateral  for  loans  of  a 
member  bank  to  other  than  the  proper  officers  of  such  bank  without 
first  having  obtained  the  express  permission  in  writing  from  the  Comp- 
troller of  the  Currency,  or  from  the  board  of  directors  of  such  bank, 
except  when  ordered  to  do  so  by  a  court  of  competent  jurisdiction,  or 
by  direction  of  the  Congress  of  the  United  States,  or  of  either  House 
thereof,  or  any  committee  of  Congress  or  of  either  House  duly  author- 
ized. Any  person  violating  any  provision  of  this  section  shall  be  pun- 
ished by  a  fine  of  not  exceeding  $5,000  or  by  imprisonment  not  exceed- 
ing one  year,  or  both. 

Except  as  provided  in  existing  laws,  this  provision  shall  not  take 
efifect  until  sixty  days  after  the  passage  of  this  Act. 

Liability  of  Stockholders  of  National  Banks. 

Sec.  23.  The  stockholders  of  every  national  banking  association 
shall  be  held  individually  responsible  for  all  contracts,  debts,  and  engage- 
ments of  such  association,  each  to  the  amount  of  his  stock  therein,  at  the 
par  value  thereof  in  addition  to  the  amount  invested  in  such  stock.  The 
stockholders  in  any  national  banking  association  who  shall  have  trans- 
ferred their  shares  or  registered  the  transfer  thereof  within  sixty  days 
next  before  the  date  of  the  failure  of  such  association  to  meet  its  obliga- 
tions, or  with  knowledge  of  such  impending  failure,  shall  be  liable  to  the 
same  extent  as  if  they  had  made  no  such  transfer,  to  the  extent  that  the 
subsecjuent  transferee  fails  to  meet  such  liability ;  but  this  provision  shall 
not  be  construed  to  affect  in  any  way  any  recourse  which  such  share- 
holders might  otherwise  have  against  those  in  whose  names  such  shares 
are  registered  at  the  time  of  such  failure. 
Loans  on  Farm  Lands. 

Sec.  24.  Any  national  banking  association  not  situated  in  a  central 
reserve  city  may  make  loans  secured  by  improved  and  unencumbered 
farm  land  situated  within  its  Federal  reserve  district  or  within  a  radius 
of  one  hundred  miles  of  the  place  in  which  such  bank  is  located,  irre- 
spective of  district  lines,  and  may  also  make  loans  secured  by  improved 
and  unencumbered  real  estate  located  within  one  hundred  miles  of  the 
place  in  which  such  bank  is  located,  irrespective  of  district  lines ;  but  no 
loan  made  upon  the  security  of  such  farm  land  shall  be  made  for  a 
longer  time  than  five  years,  and  no  loan  made  upon  the  security  of  such 
real  estate  as  distinguished  from  farm  land  shall  be  made  for  a  longer 
time  than  one  year  nor  shall  the  amount  of  any  such  loan,  whether  upon 


Federal  Reserve  Act  141 

such  farm  land  or  upon  such  real  estate,  exceed  fifty  per  centum  of  the 
actual  value  of  the  property  offered  as  security.  Any  such  bank  may 
make  such  loans,  whether  secured  by  such  farm  land  or  such  real  estate, 
in  an  aggregate  sum  equal  to  twenty-five  per  centum  of  its  capital  and 
surplus  or  to  one-third  of  its  time  deposits  and  such  banks  may  continue 
hereafter  as  heretofore  to  receive  time  deposits  and  to  pay  interest  on 
the  same. 

The  Federal  Reserve  Board  shall  have  power  from  time  to  time  to 
add  to  the  list  of  cities  in  which  national  banks  shall  not  be  permitted 
to  make  loans  secured  upon  real  estate  in  the  manner  described  in  this 
section.     (As  amended  September  7,  1916.) 

Foreign  Branches. 

Sec.  25.  Any  national  banking  association  possessing  a  capital  and 
surplus  of  $1,000,000  or  more  may  file  application  with  the  Federal 
Reserve  Board  for  permission  to  exercise,  upon  such  conditions  and 
under  such  regulations  as  may  be  prescribed  by  the  said  board,  either 
or  both  of  the  following  powers : 

First.  To  establish  branches  in  foreign  countries  or  dependencies 
or  insular  possessions  of  the  United  States  for  the  furtherance  of  the 
foreign  commerce  of  the  United  States,  and  to  act  if  required  to  do  so 
as  fiscal  agents  of  the  United  States. 

Second.  To  invest  an  amount  not  exceeding  in  the  aggregate  ten 
per  centum  of  its  paid-in  capital  stock  and  surplus  in  the  stock  of  one  or 
more  banks  or  corporations  chartered  or  incorporated  under  the  laws 
of  the  United  States  or  of  any  State  thereof,  and  principally  engaged  in 
international  or  foreign  banking,  or  banking  in  a  dependency  or  insular 
possession  of  the  United  States  either  directly  or  through  the  agency, 
ownership,  or  control  of  local  institutions  in  foreign  countries,  or  in 
such  dependencies  or  insular  possessions. 

Such  application  shall  specify  the  name  and  capital  of  the  banking 
association  filing  it,  the  powers  applied  for,  and  the  place  or  places 
where  the  banking  operations  proposed  are  to  be  carried  on.  The  Federal 
Reserve  Board  shall  have  power  to  approve  or  to  reject  such  application 
in  whole  or  in  part  if  for  any  reason  the  granting  of  such  application  is 
deemed  inexpedient,  and  shall  also  have  power  from  time  to  time  to  in- 
crease or  decrease  the  number  of  places  where  such  banking  operations 
may  be  carried  on. 

Every  national  banking  association  operating  foreign  branches  shall 
be  required  to  furnish  information  concerning  the  condition  of  such 
branches  to  the  Comptroller  of  the  Currency  upon  demand,  and  every 
member  bank  investing  in  the  capital  stock  of  banks  or  corporations 
described  under  subparagraph  two  of  the  first  paragraph  of  this  section 
shall  be  required  to  furnish  information  concerning  the  condition  of  such 
banks  or  corporations  to  the  Federal  Reserve  Board  upon  demand,  and 
the  Federal  Reserve  Board  may  order  special  examinations  of  the  said 
branches,  banks,  or  corporations  at  such  time  or  times  as  it  may  deem 
best. 


142  Important  Federal  Laws 

Before  any  national  bank  shall  be  permitted  to  purchase  stock  in 
any  such  corporation  the  said  corporation  shall  enter  into  an  agreement 
or  undertaking  with  the  Federal  Reserve  Board  to  restrict  its  operations 
or  conduct  its  business  in  such  manner  or  under  such  limitations  and 
restrictions  as  the  said  board  may  prescribe  for  the  place  or  places  where- 
in such  business  is  to  be  conducted.  If  at  any  time  the  Federal  Reserve- 
Board  shall  ascertain  that  the  regulations  prescribed  by  it  are  not  being 
complied  with,  said  board  is  hereby  authorized  and  empowered  to  in- 
stitute an  investigation  of  the  matter  and  to  send  for  persons  and  papers, 
subpoena  witnesses,  and  administer  oaths  in  order  to  satisfy  itself  as  to 
the  actual  nature  of  the  transactions  referred  to.  Should  such  investiga- 
tion result  in  establishing  the  failure  of  the  corporation  in  question,  or 
of  the  national  bank  or  banks  which  m.ay  be  stockholders  therein,  to 
comply  with  the  regulations  laid  down  by  the  said  Federal  Reserve 
Board,  such  national  banks  may  be  required  to  dispose  of  stock  holdings 
in  the  said  corporation  upon  reasonable  notice. 

Every  such  national  banking  association  shall  conduct  the  accounts 
of  each  foreign  branch  independently  of  the  accounts  of  other  foreign 
branches  estaljlished  by  it  and  of  its  home  ofifice,  and  shall  at  the  end  of 
each  fiscal  period  transfer  to  its  general  ledger  the  profit  or  loss  accrued 
at  each  branch  as  a  separate  item. 

Any  director  or  other  officer,  agent,  or  employee  of  any  member 
bank  may,  with  the  approval  of  the  Federal  Reserve  Board,  be  a  director 
or  other  officer,  agent,  or  employee  of  any  such  bank  or  corporation 
above  mentioned  in  the  capital  stock  of  which  such  member  bank  shall 
have  invested  as  hereinbefore  provided,  without  being  subject  to  the  pro- 
visions of  section  eight  of  the  Act  approved  October  fifteenth,  nineteen 
hundred  and  fourteen,  entitled  "An  Act  to  supplement  existing  laws 
against  unlawful  restraints  and  monopolies,  and  for  other  purposes." 
(As  amended  September  7,  1916.) 

Repeal  of  Provisions  of  Law  Inconsistent  With  the  Provisions  of  the 
Federal  Reserve  Act. 

Sec.  26.  All  provisions  of  law  inconsistent  with  or  superseded 
by  any  of  the  provisions  of  this  Act  are  to  that  extent  and  to  that  extent 
only  hereby  repealed :  Provided,  Nothing  in  this  Act  contained  shall  be 
construed  to  repeal  the  parity  provision  or  provisions  contained  in  an 
Act  approved  Alarch  fourteenth,  nineteen  hundred,  entitled  "An  Act  to 
define  and  fix  the  standard  of  value,  to  maintain  the  parity  of  all  forms 
of  money  issued  or  coined  by  the  United  States,  to  refund  the  public 
debt,  and  for  other  purposes,"  and  the  Secretary  of  the  Treasury  may 
for  the  purpose  of  maintaining  such  parity  and  to  strengthen  the  gold 
reserve,  borrow  gold  on  the  security  of  United  States  bonds  authorized. 
by  section  two  of  the  Act  last  referred  to  or  for  one-year  gold  notes 
bearing  interest  at  a  rate  of  not  to  exceed  three  per  centum  per  annum, 
or  sell  the  same  if  necessary  to  obtain  gold.  When  the  funds  of  the 
Treasury  on  hand  justify,  he  may  purchase  and  retire  such  outstanding 
bonds  and  notes. 


Federal  Reserve  Act  143 

Act  of  May  30,  1908,  Extended. 

Sec.  27.  The  provisions  of  the  Act  of  May  thirtieth,  nineteen  hun- 
dred and  eight,  authorizing  national  currency  associations,  the  issue  of 
additional  national-bank  circulation,  and  creating  a  National  Monetary 
Commission,  which  expires  by  limitation  under  the  terms  of  such  Act 
on  the  thirtieth  day  of  June,  nineteen  hundred  and  fourteen,  are  hereby 
extended  to  June  thirtieth,  nineteen  hundred  and  fifteen,  and  sections 
fifty-one  hundred  and  fifty-three,  fifty-one  hundred  and  seventy-two, 
fifty-one  hundred  and  ninety-one,  and  fifty-two  hundred  and  fourteen  of 
the  Revised  Statutes  of  the  United  States,  which  were  amended  by  the 
Act  of  May  thirtieth,  nineteen  hundred  and  eight,  are  hereby  reenacted 
to  read  as  such  sections  read  prior  to  May  thirtieth,  nineteen  hundred 
and  eight,  subject  to  such  amendments  or  modifications  as  are  prescribed 
in  this  Act : 

Provided,  however.  That  section  nine  of  the  Act  first  referred  to 
in  this  section  is  hereby  amended  so  as  to  change  the  tax  rates  fixed  in 
said  Act  by  making  the  portion  applicable  thereto  read  as  follows : 

National  banking  association  having  circulating  notes  secured 
otherwise  than  by  bonds  of  the  United  States,  shall  pay  for  the  first  three 
months  a  tax  at  the  rate  of  three  per  centum  per  annum  upon  the  aver- 
age amount  of  such  of  their  notes  in  circulation  as  are  based  upon  the 
deposit  of  such  securities,  and  afterwards  an  additional  tax  rate  of  one- 
half  of  one  per  centum  per  annum  for  each  month  until  a  tax  of  six  per 
centum  per  annum  is  reached,  and  thereafter  such  tax  of  six  per  centum 
per  annum  upon  the  average  amount  of  such  notes:  Provided  further. 
That  whenever  in  his  judgment  he  may  deem  it  desirable,  the  Secretary 
of  the  Treasury  shall  have  power  to  suspend  the  limitations  imposed  by 
section  one  and  section  three  of  the  Act  referred  to  in  this  section,  which 
prescribe  that  such  additional  circulation  secured  otherwise  than  by 
bonds  of  the  United  States  shall  be  issued  only  to  National  banks  having 
circulating  notes  outstanding  secured  by  the  deposit  of  bonds  of  the 
United  States  to  an  amount  not  less  than  forty  per  centum  of  the  cap- 
ital stock  of  such  banks,  and  to  suspend  also  the  conditions  and  limita- 
tions of  section  five  of  said  Act  except  that  no  bank  shall  be  permitted  to 
issue  circulating  notes  in  excess  of  one  hundred  and  twenty-five  per 
centum  of  its  unimpaired  capital  and  surplus.  He  shall  require  each 
bank  and  currency  association  to  maintain  on  deposit  in  the  Treasury  of 
the  United  States  a  sum  in  gold  sufficient  in  his  judgment  for  the  re- 
demption of  such  notes,  but  in  no  event  less  than  five  per  centum.  He 
may  permit  National  banks,  during  the  period  for  which  such  provisions 
are  suspended,  to  issue  additional  circulation  under  the  terms  and  condi- 
tions of  the  Act  referred  to  as  herein  amended :  Provided  further,  That 
the  Secretary  of  the  Treasury,  in  his  discretion,  is  further  authorized  to 
extend  the  benefits  of  this  Act  to  all  qualified  State  banks  and  trust  com- 
panies, which  have  joined  the  Federal  reserve  system,  or  which  may  con- 
tract to  join  within  fifteen  days  after  the  passage  of  this  Act.  (As 
amended  Aug.  15,  1914.) 


144  Important  Federal  Laws 

« 

Reduction  of  Capital  of  National  Banks. 

Sec.  28.  Section  fifty-one  hundred  and  forty-three  of  the 
Revised  Statutes  is  hereby  amended  and  reenacted  to  read  as  follows : 
Any  association  formed  under  this  title  may,  by  the  vote  of  shareholders 
owning  two-thirds  of  its  capital  stock,  reduce  its  capital  to  any  sum  not 
below  the  amount  required  by  this  title  to  authorize  the  formation  of 
associations ;  but  no  such  reduction  shall  be  allowable  which  will  reduce 
the  capital  of  the  association  below  the  amount  required  for  its  out- 
standing circulation,  nor  shall  any  reduction  be  made  until  the  amount 
of  the  proposed  reduction  has  been  reported  to  the  Comptroller  of  the 
Currency  and  such  reduction  has  been  approved  by  the  said  Comptroller 
of  the  Currency  and  by  the  Federal  Reserve  Board,  or  by  the  organiza- 
tion committee  pending  the  organization  of  the  Federal  Reserve  Board. 

Invalidation  of  Clause,  Etc.,  in  Act  Not  to  Invalidate  Remainder  of 
Act, 

Sec.  29.  If  any  clause,  sentence,  paragraph,  or  part  of  this  Act 
shall  for  any  reason  be  adjudged  by  any  court  of  competent  jurisdiction 
to  be  invalid,  such  judgment  shall  not  afifect,  impair,  or  invalidate  the 
remainder  of  this  Act,  but  shall  be  confined  in  its  operation  to  the  clause, 
sentence,  paragraph,  or  part  thereof  directly  involved  in  the  controversy 
in  which  such  judgment  shall  have  been  rendered. 

Reservation  of  Right  to  Amend  or  Repeal. 

Sec.  30.  The  right  to  amend,  alter,  or  repeal  this  Act  is  hereby 
expressly  reserved. 


THE  POSTAL  SAVINGS  ACT. 

Act  of  June  25,   1910. 

An  Act  to  establish  postal  savings  depositories  for  depositing  savings  at  interest 
with  the  security  of  the  government  for  repayment  thereof,  and  for  other 
purposes. 

Board  of  Trustees — Report. 

That  there  be,  and  is  hereby,  created  a  board  of  trustees  for  the 
control,  supervision,  and  administration  of  the  postal  savings  depository 
offices  designated  and  established  under  the  provisions  of  this  act,  and 
of  the  funds  received  as  deposits  at  such  postal  savings  depository  offices 
by  virtue  thereof.  Said  board  shall  consist  of  the  Postmaster  General, 
the  Secretary  of  the  Treasury,  and  the  Attorney  General,  severally,  acting 
ex  officio,  and  shall  have  power  to  make  all  necessary  and  proper  regula- 
tions for  the  receipt,  transmittal,  custody,  deposit,  investment,  and  repay- 
ment of  the  funds  deposited  at  postal  savings  depository  offices. 

The  board  of  trustees  shall  submit  a  report  to  Congress  at  the  begin- 
ning of  each  regular  session  showing  by  States  and  Territories  (for  the 
preceding  fiscal  year)  the  number  and  names  of  post  offices  receiving 
deposits,  the  aggregate  amount  of  deposits  made  therein,  the  aggregate 


Postal  Savings  145 

amount  of  withdrawals  therefrom,  the  number  of  depositors  in  each, 
the  total  amount  standing  to  the  credit  of  all  depositors  at  the  conclusion 
of  the  year,  the  amount  of  such  deposits  at  interest,  the  amount  of  interest 
received  thereon,  the  amount  of  interest  paid  thereon,  the  amount  of 
deposits  surrendered  by  depositors  for  bonds  issued  by  authority  of  this 
Act,  and  the  number  and  amount  of  unclaimed  deposits.  Also  the  amount 
invested  in  Government  securities  by  the  trustees,  the  amount  of  extra 
expense  of  the  Post  Office  Department  and  the  postal  service  incident 
to  the  operation  of  the  postal  savings  depository  system  and  all  other  facts 
which  it  may  deem  pertinent  and  proper  to  present. 

Law  Governing  Other  Official  Mail  Made  Applicable  to  Postal  Sav- 
ings Matter. 

Sec.  2.  That  provisions  of  section  three  of  the  act  of  July  fifth,, 
eighteen  hundred  and  eighty-four,  entitled  "An  act  making  appropria- 
tions for  the  service  of  the  Post  Office  Department  for  the  fiscal  year 
ending  June  thirtieth,  eighteen  hundred  and  eighty-five,  and  for  other 
purposes,"  are  hereby  extended  and  made  applicable  to  all  official  mail 
matter  pertaining  to  the  business  of  the  postal  savings  system ;  and  here- 
after the  board  of  trustees  for  the  control,  supervision,  and  administration 
of  the  postal  savings  depository  system  shall  not  be  required  to  show  in 
the  annual  report  prescribed  by  section  one  of  the  act  of  June  twenty- 
fifth,  nineteen  hundred  and  ten,  establishing  such  system,  the  amount  of 
work  done  for  that  system  by  the  Post  Office  Department  and  postal 
service  in  the  transportation  of  free  mail.  (As  amended  September  23, 
1914.) 

Postal  Savings  Depository  Offices. 

Sec.  3.  That  said  board  of  trustees  is  hereby  authorized  and  em- 
powered to  designate  such  post  offices  as  it  may  select  to  be  postal  savings 
depository  offices,  and  each  and  every  post  office  so  designated  by  order  of 
said  board  is  hereby  declared  to  be  a  postal  savings  depository  office 
within  the  meaning  of  this  act  and  to  be  authorized  and  required  to 
receive  deposits  of  funds  from  the  public  and  to  account  for  and  dispose 
of  the  same,  according  to  the  provisions  of  this  act  and  the  regulations 
made  in  pursuance  thereof.  Each  postal  savings  depository  office  shall 
be  kept  open  for  the  transaction  of  business  during  such  hours  as  the 
Postmaster  General,  with  the  approval  of  the  board  of  trustees,  shall 
direct. 

Opening  of  Accounts, 

Sec.  4.  That  accounts  may  be  opened  and  deposits  made  in  any 
postal  savings  depository  established  under  this  act  by  any  person  of  the 
age  of  ten  years  or  over,  in  his  or  her  own  name,  and  by  a  married  woman 
in  her  own  name  and  free  from  any  control  or  interference  by  her  hus- 
band ;  but  no  person  shall  at  the  same  time  have  more  than  one  postal 
savings  account  in  his  or  her  own  right. 

(10) 


146  Important  Federal  Laws 

Pass  Books. 

Sec.  5.  That  the  postmaster  at  a  postal  savings  depository  office 
shall,  upon  the  making  of  an  application  to  open  an  account  under  this 
act  and  the  submission  of  an  initial  deposit,  deliver  to  the  depositor  a 
pass  book  free  of  cost,  upon  which  shall  be  written  the  name  and  signa- 
ture or  mark  of.  the  depositor  and  such  other  memoranda  as  may  be 
necessary  for  purposes  of  identification,  in  which  pass  book  entries  of  all 
deposits  and  withdrawals  shall  be  made  in  both  figures  and  writing: 
Provided,  That  the  Postmaster  General  may,  with  the  approval  of  the 
board  of  trustees,  adopt  some  other  device  or  devices  in  lieu  of  a  pass 
book  as  a  means  of  making  and  preserving  evidence  of  deposits  and  with- 
drawals. 

Deposits — Size  of ;  Postal  Savings  Cards  and  Stamps. 

Sec.  6.  That  at  least  one  dollar,  or  a  larger  amount  in  multiples 
thereof,  must  be  deposited  before  an  account  is  opened  with  the  person 
depositing  the  same,  and  one  dollar,  or  multiples  thereof,  may  be  de- 
posited after  such  account  has  been  opened,  but  the  balance  to  the  credit 
of  any  person  upon  which  interest  is  payable  shall  not  exceed  one  thou- 
sand dollars  exclusive  of  accumulated  interest :  Provided.  That  in  order 
that  smaller  amounts  may  be  accumulated  for  deposit  any  person  may 
purchase  for  ten  cents  from  any  depository  office  a  postal  savings  card 
to  which  may  be  attached  specially  prepared  adhesive  stamps,  to  be  known 
as  "postal  savings  stamps,"  and  when  the  stamps  so  attached  amount  to 
one  dollar,  or  a  larger  sum  in  multiples  thereof,  including  the  ten-cent 
postal  savings  card,  the  same  may  be  presented  as  a  deposit  for  opening 
an  account,  and  additions  may  be  made  to  any  account  by  means  of  such 
card  and  stamps  in  amounts  of  one  dollar,  or  multiples  thereof,  and  when 
a  card  and  stamps  thereto  attached  are  accepted  as  a  deposit  the  post- 
master shall  immediately  cancel  the  same.  It  is  hereby  made  the  duty  of 
the  Postmaster  General  to  prepare  such  postal  savings  cards  and  postal 
savings  stamps  of  denominations  of  ten  cents,  and  to  keep  them  on  sale 
at  every  postal  savings  depository  office,  and  to  prescribe  all  necessary 
rules  and  regulations  for  the  issue,  sale,  and  cancellation  thereof.  (As 
amended  May  18,  1916.) 

Interest  on  Deposits. 

Sec.  7.  That  interest  at  the  rate  of  two  per  centum  per  annum  shall 
be  allowed  and  entered  to  the  credit  of  each  depositor  once  in  each 
year,  the  same  to  be  computed  on  such  basis  and  under  such  rules  and 
regulations  as  the  board  of  trustees  may  prescribe ;  but  interest  shall  not 
be  computed  or  allowed  on  fractions  of  a  dollar:  Provided,  That  the 
board  of  trustees  may,  in  their  discretion,  and  under  such  regulations  as 
such  board  may  promulgate,  accept  additional  deposits  not  to  exceed  in 
the  aggregate  one  thousand  dollars  for  each  depositor  but  upon  which 
no  interest  shall  be  paid.     (As  amended  May  18,  1916.) 


Postal  Savings  147 

Withdrawal  of  Deposits. 

Sec.  8.  That  any  depositor  may  withdraw  the  whole  or  any  part  of 
the  funds  deposited  to  his  or  her  credit,  with  the  accrued  interest,  upon 
demand  and  under  such  regulations  as  the  board  of  trustees  may  pre- 
scribe. Withdrawals  shall  be  paid  from  the  deposits  in  the  State  or  Ter- 
ritory, so  far  as  the  postal  funds  on  deposit  in  such  State  or  Territory 
may  be  sufficient  for  the  purpose,  and,  so  far  as  practicable,  from  the 
deposits  in  the  community  in  which  the  deposit  was  made.  No  bank  in 
which  postal  savings  funds  shall  be  deposited  shall  receive  any  exchange 
or  other  fees  or  compensation  on  account  of  the  cashing  or  collection  of 
any  checks  or  the  performance  of  any  other  service  in  connection  with 
the  postal  savings  depository  system. 

Depository  Banks — Regulations.  '-"..-     ;,  -,i    • 

Act  of  May  IS,  1916. 
Sec.  2.^  That  postal  savings  funds  received  under  the  provisions  of 
this  act  shall  be  deposited  in  solvent  banks,  whether  organized  under 
National  or  State  laws,  and  whether  member  banks  or  not  of  the  Federal 
reserve  system  established  by  the  act  approved  December  twenty-third, 
nineteen  hundred  and  thirteen,  being  subject  to  National  or  State  super- 
vision and  examination,  and  the  sums  deposited  shall  bear  interest  at  the 
rate  of  not  less  than  two  and  one-fourth  per  centum  per  annum,  which 
rate  shall  be  uniform  throughout  the  United  States  and  Territories  there- 
of;  but  five  per  centum  of  such  funds  shall  be  withdrawn  by  the  board 
of  trustees  and  kept  with  the  Treasurer  of  the  United  States,  who  shall 
be  treasurer  of  the  board  of  trustees,  in  lawful  money  as  a  reserve.  The 
board  of  trustees  shall  take  from  such  banks  such  security  in  public  bonds 
or  other  securities,  authorized  by  act  of  Congress  or  supported  by  the  tax- 
ing power,  as  the  board  may  prescribe,  approve,  and  deem  sufficient  and 
necessary  to  insure  the  safety  and  prompt  payment  of  such  deposits  on 
demand.  The  funds  received  at  the  postal  savings  depository  offices  in 
each  city,  town,  village,  and  other  locality  shall  be  deposited  in  banks 
located  therein  (substantially  in  proportion  to  the  capital  and  surplus  of 
each  such  bank)  willing  to  receive  such  deposits  under  the  terms  of  this 
act  and  the  regulations  made  by  authority  thereof:  Provided,  however, 
If  one  or  more  member  banks  of  the  Federal  reserve  system  established 
by  the  act  approved  December  twenty-third,  nineteen  hundred  and  thir- 
teen, exists  in  the  city,  town,  village,  or  locality  where  the  postal  savings 
deposits  are  made,  such  deposits  shall  be  placed  in  such  qualified  member 
banks  substantially  in  proportion  to  the  capital  and  surplus  of  each  such 
bank,  but  if  such  member  banks  fail  to  qualify  to  receive  such  deposits, 
then  any  other  bank  located  therein  may,  as  hereinbefore  provided,  qualify 
and  receive  the  same.  If  no  such  member  bank  and  no  other  qualified 
bank  exists  in  any  city,  town,  village,  or  locality,  or  if  none  where  such 
deposits  are  made  will  receive  such  deposits  on  the  terms  prescribed,  then 

1  This  section  supersedes  section  9  of  the  original  act. 


148  Important  Federal.  Laws 

such  funds  shall  be  deposited  under  the  terms  of  this  act  in  the  bank 
most  convenient  to  such  locality.  If  no  such  bank  in  any  State  or  Terri- 
tory is  willing  to  receive  such  deposits  on  the  terms  prescribed,  then  such 
funds  shall  be  deposited  with  the  treasurer  of  the  board  of  trustees  and 
shall  be  counted  in  making  up  the  reserve  of  five  per  centum.  Such 
funds  may  be  withdrawn  from  the  treasurer  of  said  board  of  trustees, 
and  all  other  postal  savings  funds,  or  any  part  of  such  funds,  may  be  at 
any  time  withdrawn  from  the  banks  and  savings  depository  offices  for  the 
repayment  of  postal  savings  depositors  when  required  for  that  purpose. 
If  at  any  time  the  postal  savings  deposits  in  any  State  or  Territory  shall 
exceed  the  amount  which  the  qualified  banks  therein  are  willing  to  receive 
under  the  terms  of  this  act,  and  such  excess  amount  is  not  required  to 
make  up  the  reserve  fund  of  five  per  centum  hereinbefore  provided  for, 
the  board  of  trustees  may  invest  all  or  any  part  of  such  excess  amount  in 
bonds  or  other  securities  of  the  United  States.  When,  in  the  judgment 
of  the  President,  the  general  welfare  and  interests  of  the  United  States 
so  require,  the  board  of  trustees  may  invest  all  or  any  part  of  the  postal 
savings  funds,  except  the  reserve  fund  of  five  per  centum  herein  provided 
for,  in  bonds  or  other  securities  of  the  United  States.  The  board  of 
trustees  may  in  its  discretion  purchase  from  the  holders  thereof  bonds 
which  have  been  or  may  be  issued  under  the  provisions  of  section  ten  of 
the  act  of  June  twenty-fifth,  nineteen  hundred  and  ten.  Interest  and 
profit  accruing  from  the  deposits  or  investment  of  postal  savings  funds 
shall  be  applied  to  the  payment  of  interest  due  to  postal  savings  depositors, 
as  hereinbefore  provided,  and  the  excess  thereof,  if  any,  shall  be  covered 
into  the  Treasury  of  the  United  States  as  a  part  of  the  postal  revenue: 
Provided  further,  That  postal  savings  funds  in  the  treasury  of  said  board 
shall  be  subject  to  disposition  as  provided  in  this  act,  and  not  otherwise : 
And  provided  further,  That  the  board  of  trustees  may  at  any  time  dispose 
of  bonds  held  as  postal  savings  investments  and  use  the  proceeds  to  meet 
withdrawals  of  deposits  by  depositors.  For  the  purposes  of  this  act  the 
word  "Territory"  as  used  herein  shall  be  held  to  include  the  District  of 
Columbia,  the  District  of  Alaska,  and  Porto  Rico,  and  the  word  "bank" 
shall  be  held  to  include  savings  banks  and  trust  companies  doing  a  bank- 
ing business. 

Postal  Savings  Bonds. 

Sec.  10.  That  any  depositor  in  a  postal  savings  depository  may 
surrender  his  deposit,  or  any  part  thereof,  in  sums  of  twenty  dollars, 
forty  dollars,  sixty  dollars,  eighty  dollars,  one  hundred  dollars,  and  multi- 
ples of  one  hundred  dollars  and  five  hundred  dollars,  and  receive  in  lieu 
of  such  surrendered  deposits,  under  such  regulations  as  may  be  established 
by  the  board  of  trustees,  the  amount  of  the  surrendered  deposits  in 
United  States  coupon  or  registered  bonds  of  the  denominations  of 
twenty  dollars,  forty  dollars,  sixty  dollars,  eighty  dollars,  one 
hundred    dollars,    and    five    hundred    dollars,    which    bonds    shall    bear 


Postal  Savings  149 

interest  at  the  rate  of  two  and  one-half  per  centum  per  annum,  payable 
semi-annually,  and  be  redeemable  at  the  pleasure  of  the  United  States 
after  one  year  from  the  date  of  their  issue  and  payable  twenty  years  from 
such  date,  and  both  principal  and  interest  shall  be  payable  in  United  States 
gold  coin  of  the  present  standard  of  value:  Provided,  That  the  bonds 
herein  authorized  shall  be  issued  only  (first)  when  there  are  outstanding 
bonds  of  the  United  States  subject  to  call,  in  which  case  the  proceeds  of 
the  bonds  shall  be  applied  to  the  redemption  at  par  of  outstanding  bonds 
of  the  United  States  subject  to  call,  and  (second)  at  times  when  under 
authority  of  law  other  than  that  contained  in  this  act  the  Government 
desires  to  issue  bonds  for  the  purpose  of  replenishing  the  Treasury,  in 
whicl^  case  the  issue  of  bonds  under  authority  of  this  act  shall  be  in  lieu 
of  the  issue  of  a  like  amount  of  bonds  issuable  under  authority  of  law 
other  than  that  contained  in  this  act :  Provided  further,  That  the  bonds 
authorized  by  this  act  shall  be  issued  by  the  Secretary  of  the  Treasury 
under  such  regulations  as  he  may  prescribe :  And  provided  further,  That 
the  authority  contained  in  section  nine  of  this  act  for  the  investment  of 
postal  savings  funds  in  United  States  bonds  shall  include  the  authority  to 
invest  in  the  bonds  herein  authorized  whenever  such  bonds  may  be  law- 
fully issued :  And  provided  further.  That  the  bonds  herein  authorized 
shall  be  exempt  from  all  taxes  or  duties  of  the  United  States  as  well  as 
from  taxation  in  any  form  by  or  under  State,  municipal,  or  local  author- 
ity :  And  provided  further.  That  no  bonds  authorized  by  this  act  shall 
be  receivable  by  the  Treasurer  of  the  United  States  as  security  for  the 
issue  of  circulating  notes  by  national  associations. 

Investment  in  United  States  Bonds. 

Sec.  U.  That  whenever  the  trustees  of  the  postal  savings  fund  have 
in  their  possession  funds  available  for  investment  in  United  States  bonds 
they  may  notify  the  Secretary  of  the  Treasury  of  the  amount  of  such 
funds  in  their  hands  which  they  desire  to  invest  in  bonds  of  the  United 
States  subject  to  call,  whereupon,  if  there  are  United  States  bonds  sub- 
ject to  call,  the  Secretary  of  the  Treasury  shall  call  for  redemption  an 
amount  of  such  bonds  equal  to  the  amount  of  the  funds  in  the  hands  of 
the  trustees  which  the  trustees  desire  to  thus  invest,  and  the  bonds  so 
called  shall  be  redeemed  at  par  with  accrued  interest  at  the  Treasury  of 
the  United  States  on  and  after  three  months  from  the  date  of  such  call, 
and  interest  on  the  said  bonds  shall  thereupon  cease :  Provided,  That 
the  said  bonds  when  redeemed  shall  be  reissued  at  par  to  the  trustees 
without  change  in  their  terms  as  to  rate  of  interest  and  date  of  maturity : 
And  provided  further,  That  the  bonds  so  reissued  may,  in  the  discretion 
of  the  Secretary  of  the  Treasury,  be  called  for  redemption  from  the 
trustees  in  like  manner  as  they  were  originally  called  for  redemption  from 
their  former  owners  whenever  there  are  funds  in  the  Treasury  of  the 
United  States  available  for  such  redemption. 


150  Important  Federal  Laws 

Postal  Savings  Funds  to  be  Kept  Separate  by  Postmasters. 

Sec.  12.  That  postal  savings  depository  funds  shall  be  kept  separate 
from  other  funds  by  postmasters  and  other  officers  and  employees  of  the 
postal  service,  who  shall  be  held  to  the  same  accountability  under  their 
bonds  for  such  funds  as  for  public  moneys ;  and  no  person  connected  with 
the  Post  Office  Department  shall  disclose  to  any  person  other  than  the 
depositor  the  amount  of  any  deposits,  unless  directed  so  to  do  by  the 
Postmaster  General.  All  statutes  relating  to  the  safekeeping  of  and 
proper  accounting  for  postal  receipts  are  made  applicable  to  postal  sav- 
ings funds,  and  the  Postmaster  General  may  require  postmasters,  assistant 
postmasters,  and  clerks  at  postal  savings  depositories  to  give  any  addi- 
tional bond  he  may  deem  necessary. 

Compensation. 

Sec.  13.  Postmasters,  assistant  postmasters,  clerks  or  other  em- 
ployees at  post  offices  of  the  presidential  grade,  and  postmasters  at  post 
offices  of  the  fourth  class  shall  not  be  allowed  or  paid  any  additional  com- 
pensation for  the  transaction  of  postal  savings  depository  business.  (As 
amended  September  23,  1914.) 

Appropriation. 

Sec,  14.  That  the  sum  of  one  hundred  thousand  dollars  is  hereby 
appropriated,  out  of  any  money  in  the  Treasury  not  otherwise  appro- 
priated, or  so  much  thereof  as  may  be  necessary,  to  enable  the  Postmaster 
General  and  the  board  of  trustees  to  establish  postal  savings  depositories 
in  accordance  with  the  provisions  of  this  act,  including  the  reimbursement 
of  the  Secretary  of  the  Treasury  for  expenses  incident  to  the  preparation, 
issue,  and  registration  of  the  bonds  authorized  in  this  act;  and  the  Post- 
master General  is  authorized  to  require  postmasters  and  other  postal 
officers  and  employees  to  transact,  in  connection  with  their  other  duties, 
such  postal  savings  depository  business  as  may  be  necessary;  and  he  is 
also  authorized  to  make,  and  with  the  approval  of  the  board  of  trustees 
to  promulgate,  and  from  time  to  time  to  modify  or  revoke,  subject  to 
the  approval  of  said  board,  such  rules  and  regulations  not  in  conflict  with 
law  as  he  may  deem  necessary  to  carry  the  provisions  of  this  act  into 
effect. 

Protective  and  Criminal  Statutes  Made  Applicable  to  Postal  Savings 
Funds. 
Sec.  15.  That  all  the  safeguards  provided  by  law  for  the  protection 
of  public  moneys,  and  all  statutes  relating  to  the  embezzlement,  conver- 
sion, improper  handling,  retention,  use,  or  disposal  of  postal  and  money- 
order  funds  and  the  punishments  provided  for  such  offenses  are  hereby 
extended  and  made  applicable  to  postal  savings  depository  funds,  and  all 
statutes  relating  to  false  returns  of  postal  and  money-order  business,  the 
forgery,  counterfeiting,  alteration,  improper  use  or  handling  of  postal 
and  money-order  blanks,  forms,  vouchers,  accounts,  and  records,  and  the 


Postal  Savings  151 

dies,  plates,  and  engravings  therefor,  with  the  penalties  provided  in  such 
statutes,  are  hereby  extended  and  made  applicable  to  postal  savings  de- 
pository business,  and  the  forgery,  counterfeiting,  alteration,  improper  use 
or  handling  of  postal  savings  depository  blanks,  forms,  vouchers,  accounts, 
and  records,  and  the  dies,  plates,  and  engravings  therefor. 

Pledge  for  Repayment  of  Deposits. 

Sec.  16.  That  the  faith  of  the  United  States  is  solemnly  pledged  to 
the  payment  of  the  deposits  made  in  postal  savings  depository  offices,  with 
accrued  interest  thereon  as  herein  provided. 

Adjudication  of   Courts  Will  be  conclusive  as  to  Rights  in   Postal 
Savings  Funds. 

Sec.  17.  That  the  final  judgment,  order,  or  decree  of  any  court  of 
competent  jurisdiction  adjudicating  any  right  or  interest  in  the  credit 
of  any  sums  deposited  by  any  person  with  a  postal  savings  depository  if 
the  same  shall  not  have  been  appealed  from  and  the  time  for  appeal  has 
expired  shall,  upon  submission  to  the  Postmaster  General  of  a  copy  of  the 
same,  duly  authenticated  in  the  manner  provided  by  the  laws  of  the 
United  States  for  the  authentication  of  the  records  and  judicial  proceed- 
ings of  the  courts  of  any  State  or  Territory  or  of  any  possession  subject 
to  the  jurisdiction  of  the  United  States,  when  the  same  are  proved  or 
admitted  within  any  other  court  within  the  United  States,  be  accepted  and 
pursued  by  the  board  of  trustees  as  conclusive  of  the  title,  right,  interest, 
or  possession  so  adjudicated,  and  any  payment  of  said  sum  in  accordance 
with  such  order,  judgment,  or  decree  shall  operate  as  a  full  and  complete 
discharge  of  the  United  States  from  the  claim  or  demand  of  any  person 
or  persons,  to  the  same. 

Act  of  August  24,  1912. 
An  Act  making  appropriations  for  the   service   of   the   Post   Office  Department 
for  the  fiscal  year  ending  June  thirtieth,  nineteen  hundred  and  thirteen,  and 
for  other  pui'poses. 

Postmaster-General  to  Designate  Offices — To  be  Executive  Head  of 
System. 

Sec.  10.  *  *  *  And  provided  further,  That  all  expenditures  in 
the  postal  savings  system  shall  be  audited  by  the  Auditor  for  the  Post 
Office  Department :  And  provided  further.  That  the  Postmaster  General 
shall  select  and  designate  the  post  offices  which  are  to  be  postal  savings 
depository  offices,  and  shall  appoint  and  fix  the  compensation  of  such 
superintendents,  inspectors,  and  other  employees  as  may  be  necessary  in 
conducting,  supervising,  and  directing  the  business  of  such  offices,  includ- 
ing the  employees  of  a  central  office  at  Washington,  District  of  Columbia, 
and  shall  prescribe  the  hours  during  which  postal  savings  depository 
offices  shall  remain  open.  He  shall  also  from  time  to  time  make  rules  and 
regulations  with  respect  to  the  deposits  in  and  withdrawals  of  moneys 


152  Important  Federal  Laws 

from  postal  savings  depositories  and  the  issue  of  pass  books  or  such 
other  devices  as  he  may  adopt  as  evidence  of  such  deposits  or  with- 
drawals. The  provisions  of  the  Act  approved  June  twenty-fifth,  nineteen 
hundred  and  ten,  are  hereby  modified  accordingly. 

******  * 


THE  NATIONAL  BANK  ACT. 

Act  of  Juue  20,  1S74.     ( i ) 
Section   1.     An  Act  entitled  "An  Act  to  provide  a  national  cur- 
rency secured  by  a  pledge  of  United  States  bonds,  and  to  provide  for  the 
circulation  and  redemption  thereof,"  approved  June  3,  1864,  shall  here- 
after be  known  as  "the  national-bank  Act." 

Formation  of  National  Banking  Associations. 

Sec.  5133.  Associations  for  carrying  on  the  business  of  banking 
under  this  Title  may  be  formed  by  any  number  of  natural  persons,  not 
less  in  any  case  than  five.  They  shall  enter  into  articles  of  association, 
which  shall  specify  in  general  terms  the  object  for  which  the  association 
is  formed,  and  may  contain  any  other  provisions,  not  inconsistent  with 
law,  which  the  association  may  see  fit  to  adopt  for  the  regulation  of  its 
business  and  the  conduct  of  its  afifairs.  These  articles  shall  be  signed 
by  the  persons  uniting  to  form  the  association,  and  a  copy  of  them  shall 
be  forwarded  to  the  Comptroller  of  the  Currency,  to  be  filed  and  pre- 
served in  his  office. 

Requisites  of  Organization  Certificate. 

Sec.  5134.  The  persons  uniting  to  form  such  an  association  shall, 
under  their  hands,  make  an  organization  certificate,  which  shall  specifi- 
cally state : 

•        First.     The  name  assumed  by  such  association;  which  name  shall 
be  subject  to  the  approval  of  the  Comptroller  of  the  Currency. 

Second.  The  place  where  its  operations  of  discount  and  deposit 
are  to  be  carried  on,  designating  the  State,  Territory,  or  district,  and 
the  particular  county  and  city,  town,  or  village. 

Third.  The  amount  of  capital  stock  and  the  number  of  shares  into 
which  the  same  is  to  be  divided. 

Fourth.  The  names  and  places  of  residence  of  the  shareholders 
and  the  number  of  shares  held  by  each  of  them. 

Fifth.  The  fact  that  the  certificate  is  made  to  enable  such  persons 
to  avail  therliselves  of  the  advantages  of  this  Title. 


1  References  to   sections   are   to  the   U.   S.   Revised   Statutes   and   to   acts 
as  indicated. 


National  Bank  Act  153 

How  Certificate  Shall  be  Acknowledged  and  Filed. 

Sec.  5135.  The  organization  certificate  shall  be  acknowledged  be- 
fore a  judge  of  some  court  of  record,  or  notary  public;  and  shall  be, 
together  with  the  acknowledgment  thereof,  authenticated  by  the  seal 
of  such  court,  or  notary,  transmitted  to  the  Comptroller  of  the  Currency, 
who  shall  record  and  carefully  preserve  the  same  in  his  office. 

Corporate  Powers  of  Association. 

Sec.  5136.  Upon  duly  making  and  filing  articles  of  association  and 
an  organization  certificate,  the  association  shall  become,  as  from  the  date 
of  the  execution  of  its  organization  certificate,  a  body  corporate,  and 
as  such,  and  in  the  name  designated  in  the  organization  certificate,  it 
shall  have  power — 

First.     To  adopt  and  use  a  corporate  seal. 

Second.  'To  have  succession  for  the  period  of  twenty  years  from 
its  organization,  unless  it  is  sooner  dissolved  according  to  the  provisions 
of  its  articles  of  association,  or  by  the  act  of  its  shareholders  owning 
two-thirds  of  its  stock,  or  unless  its  franchise  becomes  forfeited  by  some 
violation  of  law. 

Third.     To  make  contracts. 

Fourth.  To  sue  and  be  sued,  complain  and  defend,  in  any  court 
of  law  and  equity,  as  fully  as  natural  persons. 

Fifth.  To  elect  or  appoint  directors,  and  by  its  board  of  directors 
to  appoint  a  president,  vice-president,  cashier,  and  other  officers,  define 
their  duties,  require  bonds  of  them  and  fix  the  penalty  thereof,  dismiss 
such  officers  or  any  of  them  at  pleasure,  and  appoint  others  to  fill  their 
places. 

Sixth.  To  prescribe,  by  its  board  of  directors,  by-laws  not  incon- 
sistent with  law,  regulating  the  manner  in  which  its  stock  shall  be  trans- 
ferred, its  directors  elected  or  appointed,  its  officers  appointed,  its  prop- 
erty transferred,  its  general  business  conducted,  and  the  privileges 
granted  to  it  by  law  exercised  and  enjoyed. 

Seventh.  To  exercise  by  its  board  of  directors,  or  duly  authorized 
officers  or  agents,  subject  to  law,  all  such  incidental  powers  as  shall  be 
necessary  to  carry  on  the  business  of  banking;  by  discounting  and  nego- 
tiating promissory  notes,  drafts,  bills  of  exchange,  and  other  evidences 
of  debt ;  by  receiving  deposits ;  by  buying  and  selling  exchange,  coin,  and 
bullion ;  by  loaning  money  on  personal  security ;  and  by  obtaining,  issuing, 
and  circulating  notes  according  to  the  provisions  of  this  Title. 

But  no  association  shall  transact  any  business  except  such  as  is  inci- 
dental and  necessarily  preliminary  to  its  organization,  until  it  has  been 
authorized  by  the  Comptroller  of  the  Currency  to  commence  the  business 
of  banking. 


154  Important  Federal  Laws 

Change  of  Name  and  Location  of  Bank.     (Act  May  1,  1886.) 

Sec.  2.  Any  national  banking  association  may  change  its  name  or 
the  place  where  its  operations  of  discount  and  deposit  are  to  be  carried 
on,  to  an}^  other  place  within  the  same  State,  not  more  than  thirty  miles 
distant,  with  the  approval  of  the  Comptroller  of  the  Currency,  by  the 
vote  of  shareholders  owning  two-thirds  of  the  stock  of  such  associa- 
tion. A  duly  authenticated  notice  of  the  vote  and  of  the  new  name  or 
location  selected  shall  be  sent  to  the  ofifice  of  the  Comptroller  of  the 
Currency ;  but  no  change  of  name  or  location  shall  be  valid  until  the 
Comptroller  shall  have  issued  his  certificate  of  approval  of   the  same. 

Debts  Not  Affected  by  Change.     (Act  ]\Iay  1,  1886.) 

Sec.  3.  All  debts,  liabilities,  rights,  provisions,  and  powers  of  the 
association  under  its  old  name  shall  devolve  upon  and  inure  to  the  asso- 
ciation under  its  new  name. 

No  Release  From  Liabilities.     (Act  Alay  1.  1886.) 

Sec.  4.  Nothing  in  this  act  contained  shall  be  so  construed  as  in 
any  manner  to  release  any  national  banking  association  under  its  old 
name  or  at  its  old  location  from  any  liability,  or  afifect  any  action  or 
proceeding  in  law  in  which  said  association  may  be  or  become  a  party 
or  interested. 

National  Banks  Deemed  Citizens  of  States  in  Which  Located.  (Act 
August  13.  1888.) 
Sec.  4.  All  national  banking  associations  established  under  the  laws 
of  the  United  States  shall,  for  the  purposes  of  all  actions  by  or  against 
them,  real,  personal,  or  mixed,  and  all  suits  in  equity,  be  deemed  citizens 
of  the  States  in  which  they  are  respectively  located ;  and  in  such  cases 
the  circuit  and  district  courts  shall  not  have  jurisdiction  other  than  such 
as  they  would  have  in  cases  between  individual  citizens  of  the  same 
State.  The  provisions  of  this  section  shall  not  be  held  to  afifect  the 
jurisdiction  of  the  courts  of  the  United  States  in  cases  commenced  by 
the  United  States  or  by  direction  of  any  officer  thereof,  or  cases  for 
winding  up  the  affairs  of  any  such  bank. 

Extension  of  Corporate  Existence.     (Act  July  12,  1882.) 

Sec.  1.  That  any  national  banking  association  organized  under  the 
acts  of  February  twenty-fifth,  eighteen  hundred  and  sixty-three,  June 
third,  eighteen  hundred  and  sixty-four,  and  February  fourteen,  eighteen 
hundred  and  eighty,  or  under  sections  fifty-one  hundred  and  thirty-three, 
fifty-one  hundred  and  thirty-four,  fifty-one  hundred  and  thirty-five, 
fifty-one  hundred  and  thirty-six,  and  fifty-one  hvmdred  and  fifty- four  of 
the  Revised  Statutes  of  the  United  States,  may,  at  any  time  within  the 
two  years  next  previous  to  the  date  of  the  expiration  of  its  corporate 
existence  under  present  law,  and  with  the  approval  of  the  Comptroller 
of  the  Currency,  to  be  granted,  as  hereinafter  provided,  extend  its  period 
of  succession  by  amending  its  articles  of  association  for  a  term  of  not 


National  Bank  Act  155 

more  than  twenty  years  from  the  expiration  of  the  period  of  succession 
named  in  said  articles  of  association,  and  shall  have  succession  for  such 
extended  period,  unless  sooner  dissolved  by  the  act  of  shareholders  own- 
ing two-thirds  of  its  stock,  or  unless  its  franchise  becomes  forfeited  by 
some  violation  of  law,  or  unless  hereafter  modified  or  repealed. 

Consent  of  Two-Thirds  Necessary.     (Act  July  12,  1882.) 

Sec.  2.  That  such  amendment  of  said  articles  of  association  shall 
be  authorized  by  the  consent  in  writing  of  shareholders  o^^^ling  not  less 
than  two-thirds  of  the  capital  stock  of  the  association;  and  the  board 
of  directors  shall  cause  such  consent  to  be  certified  under  the  seal  of 
the  association,  by  the  president  or  cashier,  to  the  Comptroller  of  the 
Currency,  accompanied  by  an  application  made  by  the  president  or 
cashier  for  the  approval  of  the  amended  articles  of  association  by  the 
Comptroller ;  and  such  amended  articles  of  association  shall  not  be  valid 
until  the  Comptroller  shall  give  to  such  association  a  certificate  under 
his  hand  and  seal  that  the  association  has  complied  with  all  the  provi- 
sions required  to  be  complied  with,  and  is  authorized  to  have  succes- 
sion for  the  extended  period  named  in  the  amended  articles  of  associa- 
tion. 

Special  Examination  of  Bank  and  Issue  of  Certificate  of  Approval 
by  Comptroller.  (Act  July  12,  1882.) 
Sec.  3.  That  upon  the  receipt  of  the  application  and  certificate 
of  the  association  provided  for  in  the  preceding  section,  the  Comptroller 
of  the  Currency  shall  cause  a  special  examination  to  be  made,  at  the 
expense  of  the  association,  to  determine  its  condition ;  and  if  after  such 
examination  or  otherwise,  it  appears  to  him  that  said  association  is  in 
a  satisfactory  condition,  he  shall  grant  his  certificate  of  approval  provided 
for  in  the  preceding  sectrion,  or  if  it  appears  that  the  condition  of  said 
association  is  not  satisfactory,  he  shall  withhold  such  certificate  of  ap- 
proval. * 

Status  Not  Changed  by  Extension.  Jurisdiction  of  Suits  by  or 
Against  National  Banks.  (Act  July  12,  1882.) 
Sec.  4.  That  any  association  so  extending  the  period  of  its  suc- 
cession shall  continue  to  enjoy  all  the  rights  and  privileges  _ and  imrnuni- 
ties  granted  and  shall  continue  to  be  subject  to  all  the  duties,  liabilities, 
and  restrictions  imposed  by  the  Revised  Statutes  of  the  United  States 
and  other  acts  having  reference  to  national  banking  associations,  and  it 
shall  continue  to  be  in  all  respects  the  identical  association  it  was  before 
the  extension  of  its  period  of  succession ;  Provided,  however.  That  the 
jurisdiction  for  suits  hereafter  brought  by  or  against  any  association 
established  under  any  law  providing  for  national  banking  associations, 
except  suits  between  them  and  the  United  States  or  its  officers  and 
agents,  shall  be  the  same  as,  and  not  other  than,  the  jurisdiction  for 
suits  by  or  against  banks  not  organized  under  any  law  of  the  United 
States   which   do   or  might  do,  banking  business   where   such   national 


156  Important  Federal  Laws 

banking  association  may  be  doing  business  when  such  suits  niay  be 
begun :  And  all  laws  and  parts  of  laws  of  the  United  States  inconsistent 
with  this  proviso  be,  and  the  same  are  hereby,  repealed. 

Dissenting  Shareholders  May  Withdraw.     (Act  July  12,  1882.) 

Sec.  5.  That  when  any  national  banking  association  has  amended 
its  articles  of  association  as  provided  in  this  act,  and  the  Comptroller 
has  granted  his  certificate  of  approval,  any  shareholder  not  assenting 
to  such  amendment  may  give  notice  in  writing  to  the  directors,  within 
thirty  days  from  the  date  of  the  certificate  of  approval,  of  his  desire 
to  withdraw  from  said  association,  in  which  case  he  shall  be  entitled 
to  receive  from  said  banking  association  the  value  of  the  shares  so  held 
by  him,  to  be  ascertained  by  an  appraisal  made  by  a  committee  of  three 
persons,  one  to  be  selected  by  such  shareholder,  one  by  the  directors, 
and  the  third  by  the  first  two :  and  in  case  the  value  so  fixed  shall  not 
be  satisfactory  to  any  such  shareholder,  he  may  appeal  to  the  Comp- 
troller of  the  Currency,  who  shall  cause  a  reappraisal  to  be  made,  which 
shall  be  final  and  binding;  and  if  said  reappraisal  shall  exceed  the  value 
fixed  by  said  committee,  the  bank  shall  pay  the  expenses  of  said  reap- 
praisal, and  otherwise  the  appellant  shall  pay  said  expenses ;  and  the 
value  so  ascertained  and  determined  shall  be  deemed  to  be  a  debt  due, 
and  be  forthwith  paid,  to  said  shareholder,  from  said  bank ;  and  the 
shares  so  surrendered  and  appraised  shall,  after  due  notice,  be  sold  at 
public  sale,  within  thirty  days  after  the  final  appraisal  provided  in  this 
section :  Provided,  That  in  the  organization  of  any  banking  association 
intended  to  replace  any  existing  banking  association,  and  retaining  the 
name  thereof,  the  holders  of  stock  in  the  expiring  association  shall  be 
entitled  to  preference  in  the  allotment  of  the  shares  of  the  new  asso- 
ciation in  proportion  to  the  number  of  shares  held  by  them  respectively 
in  the  expiring  association. 

Redemption  of  Circulating  Notes  Issued  Prior  to  Extension.  (Act 
July  12.  1882.) 
Sec.  6.  That  the  circulating  notes  of  any  association  so  extending 
the  period  of  its  succession  which  shall  have  been  issued  to  it  prior  to 
such  extension  shall  be  redeemed  at  the  Treasury  of  the  United  States, 
as  provided  in  section  three  of  the  Act  of  June  twentieth,  eighteen  hun- 
dred and  seventy-four,  entitled  "An  Act  fixing  the  amount  of  United 
States  notes,  providing  for  redistribution  of  national  bank  currency,  and 
for  other  purposes,"  and  such  notes  when  redeemed  shall  be  forwarded 
to  the  Comptroller  of  the  Currency,  and  destroyed,  as  now  provided  by 
law  ;  and  at  the  end  of  three  years  from  the  date  of  the  extension  of  the 
corporate  existence  of  each  bank  the  association  so  extended  shall  deposit 
lawful  money  with  the  Treasurer  of  the  United  States  sufficient  to 
redeem  the  remainder  of  the  circulation  which  was  outstanding  at  the 
date  of  its  extension,  as  provided  in  sections  fifty-two  hundred  and 
twenty-two,  fifty-two  hundred  and  twenty-four,  and  fifty-two  hundred' 


National  Bank  Act  157 

and  twenty-five  of  the  Revised  Statutes  ;  and  any  gain  that  may  arise 
from  the  failure  to  present  such  circulating  notes  for  redemption  shall 
inure  to  the  benefit  of  the  United  States ;  and  from  time  to  time,  as 
such  notes  are  redeemed  or  lawful  money  deposited  therefor  as  pro- 
vided herein,  new  circulating  notes  shall  be  issued  as  provided  by  this 
act,  bearing  such  devices,  to  be  approved  by  the  Secretary  of  the  Treas- 
ury, as  shall  make  them  readily  distinguishable  from  the  circulating 
notes  heretofore  issued :  Provided,  however,  That  each  banking  asso- 
ciation which  shall  obtain  the  benefit  of  this  act  shall  reimburse  to  the 
Treasurv  the  cost  of  preparing  the  plate  or  plates  for  such  new  circu- 
lating notes  as  shall  be  issued  to  it. 

Dissolution  of  Banks  Not  Extending  Period  of  Succession.  (Act 
July  12.  1882.) 
Sec.  7.  That  national  banking  associations  whose  corporate  exist- 
ence has  expired  or  shall  hereafter  expire,  and  which  do  not  avail 
themselves  of  the  provisions  of  this  act,  shall  be  required  to  comply 
with  the  provisions  of  sections  fifty-two  hundred  and  twenty-one  and 
fifty-two  hundred  and  twenty-two  of  the  Revised  Statutes  in  same 
manner  as  if  the  shareholders  had  voted  to  go  into  liquidation,  as  pro- 
vided in  section  fifty-two  hundred  and  twenty  of  the  Revised  Statutes ; 
and  the  provisions  of  sections  fifty-two  hundred  and  twenty-four  and 
fifty-two  hundred  and  tw^enty-five  of  the  Revised  Statutes  shall  also 
be  applicable  to  such  associations,  except  as  modified  by  this  act ;  and 
the  franchise  of  such  associations  is  hereby  extended  for  the  sole  pur- 
pose of  liquidating  their  affairs  until  such  affairs  are  finally  closed. 

Reextension  of  Corporate  Existence.    (Acts  of  April  12,  1902.) 

That  the  Comptroller  of  the  Currency  is  hereby  authorized,  in 
the  manner  provided  by.  and  under  the  conditions  and  limitations  of, 
the  Act  of  July  12.  1882.  to  extend  for  a  further  period  of  twenty 
years  the  charter  of  any  national  banking  association  extended  under 
said  act  wdiich  shall  desire  to  continue  its  existence  after  the  expiration 
of  its  charter. 

Power  to  Hold  Real  Property.     (Act  of  June  3,  1864.) 

Sec.  5137.  A  national  banking  association  may  purchase,  hold, 
and  convey  real  estate  for  the  following  purposes,  and   for  no  others : 

First.  Such  as  shall  be  necessary  for  its  immediate  accommoda- 
tion in  the  transaction  of  its  business. 

Second.  Such  as  shall  be  mortgaged  to  it  in  good  faith  by  w^ay 
of  security  for  debts  previously  contracted. 

Third.  Such  as  shall  be  conveyed  to  it  in  satisfaction  of  debts 
previously  contracted  in  the  course  of  its  dealings. 

Fourth.  Such  as  it  shall  purchase  at  sales  under  judgments, 
decrees,  or  mortgages  held  by  the  association,  or  shall  purchase  to 
secure  debts  due  to  it. 

But  no  such  association  shall  hold  the  possession  of  any  real  estate 


158  Important  Federal  Laws 

under  mortgage,  or  the  title  and  possession  of  any  real  estate  purchased 
to  secure  any  debts  due  to  it,  for  a  longer  period  than  five  years. 
Note. — For  power  to  loan  on  farm  lands,  see  Federal  Reserve  Act. 

Requisite  Amount  of  Capital. 

Sec.  5138.  No  association  shall  be  organized  with  a  less  capital 
than  one  hundred  thousand  dollars,  except  that  banks  with  a  capital 
of  not  less  than  fifty  thousand  dollars  may,  with  the  approval  of  the 
Secretary  of  the  Treasury,  be  organized  in  any  place  the  population 
of  which  does  not  exceed  six  thousand  inhabitants,  and  except  that 
banks  with  a  capital  of  not  less  than  twenty-five  thousand  dollars  may, 
with  the  sanction  of  the  Secretary  of  the  Treasury,  be  organized  in  any 
place  the  population  of  which  does  not  exceed  three  thousand  inhabitants. 
No  association  shall  be  organized  in  a  city  the  population  of  which 
exceeds  fifty  thousand  persons  with  a  capital  of  less  than  two  hundred 
thousand  dollars.     (As  amended  IMarch  14,  1900.) 

Shares  of  Stock  and  Transfers. 

Sec.  5139.  The  capital  stock  of  each  association  shall  be  divided 
into  shares  of  one  hundred  dollars  each,  and  be  deemed  personal  prop- 
erty, and  transferable  on  the  books  of  the  association  in  such  manner 
as  may  be  prescribed  in  the  by-laws  or  articles  of  association.  Every 
person  becoming  a  shareholder  by  such  transfer  shall,  in  proportion 
to  his  shares,  succeed  to  all  the  rights  and  liabilities  of  the  prior  holder 
of  such  shares ;  and  no  change  shall  be  made  in  the  articles  of  asso- 
ciation by  which  the  rights,  remedies,  or  security  of  the  existing  cred- 
itors of  the  association  shall  be  impaired. 

How  Payment  of  the  Capital  Stock  Must  be  Made  and  Certified. 

Sec.  5140.  At  least  fifty  per  centum  of  the  capital  stock  of  every 
association  shall  be  paid  in  before  it  shall  be  authorized  to  commence 
business ;  and  the  remainder  of  the  capital  stock  of  such  association 
shall  be  paid  in  installments  of  at  least  ten  per  centum  each,  on  the 
w4iole  amount  of  the  capital,  as  frequently  as  one  installment  at  the 
end  of  each  succeeding  month  from  the  time  it  shall  be  authorized  by 
the  Comptroller  of  the  Currency  to  commence  business ;  and  the  pay- 
ment of  each  installment  shall  be  certified  to  the  Comptroller,  under 
oath,  by  the  president  or  cashier  of  the  association. 

Proceedings  if  Shareholder  Fails  to  Pay  Installments. 

Sec.  5141.  Whenever  any  shareholder,  or  his  assignee,  fails  to 
pay  any  installment  on  the  stock  when  the  same  is  required  by  the 
preceding  section  to  be  paid,  the  directors  of  such  association  may  sell 
the  stock  of  such  delinquent  shareholder  at  public  auction,  having  given 
three  weeks'  previous  notice  thereof  in  a  newspaper  published  and  of 
general  circulation  in  the  city  or  county  where  the  association  is  located, 
or  if  no  newspaper  is  published  in  said  city  or  county,  then  in  a  news- 
paper published  nearest  thereto,  to  any  person  who  will  pay  the  highest 
price  therefor,  to  be  not  less  than  the  amount  then  due  thereon,  with 


National  Bank  Act  159 

the  expenses  of  advertisement  and  sale ;  and  the  excess,  if  any,  shall  be 
paid  to  the  delinquent  shareholder.  If  no  bidder  can  be  found  who  will 
pay  for  such  stock  the  amount  due  thereon  to  the  association,  and 
the  cost  of  advertisement  and  sale,  the  amount  previously  paid  shall 
be  forfeited  to  the  association,  and  such  stock  shall  be  sold  as  the 
directors  may  order,  within  six  months  from  the  time  of  such  for- 
feiture, and  if  not  sold  it  shall  be  canceled  and  deducted  from  the  capital 
stock  of  the  association.  If  any  such  cancellation  and  reduction  shall 
reduce  the  capital  of  the  association  below  the  minimum  of  capital 
required  by  law,  the  capital  stock  shall,  within  thirty  days  from  the 
date  of  such  cancellation,  be  increased  to  the  required  amount;  in 
default  of  which  a  receiver  may  be  appointed,  according  to  the  pro- 
visions of  section  fifty-two  hundred  and  thirty-four,  to  close  up  the 
business  of  the  association. 

National  Banks  May  Increase  Capital  Stock. 

Sec.  5142.  Any  association  formed  under  this  title  may,  by  its 
articles  of  association,  provide  for  an  increase  of  its  capital  from  time 
to  time,  as  may  be  deemed  expedient,  subject  to  the  limitations  of  this 
title.  But  the  maximum  of  such  increase  to  be  provided  in  the  arti- 
cles of  association  shall  be  determined  by  the  Comptroller  of  the  Cur- 
rencv ;  and  no  increase  of  capital  shall  be  valid  until  the  whole  amount 
of  such  increase  is  paid  in,  and  notice  thereof  has  been  transmitted  to  the 
Comptroller  of  the  Currency,  and  his  certificate  obtained  specifying  the 
amount  of  such  increase  of  capital  stock,  with  his  approval  thereof,  and 
that  it  has  been  duly  paid  in  as  part  of  the  capital  of  such  association. 

Increase  of  Capital  Stock.     (Acts  of  May  1,  1886.) 

Sec.  1.  That  any  national  banking  association  may,  with  the  ap- 
proval of  the  Comptroller  of  the  Currency,  by  the  vote  of  shareholders 
owning  two-thirds  of  the  stock  of  such  association,  increase  its  capital 
stock,  in  accordance  with  existing  laws,  to  any  sum  approved  by_  the 
said  Comptroller,  notwithstanding  the  limit  fixed  in  its  original  articles 
of  association  and  determined  by  said  Comptroller ;  and  no  increase  of 
the  capital  stock  of  any  national  banking  association  either  within  or 
beyond  the  limit  fixed  in  its  original  articles  of  association  shall  be 
made  except  in  the  manner  herein  provided. 

Reduction  of  Capital  Stock. 

Sec.  5143.  Any  association  formed  under  this  title  may,  by  the 
vote  of  shareholders  owning  two-thirds  of  its  capital  stock,  reduce 
its  capital  to  any  sum  not  below  the  amount  required  by  this  title  to 
authorize  the  formation  of  associations ;  but  no  such  reduction  shall 
be  allowable  which  will  reduce  the  capital  of  the  association  below 
the  amount  required  for  its  outstanding  circulation,  nor  shall  any  reduc- 
tion be  made  until  the  amount  of  the  proposed  reduction  has  been 
reported  to  the  Comptroller  of  the  Currency  and  such  reduction  has 
been  approved  by  the   said  Comptroller  of   the   Currency   and  by  the 


160  Important  Federal  Laws. 

Federal  Reserve  Board,  or  by  the  organization  committee  pending  the 
organization  of  the  Federal  Reserve  Board.  (As  amended  December 
23,  1913.) 

Right  of  Shareholders  to  Vote;  Proxies  Authorized. 

Sec.  5144.  In  all  elections  of  directors,  and  in  deciding  all  ques- 
tions at  meetings  of  shareholders,  each  shareholder  shall  be  entitled  to 
one  vote  on  each  share  of  stock  held  by  him.  Shareholders  may  vote 
by  proxies  duly  authorized  in  writing;  but  no  officer,  clerk,  teller,  or 
bookkeeper  of  such  association  shall  act  as  proxy ;  and  no  shareholder 
whose  liability  is  past  due  and  unpaid  shall  be  allowed  to  vote. 

Election  of   Directors. 

Sec.  5145.  The  affairs  of  each  association  shall  be  managed  by 
not  less  than  five  directors,  who  shall  be  elected  by  the  shareholders  at 
a  meeting  to  be  held  at  any  time  before  the  association  is  authorized  by 
the  Comptroller  of  the  Currency  to  commence  the  business  of  bank- 
ing ;  and  afterward  at  meetings  to  be  held  on  such  day  in  January  of 
each  year  as  is  specified  therefor  in  the  articles  of  association.  The 
directors  shall  hold  office  for  one  year,  and  until  their  successors  are 
elected  and  have  qualified. 

Requisite  Qualification  of  Directors. 

Sec.  5146.  Every  director  must,  during  his  whole  term  of  serv- 
ice, be  a  citizen  of  the  United  States,  and  at  least  three-fourths  of  the 
directors  must  have  resided  in  the  State,  Territory,  or  District  in  which 
the  association  is  located  for  at  least  one  year  immediately  preceding 
their  election  and  must  be  residents  therein  during  their  continuance 
in  office.  Every  director  must  own  in  his  own  right  at  least  ten  shares 
of  the  capital  stock  of  the  association  of  which  he  is  a  director,  unless 
the  capital  of  the  bank  shall  not  exceed  twenty-five  thousand  dollars, 
in  which  case  he  must  own  in  his  own  right  at  least  five  shares  of 
such  capital  stock.  And  director  who  ceases  to  be  the  owner  of  the 
required  number  of  shares  of  the  stock,  or  who  becomes  in  any  other 
manner  disqualified,  shall  therebv  vacate  his  place.  (As  amended  Feb- 
ruary 28,  1905.) 

Oath    Required   From    Directors. 

Sec.  5147.  Each  director,  when  appointed  or  elected,  shall  take 
an  oath  that  he  will,  so  far  as  the  duty  devolves  on  him,  diligently  and 
honestly  administer  the  affairs  of  such  association,  and  will  not  know- 
ingly violate,  or  willingly  permit  to  be  violated,  any  of  the  provisions  of 
this  title,  and  that  he  is  the  owner  in  good  faith,  and  in  his  own  right, 
of  the  number  of  shares  of  stock  required  by  this  title,  subscribed  by 
him,  or  standing  in  his  name  on  the  books  of  the  association,  and  that 
the  same  is  not  hypothecated,  or  in  any  way  pledged,  as  security  for 
any  loan  or  debt.  Such  oath,  subscribed  by  the  director  making  it, 
and  certified  by  the  officer  before  whom  it  is  taken,  shall  be  immediately 


National  Bank  Act  161 

transmitted  to  the  Comptroller  of  the  Currency,  and  shall  be  filed  and 
preserved  in  his  office. 

Filling  Vacancies. 

Sec.  5148.  Any  vacancy  in  the  board  shall  be  filled  by  appoint- 
ment by  the  remaining  directors,  and  any  director  so  appointed  shall 
hold  his  place  until  the  next  election. 

Proceedings  Where  no  Election  is  Held  on  the  Proper  Day. 

Sec.  5149.  If,  from  any  cause,  an  election  of  directors  is  not 
made  at  the  time  appointed,  the  association  shall  not  for  that  cause 
be  dissolved,  but  an  election  may  be  held  on  any  subsequent  day,  thirty 
days'  notice  thereof  in  all  cases  having  been  given  in  a  newspaper  pub- 
lished in  the  city,  town,  or  county  in  which  the  association  is  located ; 
and  if  no  newspaper  is  published  in  such  city,  town,  or  county,  such 
notice  shall  be  published  in  a  newspaper  published  nearest  thereto.  If 
the  articles  of  association  do  not  fix  the  day  on  which  the  election  shall 
be  held,  or  if  no  election  is  held  on  the  day  fixed,  the  day  for  the  elec- 
tion shall  be  designated  by  the  board  of  directors  in  their  by-laws,  or 
otherwise ;  or  if  the  directors  fail  to  fix  the  day,  shareholders  repre- 
senting two-thirds  of  the  shares  may  do  so. 

Election  of  President  of  the  Board. 

Sec.  5150.  One  of  the  directors,  to  be  chosen  by  the  board,  shall 
be  the  president  of  the  board. 

Individual  Liability  of  Shareholders. 

Sec.  5151.  The  shareholders  of  every  national  banking  associa- 
tion shall  be  held  individually  responsible,  equally  and  ratably,  and  not 
one  for  another,  for  all  contracts,  debts,  and  engagements  of  such  asso- 
ciation, to  the  extent  of  the  amount  of  their  stock  therein,  at  the  par 
value  thereof,  in  addition  to  the  amount  invested  in  such  shares ;  except 
that  shareholders  of  any  banking  association  now  existing  under  State 
laws,  having  not  less  than  five  millions  of  dollars  of  capital  actually 
paid  in,  and  a  surplus  of  twenty  per  centum  on  hand,  both  to  be  deter- 
mined by  the  Comptroller  of  the  Currency,  shall  be  liable  only  to  the 
amount  invested  in  their  shares ;  and  such  surplus  of  twenty  per  centum 
shall  be  kept  undiminished,  and  be  in  addition  to  the  surplus  provided 
for  in  this  title ;  and  if  at  any  time  there  is  a  deficiency  in  such  surplus 
■of  twenty  per  centum,  such  association  shall  not  pay  any  dividends  to 
its  shareholders  until  the  deficiency  is  made  good ;  and  in  case  of  such 
deficiency,  the  Comptroller  of  the  Currency  may  compel  the  association 
to  close  its  business  and  wind  up  its  affairs  under  the  provisions  of 
chapter  four  of  this  title. 

Executors,   Trustees,   Etc.,   Not   Personally   Liable. 

Sec.  5152.  Persons  holding  s,tock  as  executors,  administrators, 
guardians,  or  trustees  shall  not  be  personally  subject  to  any  liabilities 
as  stockholders ;  but  the  estates  and  funds  in  their  hands  shall  be  liable 

(11) 


162  Important  Federal  Laws 

in  like  manner  and  to  the  same  extent  as  the  testator,  intestate,  ward, 
or  person  interested  in  such  trust-funds  would  be,  if  living  and  compe- 
tent to  act  and  hold  the  stock  in  his  own  name. 

National  Banking  Associations  to  be  Depositaries  of  Public  Moneys. 

Sec.  5153.  All  national  banking  associations,  designated  for  that 
purpose  by  the  Secretary  of  the  Treasury,  shall  be  depositories  of  public 
money,  under  such  regulations  as  may  be  prescribed  by  the  Secretary; 
and  they  may  also  be  employed  as  financial  agents  of  the  government ; 
and  they  shall  perform  all  such  reasonable  duties,  as  depositories  of 
public  money  and  financial  agents  of  the  government,  as  may  be  re- 
quired of  them.  The  Secretary  of  the  Treasury  shall  require  the  asso- 
ciations thus  designated  to  give  satisfactory  security,  by  the  deposit  of 
United  States  bonds  and  otherwise,  for  the  safe-keeping  and  prompt 
payment  of  the  public  money  deposited  with  them,  and  for  the  faith- 
ful performance  of  their  duties  as  financial  agents  of  the  government : 
Provided,  That  the  Secretary  shall,  on  or  before  the  first  of  January 
of  each  year,  make  a  public  statement  of  the  securities  required  during 
that  year  for  such  deposits.  And  every  association  so  designated  as 
receiver  or  depository  of  the  public  money  shall  take  and  receive  at 
par  all  the  national  currency  bills,  by  whatever  association  issued,  which 
have  been  paid  into  the  government  for  internal  revenue,  or  for  loans 
or  stocks:  Provided,  That  the  Secretary  of  the  Treasury  shall  distribute 
the  deposits  herein  provided  for,  as  far  as  practicable,  equitably  between 
the  different  States  and  sections.     (As  amended  March  4,  1907.) 

Conversion  of  State  Banks  Into  National  Banking  Associations. 

Sec.  5154.  Any  bank  incorporated  by  special  law  of  any  State 
or  of  the  United  States  or  organized  under  the  general  laws  of  any 
State  or  of  the  United  States  and  having  an  unimpaired  capital  suffi- 
cient to  entitle  it  to  become  a  national  banking  association  under  the 
provisions  of  the  existing  laws  may,  by  the  vote  of  the  shareholders 
owning  not  less  than  fifty-one  per  centum  of  the  capital  stock  of  such 
bank  or  banking  association,  with  the  approval  of  the  Comptroller  of 
the  Currency  be  converted  into  a  national  banking  association,  with 
any  name  approved  by  the  Comptroller  of  the  Currency:  Provided,  how- 
ever. That  said  conversion  shall  not  be  in  contravention  of  the  State 
law.  In  such  case  the  articles  of  association  and  organization  cettificate 
may  be  executed  by  a  majority  of  the  directors  of  the  bank  or  banking 
institution,  and  the  certificate  shall  declare  that  the  owners  of  fifty-one 
per  centum  of  the  capital  stock  have  authorized  the  directors  to  make 
such  certificate  and  to  change  or  convert  the  bank  or  banking  institu- 
tion into  a  national  association.  A  majority  of  the  directors,  after 
executing  the  articles  of  association  and  the  organization  certificate, 
shall  have  power  to  execute  all  other  papers  and  to  do  whatever  may 
be  required  to  make  its  organization  perfect  and  complete  as  a  national 
association.     The  shares  of  any  such  bank  may  continue  to  be  for  the 


National  Bank  Act  163 

same  amount  each  as  they  were  before  the  conversion,  and  the  directors 
may  continue  to  be  directors  of  the  association  until  others  are  elected 
or  appointed  in  accordance  with  the  provisions  of  the  statutes  of  the 
United  States.  When  the  Comptroller  has  given  to  such  bank  or  bank- 
ing association  a  certificate  that  the  provisions  of  this  Act  have  been 
complied  with,  such  bank  or  banking  association,  and  all  its  stock- 
holders, officers,  and  employees,  shall  have  the  same  powers  and  privi- 
leges, and  shall  be  subject  to  the  same  duties,  liabilities,  and  regulations, 
in  all  respects,  as  shall  have  been  prescribed  by  the  Federal  Reserve 
Act  and  by  the  national  banking  Act  for  associations  originally  organ- 
ized as  national  banking  associations.  (As  amended  December  23, 
1913.) 

State  Banks  Having  Branches.     (Act  of  March  3,  1865.) 

Sec.  5155.  It  shall  be  lawful  for  any  bank  or  banking  association 
organized  under  State  laws,  and  having  branches,  the  capital  being  joint 
and  assigned  to  and  used  by  the  mother-bank  and  branches  in  definite 
proportions,  to  become  a  national  banking  association  in  conformity 
with  existing  laws,  and  to  retain  and  keep  in  operation  its  branches, 
or  such  one  or  more  of  them  as  it  may  elect  to  retain  ;  the  amount  of 
the  circulation  redeemable  at  the  mother-bank,  and  each  branch,  to  be 
regulated  by  the  amount  of  capital  assigned  to  and  used  by  each. 

Reservation  of  Rights  of  Associations  Organized  Under  Act  of  1863. 

Sec.  5156.  Nothing  in  this  title  shall  affect  any  appointments  mad^e, 
acts  done,  or  proceedings  had  or  commenced  prior  to  the  third  day  of 
June,  eighteen  hundred  and  sixty-four,  in  or  toward  the  organization 
of  any  national  banking  association  under  the  Act  of  February  twenty- 
five,  eighteen  hundred  and  sixty-three;  but  all  associations  which  on 
the  third  day  of  June,  eighteen  hundred  and  sixty-four,  were  organized 
or  commenced  to  be  organized  under  that  Act  shall  enjoy  all  the  rights, 
and  privileges  granted,  and  be  subject  to  all  the  duties,  liabilities,\nd 
restrictions  imposed  by  this  title,  notwithstanding  all  the  steps  pre- 
scribed by  this  title  for  the  organization  of  associations  were  not  pur- 
sued, if  such  associations  were  duly  organized  under  that  act. 


IMMIGRATION  AND  NATURALIZATION. 

THE  IMMIGRATION  ACT. 

Passed  over  veto  of  President. 
Act  of  February  5,  1917. 
An  Act  to  regulate  the  imoiigration  of  aliens  to,  and  the  residence  of  aliens 
in,   the   United   States. 

Definitions. 

Sec.  1.  That  the  word  "ahen"  wherever  vised  in  this  Act  shall 
include  any  person  not  a  native-born  or  naturalized  citizen  of  the  United 
States ;  but  this  definition  shall  not  be  held  to  include  Indians  of  the 
United  States  not  taxed  or  citizens  of  the  islands  under  the  jurisdiction 
of  the  United  States.  That  the  term  "United  States"  as  used  in  the  title 
as  well  as  in  the  various  sections  of  this  Act  shall  be  construed  to  mean 
the  United  States,  and  any  waters,  territory,  or  other  place  subject  to 
the  jurisdiction  thereof,  except  the  Isthmian  Canal  Zone;  but  if  any 
alien  shall  leave  the  Canal  Zone  or  any  insular  possession  of  the  United 
States  and  attempt  to  enter  any  other  place  under  the  jurisdiction  of  the 
United  States,  nothing  contained  in  this  Act  shall  be  construed  as  per- 
mitting him  to  enter  under  any  other  conditions  than  those  applicable 
to  all  aliens.  That  the  term  "seaman"  as  used  in  this  Act  shall  include 
every  person  signed  on  the  ship's  articles  and  employed  in  any  capacity 
on  board  any  vessel  arriving  in  the  United  States  from  any  foreign  port 
or  place. 

,  Jhat  this  Act  shall  be  enforced  in  the  Philippine  Islands  by  officers 
of  the  general  government  thereof,  unless  and  until  it  is  superseded  by 
an  act  passed  by  the  Philippine  Legislature  and  approved  by  the  Pres- 
ident of  the  United  States  to  regulate  immigration  in  the  Philippine 
Islands  as  authorized  in  the  Act  entitled  "An  Act  to  declare  the  purpose 
of  the  people  of  the  United  States  as  to  the  future  political  status  of  the 
people  of  the  Philippine  Islands,  and  to  provide  a  more  autonomous 
government  for  those  islands,"  approved  August  twenty-ninth,  nineteen 
hundred  and  sixteen. 

Tax. 

Sec.  2.  That  there  shall  be  levied,  collected,  and  paid  a  tax  of  $8 
for  every  alien,  including  alien  seamen  regularly  admitted  as  provided 
in  this  Act,  entering  the  United  States :  Provided,  That  children  under 
sixteen  years  of  age  who  accompany  their  father  or  their  mother  shall 
not  be  subject  to  said  tax.  The  said  tax  shall  be  paid  to  the  collector 
of  customs  of  the  port  or  customs  district  to  which  said  alien  shall  come, 
or,  if  there  be  no  collector  at  such  port  or  district,  then  to  the  collector 
nearest  thereto,  by  the  master,  agent,  owner,  or  consignee  of  the  vessel, 
transportation  line,  or  other  conveyance  or  vehicle  bringing  such  alien 


Immigration  Act  165 

to  the  United  States,  or  by  the  alien  himself  if  he  does  not  come  by  a 
vessel,  transportation  line,  or  other  conveyance  or  vehicle  or  when  col- 
lection from  the  master,  agent,  owner,  or  consignee  of  the  vessel,  trans- 
portation line,  or  other  conveyance,  or  vehicle  bringing  such  alien  to  the 
United  States  is  impracticable.  The  tax  imposed  by  this  section  shall  be 
a  lien  upon  the  vessel  or  other  vehicle  of  carriage  or  transportation 
bringing  such  aliens  to  the  United  States,  and  shall  be  a  debt  in  favor 
of  the  United  States  against  the  owner  or  owners  of  such  vessel  or  other 
vehicle,  and  the  payment  of  such  tax  may  be  enforced  by  any  legal  or 
equitable  remedy.  That  the  said  tax  shall  not  be  levied  on  account  of 
aliens  who  enter  the  United  States  after  an  uninterrupted  residence  of 
at  least  one  year  immediately  preceding  such  entrance  in  the  Dominion 
of  Canada,  Newfoundland,  the  Republic  of  Cuba,  or  the  Republic  of 
Mexico,  for  a  temporary  stay,  nor  on  account  of  otherwise  admissible 
residents  or  citizens  of  any  possession  of  the  United  States,  nor  on  ac- 
count of  aliens  in  transit  through  the  United  States,  nor  upon  aliens  who 
have  been  lawfully  admitted  to  the  United  States  and  who  later  shall 
go  in  transit  from  one  part  of  the  United  States  to  another  through  for- 
eign contiguous  territory,  and  the  Commissioner  General  of  Immigra- 
tion with  the  approval  of  the  Secretary  of  Labor  shall  issue  rules  and 
regulations  and  prescribe  the  conditions  necessary  to  prevent  abuse  of 
these  exceptions:  Provided,  That  the  Commissioner  General  of  Immi- 
gration, under  the  direction  or  with  the  approval  of  the  Secretary  of 
Labor,  by  agreement  with  transportation  lines,  as  provided  in  section 
twenty-three  of  this  Act,  may  arrange  in  some  other  manner  for  the  pay- 
ment of  the  tax  imposed  by  this  section  upon  any  or  all  aliens  seeking 
admission  from  foreign  contiguous  territory :  Provided  further,  That  said 
tax,  when  levied  upon  aliens  entering  the  Philippine  Islands,  shall  be  paid 
into  the  treasury  of  said  islands,  to  be  expended  for  the  benefit  of  such 
islands :  Provided  further,  That  in  the  cases  of  aliens  applying  for  ad- 
mission from  foreign  contiguous  territory  and  rejected,  the  head  tax 
collected  shall  upon  application,  upon  a  blank  which  shall  be  furnished 
and  explained  to  him,  be  refunded  to  the  alien. 

Who  Excluded. 

Sec.  3.  That  the  following  classes  of  aliens  shall  be  excluded  from 
admission  into  the  United  States :  All  idiots,  imbeciles,  feeble-minded 
persons,  epileptics,  insane  persons ;  persons  who  have  had  one  or  more 
attacks  of  insanity  at  any  time  previously;  persons  of  constitutional 
psychopathic  inferiority;  persons  with  chronic  alcoholism;  paupers;  pro- 
fessional beggars ;  vagrants ;  persons  afflicted  with  tuberculosis  in  any 
form  or  with  a  loathsome  or  dangerous  contagious  disease;  persons  not 
comprehended  within  any  of  the  foregoing  excluded  classes  who  are 
found  to  be  and  are  certified  by  the  examining  surgeon  as  being  men- 
tallv  or  physically  defective,  such  physical  defect  being  of  a  nature  which 
may  affect  the  ability  of  such  alien  to  earn  a  living;  persons  who  have 
been  convicted  of  or  admit  having  committed  a  felony  or  other  crime 


166  Important  Federal  Laws 

or  misdemeanor  involving  moral  turpitude ;  polygamists,  or  persons  who 
practice  polygamy  or  believe  in  or  advocate  the  practice  of  polygamy; 
anarchists,  or  persons  who  believe  in  or  advocate  the  overthrow  by  force 
or  violence  of  the  Government  of  the  United  States,  or  of  all  forms  of 
law,  or  who  disbelieve  in  or  are  opposed  to  organized  government,  or 
who  advocate  the  assassination  of  public  officials,  or  who  advocate  or 
teach  the  unlawful  destruction  of  property;  persons  who  are  members 
of  or  affiliatt^d  with  any  organization  entertaining  and  teaching  disbelief 
in  or  opposition  to  organized  government,  or  who  advocate  or  teach 
the  duty,  necessity,  or  propriety  of  the  unlawful  assaulting  or  killing 
of  any  officer  or  officers,  either  of  specific  individuals  or  of  officers 
generally,  of  the  Government  of  the  United  States  or  of  any  other  or- 
ganized government,  because  of  his  or  their  official  character,  or  who 
advocate  or  teach  the  unlawful  destruction  of  property;  prostitutes,  or 
persons  coming  into  the  United  States  for  the  purpose  of  prostitution 
or  for  any  other  immoral  purpose;  persons  who  directly  or  indirectly 
procure  or  attempt  to  procure  or  import  prostitutes  or  persons  for  the 
purpose  of  prostitution  or  for  any  other  immoral  purpose;  persons  who 
are  supported  by  or  receive  in  whole  or  in  part  the  proceeds  of  prosti- 
tution ;  persons  hereinafter  called  contract  laborers,  who  have  been  in- 
duced, assisted,  encouraged,  or  solicited  to  migrate  to  this  country  by 
offers  or  promises  of  employment,  whether  such  offers  or  promises  are 
true  or  false,  or  in  consequence  of  agreements,  oral,  written  or  printed, 
express  or  implied,  to  perform  labor  in  this  country  of  any  kind,  skilled 
or  unskilled  ;  persons  who  have  come  in  consequence  of  advertisements 
for  laborers  printed,  published,  or  distributed  in  a  foreign  country ;  per- 
sons likely  to  become  a  public  charge ;  persons  who  have  been  deported 
under  any  of  the  provisions  of  this  Act,  and  who  may  again  seek  admis- 
sion within  one  year  from  the  date  of  such  deportation,  unless  prior  to 
their  reembarkation  at  a  foreign  port  or  their  attempt  to  be  admitted 
from  foreign  contiguous  territory  the  Secretary  of  Labor  shall  have  con- 
sented to  their  reapplying  for  admission  ;  persons  whose  tickets  or  pas- 
sage is  paid  for  with  the  money  of  another,  or  who  are  assisted  by  others 
to  come,  unless  it  is  affirmatively  and  satisfactorily  shown  that  such  per- 
sons do  not  belong  to  one  of  the  foregoing  excluded  classes  ;  persons 
whose  ticket  or  passage  is  paid  for  by  any  corporation,  association,  so- 
ciety, municipality,  or  foreign  Government,  either  directly  or  indirectly ; 
stowaways,  except  that  any  such  stowaway,  if  otherwise  admissible,  may 
be  admitted  in  the  discretion  of  the  Secretary  of  Labor :  all  children 
under  sixteen  years  of  age,  unaccompanied  by  or  not  coming  to  one  or 
both  of  their  parents,  except  that  any  such  children  may,  in  the  dis- 
cretion of  the  Secretary  of  Labor,  be  admitted  if  in  his  opinion  they 
are  not  likely  to  become  a  public  charge  and  are  otherwise  eligible ;  un- 
less otherwise  provided  for  by  existing  treaties,  persons  who  are  na- 
tives of  islands  not  possessed  by  the  United  States  adjacent  to  the  Con- 
tinent of  Asia,  situate  south  of  the  twentieth  parallel  latitude  north,  west 
of  the  one  hundred  and  sixtieth  meridian  of  longitude  east  from  Green- 


Immigration  Act  167 

wich,  and  north  of  the  tenth  parallel  of  latitude  south,  or  who  are  na- 
tives of  any  country,  province,  or  dependency  situate  on  the  Continent 
of  Asia  west  of  the  one  hundred  and  tenth  meridian  of  longitude  east 
from  Greenwich  and  east  of  the  fiftieth  meridian  of  longitude  east  from 
Greenwich  and  south  of  the  fiftieth  parallel  of  latitude  north,  except  that 
portion  of  said  territory  situate  between  the  fiftieth  and  the  sixty-fourth 
meridians  of  longitude  east  from  Greenwich  and  the  twenty-fourth  and 
thirty-eighth  parallels  of  latitude  north,  and  no  alien  now  in  any  way 
excluded  from,  or  prevented  from  entering,  the  United  States  shall  be 
admitted  to  the  United  States.  The  provision  next  foregoing,  however, 
shall  not  apply  to  persons  of  the  following  status  or  occupations :  Gov- 
ernment officers,  ministers  or  religious  teachers,  missionaries,  lawyers, 
physicians,  chemists,  civil  engineers,  teachers,  students,  authors,  artists, 
merchants,  and  travelers  for  curiosity  or  pleasure,  nor  to  their  legal 
wives  or  their  children  under  sixteen  years  of  age  who  shall  accompany 
them  or  who  subsequently  may  apply  for  admission  to  the  United  States, 
but  such  persons  or  their  legal  wives  or  foreign-born  children  who  fail 
to  maintain  in  the  United  States  a  status  or  occupation  placing  them 
within  the  excepted  classes  shall  be  deemed  to  be  in  the  United  States 
contrary  to  law,  and  shall  be  subject  to  deportation  as  provided  in 
section  nineteen  of  this  Act. 

That  after  three  months  from  the  passage  of  this  Act,  in  addition 
to  the  aliens  who  are  by  law  now  excluded  from  admission  into  the 
United  States,  the  following  persons  shall  also  be  excluded  from  ad- 
mission thereto,  to  wit : 

Literacy  Test. 

All  aliens  over  sixteen  years  of  age,  physically  capable  of  reading, 
who  can  not  read  the  English  language,  or  some  other  language  or  dia- 
lect, including  Hebrew  or  Yiddish :  Provided,  That  any  admissible  alien, 
or  any  alien  heretofore  or  hereafter  legally  admitted,  or  any  citizen  of 
the  United  States,  may  bring  in  or  send  for  his  father  or  grandfather 
over  fifty-five  years  of  age,  his  wife,  his  mother,  his  grandmother,  or  his 
unmarried  or  widowed  daughter,  if  otherwise  admissible,  whether  such 
relative  can  read  or  not ;  and  such  relative  shall  be  permitted 
to  enter.  That  for  the  purpose  of  ascertaining  whether  aliens 
can  read  the  immigrant  inspectors  shall  be  furnished  with 
slips  of  uniform  size,  prepared  under  the  direction  of  the  Secretary 
of  Labor,  each  containing  not  less  than  thirty  nor  more  than  forty  words 
in  ordinary  use,  printed  in  plainly  legible  type  in  some  one  of  the  var- 
ious languages  or  dialects  of  immigrants.  Each  alien  may  designate  the 
particular  language  or  dialect  in  which  he  desires  the  examination  to  be 
made,  and  shall  be  required  to  read  the  words  printed  on  the  slip  in 
such  language  or  dialect.  That  the  following  classes  of  persons  shall 
be  exempt  from  the  operation  of  the  illiteracy  test,  to  wit :  All  aliens 
who  shall  prove  to  the  satisfaction  of  the  proper  immigration  officer  or 
to  the  Secretary  of  Labor  that  they  are  seeking  admission  to  the  United 


168  Important  Federal  Laws 

States  to  avoid  religious  persecution  in  the  country  of  their  last  perma- 
nent residence,  whether  such  persecution  be  evidenced  by  overt  acts  or 
by  laws  or  governmental  regulations  that  discriminate  against  the  alien 
or  the  race  to  which  he  belongs  because  of  his  religious  faith ;  all  aliens 
who  have  been  lawfully  admitted  to  the  United  States  and  who  have 
resided  therein  continuously  for  five  years  and  who  return  to  the  United 
States  within  six  months  from  the  date  of  their  departure  therefrom ; 
all  aliens  in  transit  through  the  United  States  ;  all  aliens  who  have  been 
lawfully  admitted  to  the  United  States  and  who  later  shall  go  in  transit 
from  one  part  of  the  United  States  to  another  through  foreign  con- 
tiguous territory :  Provided,  That  nothing  in  this  Act  shall  exclude,  if 
otherwise  admissible,  persons  convicted,  or  who  admit  the  commission, 
or  who  teach  or  advocate  the  commission,  of  an  offense  purely  political : 
Provided  further.  That  the  provisions  of  this  Act,  relating  to  the  pay- 
ments for  tickets  or  passage  by  any  corporation,  association,  society, 
municipality,  or  foreign  Government  shall  not  apply  to  the  tickets  or 
passage  of  aliens  in  immediate  and  continuous  transit  through  the  United 
States  to  foreign  contiguous  territory :  Provided  further,  That  skilled 
labor,  if  otherwise  admissible,  may  be  imported  if  labor  of  like  kind  un- 
employed can  not  be  found  in  this  country,  and  the  question  of  the  neces- 
sity of  importing  such  skilled  labor  in  any  particular  instance  may  be 
determined  by  the  Secretary  of  Labor  upon  the  application  of  any  person 
interested,  such  application  to  be  made  before  such  importation,  and 
such  determination  by  the  Secretary  of  Labor  to  be  reached  after  a  full 
hearing  and  an  investigation  into  the  facts  of  the  case:  Provided  further. 
That  the  provisions  of  this  law  applicable  to  contract  labor  shall  not  be 
held  to  exclude  professional  actors,  artists,  lecturers,  singers,  nurses, 
ministers  of  any  religious  denomination,  professors  for  colleges  or  semi- 
naries, persons  belonging  to  any  recognized  learned  profession,  or  per- 
sons employed  as  domestic  servants :  Provided  further,  That  whenever 
the  President  shall  be  satisfied  that  passports  issued  by  any  foreign  Gov- 
ernment to  its  citizens  or  subjects  to  go  to  any  country  other  than  the 
United  States,  or  to  any  insular  possession  of  the  United  States  or  to 
the  Canal  Zone,  are  being  used  for  the  purpose  of  enabling  the  holder  to 
come  to  the  continental  territory  of  the  United  States  to  the  detriment 
of  labor  conditions  therein,  the  President  shall  refuse  to  permit  such  cit- 
izens or  subjects  of  the  country  issuing  such  passports  to  enter  the  con- 
tinental territory  of  the  United  States  from  such  other  country  or  from 
such  insular  possession  or  from  the  Canal  Zone :  Provided  further.  That 
aliens  returning  after  a  temporary  absence  to  an  unrelinquished  United 
States  domicile  of  seven  consecutive  years  may  be  admitted  in  the  dis- 
cretion of  the  Secretary  of  Labor,  and  under  such  conditions  as  he  may 
prescribe :  Provided  further.  That  nothing  in  the  contract-labor  or  read- 
ing-test provisions  of  this  Act  shall  be  construed  to  prevent,  hinder,  or 
restrict  any  alien  exhibitor,  or  holder  of  concession  or  privilege  for  any 
fair  or  exposition  authorized  by  Act  of  Congress,  from  bringing  into  the 


Immigration  Act  169 

United  States,  under  contract,  such  otherwise  admissible  aHen  mechan- 
ics, artisans,  agents,  or  other  employees,  natives  of  his  country  as  may 
be  necessary  for  installing  or  conducting  his  exhibit  or  for  preparing 
for  installing  or  conducting  any  business  authorized  or  permitted  under 
any  concession  or  privilege  which  may  have  been  or  may  be  granted  by 
any  such  fair  or  exposition  in  connection  therewith,  under  such  rules  and 
regulations  as  the  Commissioner  General  of  Immigration,  with  the  ap- 
proval of  the  Secretary  of  Labor,  may  prescribe  both  as  to  the  admis- 
sion and  return  of  such  persons:  Provided  further.  That  the  Commis- 
sioner General  of  Immigration  with  the  approval  of  the  Secretary  of 
Labor  shall  issue  rules  and  prescribe  conditions,  including  exaction  of 
such  bonds  as  may  be  necessary,  to  control  and  regulate  the  admission 
and  return  of  otherwise  inadmissible  aliens  applying  for  temporary  ad- 
mission :  Provided  further.  That  nothing  in  this  Act  shall  be  construed 
to  apply  to  accredited  officials  of  foreign  Governments,  nor  to  their 
suites,  families,  or  guests. 

Immigration  for  Immoral  Purposes. 

Sec.  4.  That  the  importation  into  the  United  States  of  any  alien 
for  the  purpose  of  prostitution,  or  for  any  other  immoral  purpose,  is 
hereby  forbidden ;  and  whoever  shall,  directly  or  indirectly,  import,  or 
attempt  to  import  into  the  United  States  any  alien  for  the  purpose  of 
prostitution  or  for  any  other  immoral  purpose,  or  shall  hold  or  attempt 
to  hold  any  alien  for  any  such  purpose  in  pursuance  of  such  illegal  im- 
portation, or  shall  keep,  maintain,  control,  support,  employ,  or  harbor 
in  any  house  or  other  place,  for  the  purpose  of  prostitution  or  for  any 
other  immoral  purpose,  any  alien,  in  pursuance  of  such  illegal  importa- 
tion, shall  in  every  such  case  be  deemed  guilty  of  a  felony,  and  on  con- 
viction thereof  shall  be  punished  by  imprisonment  for  a  term  of  not 
more  than  ten  years  and  by  a  fine  of  not  more  than  $5,000.  Jurisdiction 
for  the  trial  and  punishment  of  the  felonies  hereinbefore  set  forth  shall 
be  in  any  district  to  or  into  which  said  alien  is  brought  in  pursuance  of 
said  importation  by  the  person  or  persons  accused,  or  in  any  district  in 
which  a  violation  of  any  of  the  foregoing  provisions  of  this  section 
occurs.  That  any  alien  who  shall,  after  he  has  been  excluded  and  de- 
ported or  arrested  and  deported  in  pursuance  of  the  provisions  of  this 
Act  which  relate  to  prostitutes,  procurers,  or  other  like  immoral  per- 
sons, attempt  thereafter  to  return  to  or  to  enter  the  United  States  shall 
be  deemed  guiltv  of  a  misdemeanor,  and  on  conviction  thereof  shall  be 
punished  by  imprisonment  for  a  term  of  not  more  than  two  years.  In 
all  prosecutions  under  this  section  the  testimony  of  a  husband  or  wife 
shall  be  admissible  and  competent  evidence  against  each  other. 

Contract  Labor. 

Sec.  5.  That  it  shall  be  unlawful  for  any  person,  company,  part- 
nership, or  corporation,  in  any  manner  whatsoever,  to  prepay  the  trans- 
portation   or   in    any    way    to    induce,    assist,    encourage,    or    solicit,    or 


170  Important  Federal  Laws 

attempt  to  induce,  assist,  encourage,  or  solicit,  the  importation  or  migra- 
tion of  any  contract  laborer  or  contract  laborers  into  the  United 
States,  unless  such  contract  laborer  or  contract  laborers  are  ex- 
empted under  the  fifth  proviso  of  section  three  of  this  Act,  or  have 
been  imported  with  the  pemiission  of  the  Secretary  of  Labor  in  accord- 
ance with  the  fourth  proviso  of  said  section,  and  for  every  violation  of 
any  of  the  provisions  of  this  section  the  person,  partnership,  company, 
or  corporation  violating  the  same  shall  forfeit  and  pay  for  every  such 
offense  the  sum  of  $1,^0,  which  may  be  sued  for  and  recovered  by  the 
United  States,  as  debts  of  like  amount  are  now  recovered  in  the  courts 
of  the  United  States.  For  every  violation  of  the  provisions  hereof  the 
person  violating  the  same  may  be  prosecuted  in  a  criminal  action  for  a 
misdemeanor,  and  on  conviction  thereof  shall  be  punished  by  a  fine  of 
$1,000.  or  bv  imprisonment  for  a  term  of  not  less  than  six  months  nor 
more  than  two  years ;  and  under  either  the  civil  or  the  criminal  proce- 
dure mentioned  separate  suits  or  prosecutions  may  be  brought  for  each 
alien  thus  offered  or  promised  employment  as  aforesaid.  The  Depart- 
ment of  Justice,  with  the  approval  of  the  Department  of  Labor,  may 
from  any  fines  or  penalties  received  pay  rewards  to  persons  other  than 
Govemment  employees  who  may  furnish  information  leading  to  the 
recovery  of  any  such  penalties,  or  to  the  arrest  and  punishment  of  any 
person,  as  in  this  section  provided. 

Advertisements  in  Foreign  Country. 

Sec.  6.  That  it  shall  be  unlawful  and  be  deemed  a  violation  of  sec- 
tion five  of  this  Act  to  induce,  assist,  encourage,  or  solicit  or  attempt 
to  induce,  assist,  encourage,  or  solicit  any  alien  to  come  into  the  United 
States  by  promise  of  employment  through  advertisements  printed,  pub- 
lished, or  distributed  in  any  foreign  country,  whether  such  promise  is 
true  or  false,  and  either  the  civil  or  criminal  penalty  or  both  imposed 
by  said  section  shall  be  applicable  to  such  a  case. 

Transportation  Companies — Restrictions  Upon. 

Sec.  7.  That  it  shall  be  unlawful  for  any  person,  association, 
society,  company,  partnership,  corporation,  or  others  engaged  in  the 
business  of  transporting  aliens  to  or  within  the  United  States,  including 
owners,  masters,  officers,  and  agents  of  vessels,  directly  or  indirectly, 
by  writing,  printing,  oral  representation,  payment  of  any  commissions 
to  an  alien  coming  into  the  United  States,  allowance  of  any  rebates  to 
an'  alien  coming  into  the  United  States,  or  otherwise  to  solicit,  invite, 
or  encourage  or  attempt  to  solicit,  invite,  or  encourage  any  alien  to 
come  into  the  United  States,  and  anyone  violating  any  provision  hereof 
shall  be  subject  to  either  the  civil  or  the  criminal  prosecution,  or  both, 
prescribed  by  section  five  of  this  Act ;  or  if  it  shall  appear  to  the  satis- 
faction of  the  Secretary  of  Labor  that  any  owner,  master,  officer,  or 
agent  of  a  vessel  has  brought  or  caused  to  be  brought  to  a  port  of  the 
United  States  any  alien  so  solicited,  invited,  or  encouraged  to  come  by 
such   owner,   master,   officer,   or   agent,    such   owner,   master,   officer   or 


Immigration  Act  171 

agent  shall  pay  to  the  collector  of  customs  of  the  customs  district  in 
which  the  port  of  arrival  is  located,  or  in  which  any  vessel  of  the  line 
may  be  found,  the  sum  of  $400  for  each  and  every  such  violation ;  and 
no  vessel  shall  be  granted  clearance  pending  the  determination  of  the 
question  of  the  liability  to  the  payment  of  such  fine,  or  while  the  fine 
imposed  remains  unpaid,  nor  shall  such  fine  be  remitted  or  refunded : 
Provided,  That  clearance  may  be  granted  prior  to  the  determination 
of  such  questions  upon  the  deposit  with  the  collector  of  customs  of  a 
sum  sufficient  to  cover  such  fine :  Provided  further.  That  whenever  it 
shall  be  shown  to  the  satisfaction  of  the  Secretary  of  Labor  that  the 
provisions  of  this  section  are  persistently  violated  by  or  on  behalf  of 
any  transportation  company,  it  shall  be  the  duty  of  said  Secretary  to 
deny  to  such  company  the  privilege  of  landing  alien  immigrant  passen- 
gers of  any  or  all  classes  at  United  States  ports  for  such  a  period  as  in 
his  judgment  may  be  necessary  to  insure  an  observance  of  such  pro- 
visions :  Provided  further,  That  this  section  shall  not  be  held  to  prevent 
transportation  companies  from  issuing  letters,  circulars,  or  advertise- 
ments, confined  strictly  to  stating  the  sailing  of  their  vessels  and  terms 
and  facilities  of  transportation  therein :  Provided  further.  That  under 
sections  five,  six,  and  seven  hereof  it  shall  be  presumed  from  the  fact 
that  any  person,  company,  partnership,  corporation,  association,  or 
society  induces,  assists,  encourages,  solicits  or  invites,  or  attempts  to 
induce,  assist,  encourage,  solicit  or  invite  the  importation,  migration  or 
coming  of  an  alien  from  a  country  foreign  to  the  United  States,  that 
the  offender  had  knowledge  of  such  person's  alienage. 

Aiding  Unlawful  Entry — Penalty, 

Sec.  8.  That  any  person,  including  the  master,  agent,  owner,  or 
consignee  of  any  vessel,  who  shall  bring  into  or  land  in  the  United 
States,  by  vessel  or  otherwise,  or  shall  attempt,  by  himself  or  through 
another,  to  bring  into  or  land  in  the  United  States,  by  vessel  or  other- 
wise, or  shall  conceal  or  harbor,  or  attempt  to  conceal  or  harbor,  or 
assist  or  abet  another  to  conceal  or  harbor  in  any  place,  including 
anv  building,  vessel,  railway  car,  conveyance,  or  vehicle,  any  alien  not 
duly  admitted  by  an  immigrant  inspector  or  not  lawfully  entitled  to 
enter  or  to  reside  within  the  United  States  under  the  terms  of  this  Act, 
shall  be  deemed  guilty  of  a  misdemeanor,  and  upon  conviction  thereof 
shall  be  punished  by  a  fine  not  exceeding  $2,000  and  by  imprisonment 
for  a  term  not  exceeding  five  years,  for  each  and  every  alien  so  landed 
or  brought  in  or  attempted  to  be  landed  or  brought  in. 

Defectives — Penalty  for  Bringing. 

Sec.  9.  That  it  shall  be  unlawful  for  any  person,  including  any 
transportation  company  other  than  railway  lines  entering  the  United 
States  from  foreign  contiguous  territory,  or  the  owner,  master,  agent, 
or  consignee  of  any  vessel  to  bring  to  the  United  States  either  from  a 
foreign  country  or  any  insular  possession  of  the  United  States  any  alien 
afflicted    with    idiocy,    insanity,    imbecility,    feeble-mindedness,    epilepsy, 


172  Important  Federal  Laws 

constitutional  psychopathic  inferiority,  chronic  alcoholism,  tuberculosis 
in  any  form,  or  a  loathsome  or  dangerous  contagious  disease,  and  if  it 
shall  appear  to  the  satisfaction  of  the  Secretary  of  Labor  that  any  alien 
so  brought  to  the  United  States  was  afflicted  with  any  of  the  said  dis- 
eases or  disabilities  at  the  time  of  foreign  embarkation,  and  that  the 
existence  of  such  disease  or  disability  might  have  been  detected  by 
means  of  a  competent  medical  examination  at  such  time,  such  person  or 
transportation  company,  or  the  master,  agent,  owner,  or  consignee  of 
any  such  vessel  shall  pay  to  the  collector  of  customs  of  the  customs  dis- 
trict in  which  the  port  of  arrival  is  located  the  sum  of  $200,  and  in  addi- 
tion a  sum  equal  to  that  paid  by  such  alien  for  his  transportation  from 
the  initial  point  of  departure,  indicated  in  his  ticket,  to  the  port  of  arri- 
val for  each  and  every  violation  of  the  provisions  of  this  section,  such 
latter  sum  to  be  delivered  by  the  collector  of  customs  to  the  ahen  on 
whose  account  assessed.  It  shall  also  be  unlawful  for  any  such  person 
to  bring  to  any  port  of  the  United  States  any  alien  afflicted  with  any 
mental  defect  other  than  those  above  specifically  named,  or  physical 
defect  of  a  nature  which  may  afifect  his  ability  to  earn  a  living,  as  con- 
templated in  section  three  of  this  Act,  and  if  it  shall  appear  to  the  satis- 
faction of  the  Secretary  of  Labor  that  any  alien  so  brought  to  the  United 
States  was  so  afflicted  at  the  time  of  foreign  embarkation,  and  that  the 
existence  of  such  mental  or  physical  defect  might  have  been  detected 
by  means  of  a  competent  medical  examination  at  such  time,  such  per- 
son shall  pay  to  the  collector  of  customs  of  the  customs  district  in  which 
the  port  of  arrival  is  located  the  sum  of  $25,  and  in  addition  a  sum 
equal  to  that  paid  by  such  alien  for  his  transportation  from  the  initial 
point  of  departure,  indicated  in  his  ticket,  to  the  port  of  arrival,  for 
each  and  every  violation  of  this  provision,  such  latter  sum  to  be  deliv- 
ered by  the  collector  of  customs  to  the  alien  for  whose  account  assessed. 
It  shall  also  be  unlawful  for  any  such  person  to  bring  to  any  port  of  the 
United  States  any  alien  who  is  excluded  by  the  provisions  of  section 
three  of  this  Act  because  unable  to  read,  or  who  is  excluded  by  the  terms 
of  section  three  of  this  Act  as  a  native  of  that  portion  of  the  Continent 
of  Asia  and  the  islands  adjacent  thereto  described  in  said  section,  and 
if  it  shall  appear  to  the  satisfaction  of  the  Secretary  of  Labor  that  these 
disabilities  might  have  been  detected  by  the  exercise  of  reasonable  pre- 
caution prior  to  the  departure  of  such  aliens  from  a  foreign  port,  such 
person  shall  pay  to  the  collector  of  customs  of  the  customs  district  in 
w^hich  the  port  of  arrival  is  located  the  sum  of  $200,  and  in  addition  a 
sum  equal  to  that  paid  by  such  alien  for  his  transportation  from  the 
initial  point  of  departure,  indicated  in  his  ticket,  to  the  port  of  arrival, 
for  each  and  every  violation  of  this  provision,  such  latter  sum  to  be 
delivered  by  the  collector  of  customs  to  the  alien  on  whose  account 
assessed.  And  no  vessel  shall  be  granted  clearance  papers  pending  the 
determination  of  the  question  of  the  liability  to  the  payment  of  such 
fines,  or  while  the  fines  remain  unpaid,  nor  shall  such  fines  be  remitted 


Immigratiox  Act  173 

or  refunded :  Provided,  That  clearance  may  be  granted  prior  to  the 
determination  of  such  questions  upon  the  deposit  of  a  sum  sufficient  to 
cover  such  fines :  Provided  further,  That  nothing  contained  in  this  sec- 
tion shall  be  construed  to  subject  transportation  companies  to  a  fine  for 
bringing  to  ports  of  the  United  States  aliens  who  are  by  any  of  the 
provisos  or  exceptions  to  section  three  hereof  exempted  from  the  ex- 
cluding provisions  of  said  section. 

Places  of  Entry — Unlawful  to  Land  Aliens  Elsewhere. 

Sec.  10.  That  it  shall  be  the  duty  of  every  person,  including  own- 
ers, officers,  and  agents  of  vessels  or  transportation  lines,  or  interna- 
tional bridges  or  toll  roads,  other  than  railway  lines  which  may  enter 
into  a  contract  as  provided  in  section  twenty-three  of  this  Act,  bringing 
an  alien  to,  or  providing  a  means  for  an  alien  to  come  to,  any  seaport 
or  land  border  port  of  the  United  States,  to  prevent  the  landing  of  such 
alien  in  the  United  States  at  any  time  or  place  other  than  as  designated 
by  the  immigration  officers,  and  the  failure  of  any  such  person,  owner, 
officer,  or  agent  to  comply  with  the  foregoing  requirements  shall  be 
deemed  a  misdemeanor  and  on  conviction  thereof  shall  be  punished  by 
a  fine  in  each  case  of  not  less  than  $200  nor  more  than  $1,000,  or  by 
imprisonment  for  a  term  not  exceeding  one  year,  or  by  both  such  fine 
and  imprisonment;  or,  if  in  the  opinion  of  the  Secretary  of  Labor  it  is 
impracticable  or  inconvenient  to  prosecute  the  person,  owner,  master, 
officer  or  agent  of  any  such  vessel,  a  penalty  of  $1,000  shall  be  a  lien 
upon  the  vessel  whose  owner,  master,  officer,  or  agent  violates  the  pro- 
visions of  this  section,  and  such  vessel  shall  be  libeled  therefor  in  the 
appropriate  United  States  court. 

Duties  of  Secretary  of  Labor. 

Sec.  11.  That  for  the  purpose  of  determining  whether  aliens  ar- 
riving at  ports  of  the  United  States  belong  to  any  of  the  classes  ex- 
cluded by  this  Act,  either  by  reason  of  being  afflicted  with  any  of  the 
diseases  or  mental  or  physical  defects  or  disabilities  mentioned  in  section 
three  hereof,  or  otherwise,  or  whenever  the  Secretary  of  Labor  has 
received  information  showing  that  any  aliens  are  coming  from  a  country 
or  have  embarked  at  a  place  where  any  of  said  diseases  are  prevalent 
or  epidemic,  the  Commissioner  General  of  Immigration,  with  the  ap- 
proval of  the  Secretary  of  Labor,  may  direct  that  such  aliens  shall  be 
detained  on  board  the  vessel  bringing  them,  or  in  a  United  States  immi- 
gration station  at  the  expense  of  such  vessel,  as  circumstances  may 
require  or  justify,  a  sufficient  time  to  enable  the  immigration  officers  and 
medical  officers  stationed  at  such  ports  to  subject  aliens  to  an  observa- 
tion and  examination  sufficient  to  determine  whether  or  not  they  belong 
to  the  said  excluded  classes  by  reason  of  being  afflicted  in  the  manner 
indicated :  Provided.  That,  with  a  view  to  avoid  undue  delay  in  landing 
passengers  or  interference  with  commerce,  the  Commissioner  General 
of  Immigration  may,  with  the  approval  of  the  Secretary  of  Labor,  issue 


174  Important  Federal  Laws 

such  regulations,  not  inconsistent  with  law,  as  may  be  deemed  neces- 
sary to  eliect  the  purposes  of  this  section :  Provided  further.  That  it 
shall  be  the  duty  oi  immigrant  inspectors  to  report  to  the  Commissioner 
General  of  Immigration  the  condition  of  all  vessels  bringing  aliens  to 
United  States  ports. 

Arrangements  With  Foreign  Countries. 

Sec.  11a.  That  the  Secretary  of  Labor  is  hereby  authorized  and 
directed  to  enter  into  negotiations,  through  the  Department  of  State, 
with  countries  vessels  of  which  brmg  aliens  to  the  United  States,  with 
a  view  to  detailing  inspectors  and  matrons  of  the  United  States  Immi- 
gration Service  for  duty  on  vessels  carrying  immigrant  or  emigrant  pas- 
sengers between  foreign  ports  and  ports  of  the  United  States.  When 
such  inspectors  and  matrons  are  detailed  for  said  duty  they  shall  remain 
in  that  part  of  the  vessel  where  immigrant  passengers  are  carried ;  and 
it  shall  be  their  duty  to  observe  such  passengers  during  the  voyage  and 
report  to  the  immigration  authorities  in  charge  at  the  port  of  landing 
any  information  of  value  in  determining  the  admissibility  of  such  pas- 
sengers that  may  have  become  known  to  them  during  the  voyage. 

Information  Furnished  to  Immigration  Officials. 

Sec.  12.  That  upon  the  arrival  of  any  alien  by  water  at  any  port 
within  the  United  States  on  the  North  American  Continent  from  a  for- 
eign port  or  a  port  of  the  Phihppine  Islands,  Guam,  Porto  Rico,  or 
Hawaii,  or  at  any  port  of  the  said  insular  possessions  from  any  foreign 
port,  from  a  port  in  the  United  States  on  the  North  American  Continent, 
or  from  a  port  of  another  insular  possession  of  the  United  States,  it 
shall  be  the  duty  of  the  master  or  commanding  officer,  owners,  or  con- 
signees of  the  steamer,  sailing,  or  other  vessel  having  said  alien  on 
board  to  deliver  to  the  immigration  officers  at  the  port  of  arrival  type- 
written or  printed  lists  or  manifests  made  at  the  time  and  place  of 
embarkation  of  such  alien  on  board  such  steamer  or  vessel,  which  shall, 
in  answer  to  questions  at  the  top  of  said  list,  contain  full  and  accurate 
information  as  to  each  alien  as  follows :  Full  name,  age,  and  sex ; 
whether  married  or  single ;  calling  or  occupation ;  personal  description 
(including  height,  complexion,  color  of  hair  and  eyes,  and  marks  of 
identification);  whether  able  to  read  or  write;  nationality;  country  of 
birth ;  race ;  country  of  last  permanent  residence ;  name  and  address  of 
the  nearest  relative  in  the  country  from  which  the  alien  came  ;  seaport 
for  landing  in  the  United  States;  final  destination,  if  any,  beyond  the 
port  of  landing;  whether  having  a  ticket  through  to  such  final  destina- 
tion; by  whom  passage  was  paid;  whether  in  possession  of  $50,  and, 
if  less,  how  much;  whether  going  to  join  a  relative  or  friend,  and,  if  so, 
what  relative  or  friend,  and  his  or  her  name  and  complete  address ; 
whether  ever  before  in  the  United  States,  and  if  so,  w'hen  and  where; 
w^hether  ever  in  prison  or  almshouse  or  an  institution  or  hospital  for 
the  care  and  treatment  of  the  insane;  whether  ever  supported  by  charity; 


Immigration^  Act  175 

whether  a  polygamist ;  whether  an  anarchist ;  whether  a  person  who 
behaves  in  or  advocates  the  overthrow  by  force  or  violence  of  the  Gov- 
ernment of  the  United  States  or  of  all  forms  of  law,  or  who  disbelieves 
in  or  is  opposed  to  organized  government,  or  who  advocates  the  assas- 
sination of  public  officials,  or  who  advocates  or  teaches  the  unlawful 
destruction  of  property,  or  is  a  member  of  or  affiliated  with  any  organi- 
zation entertaining  and  teaching  disbelief  in  or  opposition  to  organized 
government,  or  which  teaches  the  unlawful  destruction  of  property,  or 
who  advocates  or  teaches  the  duty,  necessity,  or  propriety  of  the  unlaw- 
ful assaulting  or  killing  of  any  officer  or  officers,  either  of  specific  indi- 
viduals or  of  officers  generally,  of  the  Government  of  the  United  States 
or  of  any  other  organized  government  because  of  his  or  their  official 
character;  whether  coming  by  reason  of  any  offer,  solicitation,  promise, 
or  agreement,  express  or  implied,  to  perform  labor  in  the  United  States ; 
the  alien's  condition  of  health,  mental  and  physical;  whether  deformed 
or  crippled,  and  if  so,  for  how  long  and  from  what  cause ;  whether  com- 
ing with  the  intent  to  return  to  the  country  whence  such  alien  comes 
after  temporarily  engaging  in  laboring  pursuits  in  the  United  States ; 
and  such  other  items  of  information  as  will  aid  in  determining  whether 
any  such  alien  belongs  to  any  of  the  excluded  classes  enumerated  in 
section  three  hereof ;  and  such  master  or  commanding  officer,  owners, 
or  consignees  shall  also  furnish  information  in  relation  to  the  sex,  age, 
class  of  travel,  and  the  foreign  port  of  embarkation  of  arriving  pas- 
sengers who  are  United  States  citizens.  That  it  shall  further  be  the 
duty  of  the  master  or  commanding  officer  of  every  vessel  taking  pas- 
sengers from  any  port  of  the  United  States  on  the  North  American 
Continent  to  a  foreign  port  or  a  port  of  the  .Philippine  Islands,  Guam, 
Porto  Rico,  or  Hawaii,  or  from  any  port  of  the  said  insular  possessions 
to  any  foreign  port,  to  a  port  of  the  United  States  on  the  North  Amer- 
ican Continent,  or  to  a  port  of  another  insular  possession  of  the  United 
States  to  file  with  the  immigration  officials  before  departure  a  list  which 
shall  contain  full  and  accurate  information  in  relation  to  the  following 
matters  regarding  all  alien  passengers,  and  all  citizens  of  the  United 
States  or  insular  possessions  of  the  United  States  departing  with  the 
stated  intent  to  reside  permanently  in  a  foreign  country,  taken  on  board : 
Name,  age,  and  sex ;  whether  married  or  single ;  calling  or  occupation  ; 
whether  able  to  read  or  write ;  nationality ;  country  of  birth ;  country 
of  which  citizen  or  subject;  race;  last  permanent  residence  in  the  United 
States  or  insular  possessions  thereof ;  if  a  citizen  of  the  United  States 
or  of  the  insular  possessions  thereof,  whether  native  born  or  naturalized ; 
if  native  born,  the  place  and  date  of  birth,  or  if  naturalized  the  city  or 
town  in  which  naturalization  has  been  had;  intended  future  permanent 
residence ;  and  time  and  port  of  last  arrival  in  the  United  States,  or 
insular  possessions  thereof ;  and  such  master  or  commanding  officer 
shall  also  furnish  information  in  relation  to  the  sex,  age,  class  of  travel, 
and  port  of  debarkation  of  the  United  States  citizens  departing  who  do 


176  Important  Federal  Laws 

not  intend  to  reside  permanently  in  a  foreign  country,  and  no  master  of 
any  such  vessel  shall  be  granted  clearance  papers  for  his  vessel  until 
he  has  deposited  such  list  or  lists  with  the  immigration  officials  at  the 
port  of  departure  and  made  oath  that  they  are  full  and  complete  as  to  the 
name  and  other  information  herein  required  concerning  each  person  of 
the  classes  specified  taken  on  board  his  vessel ;  and  any  neglect  or  omis- 
sion to  comply  with  the  requirements  of  this  section  shall  be  punishable 
as  provided  in  section  fourteen  of  this  Act :  Provided,  That  in  the  case 
of  vessels  making  regular  trips  to  ports  of  the  United  States  the  Com- 
missioner General  of  Immigration,  with  the  approval  of  the  Secretary 
of  Labor,  may,  when  expedient,  arrange  for  the  delivery  of  such  lists 
of  outgoing  aliens  at  a  later  date :  Provided  further.  That  it  shall  be 
the  duty  of  immigration  officials  to  record  the  following  information 
regarding  every  resident  alien  and  citizen  leaving  the  United  States  by 
way  of  the  Canadian  or  Mexican  borders  for  permanent  residence  in  a 
foreign  country :  Name,  age,  and  sex ;  whether  married  or  single ;  calling 
or  occupation  ;  whether  able  to  read  or  write ;  nationality ;  country  of 
birth;  country  of  which  citizen  or  subject;  race;  last  permanent  resi- 
dence in  the  United  States ;  intended  future  permanent  residence ;  and 
time  and  port  of  last  arrival  in  the  United  States ;  and  if  a  United  States 
citizen,  whether  native  born  or  naturalized. 

Arranging  Lists. 

Sec.  13.  That  all  aliens  arriving  by  water  at  the  ports  of  the 
United  States  shall  be  listed  in  convenient  groups,  the  names  of  those 
coming  from  the  same  locality  to  be  assembled  so  far  as  practicable, 
and  no  one  list  or  manifest  shall  contain  more  than  thirty  names.  To 
each  alien  or  head  of  a  family  shall  be  given  a  ticket  on  which  shall  be 
written  his  name,  a  number  or  letter  designating  the  list  in  which  his 
name,  and  other  items  of  information  required  by  this  Act,  are  con- 
tained, and  his  number  on  said  list,  for  convenience  of  identification 
on  arrival.  Each  list  or  manifest  shall  be  verified  by  the  signature  and 
the  oath  or  affirmation  of  the  master  or  commanding  officer,  or  the 
first  or  second  below  him  in  command,  taken  before  an  immigration 
officer  at  the  port  of  arrival,  to  the  efifect  that  he  has  caused  the  surgeon 
of  said  vessel  sailing  therewith  to  make  ?.  physical  and  mental  exam- 
ination of  each  of  said  aliens,  and  that  from  the  report  of  said  surgeon 
and  from  his  own  investigation  he  believes  that  no  one  of  said  aliens 
is  of  any  of  the  classes  excluded  from  admission  into  the  United  States 
by  section  three  of  this  Act,  and  that  also  according  to  the  best  of  his 
knowledge  and  belief  the  information  in  said  lists  or  manifests  concern- 
ing each  of  said  aliens  named  therein  is  correct  and  true  in  every  re- 
spect. That  the  surgeon  of  said  vessel  sailing  therewith  shall  also  sign 
each  of  said  lists  or  manifests  and  make  oath  or  affirmation  in  like 
manner  before  an  immigration  officer  at  the  port  of  arrival,  stating  his 
professional  experience  and  c^ualifications  as  a  physician  and  surgeon, 
and  that  he  has  made  a  personal  examination  of  each  of  the  said  aliens 


Immigration  Act  177 

named  therein,  and  that  the  said  Hst  or  manifest,  according  to  the  best 
of  his  knowledge  and  beHef,  is  full,  correct,  and  true  in  all  particulars 
relative  to  the  mental  and  physical  condition  of  said  aliens.  If  no  sur- 
geon sails  with  any  vessel  bringing  aliens,  the  mental  and  physical  exam- 
inations and  the  verifications  of  the  lists  or  manifests  shall  be  made  by 
some  competent  surgeon  employed  by  the  owners  of  the  said  vessels, 
and  the  manifests  shall  be  verified  by  such  surgeon  before  a  United 
States  consular  officer  or  other  officer  authorized  to  administer  oaths : 
Provided.  That  if  any  changes  in  the  condition  of  such  aliens  occur  or 
develop  during  the  voyage  of  the  vessel  on  which  they  are  traveling,  such 
changes  shall  be  noted  on  the  manifest  before  the  verification  thereof. 

Penalty  for  Master  of  Ship. 

Sec.  14.  That  it  shall  be  unlawful  for  the  master  or  commanding 
officer  of  any  vessel  bringing  aliens  into  or  carrying  aliens  out  of  the 
United  States  to  refuse  or  fail  to  deliver  to  the  immigration  officials  the 
accurate  and  full  manifests  or  statements  or  information  regarding  all 
aliens  on  board  or  taken  on  board  such  vessel  required  by  this  Act, 
and  if  it  shall  appear  to  the  satisfaction  of  the  Secretary  of  Labor  that 
there  has  been  such  a  refusal  or  failure,  or  that  the  lists  delivered  are 
not  accurate  and  full,  such  master  or  commanding  officer  shall  pay  to 
the  collector  of  customs  at  the  port  of  arrival  or  departure  the  sum  of 
$10  for  each  alien  concerning  whom  such  accurate  and  full  manifest  or 
statement  or  information  is  not  furnished,  or  concerning  whom  the  man- 
ifest or  statement  or  information  is  not  prepared  and  sworn  to  as  pre- 
scribed by  this  Act.  No  vessel  shall  be  granted  clearance  pending  the 
determination  of  the  question  of  the  liability  to  the  payment  of  such 
fine,  or  while  it  remains  unpaid,  nor  shall  such  fine  be  remitted  or  re- 
funded :  Provided,  That  clearance  may  be  granted  prior  to  the  determi- 
nation of  such  question  upon  the  deposit  with  the  collector  of  customs 
of  a  sum  sufficient  to  cover  such  fine. 

Inspectors  of  Ships. 

Sec.  15.  That  upon  the  arrival  at  a  port  of  the  United  States  of 
any  vessel  bringing  aliens  it  shall  be  the  duty  of  the  proper  immigration 
officials  to  go  or  to  send  competent  assistants  to  the  vessel  and  there 
inspect  all  such  aliens,  or  said  immigration  officials  may  order  a  tem- 
porary removal  of  such  aliens  for  examination  at  a  designated  time  and 
place,  but  such  temporary  removal  shall  not  be  considered  a  landing, 
nor  shall  it  relieve  vessels,  the  transportation  lines,  masters,  agents, 
owners,  or  consignees  of  the  vessel  upon  which  said  aliens  are  brought 
to  any  port  of  the  United  States  from  any  of  the  obligations  which,  in 
case  such  aliens  remain  on  board,  would  under  the  provisions  of  this 
Act  bind  the  said  vessels,  transportation  lines,  masters,  agents,  owners, 
or  consignees :  Provided,  That  where  removal  is  made  to  premises  owned 
or  controlled  by  the  United  States,  said  vessels,  transportation  lines, 
masters,  agents,  owners,  or  consignees,  and  each  of  them,  shall,  so  long 
as  detention  there  lasts,  be  relieved  of  responsibility  for  the  safekeeping 

(12) 


178  Important  Federal  Laws 

of  such  aliens.  Whenever  a  temporary  removal  of  aliens  is  made  the 
vessels  or  transportation  lines  which  brought  them  and  the  masters, 
owners,  agents,  and  consignees  of  the  vessel  upon  which  they  arrive 
shall  pay  all  expenses  of  such  removal  and  all  expenses  arising  during 
subsequent  detention,  pending  decision  on  the  aliens'  eligibility  to  enter 
the  United  States  and  until  they  are  either  allowed  to  land  or  returned 
to  the  care  of  the  line  or  to  the  vessel  which  brought  them,  such  ex- 
penses to  include  those  of  maintenance,  medical  treatment  in  hospital 
or  elsewhere,  burial  in  the  event  of  death,  and  transfer  to  the  vessel 
in  the  event  of  deportation,  excepting  only  where  they  arise  under  the 
terms  of  any  of  the  provisos  of  section  eighteen  hereof.  Any  refusal 
or  failure  to  comply  with  the  provisions  hereof  shall  be  punished  in  the 
manner  specified  in  section  eighteen  of  this  Act. 

Physical  and  Mental  Examination. 

Sec.  16.  That  the  physical  and  mental  examination  of  all  arriving 
aliens  shall  be  made  by  medical  officers  of  the  United  States  Public 
Health  Service  who  shall  have  had  at  least  two  years'  experience  in 
the  practice  of  their  profession  since  receiving  the  degree  of  doctor  of 
medicine,  and  who  shall  conduct  all  medical  examinations  and  shall 
certify,  for  the  information  of  the  immigration  officers  and  the  boards 
of  special  inquiry  hereinafter  provided  for,  any  and  all  physical  and 
mental  defects  or  diseases  observed  by  said  medical  officers  in  any  such 
alien ;  or,  should  medical  officers  of  the  United  States  Public  Health 
Service  be  not  available,  civil  surgeons  of  not  less  than  four  years'  pro- 
fessional experience  may  be  employed  in  such  emergency  for  such  ser- 
vice upon  such  terms  as  may  be  prescribed  by  the  Commissioner  Gen- 
eral of  Immigration,  under  the  direction  or  with  the  approval  of  the 
Secretary  of  Labor.  All  aHens  arriving  at  ports  of  the  United  States 
shall  be  examined  by  not  less  than  two  such  medical  officers  at  the  dis- 
cretion of  the  Secretary  of  Labor,  and  under  such  administrative  regu- 
lations as  he  may  prescribe  and  under  medical  regulations  prepared  by 
the  Surgeon  General  of  the  United  States  Public  Health  Service.  ]\Ied- 
ical  officers  of  the  United  States  Public  Health  Service  who  have  had 
especial  training  in  the  diagnosis  of  insanity  and  mental  defects  shall  be 
detailed  for  duty  or  employed  at  all  ports  of  entry  designated  by  the 
Secretary  of  Labor,  and  such  medical  officers  shall  be  provided  with 
suitable  facilities  for  the  detention  and  examination  of  all  arriving  aliens 
in  whom  insanity  or  mental  defect  is  suspected,  and  the  services  of  in- 
terpreters shall  be  provided  for  such  examination.  Any  alien  certified 
for  insanity  or  mental  defect  may  appeal  to  the  board  of  medical  officers 
of  the  United  States  Public  Health  Service,  which  shall  be  convened  by 
the  Surgeon  General  of  the  United  States  Public  Health  Service,  and 
said  alien  may  introduce  before  such  board  one  expert  medical  witness 
at  his  own  cost  and  expense.  That  the  inspection,  other  than  the  phys- 
ical and  mental  examination,  of  aliens,  including  those  seeking  admis- 
sion or  readmission  to  or  the  privilege  of  passing  through  or  residing 


Immigration  Act  179 

in  the  United  States,  and  the  examination  of  ahens  arrested  within  the 
United  States  under  this  Act,  shall  be  conducted  by  immigrant  inspec- 
tors, except  as  hereinafter  provided  in  regard  to  boards  of  special  in- 
quiry. All  aliens  arriving  at  ports  of  the  United  States  shall  be  exam- 
ined by  at  least  two  immigrant  inspectors  at  the  discretion  of  the  Secre- 
tary of  Labor  and  under  such  regulations  as  he  may  prescribe.  Immi- 
grant inspectors  are  hereby  authorized  and  empowered  to  board  and 
search  for  aliens  any  vessel,  railway  car,  or  any  other  conveyance,  or 
vehicle  in  which  they  believe  aliens  are  being  brought  into  the  United 
States.  Said  inspectors  shall  have  power  to  administer  oaths  and  to 
take  and  consider  evidence  touching  the  right  of  any  alien  to  enter, 
reenter,  pass  through,  or  reside  in  the  United  States,  and,  where  such 
action  may  be  necessary,  to  make  a  written  record  of  such  evidence ; 
and  any  person  to  whom  such  an  oath  has  been  administered,  under  the 
provisions  of  this  Act,  who  shall  knowingly  or  willfully  give  false  evi- 
dence or  swear  to  any  false  statement  in  any  way  affecting  or  in  rela- 
tion to  the  right  of  any  alien  to  admission,  or  readmission  to,  or  to  pass 
through,  or  to  reside  in  the  United  States  shall  be  deemed  guilty  of 
perjury  and  be  punished  as  provided  by  section  one  hundred  and  twenty- 
five  of  the  Act  approved  March  fourth,  nineteen  hundred  and  nine, 
entitled  "An  Act  to  codify,  revise,  and  amend  the  penal  laws  of  the 
United  States."  All  aliens  coming  to  the  United  States  shall  be  required 
to  state  under  oath  the  purposes  for  which  they  come,  the  length  of  time 
they  intend  to  remain  in  the  United  States,  whether  or  not  they  intend  to 
abide  in  the  United  States  permanently  and  become  citizens  thereof, 
and  such  other  items  of  information  regarding  themselves  as  will  aid 
the  immigration  officials  in  determining  whether  they  belong  to  any  of 
the  excluded  classes  enumerated  in  section  three  hereof.  Any  commis- 
sioner of  immigration  or  inspector  in  charge  shall  also  have  power  to 
require  by  subpoena  the  attendance  and  testimony  of  witnesses  before 
said  inspectors  and  the  production  of  books,  papers,  and  documents 
touching  the  right  of  any  alien  to  enter,  reenter,  reside  in,  or  pass 
through  the  United  States,  and  to  that  end  may  invoke  the  aid  of  any 
court  of  the  United  States ;  and  any  district  court  within  the  jurisdic- 
tion of  which  investigations  are  being  conducted  by  an  immigrant  in- 
spector may,  in  the  event  of  neglect  or  refusal  to  respond  to  a  subpoena 
issued  by  any  commissioner  of  immigration  or  inspector  in  charge  or 
refusal  to  testify  before  said  immigrant  inspector,  issue  an  order  re- 
quiring such  person  to  appear  before  said  immigrant  inspector,  produce 
books,  papers,  and  documents  if  demanded,  and  testify;  and  any  failure 
to  obey  such  order  of  the  court  may  be  punished  by  the  court  as  a 
contempt  thereof.  That  any  person,  including  employees,  officials,  or 
agents  of  transportation  companies,  who  shall  assault,  resist,  prevent, 
impede,  or  interfere  with  any  immigration  official  or  employee  in  the 
performance  of  his  duty  under  this  Act  shall  be  deemed  guilty  of  a 
misdemeanor,  and  on  conviction  thereof  shall  be  punished  by  imprison- 


180  Important  Federal  Laws 

ilient  for  a  term  of  not  more  than  one  year,  or  by  a  fine  of  not  more 
than  $2,000,  or  both ;  and  any  person  who  shall  use  any  deadly  or  dan- 
gerous weapon  in  resisting  any  immigration  official  or  employee  in  the 
performance  of  his  duty  shall  be  deemed  guilty  of  a  felony  and  shall, 
on  conviction  thereof,  be  punished  by  imprisonment  for  not  more  than 
ten  years.  Every  alien  who  may  not  appear  to  the  examining  immi- 
grant inspector  at  the  port  of  arrival  to  be  clearly  and  beyond  a  doubt 
entitled  to  land  shall  be  detained  for  examination  in  relation  thereto  by 
a  board  of  special  inquiry.  In  the  event  of  rejection  by  the  board  of 
special  inquiry,  in  all  cases  where  an  appeal  to  the  Secretary  of  Labor 
is  permitted  by  this  Act,  the  alien  shall  be  so  informed  and  shall  have 
the  right  to  be  represented  by  counsel  or  other  adviser  on  such  appeal. 
The  decision  of  an  immigrant  inspector,  if  favorable  to  the  admission 
of  any  alien,  shall  be  subject  to  challenge  by  any  other  immigrant  in- 
spector and  such  challenge  shall  operate  to  take  the  alien  whose  right  to 
land  is  so  challenged  before  a  board  of  special  inquiry  for  its  investi- 
gation. 

Boards  of  Special  Inquiry. 

Sec.  17.  That  boards  of  special  inquiry  shall  be  appointed  by  the 
commissioner  of  immigration  or  inspector  in  charge  at  the  various  ports 
of  arrival  as  may  be  necessary  for  the  prompt  determination  of  all  cases 
of  immigrants  detained  at  such  ports  under  the  provisions  of  the  law. 
Each  board  shall  consist  of  three  members,  who  shall  be  selected  from 
such  of  the  immigrant  officials  in  the  service  as  the  Commissioner  Gen- 
eral of  Immigration,  with  the  approval  of  the  Secretary  of  Labor,  shall 
from  time  to  time  designate  as  qualified  to  serve  on  such  boards.  When 
in  the  opinion  of  the  Secretary  of  Labor  the  maintenance  of  a  perma- 
nent board  of  special  inquiiw  for  service  at  any  sea  or  land  border  port 
is  not  warranted,  regularly  constituted  boards  may  be  detailed  from  other 
stations  for  temporary  service  at  such  port,  or,  if  that  be  impracticable, 
the  Secretary  of  Labor  shall  authorize  the  creation  of  boards  of  special 
inquiry  by  the  immigration  officials  in  charge  at  such  ports,  and  shall 
determine  what  Government  officials  or  other  persons  shall  be  eligible 
for  service  on  such  boards.  Such  boards  shall  have  authority  to  deter- 
mine whether  an  alien  who  has  been  duly  held  shall  be  allowed  to  land 
or  shall  be  deported.  All  hearings  before  such  boards  shall  be  separate 
and  apart  from  the  public,  but  the  immigrant  may  have  one  friend  or 
relative  present  under  such  regulations  as  may  be  prescribed  by  the 
Secretary  of  Labor.  Such  boards  shall  keep  a  complete  permanent 
record  of  their  proceedings  and  of  all  such  testimony  as  may  be  pro- 
duced before  them ;  and  the  decisions  of  any  two  members  of  the  board 
shall  prevail,  but  either  the  alien  or  any  dissenting  member  of  the  said 
board  may  appeal  through  the  commissioner  of  immigration  at  the  port 
of  arrival  and  the  Commissioner  General  of  Immigration  to  the  Secre- 
tary of  Labor,  and  the  taking  of  such  appeal  shall  operate  to  stay  any 


Immigration  Act  181 

action  in  regard  to  the  final  disposal  of  any  alien  whose  case  is  so  ap- 
pealed until  the  receipt  by  the  commissioner  of  immigration  at  the  port 
of  arrival  of  such  decision  which  shall  be  rendered  solely  upon  the  evi- 
dence adduced  before  the  board  of  special  inquiry.  In  every  case  where 
an  alien  is  excluded  from  admission  into  the  United  States,  under  any 
law  or  treaty  now  existing  or  hereafter  made,  the  decision  of  a  board 
of  special  inquiry  adverse  to  the  admission  of  such  alien  shall  be  final, 
unless  reversed  on  appeal  to  the  Secretary  of  Labor:  Provided,  That 
the  decision  of  a  board  of  special  inquiry  shall  be  based  upon  the  certifi- 
cate of  the  examining  medical  officer  and,  except  as  provided  in  section 
twenty-one  hereof,  shall  be  final  as  to  the  rejection  of  aliens  afifected 
with  tuberculosis  in  any  form  or  with  a  loathsome  or  dangerous  con- 
tagious disease,  or  with  any  mental  or  physical  disability  which  would 
bring  such  aliens  within  any  of  the  classes  excluded  from  admission  to 
the  United  States  under  section  three  of  this  Act. 

Deportation.  'i 

Sec.  is.  That  all  aliens  brought  to  this  country  in  violation  of  law 
shall  be  immediately  sent  back,  in  accommodations  of  the  same  class 
in  which  they  arrived,  to  the  country  whence  they  respectively  came,  on 
the  vessels  bringing  them,  unless  in  the  opinion  of  the  Secretary  of  Labor 
immediate  deportation  is  not  practicable  or  proper.  The  cost  of  their 
maintenance  while  on  land,  as  well  as  the  expense  of  the  return  of  such 
aliens,  shall  be  borne  by  the  owner  or  owners  of  the  vessels  on  which 
they  respectively  came.  That  it  shall  be  unlawful  for  any  master,  purser, 
person  in  charge,  agent,  owner,  or  consignee  of  any  such  vessel  to  refuse 
to  receive  back  on  board  thereof,  or  on  board  of  any  other  vessel  owned 
or  operated  by  the  same  interests,  such  aliens ;  or  to  fail  to  detain  them 
thereon ;  or  to  refuse  or  fail  to  return  them  in  the  manner  aforesaid  to 
the  foreign  port  from  which  they  came ;  or  to  fail  to  pay  the  cost  of 
their  maintenance  while  on  land ;  or  to  make  any  charge  for  the  return 
of  any  such  alien,  or  to  take  any  security  for  the  payment  of  such  charge; 
or  to  take  any  consideration  to  be  returned  in  case  the  alien  is  landed  ; 
or  knowingly  to  bring  to  the  United  States  at  any  time  within  one  year 
from  the  date  of  deportation  any  alien  rejected  or  arrested  and  deported 
under  any  provision  of  this  Act,  unless  prior  to  reembarkation  the  Secre- 
tary of  Labor  has  consented  that  such  alien  shall  reapply  for  admis- 
sion, as  required  by  section  three  hereof;  and  if  it  shall  appear  to  the 
satisfaction  of  the  Secretary  of  Labor  that  such  master,  purser,  per- 
son in  charge,  agent,  owner,  or  consignee  has  violated  any  of  the  fore- 
going provisions,  or  any  of  the  provisions  of  section  fifteen  hereof, 
such  master,  purser,  person  in  charge,  agent,  owner,  or  consignee 
shall  pay  to  the  collector  of  customs  of  the  district  in  which  the  port 
of  arrival  is  located,  or  in  which  any  vessel  of  the  line  may  be  found, 
the  sum  ot  $300  for  each  and  every  violation  of  any  provision  of  said 
sections ;  and  no  vessel  shall  have  clearance  from  any  port  of  the 
United    States   while  any   such   fine   is   unpaid,   nor    shall   such    fine   be 


182  Important  Federal  Laws 

remitted  or  refunded :  Provided,  That  clearance  may  be  granted  prior 
to  the  determination  of  such  question  upon  the  deposit  with  the  col- 
lector of  customs  of  a  sum  sufficient  to  cover  such  fine.  If  the  vessel 
by  which  any  aHen  ordered  deported  came  has  left  the  United  States 
and  it  is  impracticable  for  any  reason  to  deport  the  alien  within  a 
reasonable  time  by  another  vessel  owned  by  the  same  interests,  the 
cost  of  deportation  may  be  paid  by  the  Government  and  recovered  by 
civil  suit  from  any  agent,  owner,  or  consignee  of  the  vessel :  Provided 
further.  That  the  Commissioner  General  of  Immigration,  with  the 
approval  of  the  Secretary  of  Labor,  may  suspend,  upon  conditions  to 
be  prescribed  by  the  Commissioner  General  of  Immigration,  the  de- 
portation of  any  aliens  found  to  have  come  in  violation  of  any  pro- 
vision of  this  Act  if,  in  his  judgment,  the  testimony  of  such  alien  is 
necessary  on  behalf  of  the  United  States  Government  in  the  prosecu- 
tion of  offenders  against  any  provision  of  this  Act  or  other  laws  of 
the  United  States ;  and  the  cost  of  maintenance  of  any  person  so  de- 
tained resulting  from  such  suspension  of  deportation,  and  a  witness 
fee  in  the  sum  of  $1  per  day  for  each  day  such  person  is  so  detained, 
may  be  paid  from  the  appropriation  for  the  enforcement  of  this  Act, 
or  such  alien  may  be  released  under  bond,  in  the  penalty  of  not  less 
than  $500,  with  surety  approved  by  the  Secretary  of  Labor,  condi- 
tioned that  such  alien  shall  be  produced  when  required  as  a  witness 
and  for  deportation.  No  alien  certified,  as  provided  in  section  six- 
teen of  this  Act,  to  be  suffering  from  tuberculosis  in  any  form,  or 
from  a  loathsome  or  dangerous  contagious  disease  other  than  one  of 
quarantinable  nature,  shall  be  permitted  to  land  for  medical  treat- 
ment thereof  in  any  hospital  in  the  United  States,  unless  the  Secre- 
tary of  Labor  is  satisfied  that  to  refuse  treatment  would  be  inhumane 
or  cause  unusual  hardship  or  suffering,  in  which  case  the  alien  shall 
be  treated  in  the  hospital  under  the  supervision  of  the  immigration 
officials  at  the  expense  of  the  vessel  transporting  him :  Provided  further, 
That  upon  the  certificate  of  an  examining  medical  officer  to  the  effect 
that  the  health  or  safety  of  an  insane  alien  would  be  unduly  imperiled 
by  immediate  deportation,  such  alien  may,  at  the  expense  of  the 
appropriation  for  the  enforcement  of  this  Act,  be  held  for  treat- 
ment until  such  time  as  such  alien  may,  in  the  opinion  of  such 
medical  officer,  be  safely  deported :  Provided  further,  That  upon  the 
certificate  of  an  examining  medical  officer  to  the  effect  that  a  re- 
jected alien  is  helpless  from  sickness,  mental  or  physical  disability, 
or  infancy,  if  such  alien  is  accompanied  by  another  alien,  whose  pro- 
tection or  guardianship  is  required  by  such  rejected  alien,  such  ac- 
companying alien  may  also  be  excluded,  and  the  master,  agent,  owner, 
or  consignee  of  the  vessel  in  which  such  alien  and  accompanying 
alien  are  brought  shall  be  required  to  return  said  alien  and  accom- 
panying alien  in  the  same  manner  as  vessels  are  required  to  return 
other  rejected  aliens. 


Immigration  Act  ,183 

Deportation  Within  Five  Years. 

Sec.  19.     That  at  any  time  within  five  years  after  entry,  any  aHen 
who  at  the  time  of  entry  was  a  member  of  one  or  more  of  the  classes 
excluded  by  law ;  any   alien   who   shall   have   entered   or   who   shall  be 
found   in   the  United   States   in   violation   of   this   Act,   or   in   violation 
of   any   other  law   of   the   United   States;   any   alien   who   at   any   time 
after  entry  shall  be  found  advocating  or  teaching  the  unlawful  destruc- 
tion of  property,  or  advocating  or  teaching  anarchy,  or  the  overthrow 
by  force  or  violence  of  the  Government  of  the  United  States  or  of  all 
forms   of   law  or   the  assassination   of   public   officials ;   any   alien   who 
within    five    years    after   entry    becomes    a    public    charge    from    causes 
not  affirmatively   shown  to   have   arisen   subsequent   to   landing;   except 
as   hereinafter  provided,   any   alien  who   is  hereafter   sentenced   to   im- 
prisonment  for  a  term  of  one  year  or  more  because  of  conviction  in 
this   country   of   a   crime   involving  moral   turpitude,   committed   within 
five  years   after  the   entry   of   the   alien  to  the   United  States,   or   who 
is  hereafter  sentenced  more  than  once  to  such  a  term  of  imprisonment 
because   of    conviction    in   this    country    of   any   crime    involving   moral 
turpitude,  committed  at  any  time  after  entry ;  any  alien  who   shall  be 
found  an  inmate  of  or  connected  with  the  management  of  a  house  of 
prostitution  or  practicing  prostitution  after  such  alien  shall  have  entered 
the  United  States,  or  who  shall  receive,  share  in,  or  derive  benefit  from 
any  part  of  the  earnings  of  any  prostitute ;  any  alien  who  manages  or 
is  employed  by,  in,  or  in  connection  with  any  house  of  prostitution  or 
music  or  dance  hall  or  other  place  of  amusement  or  resort  habitually  fre- 
quented  by    prostitutes,    or    where    prostitutes    gather,    or    who    in    any 
way  assists  any  prostitute  or  protects  or  promises  to  protect  from  arrest 
any  prostitute;  any  alien   who   shall   import   or  attempt   to   import   any 
person  for  the  purpose  of  prostitution  or   for  any  other  immoral  pur- 
pose ;  any  alien  who,  after  being  excluded  and  deported  or  arrested  and 
deported    as   a   prostitute,   or   as   a    procurer,   or   as    having   been   con- 
nected  with   the   business   of   prostitution    or   importation    for   prostitu- 
tion or  other  immoral  purposes  in  any  of  the  ways  hereinbefore  speci- 
fied, shall   return  to  and  enter  the  United   States ;   any  alien  convicted 
and    imprisoned    for   a    violation    of    any   of    the    provisions    of    section 
four  hereof ;   any  alien   who   was   convicted,   or   who   admits   the   com- 
mission,  prior  to   entry,   of   a   felony   or   other   crime   or  misdemeanor 
involving  moral  turpitude ;  at  any  time  within  three  years  after  entry, 
any  alien   who  shall  have  entered  the  United  States  by   water  at   any 
time  or  place  other  than  as  designated  by  immigration  officials,  or  by 
land,  at  any  place  other  than   one  designated  as   a   port   of   entry   for 
aliens  by  the  Commissioner  General  of  Immigration,  or  at  anv  time  not 
designated  by   immigration   officials,   or  who   enters   without   inspection, 
shall,  upon  the  warrant  of  the  Secretary  of  Labor,  be  taken  into  custody 
and    deported :    Provided,    That    the   marriage    to    an    American    citizen 
of  a  female  of  the  sexually  immoral  classes  the  exclusion  or  deporta- 


184  Important  Federal  Laws 

tion  of  which  is  prescribed  by  this  Act  shall  not  invest  such  female 
with  United  States  citizenship  if  the  marriage  of  such  alien  female 
shall  be  solemnized  after  her  arrest  or  after  the  commission  of  acts 
which  make  her  liable  to  deportation  under  this  Act:  Provided  further, 
That  the  provision  of  this  section  respecting  the  deportation  of  aliens 
convicted  of  a  crime  involving  moral  turpitude  shall  not  apply  to  one 
who  has  been  pardoned,  nor  shall  such  deportation  be  made  or  directed 
if  the  court,  or  judge  thereof,  sentencing  such  alien  for  such  crime 
shall,  at  the  time  of  imposing  judgment  or  passing  sentence  or  within 
thirty  days  thereafter,  due  notice  having  hrst  been  given  to  repre- 
sentatives of  the  State,  make  a  recommendation  to  the  Secretary  of 
Labor  that  such  alien  shall  not  be  deported  in  pursuance  of  this  Act; 
nor  shall  any  alien  convicted  as  aforesaid  be  deported  until  after 
the  termination  of  his  imprisonment:  Provided  further,  That  the  pro- 
visions of  this  section,  with  the  exceptions  hereinbefore  noted,  shall 
be  applicable  to  the  classes  of  aliens  therein  mentioned  irrespective 
of  the  time  of  their  entry  into  the  United  States:  Provided  further. 
That  the  provisions  of  this  section  shall  also  apply  to  the  cases  of  aliens 
who  come  to  the  mainland  of  the  United  States  from  the  insular  pos- 
sessions thereof:  Provided  further,  That  any  person  who  shall  be 
arrested'  under  the  provisions  of  this  section,  on  the  ground  that  he  has 
entered  or  been  found  in  the  United  States  in  violation  of  any  other 
law  thereof  which  imposes  on  such  person  the  burden  of  proving  his 
right  to  enter  or  remain,  and  who  shall  fail  to  establish  the  existence 
of  the  right  claimed,  shall  be  deported  to  the  place  specified  in  such 
other  law.  In  every  case  where  any  person  is  ordered  deported  from 
the  United  States  under  the  provisions  of  this  Act,  or  of  any  law  or 
treaty,  the  decision  of  the  Secretary  of  Labor  shall  be  final. 

Place  and  Manner  of  Deportation. 

Sec.  20.  That  the  deportation  of  aliens  provided  for  in  this  Act 
shall,  at  the  option  of  the  Secretary  of  Labor,  be  to  the  country  whence 
they  came  or  to  the  foreign  port  at  which  such  aliens  embarked  for 
the  United  States ;  or,  if  such  embarkation  was  for  foreign  contiguous 
territory,  to  the  foreign  port  at  which  they  embarked  for  such  territory ; 
or,  if  such  aliens  entered  foreign  contiguous  territory  from  the  United 
States  and  later  entered  the  United  States,  or  if  such  aliens  are  held 
by  the  country  from  which  they  entered  the  United  States  not  to  be 
subjects  or  citizens  of  such  country,  and  such  country  refuses  to  permit 
their  reentry,  or  imposes  any  condition  upon  permitting  reentry,  then 
to  the  country  of  which  such  aliens  are  subjects  or  citizens,  or  to  the 
country  in  which  they  resided  prior  to  entering  the  country  from  which 
they  entered  the  United  States.  If  deportation  proceedings  are  insti- 
tuted at  any  time  within  five  years  after  the  entry  of  the  alien,  such 
deportation,  including  one-half  of  the  entire  cost  of  removal  to  the 
port  of  deportation,  shall  be  at  the  expense  of  the  contractor,  procurer, 
or  other  person  by   whom   the  alien   was   unlawfully   induced  to   enter 


Immigration  Act  185 

the  United  States,  or,  if  that  can  not  be  done,  then  the  cost  of  removal 
to  the  port  of  deportation  shall  be  at  the  expense  of  the  appropriation 
for  the  enforcement  of  this  Act,  and  the  deportation  from  such  port 
shall  be  at  the  expense  of  the  owner  or  owners  of  such  vessels  or  trans- 
portation line  by  which  such  aliens  respectively  came,  or,  if  that  is 
not  practicable,  at  the  expense  of  the  appropriation  for  the  enforcement 
of  this  Act.  If  deportation  proceedings  are  instituted  later  than  five 
years  after  the  entry  of  the  alien;  or,  if  the  deportation  is  made  by 
reason  of  causes  arising  subsequent  to  entry,  the  cost  thereof  shall 
be  payable  from  the  appropriation  for  the  enforcement  of  this  Act. 
A  failure  or  refusal  on  the  part  of  the  masters,  agents,  owners,  or 
consignees  of  vessels  to  comply  with  the  order  of  the  Secretary  of 
Labor  to  take  on  board,  guard  safely,  and  transport  to  the  destina- 
tion specified  any  alien  ordered  to  be  deported  under  the  provisions 
of  this  Act  shall  be  punished  by  the  imposition  of  the  penalties  pre- 
scribed in  section  eighteen  of  this  Act :  Provided,  That  when  in  the 
opinion  of  the  Secretary  of  Labor  the  mental  or  physical  condition 
of  such  alien  is  such  as  to  require  personal  care  and  attendance,  the 
said  Secretary  shall  when  necessary  employ  a  suitable  person  for  that 
purpose,  who  shall  accompany  such  alien  to  his  or  her  final  destina- 
tion, and  the  expense  incident  to  such  service  shall  be  defrayed  in 
the  same  manner  as  the  expense  of  deporting  the  accompanied  alien 
is  defrayed.  Pending  the  final  disposal  of  the  case  of  any  alien  so 
taken  into  custody,  he  may  be  released  under  a  bond  in  the  penalty 
of  not  less  than  $500  with  security  approved  by  the  Secretary  of 
Labor,  conditioned  that  such  alien  shall  be  produced  when  required 
for  a  hearing  or  hearings  in  regard  to  the  charge  upon  which  he  has 
been  taken  into  custody,  and  for  deportation  if  he  shall  be  found  to 
be  unlawfully  within  the  United  States. 

Bond. 

Sec.  21.  That  any  alien  liable  to  be  excluded  because  likely  to 
become  a  public  charge  or  because  of  physical  disability  other  than 
tuberculosis  in  any  form  or  a  loathsome  or  dangerous  contagious  dis- 
ease may,  if  otherwise  admissible,  nevertheless  be  admitted  in  the  dis- 
cretion of  the  Secretary  of  Labor  upon  the  giving  of  a  suitable  and 
proper  bond  or  undertaking,  approved  by  said  Secretary,  in  such 
amount  and  containing  such  conditions  as  he  may  prescribe,  to  the 
United  States  and  to  all  States,  Territories,  counties,  towns,  munici- 
palities and  districts  thereof,  holding  the  United  States  and  all 
States,  Territories,  counties,  towns,  municipalities  and  districts 
thereof  harmless  against  such  alien  becoming  a  public  charge. 
In  lieu  of  such  bond,  such  alien  may  deposit  in  cash  with  the 
Secretary  of  Labor  such  amount  as  the  Secretary  of  Labor 
may  require,  which  amount  shall  be  deposited  by  said  Secretary  in  the 
United  States  Postal  Savings  Bank,  a  receipt  therefor  to  be  given  the 
person  furnishing  said  sum,  showing  the  fact  and  object  of  its  receipt 


186  Important  Federal  Laws 

and  such  other  information  as  said  Secretary  may  deem  advisable.  All 
accruing  interest  on  said  deposit  during  the  time  same  shall  be  held 
in  the  United  States  Postal  Savings  Bank  shall  be  paid  to  the  person 
furnishing  the  sum  for  deposit.  In  the  event  of  such  alien  becoming 
a  public  charge,  the  Secretary  of  Labor  shall  dispose  of  said  deposit  in 
the  same  manner  as  if  same  had  been  collected  under  a  bond  as  pro- 
vided in  this  section.  In  the  event  of  the  permanent  departure  from 
the  United  States,  the  naturalization,  or  the  death  of  such  alien,  the 
said  sum  shall  be  returned  to  the  person  by  whom  furnished,  or  to  his 
legal  representatives.  The  admission  of  such  alien  shall  be  a  considera- 
tion for  the  giving  of  such  bond,  undertaking,  or  cash  deposit.  Suit 
may  be  brought  thereon  in  the  name  and  by  the  proper  law  officers 
either  of  the  United  States  Government  or  of  any  State,  Territory, 
District,  county,  town,  or  municipality  in  which  such  alien  becomes 
a  public  charge. 

Wives  and  Minors  of  Naturalized  Citizens  Thereafter  Arriving. 

Sec.  22.  That  whenever  an  alien  shall  have  been  naturalized  or 
shall  have  taken  up  his  permanent  residence  in  this  country,  and  there- 
after shall  send  for  his  wife  or  minor  children  to  join  him,  and  said 
wife  or  any  of  said  minor  children  shall  be  found  to  be  affected  with 
any  contagious  disorder,  such  wife  or  minor  children  shall  be  held, 
under  such  regulations  as  the  Secretary  of  Labor  shall  prescribe,  until 
it  shall  be  determined  whether  the  disorder  will  be  easily  curable  or 
whether  they  can  be  permitted  to  land  without  danger  to  other  persons ; 
and  they  shall  not  be  either  admitted  or  deported  until  such  facts  have 
been  ascertained;  and  if  it  shall  be  determined  that  the  disorder  is 
easily  curable  and  the  husband  or  father  or  other  responsible  person 
is  willing  to  bear  the  expense  of  the  treatment,  they  may  be  accorded 
treatment  in  hospital  until  cured  and  then  be  admitted,  or  if  it  shall 
be  determined  that  they  can  be  permitted  to  land  without  danger  to 
other  persons,  they  may,  if  otherwise  admissible,  thereupon  be  admitted : 
Provided,  That  if  the  person  sending  for  wife  or  minor  children  is 
naturalized,  a  wife  to  whom  married  or  a  minor  child  born  subsequent 
to  such  husband  or  father's  naturalization  shall  be  admitted  without  de- 
tention for  treatment  in  hospital,  and  with  respect  to  a  wife  to  whom 
married  or  a  minor  child  born  prior  to  such  husband  or  father's  naturali- 
zation the  provisions  of  this  section  shall  be  observed,  even  though  such 
person  is  unable  to  pay  the  expense  of  treatment,  in  which  case  the 
expense  shall  be  paid  from  the  appropriation  for  the  enforcement  of 
this  Act. 

Commissioner  General  of  Immigration — Duties. 

Sec.  23.  That  the  Commissioner  General  of  Immigration  shall  per- 
form all  his  duties  under  the  direction  of  the  Secretary  of  Labor. 
Under  such  direction  he  shall  have  charge  of  the  administration  of 
all  laws  relating  to  the  immigration  of  aliens  into  the  United  States, 
and  shall  have  the  control,   direction,   and   supervision   of   all   officers. 


Immigration  Act  187 

clerks,  and  employees  appointed  thereunder;  he  shall  establish  such 
rules  and  regulations,  prescribe  such  forms  of  bond,  reports,  entries, 
and  other  papers,  and  shall  issue  from  time  to  time  such  instructions  . 
not  inconsistent  with  law,  as  he  shall  deem  best  calculated  for  carry- 
ing out  the  provisions  of  this  Act  and  for  protecting  the  United  States 
and  aliens  migrating  thereto  from  fraud  and  loss,  and  _  shall  have 
authority  to  enter  into  contract  for  the  support  and  relief  of  such 
aliens  as  may  fall  into  distress  or  need  public  aid,  and  to  remove  to 
their  native  country,  at  any  time  within  three  years  after  entry,  at 
the  expense  of  the  appropriations  for  the  enforcement  of  this  Act,  such 
as  fall  into  distress  or  need  public  aid  from  causes  arising  subsequent 
to  their  entry  and  are  desirous  of  being  so  removed ;  he  shall  prescribe 
rules  for  the  entry  and  inspection  of  aliens  coming  to  the  United  States 
from  or  through  Canada  and  Mexico,  so  as  not  unnecessarily  to  delay, 
impede,  or  annov  persons  in  ordinary  travel  between  the  United  States 
and  said  countries,  and  shall  have  power  to  enter  into  contracts  with 
transportation     lines      for     the     said     purpose.  It     shall     be     the 

duty  of  the  Commissioner  General  of  Immigration  to  detail 
officers  of  the  Immigration  Service  from  time  to  time  as 
may  be  necessary,  in  his  judgment,  to  secure  information  as  to  the 
number  of  aliens  detained  in  the  penal,  reformatory,  and  charitable 
institutions  (public  and  private)  of  the  several  States  and  Territories, 
the  District  of  Columbia,  and  other  territory  of  the  United  States,  and 
to  inform  the  officers  of  such  institutions  of  the  provisions  of  law 
in  relation  to  the  deportation  of  aliens  who  have  become  public  charges. 
He  may,  with  the  approval  of  the  Secretary  of  Labor,  whenever  in  his 
judgment  such  action  may  be  necessary  to  accomplish  the  purposes^  of 
this  Act,  detail  immigration  officers  for  service  in  foreign  countries; 
and,  upon  his  request,  approved  by  the  Secretary  of  Labor,  the  Secre- 
tary of  the  Treasury  may  detail  medical  officers  of  the  United  States 
Public  Health  Service  for  the  performance  of  duties  in  foreign  countries 
in  connection  with  the  enforcement  of  this  Act.  The  duties  of  com- 
missioners of  immigration  and  other  immigration  officials  in  charge  of 
districts,  ports,  or  stations  shall  be  of  an  administrative  character,  to  be 
prescribed  in  detail  by  regulations  prepared  under  the  direction  or  with 
the  approval  of  the  Secretary  of  Labor:  Provided,  That  no  person,  com- 
pany, or  transportation  line  engaged  in  carrying  alien  passengers  for  hire 
from  Canada  or  Mexico  to  the  United  States,  whether  by  land  or 
water,  shall  be  allowed  to  land  any  such  passengers  in  the  United 
States  without  providing  suitable  and  approved  landing  stations,  con- 
veniently located,  at  the  point  or  points  of  entry.  The  Commissioner 
General  of  Immigration  is  hereby  authorized  and  empowered  to  pre- 
scribe the  conditions,  not  inconsistent  with  law,  under  which  the  above- 
mentioned  landing  stations  shall  be  deemed  suitable  within  the  meaning 
of  this  section.  Any  person,  company,  or  transportation  line  landing 
an  alien  passenger  in  the  United   States  without   compliance  with  the 


188  Important  Federai^  Laws 

requirements  herein  set  forth  shall  be  deemed  to  have  violated  section 
eight  of  this  Act,  and  upon  conviction  shall  be  subject  to  the  penalty 
therein  prescribed :  Provided  further,  That  for  the  purpose  of  making 
effective  the  provisions  of  this  section  relating  to  the  protection  of 
aliens  from  fraud  and  loss,  and  also  the  provisions  of  section  thirty  of 
this  Act,  relating  to  the  distribution  of  aliens,  the  Secretary  of  Labor 
shall  establish  and  maintain  immigrant  stations  at  such  interior  places 
as  may  be  necessary,  and,  in  the  discretion  of  the  said  Secretary,  aliens 
in  transit  from  ports  of  landing  to  such  interior  stations  shall  be  accom- 
panied by  immigrant  inspectors :  Provided  further.  That  in  prescribing 
rules  and  making  contracts  for  the  entry  and  inspection  of  aliens  apply- 
ing for  admission  from  or  through  foreign  contiguous  territory,  due 
care  shall  be  exercised  to  avoid  any  discriminatory  action  in  favor  of 
foreign  transportation  companies  transporting  to  such  territory  aliens 
destined  to  the  United  States,  and  all  such  transportation  companies 
shall  be  required,  as  a  condition  precedent  to  the  inspection  or  examina- 
tion under  such  rules  and  contracts  at  the  ports  of  such  contiguous 
territory  of  aliens  brought  thereto  by  them,  to  submit  to  and  comply 
with  all  the  requirements  of  this  Act  which  would  apply  were  they 
bringing  such  aliens  directly  to  seaports  of  the  United  States,  and, 
from  and  after  the  taking  efifect  of  this  Act,  no  alien  applying  for 
admission  from  foreign  contiguous  territory  shall  be  permitted  to  enter 
the  United  States  unless  upon  proving  that  he  was  brought  to  such 
territory  by  a  transportation  company  which  had  submitted  to  and 
complied  with  all  the  requirements  of  this  Act,  or  that  he  entered, 
or  has  resided  in,  such  territory  more  than  two  years  prior  to  the  date 
of  his  application  for  admission  to  the  United  States. 

Inspectors  and  Assistants — Appointment,  Etc. 

Sec.  24.  That  immigrant  inspectors  and  other  immigration  officers, 
clerks,  and  employees  shall  hereafter  be  appointed  and  their  compen- 
sation fixed  and  raised  or  decreased  from  time  to  time  by  the  Sec- 
retary of  Labor,  upon  the  recommendation  of  the  Commissioner  Gen- 
eral of  Immigration  and  in  accordance  with  the  provisions  of  the  civil- 
service  Act  of  January  sixteen,  eighteen  hundred  and  eighty-three : 
Provided,  That  said  Secretary,  in  the  enforcement  of  that  portion  of 
this  Act  which  excludes  contract  laborers  and  induced  and  assisted  immi- 
grants, may  employ,  for  such  purposes  and  for  detail  upon  additional 
service  under  this  Act  when  not  so  engaged,  without  reference  to  the 
provisions  of  the  said  civil-service  Act,  or  to  the  various  Acts  relative 
to  the  compilation  of  the  Official  Register,  such  persons  as  he  may  deem 
advisable  and  from  time  to  time  fix,  raise,  or  decrease  their  compensa- 
tion. He  may  draw  annually  from  the  appropriation  for  the  enforce- 
ment of  this  Act  $100,000,  or  as  much  thereof  as  may  be  necessary,  to 
be  extended  for  the  salaries  and  expenses  of  persons  so  employed  and 
for  expenses  incident  to  such  employment :  and  the  accounting  officers 
of  the  Treasury  shall  pass  to  the  credit  of  the  proper  disbursing  officer 


Immigration  Act  189 

expenditures  from  said  sum  without  itemized  account  whenever  the 
Secretary  of  Labor  certifies  that  an  itemized  account  would  not  be  for 
the  best  interests  of  the  Government:  Provided  further,  That  nothing 
herein  contained  shall  be  construed  to  alter  the  mode  of  appointing 
commissioners  of  immigration  at  the  several  ports  of  the  United  States 
as  provided  by  the  sundry  civil  appropriation  Act  approved  August 
eighteenth,  eighteen  hundred  and  ninety-four,  or  the  official  status  of 
such  commissioners  heretofore  appointed. 

Jurisdiction  of  District  Courts. 

Sec.  25.  That  the  district  courts  of  the  United  States  are  hereby 
invested  with  full  jurisdiction  of  all  causes,  civil  and  criminal,  arising 
under  any  of  the  provisions  of  this  Act.  That  it  shall  be  the  duty  of 
the  United  States  district  attorney  of  the  proper  district  to  prosecute 
every  such  suit  when  brought  by  the  United  States  under  this  Act. 
Such  prosecutions  or  suits  may  be  instituted  at  any  place  in  the  United 
States  at  which  the  violation  may  occur  or  at  which  the  person  charged 
with  such  violation  may  be  found.  That  no  suit  or  proceeding  for  a 
violation  of  the  provisions  of  this  Act  shall  be  settled,  compromised, 
or  discontinued  without  the  consent  of  the  court  in  which  it  is  pending, 
entered  of  record,  with  the  reasons  therefor. 

Concessions  and  Privileges. 

Sec.  26.  That  all  exclusive  privileges  of  exchanging  money,  trans- 
porting passengers  or  baggage,  or  keeping  eating  houses,  and  all  other 
like  privileges  in  connection  with  any  United  States  immigrant  station, 
shall  be  disposed  of  to  the  lowest  responsible  and  capable  bidder,  after 
public  competition,  notice  of  such  competitive  bidding  having  been  made 
in  two  newspapers  of  general  circulation  for  a  period  of  two  weeks, 
subject  to  such  conditions  and  limitations  as  the  Commissioner  General 
of  Immigration,  under  the  direction  or  with  the  approval  of  the  Secre- 
tarv  of  Labor,  may  prescribe,  and  all  receipts  accruing  from  the  disposal 
of  privileges  shall  be  paid  into  the  Treasury  of  the  United  States.  No 
such  contract  shall  be  awarded  to  an  alien.  No  intoxicating  liquors 
shall  be  sold  at  any  such  immigration  statjion. 

Law  Enforcement  Officers  Admitted  to  Stations. 

Sec.  27.  That  for  the  preservation  of  the  peace  and  in  order  that 
arrests  may  be  made  for  crimes  under  the  laws  of  the  States  and 
Territories  of  the  United  States  where  the  various  immigrant  stations 
are  located,  the  officers  in  charge  of  such  stations,  as  occasion  may 
require,  shall  admit  therein  the  proper  State  and  municipal  officers 
charged  with  the  enforcement  of  such  laws,  and  for  the  purpose  of  this 
section  the  jurisdiction  of  such  officers  and  of  the  local  courts  shall 
extend  over  such  stations. 

Penalty  for  Aiding  Anarchists  to  Enter. 

Sec.  28.  That  any  person  who  knowingly  aids  or  assists  any  an- 
archist or  any  person  who  believes  in  or  advocates  the  overthrow  by 


190  Important  Federal  Laws 

force  or  violence  of  the  Government  of  the  United  States,  or  who  dis- 
believes in  or  is  opposed  to  organized  government,  or  all  forms  of 
law,  or  who  advocates  the  assassination  of  public  officials,  or  who  is 
a  member  of  or  affiliated  with  any  organization  entertaining  or  teaching 
disbelief  in  or  opposition  to  organized  government,  or  who  advocates 
or  teaches  the  duty,  necessity,  or  propriety  of  the  unlawful  assaulting 
or  killing  of  any  officer  or  officers,  either  of  specific  individuals  or  of 
officers  generally,  of  the  Government  of  the  United  States  or  of  any 
other  organized  government,  because  of  his  or  their  official  character, 
to  enter  the  United  States,  or  who  connives  or  conspires  with  any  per- 
son or  persons  to  allow,  procure,  or  permit  any  such  anarchist  or  per- 
son aforesaid  to  enter  therein,  shall  be  deemed  guilty  of  a  felony,  and 
on  conviction  thereof  shall  be  punished  by  a  fine  of  not  more  than  $5,000 
or  by  imprisonment  for  not  more  than  five  years,  or  both. 

Any  person  who  knowingly  aids  or  assists  any  alien  who  advocates 
or  teaches  the  unlawful  destruction  of  property  to  enter  the  United 
States  shall  be  deemed  guilty  of  a  misdemeanor  and  on  conviction  there- 
of shall  be  punished  by  a  fine  of  not  more  than  $1,000,  or  by  imprison- 
ment for  not  more  than  six  months,  or  by  both  such  fine  and  imprison- 
ment. 

International  Conference. 

Sec.  29.  That  the  President  of  the  United  States  is  authorized, 
in  the  name  of  the  Government  of  the  United  States,  to  call,  in  his 
discretion,  an  international  conference,  to  assemble  at  such  point  as 
may  be  agreed  upon,  or  to  send  special  commissioners  to  any  foreign 
country,  for  the  purpose  of  regulating  by  international  agreement,  sub- 
ject to  the  advice  and  consent  of  the  Senate  of  the  United  States,  the 
immigration  of  aliens  to  the  United  States ;  of  providing  for  the  mental, 
moral,  and  physical  examination  of  such  aliens  by  American  consuls 
or  other  officers  of  the  United  States  Government  at  the  ports  of  em- 
barkation, or  elsewhere :  of  securing  the  assistance  of  foreign  Govern- 
ments in  their  own  territories  to  prevent  the  evasion  of  the  laws  of  the 
United  States  governing  immigration  to  the  United  States ;  of  entering 
into  such  international  agreements  as  may  be  proper  to  prevent  the  immi- 
gration of  aliens  who,  under  the  laws  of  the  United  States,  are  or  may 
be  excluded  from  entering  the  United  States,  and  of  regulating  any  mat- 
ters pertaining  to  such  immigration. 

Division  of  Information. 

Sec.  30.  That  there  shall  be  maintained  a  division  of  information 
in  the  Bureau  of  Immigration ;  and  the  Secretary  of  Labor  shall  provide 
such  clerical  and  other  assistance  as  may  be  necessary.  It  shall  be  the 
duty  of  said  division  to  promote  a  beneficial  distribution  of  aliens  admitted 
into  the  United  States  among  the  several  States  and  Territories  desiring 
immigration.  Correspondence  shall  be  had  with  the  proper  officials  of 
the  States  and  Territories,  and  said  division  shall  gather  from  all  avail- 


Immigration  Act  191 

able  sources  useful  information  regarding  the  resources,  products,  and 
physical  characteristics  of  each  State  and  Territory,  and  shall  publish  such 
information  in  different  languages  and  distribute  the  publications  among 
all  admitted  aliens  at  the  immigrant  stations  of  the  United  States  and 
to  such  other  persons  as  may  desire  the  same.  When  any  State  or  Terri- 
tory appoints  and  maintains  an  agent  or  agents  to  represent  it  at  any  of 
the  immigrant  stations  of  the  United  States,  such  agents  shall,  under  regu- 
lations prescribed  by  the  Commissioner  General  of  Immigration,  subject 
to  the  approval  of  the  Secretary  of  Labor,  have  access  to  aliens  who  have 
been  admitted  to  the  United  States  for  the  purpose  of  presenting,  either 
orally  or  in  writing,  the  special  inducements  offered  by  such  State  or 
Territory  to  aliens  to  settle  therein.  While  on  duty  at  any  immigrant 
station  such  agents  shall  be  subject  to  all  the  regulations  prescribed  by 
the  Commissioner  General  of  Immigration,  who,  with  the  approval  of  the 
Secretary  of  Labor,  may,  for  violation  of  any  such  regulations,  deny  to 
the  agent  guilty  of  such  violation  any  of  the  privileges  herein  granted. 

Penalty  for  Aiding  Member  of  Crew  to  Enter  Unlawfully. 

Sec.  31.  That  any  person,  including  the  owner,  agent,  consignee,  or 
master  of  any  vessel  arriving  in  the  United  States  from  any  foreign  port 
or  place,  who  shall  knowingly  sign  on  the  ship's  articles,  or  bring  to  the 
United  States  as  one  of  the  crew  of  such  vessel,  any  alien,  with  intent 
to  permit  such  alien  to  land  in  the  United  States  in  violation  of  the  laws 
and  treaties  of  the  United  States  regulating  the  immigration  of  aliens,  or 
who  shall  falsely  and  knowingly  represent  to  the  immigration  authorities 
at  the  port  of  arrival  that  any  such  alien  is  a  bona  fide  member  of  the 
crew,  shall  be  liable  to  a  penalty  not  exceeding  $5,000,  for  which  sum 
the  said  vessel  shall  be  liable  and  may  be  seized  and  proceeded  against 
by  way  of  libel  in  any  district  court  of  the  United  States  having  jurisdic- 
tion of  the  offense. 

Excluded  Aliens  Not  to  Land. 

Sec.  22.  That  no  alien  excluded  from  admission  into  the  United 
States  by  any  law,  convention,  or  treaty  of  the  United  States  regulating 
the  immigration  of  aliens,  and  employed  on  board  any  vessel  arriving  in 
the  United  States  from  any  foreign  port  or  place,  shall  be  permitted  to 
land  in  the  United  States,  except  temporarily  for  medical  treatment,  or 
])ursuant  to  regulations  prescribed  by  the  Secretary  of  Labor  providing 
for  the  ultimate  removal  or  deportation  of  such  alien  from  the  United 
States,  and  the  negligent  failure  of  the  owner,  agent,  consignee,  or  master 
of  such  vessel  to  detain  on  board  any  such  alien  after  notice  in  writ- 
ing by  the  immigration  officer  in  charge  at  the  port  of  arrival,  and  to 
deport  such  alien,  if  required  by  such  immigration  officer  or  by  the  Secre- 
tary of  Labor,  shall  render  such  owner,  agent,  consigne,  or  master  liable 
to  a  penalty  not  exceeding  $1,000,  for  which  sum  the  said  vessel  shall 
be  liable,  and  may  be  seized  and  proceeded  against  by  way  of  libel  in 
any  district  court  of  the  United  States  having  jurisdiction  of  the  offense. 


192  Important  Federal  Laws 

Employees  of  Vessels  Not  to  be  Discharged. 

Sec.  33.  That  it  shall  be  unlawful  and  be  deemed  a  violation  of  the 
preceding  section  to  pay  off  or  discharge  any  alien  employed  on  board 
any  vessel  arriving  in  the  United  States  from  any  foreign  port  or 
place,  unless  duly  admitted  pursuant  to  the  laws  and  treaties  of  the 
United  States  regulating  the  immigration  of  aliens:  Provided,  That 
in  case  any  such  alien  intends  to  reship  on  board  any  other  vessel 
bound  to  any  foreign  port  or  place,  he  shall  be  allowed  to  land  for 
the  purpose  of  so  reshipping,  under  such  regulations  as  the  Secre- 
tary of  Cabor  may  prescribe  to  prevent  aliens  not  admissible  under 
any  law,  convention,  or  treaty  from  remaining  permanently  in  the  United 
States,  and  may  be  paid  off,  discharged,  and  permitted  to  remove  his 
effects,  anything  in  such  laws  or  treaties  or  in  this  Act  to  the  con- 
trary notwithstanding,  provided  due  notice  of  such  proposed  action  be 
given  by  the  master  or  the  seaman  himself  to  the  principal  immigra- 
tion officer  in  charge  at  the  port  of  arrival. 

Alien  Seameru 

Sec.  34.  That  any  alien  seaman  who  shall  land  in  a  port  of  the 
United  States  contrary  to  the  provisions  of  this  Act  shall  be  deemed 
to  be  unlawfully  in  the  United  States,  and  shall,  at  any  time  within 
three  years  thereafter,  upon  the  warrant  of  the  Secretary  of  Labor, 
be  taken  into  custody  and  brought  before  a  board  of  special  inquiry 
for  examination  as  to  his  qualifications  for  admission  to  the  United 
States,  and  if  not  admitted  said  alien  seaman  shall  be  deported  at 
the  expense  of  the  appropriation  for  this  Act  as  provided  in  section 
twenty  of  this  Act. 

Defective  Employees. 

Sec.  35.  That  it  shall  be  unlawful  for  any  vessel  carrying  passen- 
gers between  a  port  of  the  United  States  and  a  port  of  a  foreign 
country,  upon  arrival  in  the  United  States,  to  have  on  board  employed 
thereon  any  alien  afflicted  with  idiocy,  imbecility,  insanity,  epilepsy,  tuber- 
culosis in  any  form,  or  a  loathsome  or  dangerous  contagious  disease,  if 
it  appears  to  the  satisfaction  of  the  Secretary  of  Labor,  from  an  ex- 
amination made  by  a  medical  officer  of  the  United  States  Public  Health 
Service,  and  is  so  certified  by  such  officer,  that  any  such  alien  was  so 
afflicted  at  the  time  he  was  shipped  or  engaged  and  taken  on  board 
such  vessel  and  that  the  existence  of  such  affliction  might  have  been 
detected  by  means  of  a  competent  medical  examination  at  such  time; 
and  for  every  such  alien  so  afflicted  on  board  any  such  vessel  at  the  time 
of  arrival  tlie  owner,  agent,  consignee,  or  master  thereof  shall  pay  to 
the  collector  of  customs  of  the  customs  district  in  which  the  port  of 
arrival  is  located  the  sum  of  $50,  and  pending  departure  of  the  vessel 
the  alien  shall  be  detained  and  treated  in  hospital  under  supervision 
of  immigration  officials  at  the  expense  of  thevessel;  and  no  vessel  shall 
be  granted  clearance  pending  the  determination  of  the  question  of  the 
liability  to  the  payment  of  such  fine  and  while  it  remains  unpaid:  Pro- 


Immigration  Act  193 

vided,  That  clearance  may  be  granted  prior  to  the  determination  of  such 
question  upon  the  deposit  of  a  sum  sufficient  to  cover  such  fine :  Pro- 
vided further,  That  such  fine  may,  in  the  discretion  of  the  Secretary 
of  Labor,  be  mitigated  or  remitted. 

Lists  of  Employed  Aliens. 

Sec.  36.  That  upon  arrival  of  any  vessel  in  the  United  States  from 
any  foreign  port  or  place  it  shall  be  the  duty  of  the  owner,  agent, 
consignee,  or  master  thereof  to  deliver  to  the  principal  immigration 
officer  in  charge  of  the  port  of  arrival  lists  containing  the  names  of 
all  aliens  employed  on  such  vessel,  stating  the  positions  they  respec- 
tively hold  in  the  ship's  company,  when  and  where  they  were  respec- 
tively shipped  or  engaged,  and  specifying  those  to  be  paid  off  and  dis- 
charged in  the  port  of  arrival ;  or  lists  containing  so  much  of  such 
information  as  the  Secretary  of  Labor  shall  by  regulation  prescribe ;  and 
after  the  arrival  of  any  such  vessel  it  shall  be  the  duty  of  such  owner, 
agent,  consignee,  or  master  to  report  to  such  immigration  officer,  in 
writing,  as  soon  as  discovered,  all  cases  in  which  any  such  alien  has  ille- 
gally landed  from  the  vessel,  giving  a  description  of  such  alien,  together 
with  any  information  likely  to  lead  to  his  apprehension ;  and  before 
the  departure  of  any  such  vessel  it  shall  be  the  duty  of  such  owner, 
agent,  consignee,  or  master  to  deliver  to  such  immigration  officer  a 
further  list  containing  the  names  of  all  alien  employees  who  were  not 
employed  thereon  at  the  time  of  the  arrival  but  who  will  leave  port 
thereon  at  the  time  of  her  departure,  and  also  the  names  of  those,  if 
any,  who  have  been  paid  off  and  discharged,  and  of  those,  if  any,  who 
have  deserted  or  landed ;  and  in  case  of  the  failure  of  such  owner, 
agent,  consignee,  or  master  so  to  deliver  either  of  the  said  lists  of  such 
aliens  arriving  and  departing,  respectively,  or  so  to  report  such  cases 
of  desertion  or  landing,  such  owner,  agent,  consignee,  or  master  shall, 
if  required  by  the  Secretary  of  Labor,  pay  to  the  collector  of  customs 
of  the  customs  district  in  which  the  port  of  arrival  is  located  the  sum 
of  $10  for  each  alien  concerning  whom  correct  lists  are  not  delivered 
or  a  true  report  is  not  made  as  above  required ;  and  no  such  vessel 
shall  be  granted  clearance  pending  the  determination  of  the  question 
of  the  liability  to  the  payment  of  such  fine,  and,  in  the  event  such  fine 
is  imposed,  while  it  remains  unpaid ;  nor  shall  such  fine  be  remitted 
or  refunded :  Provided,  That  clearance  may  be  granted  prior  to  the 
determination  of  such  question  upon  deposit  of  a  sum  sufficient  to  cover 
such  fine. 

Definition  of  "Person." 

Sec.  Z7 .  That  the  word  "person"  as  used  in  this  Act  shall  be  con- 
strued to  import  both  plural  and  the  singular,  as  the  case  may  be,  and 
shall  include  corporations,  companies,  and  associations.  When  con- 
struing and  enforcing  the  provisions  of  this  Act,  the  act,  omission, 
or  failure  of  any  director,  officer,  agent,  or  employee  of  any  corpora- 
tion,  company,   or  association   acting  within   the   scope  of   his   employ- 

(13) 


194  Important  Federal  Laws 

ment  or  office  shall  in  every  case  be  deemed  to  be  the  act,  omission, 
or  failure  of  such  corporation,  company,  or  association,  as  well  as 
that  of  the  person  acting  for  or  in  behalf  of  such  corporation,  com- 
pany, or  association. 

Date  to  Take  Effect. 

Sec.  38.  That  this  Act,  except  as  otherwise  provided  in  section 
three,  shall  take  effect  and  be  enforced  on  and  after  May  first,  nine- 
teen hundred  and  seventeen.  The  Act  of  March  twenty-sixth,  nine- 
teen hundred  and  ten,  amending  the  Act  of  February  twentieth,  nine- 
teen hundred  and  seven,  to  regulate  the  immigration  of  aliens  into  the 
United  States ;  the  Act  of  February  twentieth,  nineteen  hundred  and 
seven,  to  regulate  the  immigration  of  aliens  into  the  United  States,  ex- 
cept section  thirty-four  thereof ;  the  Act  of  March  third,  nineteen  hun- 
dred and  three,  to  regulate  the  immigration  of  aliens  into  the  United 
States,  except  section  thirty-four  thereof  ;  and  all  other  Acts  and  parts 
of  Acts  inconsistent  with  this  Act  are  hereby  repealed  on  and  after 
the  taking  eft'ect  of  this  Act :  Provided,  That  this  Act  shall  not  be  con- 
strued to  repeal,  alter,  or  amend  existing  laws  relating  to  the  immigra- 
tion or  exclusion  of  Chinese  persons  or  persons  of  Chinese  descent, 
except  as  provided  in  section  nineteen  hereof,  nor  to  repeal,  alter,  or 
amend  section  six,  chapter  four  hundred  and  fifty-three,  third  session. 
Fifty-eighth  Congress,  approved  February  sixth,  nineteen  hundred  and 
five,  nor  to  repeal,  alter,  or  amend  the  Act,  approved  August  second, 
eighteen  hundred  and  eighty-two,  entitled  "An  Act  to  regulate  the  car- 
riage of  passengers  by  sea,"  and  amendments  thereto,  except  as  pro- 
vided in  section  eleven  hereof :  Provided  further.  That  nothing  con- 
tained in  this  Act  shall  be  construed  to  affect  any  prosecution,  suit, 
action,  or  proceedings  brought,  or  any  act,  thing,  or  matter,  civil  or 
criminal,  done  or  existing  at  the  time  of  the  taking  effect  of  this  Act, 
except  as  mentioned  in  the  third  proviso  of  section  nineteen  hereof ; 
but  as  to  all  such  prosecutions,  suits,  actions,  proceedings,  acts,  things, 
or  matters,  the  laws  or  parts  of  laws  repealed  or  amended  by  this  Act 
are  hereby  continued  in  force  and  effect. 


NATURALIZATION  LAWS. 

Act  of  June  29,  1906,  as  amended  March  4,  1909,  June  25,  1910,  and  March  4, 

1913,  creating  the  Department  of  Labor. 
An  Act  to  provide  for  a  uniform  rule  for  the  naturalization  of  aliens  through- 
out the  United  States,  and  establishing  the  Bureau  of  Naturalization. 
[Portion  of  Act  creating  the  Department  of  Labor.] 

The  Bureau  of  Naturalization. 

Sec.  1.  That  the  Bureau  of  Naturalization,  under  the  direction 
and  control  of  the  Secretary  of  Labor,  shall  have  charge  of  all  matters 
concerning  the  naturalization  of  aliens.  That  it  shall  be  the  duty  of  the 
Bureau   of    Immigration   to   provide,    for   use   at   the   various   immigra- 


Naturalization  Laws  195 

tion  stations  throughout  the  United  States,  books  of  record,  wherein 
the  commissioners  of  immigration  shall  cause  a  registry  to  be  made 
in  the  case  of  each  alien  arriving  in  the  United  States  from  and  after 
the  passage  of  this  act  of  the  name,  age,  occupation,  personal  descrip- 
tion (including  height,  complexion,  color  of  hair  and  eyes),  the  place 
of  birth,  the  last  residence,  the  intended  place  of  residence  in  the 
United  States,  and  the  date  of  arrival  of  said  alien  and,  if  entered 
through  a  port,  the  name  of  the  vessel  in  which  he  comes.  And  it 
shall  be  the  duty  of  said  commissioners  of  immigration  to  cause  to  be 
granted  to  such  alien  a  certificate  of  such  registry,  with  the  particulars 
thereof. 

Sec.  2.  [This  section  is  omitted,  as  it  merely  authorized  the  Sec- 
retary of  Commerce  and  Labor  to  provide  the  necessary  offices  in  the 
city  of  Washington.] 

Courts  Which  May  Naturalize. 

Sec.  3.  That  exclusive  jurisdiction  to  naturalize  aliens  as  citizens 
of  the  United  States  is  hereby  conferred  upon  the  following  specified 
courts : 

United  States  circuit  and  district  courts  now  existing,  or  which 
may  hereafter  be  established  by  Congress  in  any  State,  United  States 
district  courts  for  the  Territories  of  Arizona,  New  Mexico,  Oklahoma, 
Hawaii,  and  Alaska,  the  supreme  court  of  the  District  of  Columbia, 
and  the  United  States  courts  for  the  Indian  Territory;  also  all  courts 
of  record  in  any  State  or  Territory  now  existing,  or  which  may  hereafter 
be  created,  having  a  seal,  a  clerk,  and  jurisdiction  in  actions  at  laW 
or  equity,  or  law  and  equity,  in  which  the  amount  in  controversy  is 
unlimited. 

That  the  naturalization  jurisdiction  of  all  courts  herein  specified, 
State,  Territorial,  and  Federal,  shall  extend  only  to  aliens  resident 
within  the  respective  judicial  districts  of  such  courts. 

The  courts  herein  specified  shall,  upon  the  requisition  of  the  clerks 
of  such  courts,  be  furnished  from  time  to  time  by  the  Bureau  of 
Naturalization  with  such  blank  forms  as  may  be  required  in  the  nat- 
uralization of  aliens,  and  all  certificates  of  naturalization  shall  be  con- 
secutively numbered  and  printed  on  safety  paper  furnished  by  said 
bureau. 

Method  of  Naturalization. 

Sec.  4.  That  an  alien  may  be  admitted  to  become  a  citizen  of  the 
United  States  in  the  following  manner  and  not  otherwise : 

First.  He  shall  declare  on  oath  before  the  clerk  of  any  court  author- 
ized by  this  Act  to  naturalize  aliens,  or  his  authorized  deputy,  in  the 
district  in  which  such  alien  resides,  two  years  at  least  prior  to  his 
admission,  and  after  he  has  reached  the  age  of  eighteen  years,  that  it 
is  bona  fide  his  intention  to  become  a  citizen  of  the  United  States,  and 
to  renounce  forever  all  allegiance  and  fidelity  to  any  foreign  prince, 
potentate,  state,  or  sovereignty,  and  particularly,  by  name,  to  the  prince. 


196  Important  Federal  Laws 

potentate,  state,  or  sovereignty  of  which  the  ahen  may  be  at  the  time 
a  citizen  or  subject.  And  such  declaration  shall  set  forth  the  name, 
age,  occupation,  personal  description,  place  of  birth,  last  foreign  resi- 
dence and  allegiance,  the  date  of  arrival,  the  name  of  the  vessel,  if 
any,  in  which  he  came  to  the  United  States,  and  the  present  place 
of  residence  in  the  United  States  of  said  alien :  Provided,  however, 
That  no  alien  who,  in  conformity  with  the  law  in  force  at  the  date 
of  his  declaration,  has  declared  his  intention  to  become  a  citizen  of 
the  United  States  shall  be  required  to  renew  such  declaration. 

Second.  Not  less  than  two  years  nor  more  than  seven  years  after 
he  has  made  such  declaration  of  intention  he  shall  make  and  file,  in 
duplicate,  a  petition  in  writing  signed  by  the  applicant  in  his  own 
handwriting  and  duly  verified,  in  which  petition  such  applicant  shall 
state  his  full  name,  his  place  of  residence  (by  street  and  number,  if 
possible),  his  occupation,  and,  if  possible,  the  date  and  place  of  his 
birth;  the  place  from  which  he  emigrated,  and  the  date  and  place  of 
his  arrival  in  the  United  States,  and,  if  he  entered  through  a  port,  the 
name  of  the  vessel  on  which  he  arrived ;  the  time  when  and  the  place 
and  name  of  the  court  where  he  declared  his  intention  to  become  a 
citizen  of  the  United  States ;  if  he  is  married  he  shall  state  the  name 
of  his  wife  and,  if  possible,  the  countr}-  of  her  nativity  and  her  place 
of  residence  at  the  time  of  filing  his  petition ;  and  if  he  has  children, 
the  name,  date,  and  place  of  birth  and  place  of  residence  of  each  child 
living  at  the  time  of  the  filing  of  his  petition :  Provided,  That  if  he 
has  filed  his  declaration  before  the  passage  of  this  Act  he  shall  not  be 
required  to  sign  the  petition  in  his  own  handwriting. 

The  petition  shall  set  forth  that  he  is  not  a  disbeliever  in  or  op- 
posed to  organized  government,  or  a  member  of  or  affiliated  with  any 
organization  or  body  of  persons  teaching  disbeHef  in  or  opposed  to 
organized  government,  a  polygamist  or  believer  in  the  practice  of  polyg- 
amy, and  that  it  is  his  intention  to  become  a  citizen  of  the  United 
States  and  to  renounce  absolutely  and  forever  all  allegiance  and  fidelity 
to  any  foreign  prince,  potentate,  state,  or  sovereignty,  and  particularly 
by  name  to  the  prince,  potentate,  state,  or  sovereignty  of  which  he  at  the 
time  of  filing  of  his  petition  may  be  a  citizen  or  subject,  and  that  it  is 
his  intention  to  reside  permanently  within  the  United  States,  and 
whether  or  not  he  has  been  denied  admission  as  a  citizen  of  the  United 
States,  and,  if  denied,  the  ground  or  grounds  of  such  denial,  the  court 
Or  courts  in  which  such  decision  was  rendered,  and  that  the  cause 
for  such  denial  has  since  been  cured  or  removed,  and  every  fact  mate- 
rial to  his  naturalization  and  required  to  be  proved  upon  the  final 
hearing  of  his  application. 

The  petition  shall  also  be  verified  by  the  affidavits  of  at  least  two 
credible  witnesses,  who  are  citizens  of  the  United  States,  and  who 
shall  state  in  their  affidavits  that  they  have  personally  known  the 
applicant  to  be  a  resident  of  the  United  States  for  a  period  of  at  least 


Naturalization  Laws  197 

five  years  continuously,  and  of  the  State,  Territory,  or  District  in  which 
the  application  is  made  for  a  period  of  at  least  one  year  immediately 
preceding  the  date  of  the  filing  of  his  petition,  and  that  they  each 
have  personal  knowledge  that  the  petitioner  is  a  person  of  good  moral 
character,  and  that  he  is  in  every  way  qualified,  in  their  opinion,  to 
be  admitted  as  a  citizen  of  the  United  States. 

At  the  time  of  filing  his  petition  there  shall  be  filed  with  the  clerk 
of  the  court  a  certificate  from  the  Department  of  Labor,  if  the  peti- 
tioner arrives  in  the  United  States  after  the  passage  of  this  act,  stat- 
ing the  date,  place,  and  manner  of  his  arrival  in  the  United  States, 
and  the  declaration  of  intention  of  such  petitioner,  which  certificate 
and  declaration  shall  be  attached  to  and  made  a  part  of  said  petition. 

Third.  He  shall,  before  he  is  admitted  to  citizenship,  declare  on 
oath  in  open  court  that  he  will  support  the  Constitution  of  the  United 
States,  and  that  he  absolutely  and  entirely  renounces  and  abjures  all 
allegiance  and  fidelity  to  any  foreign  prince,  potentate,  state,  or  sover- 
eignty, and  particularly  by  name  to  the  prince,  potentate,  state,  or  sover- 
eignty of  which  he  was  before  a  citizen  or  subject;  that  he  will  sup- 
port and  defend  the  Constitution  and  laws  of  the  United  States  against 
all  enemies,  foreign  and  domestic,  and  bear  true  faith  and  allegiance 
to  the  same. 

Fourth.  It  shall  be  made  to  appear  to  the  satisfaction  of  the  court 
admitting  any  alien  to  citizenship  that  immediately  preceding  the  date 
of  his  application  he  has  resided  continuously  within  the  United  States 
five  years  at  least,  and  within  the  State  or  Territory  where  such  court 
is  at  the  time  held  one  year  at  least,  and  that  during  that  time  he  has 
behaved  as  a  man  of  good  moral  character,  attached  to  the  principles 
of  the  Constitution  of  the  United  States,  and  well  disposed  to  the 
good  order  and  happiness  of  the  same.  In  addition  to  the  oath  of 
the  applicant,  the  testimony  of  at  least  two  witnesses,  citizens  of  the 
United  States,  as  to  the  facts  of  residence,  moral  character,  and  attach- 
ment to  the  principles  of  the  Constitution  shall  be  required,  and  the 
name,  place  of  residence,  and  occupation  of  each  witness  shall  be  set 
forth  in  the  record. 

Fifth.  In  case  the  alien  applying  to  be  admitted  to  citizenship  has 
borne  any  hereditary  title,  or  has  been  of  any  of  the  orders  of  nobility 
in  the  kingdom  or  state  from  which  he  came,  he  shall,  in  addition  to 
the  above  requisites,  make  an  express  renunciation  of  his  title  or  order 
of  nobility  in  the  court  to  which  his  application  is  made,  and  his  renun- 
ciation shall  be  recorded  in  the  court. 

Sixth.  When  any  alien  who  has  declared  his  intention  to  become  a 
citizen  of  the  United  States  dies  before  he  is  actually  naturalized  the 
widow  and  minor  children  of  such  alien  may,  by  complying  with  the 
other  provisions  of  this  act,  be  naturalized  without  making  any  declara- 
tion oif  intention. 


198  Important  Federal  Laws 

Aliens  Who  Erroneously  Believed  Themselves  Citizens  Exempt  From 

Certain  Formalities.     (Act  of  June  25,  1910.) 

Sec.  3.  That  paragraph  2  of  section  4  of  an  act  entitled  "An  act 
to  estabhsh  a  Bureau  of  Immigration  and  NaturaHzation,  and  to  pro- 
vide for  a  uniform  rule  for  the  naturalization  of  aliens  throughout  the 
United  States,"  approved  June  29,  1906,  be  amended  by  adding  after 
the  proviso  in  paragraph  2  of  section  4  of  said  act  the  following: 

"Provided  further,  That  any  person  belonging  to  the  class  of  per- 
sons authorized  and  qualified  under  existing  law  to  become  a  citizen  of 
the  United  States  who  has  resided  constantly  in  the  United  States  dur- 
ing a  period  of  five  years  next  preceding  May  first,  nineteen  hundred 
and  ten,  who,  because  of  misinformation  in  regard  to  his  citizenship  or 
the  requirements  of  the  law  governing  the  naturalization  of  citizens  has 
labored  and  acted  under  the  impression  that  he  was  or  could  become  a 
citizen  of  the  United  States  and  has  in  good  faith  exercised  the  rights 
or  duties  of  a  citizen  or  intended  citizen  of  the  United  States  because 
of  such  wrongful  information  and  belief  may,  upon  making  a  showing 
of  such  facts  satisfactory  to  a  court  having  jurisdiction  to  issue  papers 
of  naturalization  to  an  alien,  and  the  court  in  its  judgment  believes  that 
such  person  has  been  for  a  period  of  more  than  five  years  entitled  upon 
proper  proceedings  to  be  naturalized  as  a  citizen  of  the  United  States, 
receive  from  the  said  court  a  final  certificate  of  naturalization,  and  said 
court  may  issue  such  certificate  without  requiring  proof  of  former 
declaration  by  or  on  the  part  of  such  person  of  their  intention  to  be- 
come a  citizen  of  the  United  States,  but  such  applicant  for  naturaliza- 
tion shall  comply  in  all  other  respects  with  the  law  relative  to  tbe  issu- 
ance of  final  papers  of  naturalization  to  aliens." 

Notice  of  Petition  by  Clerk. 

Sec.  5.  That  the  clerk  of  the  court  shall,  immediately  after  filing 
the  petition,  give  notice  thereof  by  posting  in  a  public  and  conspicu- 
ous place  in  his  office,  or  in  the  building  in  which  his  office  is  situated, 
under  an  appropriate  heading,  the  name,  nativity,  and  residence  of 
the  alien,  the  date  and  place  of  his  arrival  in  the  United  States,  and 
the  date,  as  nearly  as  may  be,  for  the  final  hearing  of  his  petition,  and 
the  names  of  the  witnesses  whom  the  applicant  expects  to  summon 
in  his  behalf  ;  and  the  clerk  shall,  if  the  applicant  requests  it,  issue  a 
subpoena  for  the  witnesses  so  named  by  the  said  applicant  to  appear 
upon  the  day  set  for  the  final  hearing,  but  in  case  such  witnesses 
can  not  be  produced  upon  the  final  hearing  other  witnesses  may  be 
summoned. 

Docketing  of  Petition,  Naturalization  Before   Election   Prohibited. 

Sec.  6.  That  petitions  for  naturalization  may  be  made  and  filed 
during  term  time  or  vacation  of  the  court  and  shall  be  docketed  the 
same  day  as  filed,  but  final  action  thereon  shall  be  had  only  on  stated 
days,  to  be  fixed  by  rule  of  the  court,  and  in  no  case  shall  final  action 
be  had  upon  a  petition  until  at  least  ninety  days  have  elapsed  after 


Naturalization  Laws  199 

filing  and  posting  the  notice  of  such  petition:  Provided,  That  no  per- 
son shall  be  naturalized  nor  shall  any  certificate  of  naturalization  be 
issued  by  any  court  within  thirty  days  preceding  the  holding  of  any 
general  election  within  its  territorial  jurisdiction.  It  shall  be  lawful 
at  the  time  and  as  a  part  of  the  naturalization  of  any  alien,  for  the 
court,  in  its  discretion,  upon  the  petition  of  such  alien,  to  make  a 
decree  changing  the  name  of  said  alien,  and  his  certificate  of  naturali- 
zation shall  be  issued  to  him  in  accordance  therewith. 

Anarchists  Prohibited. 

Sec.  7.  That  no  person  who  disbelieves  in  or  who  is  opposed  to 
organized  government,  or  who  is  a  member  of  or  affiliated  with  any 
organization  entertaining  and  teaching  such  disbelief  in  or  opposition 
to  organized  government,  or  who  advocates  or  teaches  the  duty,  neces- 
sity, or  propriety  of  the  unlawful  assaulting  or  killing  of  any  officer 
or  officers,  either  of  specific  individuals  or  of  officers  generally,  of 
the  Government  of  the  United  States,  or  of  any  other  organized  gov- 
ernment, because  of  his  or  their  official  character,  or  who  is  a  polyg- 
amist,  shall  be  naturalized  or  be  made  a  citizen  of  the  United  States. 

Applicant  Must  Speak  English. 

Sec.  8.  That  no  alien  shall  hereafter  be  naturahzed  or  admitted  as 
a  citizen  of  the  United  States  who  can  not  speak  the  English  language : 
Provided,  That  this  requirement  shall  not  apply  to  aliens  who  _  are 
physically  unable  to  comply  therewith,  if  they  are  otherwise  qualified 
to  become  citizens  of  the  United  States:  And  provided  further.  That 
the  requirements  of  this  section  shall  not  apply  to  any  alien  who  has 
prior  to  the  passage  of  this  act  declared  his  intention  to  become  a 
citizen  of  the  United  States  in  conformity  with  the  law  in  force  at  the 
date  of  making  such  declaration:  Provided  further,  That  the  require- 
ments of  section  eight  shall  not  apply  to  aliens  who  shall  hereafter 
declare  their  intention  to  become  citizens  and  who  shall  make  home- 
stead entries  upon  the  public  lands  of  the  United  States  and  comply 
in  all  respects  with  the  laws  providing  for  homestead  entries  on  such 
lands. 

Final  Hearing. 

Sec.  9.  That  every  final  hearing  upon  such  petition  shall  be  had 
in  open  court  before  a  judge  or  judges  thereof,  and  every  final  order 
which  may  be  made  upon  such  petition  shall  be  under  the  hand  of  the 
court  and  entered  in  full  upon  a  record  kept  for  that  purpose,  and 
upon  such  final  hearing  of  such  petition  the  applicant  and  witnesses 
shall  be  examined  under  oath  before  the  court  and  in  the  presence  of 
the  court. 

Proving  Residence. 

Sec.  10.  That  in  case  the  petitioner  has  not  resided  in  the  State, 
Territory,  or  District  for  a  period  of  five  years  continuously  and 
immediately   preceding  the  filing  of   his   petition  he  may  establish  by 


200  Important  Federal  Laws 

two  witnesses,  both  in  his  petition  and  at  the  hearing,  the  time  of  his 
residence  within  the  State,  provided  that  it  has  been  for  more  than  one 
year,  and  the  remaining  portion  of  his  five  years'  residence  within  the 
United  States  required  by  law  to  be  estabHshed  may  be  proved  by  the 
depositions  of  two  or  more  witnesses  who  are  citizens  of  the  United 
States,  upon  notice  to  the  Bureau  of  NaturaUzation  and  the  United 
States  attorney  for  the  district  in  which  said  witnesses  may  reside. 

Cross-Examination  of  Petitioner. 

Sec.  11.  That  the  United  States  shall  have  the  right  to  appear 
before  any  court  or  courts  exercising  jurisdiction  in  naturalization 
proceedings  for  the  purpose  of  cross-examining  the  petitioner  and  the 
witnesses  produced  in  support  of  his  petition  concerning  any  matter 
touching  or  in  any  way  affecting  his  right  to  admission  to  citizenship, 
and  shall  have  the  right  to  call  witnesses,  produce  evidence,  and  be 
heard  in  opposition  to  the  granting  of  any  petition  in  naturalization 
proceedings. 

Clerk  to  File  Declarations  and  Certificates  With  Bureau  of  Naturaliza- 
tion. 

Sec.  12.  That  it  is  hereby  made  the  duty  of  the  clerk  of  each  and 
every  court  exercising  jurisdiction  in  naturalization  matters  under  the 
provisions  of  this  act  to  keep  and  file  a  duplicate  of  each  declaration 
of  intention  made  before  him  and  to  send  to  the  Bureau  of  Naturali- 
zation at  Washington,  within  thirty  days  after  the  issuance  of  a  cer- 
tificate of  citizenship,  a  duplicate  of  such  certificate,  and  to  mak,e 
and  keep  on  file  in  his  office  a  stub  for  each  certificate  so  issued  by 
him,  whereon  shall  be  entered  a  memorandum  of  all  the  essential  facts 
set  forth  in  such  certificate.  It  shall  also  be  the  duty  of  the  clerk  of  each 
of  said  courts  to  report  to  the  said  bureau,  within  thirty  days  after 
the  final  hearing  and  decision  of  the  court,  the  name  of  each  and 
every  alien  who  shall  be  denied  naturalization,  and  to  furnish  to  said 
bureau  duplicates  of  all  petitions  within  thirty  days  after  the  filing  of 
the  same,  and  certified  copies  of  such  other  proceedings  and  orders 
instituted  in  or  issued  out  of  said  court  affecting  or  relating  to  the 
naturalization  of  aliens  as  may  be  required  from  time  to  time  by  the 
said  bureau. 

In  case  any  such  clerk  or  officer  acting  under  his  direction  shall 
refuse  or  neglect  to  comply  with  any  of  the  foregoing  provisions  he 
shall  forfeit  and  pay  to  the  United  States  the  sum  of  twenty-five  dol- 
lars in  each  and  every  case  in  which  such  violation  or  omission  occurs, 
and  the  amount  of  such  forfeiture  may  be  recovered  by  the  United 
States  in  an  action  of  debt  against  such  clerk. 

Clerks  of  courts  having  and  exercising  jurisdiction  in  naturalization 
matters  shall  be  responsible  for  all  blank  certificates  of  citizenship 
received  by  them  from  time  to  time  from  the  Bureau  of  Naturaliza- 
tion, and  shall  account  for  the  same  to  the  said  bureau  whenever 
required   so   to   do   by   such   bureau.      No   certificate   of   citizenship    re- 


Naturalization  Laws  201 

ceived  by  any  such  clerk  which  may  be  defaced  or  injured  in  such 
manner  as  to  prevent  its  use  as  herein  provided  shall  in  any  case  be 
destroyed,  but  such  certificate  shall  be  returned  to  the  said  bureau; 
and  in  case  any  such  clerk  shall  fail  to  return  or  properly  account 
for  any  certificate  furnished  by  the  said  bureau,  as  herein  provided, 
he  shall  be  liable  to  the  United  States  in  the  sum  of  fifty  dollars,  to 
be  recovered  in   an  action  of   debt,  for  each  and  every  certificate  not 

properly  accounted  for  or  returned. 

• 

Fees. 

'  Sec.  13.  That  the  clerk  of  each  and  every  court  exercising  juris- 
diction in  naturalization  cases  shall  charge,  collect,  and  account  for 
the  following  fees  in  each  proceeding: 

For  receiving  and  filing  a  declaration  of  intention  and  issuing  a 
duplicate  thereof,  one  dollar. 

For  making,  filing,  and  docketing  the  petition  of  an  alien  for 
admission  as  a  citizen  of  the  United  States  and  for  the  final  hearing 
thereon,  two  dollars  ;  and  for  entering  the  final  order  and  the  issuance 
of  the  certificate  of  citizenship  thereunder,  if  granted,  two  dollars. 

The  clerk  of  any  court  collecting  such  fees  is  hereby  authorized  to 
retain  one-half  of  the  fees  collected  by  him  in  such  naturalization 
proceeding;  the  remaining  one-half  of  the  naturalization  fees  in  each 
case  collected  by  such  clerks,  respectively,  shall  be  accounted  for  in 
their  quarterly  accounts,  which  they  are  hereby  required  to  render  the 
Bureau  of  Naturalization,  and  paid  over  to  such  bureau  within  thirty 
days  from  the  close  of  each  quarter  in  each  and  every  fiscal  year,  and 
the  moneys  so  received  shall  be  paid  over  to  the  disbursing  clerk  of 
the  Department  of  Labor,  who  shall  thereupon  deposit  them  in  the 
Treasury  of  the  United  States,  rendering  an  account  therefor  quarterly 
to  the  Auditor  for  the  State  and  other  departments,  and  the  said  dis- 
bursing clerk  shall  be  held  responsible  under  his  bond  for  said  fees  so 
received. 

In  addition  to  the  fees  herein  required,  the  petitioner  shall,  upon 
the  filing  of  his  petition  to  become  a  citizen  of  the  United  States, 
deposit  with  and  pay  to  the  clerk  of  the  court  a  sum  of  money  suffi- 
cient to  cover  the  expenses  of  subpoenaing  and  paying  the  legal  fees 
of  any  witnesses  for  whom  he  may  request  a  subpoena,  and  upon  the 
final  discharge  of  such  witnesses  they  shall  receive,  if  they  demand 
the  same  from  the  clerk,  the  customary  and  usual  witness  fees  from 
the  moneys  which  the  petitioner  shall  have  paid  to  such  clerk  for 
such  purpose,  and  the  residue,  if  any,  shall  be  returned  by  the  clerk 
to  the  petitioner:  Provided.  That  the  clerks  of  courts  exercising  juris- 
diction in  naturalization  proceedings  shall  be  permitted  to  retain  one- 
half  of  the  fees  in  any  fiscal  year  up  to  the  sum  of  three  thousand 
dollars,  and  that  all  fees  received  by  such  clerks  in  naturalization  pro- 
ceedings in  excess  of  such  amount  shall  be  accounted  for  and  paid 
over  to  said  bureau  as  in  case  of  other  fees  to  which  the  United  States 


202  Important  Federal  Laws 

may  be  entitled  under  the  provisions  of  this  act.  The  clerks  of  the 
various  courts  exercising  jurisdiction  in  naturalization  proceedings  shall 
pay  all  additional  clerical  force  that  may  be  required  in  performing 
the  duties  imposed  by  this  act  upon  the  clerks  of  courts  from  fees 
received  by  such  clerks  in  naturalization  proceedings. 

And  in  case  the  clerk  of  any  court  exercising  naturalization  juris- 
diction collects  fees  in  excess  of  the  sum  of  six  thousand  dollars  in 
any  fiscal  year  the  Secretary  of  Labor  may  allow  salaries,  for  natural- 
ization purposes  only,  to  pay  for  clerical  assistance,  to  be  selected  and 
employed  by  that  clerk,  additional  to  the  clerical  force,  for  which 
clerks  of  courts  are  required  by  this  section  to  pay  from  fees  received 
by  such  clerks  in  naturalization  proceedings,  if  in  the  opinion  of  said 
Secretary  the  naturalization  business  of  such  clerks  warrants  further 
additional  assistance :  Provided,  That  in  no  event  shall  the  whole  amount 
allowed  the  clerk  of  a  court  and  his  assistants  exceed  the  one-half  of 
the  gross  receipts  of  the  office  of  said  clerk  from  naturalization  fees 
during  such  fiscal  year :  Provided  further,  That  when,  at  the  close  of 
any  fiscal  year,  the  business  of  such  clerk  of  court  indicates  in  the 
opinion  of  the  Secretary  of  Labor  that  the  naturalization  fees  for  the 
succeeding  fiscal  year  will  exceed  six  thousand  dollars  the  Secretary 
of  Labor  may  authorize  the  continuance  of  the  allowance  of  salaries  for 
the  additional  clerical  assistance  herein  provided  for  and  employed 
on  the  last  day  of  the  fiscal  year  until  such  time  as  the  remittances 
indicate  in  the  opinion  of  said  Secretary  that  the  fees  for  the  then  cur- 
rent fiscal  year  will  not  be  sufficient  to  allow  the  additional  clerical 
assistance  authorized  by  this  act. 

That  payment  for  the  additional  clerical  assistance  herein  author- 
ized shall  be  in  the  manner  and  under  such  regulations  as  the  Secre- 
tary of  Labor  may  prescribe.      (As  amended  June  25,   1910.) 

Binding  Declarations  and  Petitions. 

Sec.  14.  That  the  declarations  of  intention  and  the  petitions  for 
naturalization  shall  be  bound  in  chronological  order  in  separate  vol- 
umes, indexed,  consecutively  numbered,  and  made  part  of  the  records 
of  the  court.  Each  certificate  of  naturalization  issued  shall  bear  upon 
its  face,  in  a  place  prepared  therefor,  the  volume  number  and  page 
number  of  the  petition  whereon  such  certificate  was  issued,  and  the 
volume  number  and  page  number  of  the  stub  of  such  certificate. 

Suits  to  Set  Aside  Citizenship. 

Sec.  15.  That  it  shall  be  the  duty  of  the  United  States  district  at- 
torneys for  the  respective  districts,  upon  affidavit  showing  good  cause 
therefor,  to  institute  proceedings  in  any  court  having  jurisdiction  to 
naturalize  aliens  in  the  judicial  district  in  which  the  naturalized  citizen 
may  reside  at  the  time  of  bringing  the  suit,  for  the  purpose  of  setting 
aside  and  canceling  the  certificate  of  citizenship  on  the  ground  of  fraud 
or  on  the  ground  that  such  certificate  of  citizenship  was  illegally  pro- 
cured.    In  any   such  proceedings  the   party  holding  the   certificate  of 


Naturalization  Laws  203 

citizenship  alleged  to  have  been  fraudulently  or  illegally  procured  shall 
have  sixty  days  personal  notice  in  which  to  make  answer  to  the  petition 
of  the  United  States ;  and  if  the  holder  of  such  certificate  be  absent 
from  the  United  States  or  from  the  district  in  which  he  last  had  his 
residence,  such  notice  shall  be  given  by  publication  in  the  manner  pro- 
vided for  the  service  of  summons  by  publication  or  upon  absentees  by 
the  laws  of  the  State  or  the  place  where  such  suit  is  brought. 

If  any  alien  who  shall  have  secured  a  certificate  of  citizenship 
under  the  provisions  of  this  Act  shall,  within  five  years  after  the  is- 
suance of  such  certificate,  return  to  the  country  of  his  nativity,  or  go 
to  any  other  foreign  country,  and  take  permanent  residence  therein, 
it  shall  be  considered  prima  facie  evidence  of  a  lack  of  intention  on 
the  part  of  such  alien  to  become  a  permanent  citizen  of  the  United 
States  at  the  time  of  filing  his  application  for  citizenship,  and,  in  the 
absence  of  countervailing  evidence,  it  shall  be  sufficient  in  the  proper 
proceeding  to  authorize  the  cancellation  of  his  certificate  of  citizenship 
as  fraudulent,  and  the  diplomatic  and  consular  officers  of  the  United 
States  in  foreign  countries  shall  from  time  to  time,  through  the  De- 
partment of  State,  furnish  the  Department  of  Justice  with  the  names 
of  those  within  their  respective  jurisdictions  who  have  such  certificates 
of  citizenship  and  who  have  taken  permanent  residence  in  the  country 
of  their  nativity,  or  in  any  other  foreign  country,  and  such  statements 
dulv  certified,  shall  be  admissible  in  evidence  in  all  courts  in  proceed- 
ings to  cancel  certificates  of  citizenship. 

Whenever  any  certificate  of  citizenship  shall  be  set  aside  or  can- 
celed, as  herein  provided,  the  court  in  which  such  judgment  or  decree 
is  rendered  shall  make  an  order  canceling  such  certificate  of  citizenship 
and  shall  send  a  certified  copy  of  such  order  to  the  Bureau  of  Natural- 
ization ;  and  in  case  such  certificate  was  not  originally  issued  by  the 
court  making  such  order  it  shall  direct  the  clerk  of  the  court  to  trans- 
mit a  copy  of  such  order  and  judgment  to  the  court  out  of  which 
such  certificate  of  citizenship  shall  have  been  originally  issued.  And 
it  shall  thereupon  be  the  duty  of  the  clerk  of  the  court  receiving  such 
certified  copy  of  the  order  and  judgment  of  the  court  to  enter  the  same 
of  record  and  to  cancel  such  original  certificate  of  citizenship  upon 
the  records  and  to  notify  the  Bureau  of  Naturalization  of  such  can- 
cellation. 

The  provisions  of  this  section  shall  apply  not  only  to  certificates  of 
citizenship  issued  under  the  provisions  of  this  Act,  but  to  all  certifi- 
cates of  citizenship  which  may  have  been  issued  heretofore  by  any 
court  exercising  jurisdiction   in  naturalization   proceedings   under  prior 

I  r\  W  S 

Sec.  16.     [Superseded  by  Act  of  Mar.  4,  1909.     See  pp.  713-716.] 
Sec.  17.     [Superseded  by  Act  of  Mar.  4,  1909.     See  pp.  713-716.] 

Penalty  for  False  Issuance. 

Sec.  18.     That  it  is  hereby  made  a  felony  for  any  clerk  or  other 


204  Important  Federal  Laws 

person  to  issue  or  be  a  party  to  the  issuance  of  a  certificate  of  citi- 
zenship contrary  to  the  provisions  of  this  Act,  except  upon  a  final 
order  under  the  hand  of  a  court  having  jurisdiction  to  make  such 
order,  and  upon  conviction  thereof  such  clerk  or  other  person  shall 
be  punished  by  imprisonment  for  not  more  than  five  years  and  by 
a  fine  of  not  more  than  five  thousand  dollars,  in  the  discretion  of  the 
court. 

Sec.  19.     [Superseded  by  Act  of  Alar.  4,  1909.     See  pp.  713-716.] 

Penalty  for  False  Return  of  Accounts. 

Sec.  20.  That  any  clerk  or  other  officer  of  a  court  having  power 
under  this  act  to  naturalize  aliens,  who  willfully  neglects  to  render 
true  accounts  of  moneys  received  by  him  for  naturalization  proceedings 
or  who  willfully  neglects  to  pay  over  any  balance  of  such  moneys  due 
to  the  United  States  within  thirty  days  after  said  payment  shall  become 
due  and  demand  therefor  has  been  made  and  refused,  shall  be  deemed 
guilty  of  embezzlement  of  the  public  moneys,  and  shall  be  punishable 
by  imprisonment  for  not  more  than  five  years,  or  by  a  fine  of  not  more 
than  five  thousand  dollars,  or  both. 

Unlawful  to  Receive  Other  Fees. 

Sec.  21.  That  it  shall  be  unlawful  for  any  clerk  of  any  court  or 
his  authorized  deputy  or  assistant  exercising  jurisdiction  in  naturali- 
zation proceedings  to  demand,  charge,  collect,  or  receive  any  other  or 
additional  fees  or  moneys  in  naturalization  proceedings  save  the  fees 
and  moneys  herein  specified ;  and  a  violation  of  any  of  the  provisions 
of  this  section  or  any  part  thereof  is  hereby  declared  to  be  a  misde- 
meanor and  shall  be  punished  by  imprisonment  for  not  more  than  two 
years,  or  by  a  fine  of  not  more  than  one  thousand  dollars,  or  by  both 
such  fine  and  imprisonment. 

False  Statements  by  Clerk. 

Sec.  22.  That  the  clerk  of  any  court  exercising  jurisdiction  in  nat- 
uralization proceedings,  or  any  person  acting  under  authority  of  this 
act,  who  shall  knowingly  certify  that  a  petitioner,  affiant,  or  witness 
named  in  an  affidavit,  petition,  or  certificate  of  citizenship,  or  other 
paper  or  writing  required  to  be  executed  under  the  provisions  of  this 
act,  personally  appeared  before  him  and  was  sworn  thereto,  or  ac- 
knowledged the  execution  thereof  or  signed  the  same,  when  in  fact  such 
petitioner,  affiant,  or  witness  did  not  personally  appear  before  him,  or 
was  not  sworn  thereto,  or  did  not  execute  the  same,  or  did  not  ac- 
knowledge the  execution  thereof,  shall  be  punished  by  a  fine  not  ex- 
ceeding five  thousand  dollars,  or  by  imprisonment  not  to  exceed  five 
years. 

Fraudulent  Naturalization. 

Sec.  23.  That  any  person  who  knowingly  procures  naturalization 
in  violation  of  the  provisions  of  this  act  shall  be  fined  not  more  than 
five  thousand  dollars,  or  shall  be  imprisoned  not  more  than  five  years, 


Naturalization  Laws  205 

or  both,  and  upon  conviction  the  court  in  which  such  conviction  is 
had  shall  thereupon  adjudge  and  declare  the  final  order  admitting  such 
person  to  citizenship  void.  Jurisdiction  is  hereby  conferred  on  the 
courts  having  jurisdiction  of  the  trial  of  such  offense  to  make  such  adju- 
dication. Any  person  who  knowingly  aids,  advises,  or  encourages  any 
person  not  entitled  thereto  to  apply  for  or  to  secure  naturalization,  or 
to  file  the  preliminary  papers  declaring  an  intent  to  become  a  citizen 
of  the  United  States,  or  who  in  any  naturalization  proceeding  know- 
ingly procures  or  gives  false  testimony  as  to  any  material  fact,  or  who 
knowingly  makes  an  affidavit  false  as  to  any  material  fact  required  to 
be  proved  in  such  proceeding,  shall  be  fined  not  more  than  five  thousand 
dollars,  or  imprisoned  not  more  than  five  years,  or  both. 

Prosecution  to  Be  Within  Five  Years. 

Sec.  24.  That  no  person  shall  be  prosecuted,  tried,  or  punished  for 
any  crime  arising  under  the  provisions  of  this  act  unless  the  indict- 
ment is  found  or  the  information  is  filed  within  five  years  next  after 
the  commission  of  such  crime. 

Old  Acts  in  Force. 

Sec.  25.  That  for  the  purpose  of  the  prosecution  of  all  crimes  and 
oiTenses  against  the  naturalization  laws  of  the  United  States  which 
may  have  been  committed  prior  to  the  date  when  this  act  shall  go  into 
effect,  the  existing  naturalization  laws  shall  remain  in  full  force  and 
effect. 

Repeal. 

Sec.  26.  That  sections  twenty-one  hundred  and  sixty-five,  twenty- 
one  hundred  and  sixty-seven,  twenty-one  hundred  and  sixty-eight, 
twenty-one  hundred  and  seventy-three  of  the  Revised  Statutes  of  the 
United  States  of  America,  and  section  thirty-nine  of  chapter  one  thou- 
sand and  twelve  of  the  Statutes  at  Large  of  the  United  States  of  Amer- 
ica for  the  year  nineteen  hundred  and  three,  and  all  acts  or  parts  of 
acts  inconsistent  with  or  repugnant  to  the  provisions  of  this  act  are 
hereby  repealed. 

Form  of  Petition  and  Certificate. 

Sec.  27.  That  substantially  the  following  forms  shall  be  used  in 
the  proceedings  to  which  they  relate : 

declaration  of  intention. 

(Invalid  for  all  purposes  seven  years  after  the  date  hereof.) 

,  ss: 

I, ,  aged years,  occupation ,  do  declare 

on  oath  (affirm)  that  my  personal  description  is:  Color ,  com- 
plexion    ,   height    ,   weight    ,   color   of   hair , 

color   of    eyes ,   other   visible    distinctive   marks    ;    I    was 

born  in ,  on  the day  of ,  anno  Domini ;  I 

now  reside  at ;   I  emigrated  to  the  United   States   of  America 


206  Important  Federal  Laws 

from    on    the    vessel    ;    my    last    foreign    residence    was 

It  is  my  bona  fide  intention  to  renounce  forever  all  allegiance 

and  fidelity  to  any  foreign  prince,  potentate,  state,  or  sovereignty,  and 
particularly  to ,  of  which  I  am  now  a  citizen  (subject)  ;  I  ar- 
rived at  the   (port)   of ,  in  the  State   (Territory  or  District)   of 

,   on  or  about  the day  of ,   anno   Domini;   I   am 

not  an  anarchist ;  I  am  not  a  polygamist  nor  a  believer  in  the  practice 
of  polygamy ;  and  it  is  my  intention  in  good  faith  to  become  a  citizen 
of  the  United  States  of  America  and  to  permanently  reside  therein.  So 
help  me  God. 

(Original  signature  of  declarant) 

Subscribed  and  sworn  to   (affirmed)  before  me  this day  of 

,  anno  Domini 

[l.  s.]  _       , 

(Official  character  of  attestor. 

PETITIOX    FOR    NATURALIZATION. 

Court  of 

In  the   matter  of   the   petition   of to  be   admitted   as   a 

citizen  of  the  United  States  of  America. 
To  the Court: 

The  petition  of respectfully  shows: 

First.     Aly  full  name  is 

Second.     My  place  of  residence  is  number street, 

city  of ,  State  (Territory  or  District)   of 

Third.     My  occupation  is 

Fourth.     I  was  born  on  the day  of at 

Fifth.     I  emigrated  to  the  United  States  from ,  on  or  about 

the day  of    ,   anno   Domini    ,   and   arrived   at   the 

port  of ,  in  the  United  States,  on  the  vessel 

Sixth.     I  declared  my  intention  to  become  a  citizen  of  the  United 
States  on  the day  of ,  at ,  in  the court  of 


Seventh.     I  am married.     My  wife's  name  is She 

was  born  in and  now  resides  at I  have chil- 
dren, and  the  name,  date,  and  place  of  birth  and  place  of  residence 
of  each  of  said  children  is  as  follows: ; ; 


Eighth.  I  am  not  a  disbeliever  in  or  opposed  to  organized  gov- 
ernment or  a  member  of  or  affiliated  with  any  organization  or  body  of 
persons  teaching  disbelief  in  organized  government.  I  am  not  a  poly- 
gamist nor  a  believer  in  the  practice  of  polygamy.  I  am  attached  to 
the  principles  of  the  Constitution  of  the  United  States,  and  it  is  my  in- 
tention to  become  a  citizen  of  the  United  States  and  to  renounce  abso- 
lutely   and    forever    all    allegiance    and    fidelity   to    any    foreign    prince, 

potentate,   state,   or   sovereignty,   and  particularly   to ,   of   which 

at  this  time  I  am  a  citizen  (or  subject),  and  it  is  my  intention  to  reside 
permanently  in  the  United  States. 


Naturalization  Laws  207 

Ninth.     I  am  able  to  speak  the  EngHsh  language. 

Tenth.  I  have  resided  continuously  in  the  United  States  of  America 
for  a  term  of  five  years  at  least  immediately  preceding  the  date  of  this 

petition,  to  wit,   since ,  anno   Domini ,   and   in   the   State 

(Territory  or  District)   of for  one  year  at  least  next  preceding 

the   date   of    this   petition,   to   wit,    since    day   of    ,   anno 

Domini 

Eleventh.    I  have  not  heretofore  made  petition  for  citizenship  to  any 

court.     (I  made  petition  for  citizenship  to  the court  of 

at ,  and  the  said  petition  was  denied  by  the  said  court  for  the 

following  reasons  and  causes,  to  wit, ,  and  the  cause  of 

such  denial  has  since  been  cured  or  removed.) 

Attached  hereto  and  made  a  part  of  this  petition  are  my  declara- 
tion of  intention  to  become  a  citizen  of  the  United  States  and  the  cer- 
tificate from  the  Department  of  Labor  required  by  law.  Wherefore 
your  petitioner  prays  that  he  may  be  admitted  a  citizen  of  the  United 
States  of  America. 

Dated .c<.       .  .       .-.■         \ 

(Signature  of  petitioner) 

,  ss: 

being  duly  sworn,  deposes  and  says  that  he  is  the 

petitioner  in  the  above-entitled  proceeding;  that  he  has  read  the  fore- 
going petition  and  knows  the  contents  thereof ;  that  the  same  is  true 
of  his  own  knowledge,  except  as  to  matters  therein  stated  to  be  alleged 
upon  information  and  belief,  and  that  as  to  those  matters  he  believes 
it  to  be  true. 

Subscribed  and  sworn  to  before  me  this day  of , 

anno  Domini 

[l.  s.]  , 

Clerk  of  the Court. 

affidavit  of  witnesses. 

Court  of 

In   the    matter   of   the    petition    of    to   be    admitted    a 

citizen  of  the  United  States  of  America. 

,  ss : 

,  occupation ,  residing  at ,  and 

,    occupation ,   residing   at    ,    each   being   severally, 

duly,  and  respectively  sworn,  deposes  and  says  that  he  is  a  citizen  of 

the  United   States  of   America;  that  he  has   personally  known 

,  the  petitioner  above  mentioned,  to  be  a  resident  of  the  United 

States  for  a  period  of  at  least  five  years  continuously  immediately 
preceding  the  date  of  filing  his  petition,  and  of  the  State  (Territory 
or  District)  in  which  the  above-entitled  application  is  made  for  a  period 

of years  immediately  preceding  the  date  of  filing  his  petition; 

and  that  he  has  personal  knowledge  that  the  said  petitioner  is  a  person 
of  good  moral  character,  attached  to  the  principles  of  the  Constitution 


208  Important  Federal  Laws 

of   the  United   States,   and  that   he   is  in  every   way  qualified,   in   his 
opinion,  to  be  admitted  as  a  citizen  of  the  United  States. 


Subscribed   and   sworn  to  before   me   this day   of    , 

nineteen  hundred  and 

[l.  s.]  , 

(Official  character  of  attestor.) 

CERTIFICATE  OF   NATURALIZATION. 

Number 

Petition,  volume ,  page 

Stub,  volume ,  page 

(Signature  of  holder) 

Description  of  holder:    Age, ;  height, ;  color, __  ; 

complexion, ;  color  of  eyes, ;  color  of  hair, •,  visi- 
ble  distinguishing  marks,   Name,   age,  and  place  of   residence 

of  wife, , , Names,  ages,  and  places  of  residence 

of   minor   children, ,    ,    ;    , ,    ; 


,  ss  : 

Be  it  remembered,  that  at  a term  of  the court  of 

held  at on  the day  of ,  in  the  year  of  our 

Lord  nineteen  hundred  and ,  who  previous  to  his   (her) 

naturalization  was  a  citizen  or  subject  of ,  at   present   residing 

at    number    street,    city    (town),    ___ State 

(Territory  or  District),  having  applied  to  be  admitted  a  citizen  of  the 
United  States  of  America  pursuant  to  law,  and  the  court  haying  found 
that  the  petitioner  had  resided  continuously  within  the  United  States 
for  at  least  five  years  and  in  this  State  for  one  year  immediately  pre- 
ceding the  date  of  the  hearing  of  his  (her)  petition,  and  that  said  peti- 
tioner intends  to  reside  permanently  in  the  United  States,  had  in  all 
respects  complied  with  the  law  in  relation  thereto,  and  that  __he  was 
entitled  to  be  so  admitted,  it  was  thereupon  ordered  by  the  said  court 
that he  be  admitted  as  a  citizen  of  the  United  States  of  America. 

Li  testimony  whereof  the  seal  of  said  court  is  hereunto  affixed  on 

the day  of ,  in  the  year  of  our  Lord  nineteen  hundred 

and and  of  our  independence  the 

[l.  s.]  , 

(Official  character  of  attestor.) 

STUB    OF    CERTIFICATE    OF    NATURALIZATION. 

No.  of  certificate, 

Name, ;  age 

Declaration  of  intention,  volume ,  page 

Petition,  volume ,  page 

Name,  age,  and  place  of  residence  of  wife,  __ , , 

Names,  ages,  and  places  of  residence  of  minor  children, , , 


Naturalization  Laws  209 


Date  of  order,  volume ,  page 

(Signature  of  holder) 

Sec.  28.  That  the  Secretary  of  Labor  shall  have  power  to  make 
such  rules  and  regulations  as  may  be  necessary  for  properly  carrying 
into  execution  the  various  provisions  of  this  act.  Certified  copies 
of  all  papers,  documents,  certificates,  and  records  required  to  be  used, 
filed,  recorded,  or  kept  under  any  and  all  of  the  provisions  of  this  act 
shall  be  admitted  in  evidence  equally  with  the  originals  in  any  and  all 
proceedings  under  this  act  and  in  all  cases  in  which  the  originals  thereof 
might  be  admissible  as  evidence. 

Sec.  29.     Omitted.     Temporary  appropriation. 

Applicability  in  Certain  Instances. 

Sec.  30.  That  all  the  applicable  provisions  of  the  naturalization 
laws  of  the  United  States  shall  apply  to  and  be  held  to  authorize  the 
admission  to  citizenship  of  all  persons  not  citizens  who  owe  perma- 
nent allegiance  to  the  United  States,  and  who  may  become  residents  of 
any  State  or  organized  Territory  of  the  United  States,  with  the  follow- 
ing modifications :  The  applicant  shall  not  be  required  to  renounce 
allegiance  to  any  foreign  sovereignty ;  he  shall  make  his  declaration  of 
intention  to  become  a  citizen  of  the  United  States  at  least  two  years 
prior  to  his  admission ;  and  residence  within  the  jurisdiction  of  the 
United  States,  owing  such  permanent  allegiance,  shall  be  regarded  as 
residence  within  the  United  States  within  the  meaning  of  the  five  years' 
residence  clause  of  the  existing  law. 

Taking  Effect. 

Sec.  31.  That  this  act  shall  take  effect  and  be  in  force  from  and 
after  ninety  days  from  the  date  of  its  passage :  Provided,  That  sec- 
tions one.  two,  twenty-eight,  and  twenty-nine  shall  go  into  effect  from 
and  after  the  passage  of  this  act. 

Naturalization  Limited  to  White  Persons  and  Those  of  the  African 

Race.     (Act  of  July  14,  1870.) 

Sec.  2169.  The  provisions  of  this  Title  shall  apply  to  aliens  being 
free  white  persons  and  to  aliens  of  African  nativity  and  to  persons  of 
African  descent.     (As  amended  February  18,  1875.) 

Naturalization  of  Chinese  Prohibited.     (Act  of  May  6,  1882.) 

Sec.  14.  That  hereafter  no  State  court  or  court  of  the  United 
States  shall  admit  Chinese  to  citizenship;  and  all  laws  in  conflict  with 
this  act  are  hereby  repealed. 

Residence  Within  the  United  States  Required  for  Five  Years  Con- 
tinuously.    (Act  of  March  3,  1813.) 
Sec.  2170.     No  alien  shall  be  admitted  to  become  a  citizen  who 

(14) 


210  Important  Federal  Laws 

has  not  for  the  conthiued  term  of  five  years  next  preceding  his  admis- 
sion resided  within  the  United  States. 

Residence  in  Hawaii  for  Naturalization  Purposes.     (Act  of  April  30, 

1900.) 

Sec.  100.  That  for  the  purpose  of  naturalization  under  the  laws 
of  the  United  States  residence  in  the  Hawaiian  Islands  prior  to  the 
taking  effect  of  this  act  shall  be  deemed  equivalent  to  residence  in  the 
United  States  and  in  the  Territory  of  Hawaii,  and  the  requirement  of 
a  previous  declaration  of  intention  to  become  a  citizen  of  the  United 
States  and  to  renounce  former  allegiance  shall  not  apply  to  persons 
who  have  resided  in  said  islands  at  least  five  years  prior  to  the  taking 
effect  of  this  act :  but  all  other  provisions  of  the  laws  of  the  United 
States  relating  to  naturalization  shall,  so  far  as  applicable,  apply  to  per- 
sons in  the  said  islands. 

Naturalization  of  Alien  Enemies  Prohibited.  (Act  of  April  14,  1802.) 
Sec.  2171.  No  alien  who  is  a  native  citizen  or  subject,  or  a  denizen 
of  any  country,  State,  or  sovereignty  wnth  which  the  United  States  are 
at  war  at  the  time  of  his  application,  shall  be  then  admitted  to  become 
a  citizen  of  the  United  States ;  but  persons  resident  within  the  United 
States,  or  the  Territories  thereof,  on  the  eighteenth  day  of  June,  in 
the  year  one  thousand  eight  hundred  and  twelve,  who  had  before  that 
date  made  a  declaration,  according  to  law,  of  their  intention  to  become 
citizens  of  the  United  States,  or  who  were  on  that  day  entitled  to 
become  citizens  without  making  such  declaration,  may  be  admitted  to 
become  citizens  thereof,  notwithstanding  they  were  alien  enemies  at 
the  time  and  in  the  manner  prescribed  by  the  laws  heretofore  passed 
on  that  subject;  nor  shall  anything  herein  contained  be  taken  or  con- 
strued to  interfere  with  or  prevent  the  apprehension  and  removal  agree- 
ably to  law,  of  any  alien  enemy  at  any  time  previous  to  the  actual  nat- 
uralization of  such  alien.     (As  amended  July  30,  1813.) 

Alien  Seamen  of  Merchant  Vessels.     (Act  of  July  7,  1872.) 

Sec.  2174.  Every  seaman,  being  a  foreigner,  who  declares  his  in- 
tention of  becoming  a  citizen  of  the  United  States  in  any  competent 
court,  and  shall  have  served  three  years  on  board  of  a  merchant  vessel 
of  the  United  States  subsequent  to  the  date  of  such  declaration,  may, 
on  his  application  to  any  competent  court,  and  the  production  of  his 
certificate  of  discharge  and  good  conduct  during  that  time,  together 
with  the  certificate  of  his  declaration  of  intention  to  become  a  citizen, 
be  admitted  a  citizen  of  the  United  States ;  and  every  seaman,  being  a 
foreigner,  shall,  after  his  declaration  of  intention  to  become  a  citizen 
of  the  United  States,  and  after  he  shall  have  served  such  three  years, 
be  deemed  a  citizen  of  the  United  States  for  the  purpose  of  manning 
and  serving  on  board  any  merchant  vessel  of  the  United  States,  any- 
thing to  the  contrary  in  any  act  of  Congress  notwithstanding;  but  such 
seaman  shall,  for  all  purposes  of  protection  as  an  American  citizen,  be 


Naturalization  Laws  211 

deemed  such  after  the  fiUng  of  his  declaration  of  intention  to  become 
such  citizen. 

Honorably   Discharged   Soldiers   Exempt  From  Certain  Formalities. 

(Act  of  July  17,  1862.) 

Sec.  2166.  Any  alien  of  the  age  of  twenty-one  years  and  upward 
who  has  enhsted,  or  may  enHst,  in  the  armies  of  the  United  States, 
either  the  Regular  or  the  Volunteer  forces,  and  has  been,  or  may  be 
hereafter,  honorably  discharged,  shall  be  admitted  to  become  a  citizen 
of  the  United  States,  upon  his  petition,  without  any  previous  declara- 
tion of  his  intention  to  become  such ;  and  he  shall  not  be  required  to 
prove  more  than  one  year's  residence  within  the  United  States  pre- 
vious to  his  application  to  become  such  citizen ;  and  the  court  admit- 
ting such  alien  shall,  in  addition  to  such  proof  of  residence  and  good 
moral  character,  as  now  provided  by  law,  be  satisfied  by  competent 
proof  of  such  person's  having  been  honorably  discharged  from  the 
service  of  the  United  States. 

Aliens    Honorably    Discharged    From    Service    in    Navy    or    Marine 

Corps.     (Act  of  July  26,  1894.) 

Any  alien  of  the  age  of  twenty-one  years  and  upward  who  has 
enlisted  or  may  enlist  in  the  United  States  Navy  or  Marine  Corps,  and 
has  served  or  may  hereafter  serve  five  consecutive  years  in  the  United 
States  Navy  or  one  enlistment  in  the  United  States  Marine  Corps,  and 
has  been  or  may  hereafter  be  honorably  discharged,  shall  be  admitted 
to  become  a  citizen  of  the  United  States  upon  his  petition,  without  any 
previous  declaration  of  his  intention  to  become  such ;  and  the  court 
admitting  such  alien  shall,  in  addition  to  proof  of  good  moral  character, 
be  satisfied  by  competent  proof  of  such  person's  service  in  and  honor- 
able discharge  from  the  United  States  Navy  or  Marine  Corps.  (28 
Stat.  L.,  p.  124.) 

Aliens  Honorably  Discharged  From  Service  in  Navy,  Marine  Corps, 
Revenue-Cutter  Service,  or  Naval  Auxiliary  Service.  (Act  of 
June  30,  1914.) 

Any  alien  of  the  age  of  twenty-one  years  and  upward  who  may, 
under  existing  law,  become  a  citizen  of  the  United  States,  who  has 
served  or  may  hereafter  serve  for  one  enlistment  of  not  less  than  four 
years  in  the  United  States  Navy  or  Marine  Corps,  and  who  has  re- 
ceived therefrom  an  honorable  discharge  or  an  ordinary  discharge,  with 
recommendation  for  re-enlistment,  or  who  has  completed  four  years 
in  the  Revenue-Cutter  Service  and  received  therefrom  an  honorable 
discharge  or  an  ordinary  discharge  with  recommendation  for  re-enlist- 
ment, or  who  has  completed  four  years  of  honorable  service  in  the  naval 
auxiliary  service,  shall  be  admitted  to  become  a  citizen  of  the  United 
States  upon  his  petition  without  any  previous  declaration  of  his  inten- 
tion to  become  such,  and  without  proof  of  residence  on  shore,  and  the 
court  admitting  such   alien   shall,   in   addition  to   proof   of  good   moral 


212  Important  Federal  Laws 

character,  be  satisfied  by  competent  proof  from  naval  or  revenue-cutter 
sources  of  such  service :  Provided,  That  an  honorable  discharge  from 
the  Navy,  Marine  Corps,  Revenue-Cutter  Service,  or  the  naval  auxiUary 
service,  or  an  ordinary  discharge  with  recommendation  for  re-enhst- 
ment,  shall  be  accepted  as  proof  of  good  moral  character:  Provided 
further.  That  any  court  which  now  has  or  may  hereafter  be  given  juris- 
diction to  naturahze  aHens  as  citizens  of  the  United  States  may  imme- 
diately naturaHze  any  alien  applying  under  and  furnishing  the  proof 
prescribed  by  the  foregoing  provisions. 

CITIZENSHIP. 

Citizenship  by  Birth. 

Sec.   1.     All  persons  born  or  naturalized  in  the  United  States,  and 
subject   to  the   jurisdiction   thereof,   are   citizens   of   the    United    States 
and    of    the    State    wherein    they    reside     *     *     *      (Constitution,    Art. 
XIV.) 
Citizenship  of  Children  Born  Abroad  of  Citizens.     (Act  of  April  14, 

1802.) 

Sec.  1993.  All  children  heretofore  born  or  hereafter  born  out  of 
the  limits  and  jurisdiction  of  the  United  States,  whose  fathers  were  or 
may  be  at  the  time  of  their  birth  citizens  thereof,  are  declared  to  be 
citizens  of  the  United  States;  but  the  rights  of  citizenship  shall  not 
descend  to  children  whose  fathers  never  resided  in  the  United  States. 
(As  amended  February  10,  1855.) 

Citizenship  of  Women  by  Marriage.     (Act  of  February  10,  1855.) 

Sec.  1994.  Any  woman  who  is  now  or  may  hereafter  be  married 
to  a  citizen  of  the  United  States,  and  who  might  herself  be  lawfully 
naturalized,  shall  be  deemed  a  citizen. 

Children  of  Persons  Naturalized  Under  Certain  Laws  to  Be  Citizens. 

(Act  of  April  14,  1802.) 

Sec.  2172.  The  children  of  persons  who  have  been  duly  natural- 
ized under  any  law  of  the  United  States,  or  who,  previous  to  the  passing 
of  any  law  on  that  subject,  by  the  Government  of  the  United  States, 
may  have  become  citizens  of  any  one  of  the  States,  under  the  laws 
thereof,  being  under  the  age  of  twenty-one  years  at  the  time  of  the 
naturalization  of  their  parents,  shall,  if  dwelling  in  the  United  States, 
be  considered  as  citizens  thereof ;  and  the  children  of  persons  who  now 
are,  or  have  been,  citizens  of  the  United  States,  shall,  though  born  out 
of  the  limits  and  jurisdiction  of  the  United  States,  be  considered  as  citi- 
zens thereof ;  but  no  person  heretofore  proscribed  by  any  State,  or  who 
has  been  legally  convicted  of  having  joined  the  army  of  Great  Britain 
during  the  Revolutionary  War,  shall  be  admitted  to  become  a  citizen 
without  the  consent  of  the  legislature  of  the  State  in  which  such  person 
was  proscribed. 


Naturalization  Laws  213 

Expatriation  of  Citizens  and  Their  Protection  Abroad.    (Act  of  March 

2,  1907.) 

That  the  Secretary  of  State  shall  be  authorized,  in  his  discretion, 
to  issue  passports  to  persons  not  citizens  of  the  United  States  as  follows: 
Where  any  person  has  made  a  declaration  of  intention  to  become  such 
a  citizen  as  provided  by  law  and  has  resided  in  the  United  States  for 
three  years  a  passport  may  be  issued  to  him  entitling  him  to  the  protec- 
tion of  the  Government  in  any  foreign  country:  Provided,  That  such 
passport  shall  not  be  valid  for  more  than  six  months  and  shall  not  be 
renewed,  and  that  such  passport  shall  not  entitle  the  holder  to  the 
protection  of  this  Government  in  the  country  of  which  he  was  a  citizen 
prior  to  making  such  declaration  of  intention. 

Sec.  2.  That  any  American  citizen  shall  be  deemed  to  have  ex- 
patriated himself  when  he  has  been  naturalized  in  any  foreign  state  in 
conformity  with  its  laws,  or  when  he  has  taken  an  oath  of  allegiance 
to  any  foreign  state. 

When  any  naturalized  citizen  shall  have  resided  for  two  years  in 
the  foreign  state  from  which  he  came,  or  for  five  years  in  any  other 
foreign  state  it  shall  be  presumed  that  he  has  ceased  to  be  an  American 
citizen,  and  the  place  of  his  general  abode  shall  be  deemed  his  place  of 
residence  during  said  years :  Provided,  however.  That  such  presump- 
tion may  be  overcome  on  the  presentation  of  satisfactory  evidence  to  a 
diplomatic  or  consular  ofificer  of  the  United  States,  under  such  rules 
and  regulations  as  the  Department  of  State  may  prescribe :  And  pro- 
vided also,  That  no  American  citizen  shall  be  allowed  to  expatriate  him- 
self when  this  country  is  at  war. 

Sec.  3.  That  any  American  woman  who  marries  a  foreigner  shall 
take  the  nationality  of  her  husband.  At  the  termination  of  the  marital 
relation  she  may  resume  her  American  citizenship,  if  abroad,  by  regis- 
tering as  an  American  citizen  within  one  year  with  a  consul  of  the 
United  States,  or  by  returning  to  reside  in  the  United  States,  or,  if 
residing  in  the  United  States  at  the  termination  of  the  marital  relation, 
by  continuing  to  reside  therein. 

Sec.  4.  That  any  foreign  woman  who  acquires  American  citizen- 
ship by  marriage  to  an  American  shall  be  assumed  to  retain  the  same 
after  the  termination  of  the  marital  relation  if  she  continue  to  reside 
in  the  United  States,  unless  she  makes  formal  renunciation  thereof  be- 
fore a  court  having  jurisdiction  to  naturalize  aliens,  or  if  she  resides 
abroad  she  may  retain  her  citizenship  by  registering  as  such  before  a 
United  States  consul  within  one  year  after  the  termination  of  such  mar- 
ital relation. 

Sec.  5.  That  a  child  born  without  the  United  States  of  alien  par- 
ents shall  be  deemed  a  citizen  of  the  United  States  by  virtue  of  the  nat- 
uralization of  or  resumption  of  American  citizenship  by  the  parent: 
Provided,  That  such  naturalization  or  resumption  takes  place  during 
the  minority  of  such  child :  And  provided  further,  That  the  citizenship 


214  Important  Federal  Laws 

of  such  minor  child  shall  begin  at  the  time  such  minor  child  begins  to 
reside  permanently  in  the  United  States. 

Sec.  6.  That  all  children  born  outside  the  limits  of  the  United 
States  who  are  citizens  thereof  in  accordance  with  the  provisions  of 
section  nineteen  hundred  and  ninety-three  of  the  Revised  Statutes  of  the 
United  States  and  who  continue  to  reside  outside  the  United  States 
shall,  in  order  to  receive  the  protection  of  this  Government,  be  required 
upon  reaching  the  age  of  eighteen  years  to  record  at  an  American  con- 
sulate their  intention  to  become  residents  and  remain  citizens  of  the 
United  States  and  shall  be  further  required  to  take  the  oath  of  alle- 
giance to  the  United  States  upon  attaining  their  majority. 

Sec.  7.  That  duplicates  of  any  evidence,  registration,  or  other  acts 
required  by  this  act  shall  be  filed  with  the  Department  of  State  for 
record. 


REGULATION  OF  BUSINESS. 


TRADE  COMMISSION  ACT. 

Act  of  September  26,  1914. 

An  Act  to  create  a  Federal  Trade  Commission,  to  define  its  powers  and  duties, 
and  for  other  purposes. 

Commission  Created. 

Sec.  1.  That  a  commission  is  hereby  created  and  established,  to  be 
known  as  the  Federal  Trade  Commission  (hereinafter  referred  to  as  the 
commission),  which  shall  be  composed  of  five  commissioners,  who  shall 
be  appointed  by  the  President,  by  and  with  the  advice  and  consent  of  the 
Senate.  Not  more  than  three  of  the  commissioners  shall  be  members  of  the 
same  political  party.  The  first  commissioners  appointed  shall  con- 
tinue in  office  for  terms  of  three,  four,  five,  six,  and  seven  years, 
respectively,  from  the  date  of  the  taking-  efifect  of  this  Act,  the  term 
of  each  to  be  designated  by  the  President,  but  their  successors  shall 
be  appointed  for  terms  of  seven  years,  except  that  any  person  chosen 
to  fill  a  vacancy  shall  be  appointed  only  for  the  unexpired  term  of 
the  commissioner  whom  he  shall  succeed.  The  commission  shall 
choose  a  chairman  from  its  own  membership.  No  commissioner  shall 
engage  in  any  other  business,  vocation,  or  employment.  Any  com- 
missioner may  be  removed  by  the  President  for  inefficiency,  neglect 
of  duty,  or  malfeasance  in  office.  A  vacancy  in  the  commission  shall 
not  impair  the  right  of  the  remaining  commissioners  to  exercise  all 
the  powers  of  the  commission. 

The  commission  shall  have  an  official  seal,  which  shall  be  judicially 
noticed. 

Salaries  and  Assistants. 

Skc.  2.  That  each  commissioner  shall  receive  a  salary  of  $10,000 
a  year,  payable  in  the  same  manner  as  the  salaries  of  the  judges  of 
the  courts  of  the  United  States.  The  commission  shall  appoint  a 
secretary,  who  shall  receive  a  salary  of  $5,000  a  year,  payable  in  like 
manner,  and  it  shall  have  authority  to  employ  and  fix  the  compensa- 
tion of  such  attorneys,  special  experts,  examiners,  clerks,  and  other 
employees  as  it  may  from  time  to  time  find  necessary  for  the  proper 
performance  of  its  duties  and  as  may  be  from  time  to  time  appro- 
priated for  by  Congress. 

With  the  exception  of  the  secretary,  a  clerk  to  each  com- 
missioner, the  attorneys,  and  such  special  experts  and  examiners 
as  the  commission  may  from  time  to  time  find  necessary  for  the 
conduct   of   its   work,   all   employees   of  the   commission   shall   be    a 


216  Important  Federal  Laws 

part  of  the  classified  civil  service,  and  shall  enter  the  service  under 
such  rules  and  regulations  as  may  be  prescribed  by  the  commission 
and  by  the  Civil  Service  Commission. 

All  of  the  expenses  of  the  commission,  including  all  necessary 
expenses  for  transportation  incurred  by  the  commissioners  or  by 
their  employees  under  their  orders,  in  making  any  investigation,  or 
upon  official  business  in  any  other  places  than  in  the  city  of  Wash- 
ington, shall  be  allowed  and  paid  on  the  presentation  of  itemized 
vouchers  therefor  approved  by  the  commission. 

Until  otherwise  provided  by  law,  the  commission  may  rent 
suitable  offices  for  its  use. 

The  Auditor  for  the  State  and  other  departments  shall  receive 
and  examine  all  accounts  of  expenditures   of  the   commission. 

Bureau  of  Corporations  Transferred. 

Sec.  3.  That  upon  the  organization  of  the  commission  and 
election  of  its  chairman,  the  Bureau  of  Corporations  and  the  offices 
of  Commissioner  and  Deputy  Commissioner  of  Corporations  shall 
cease  to  exist;  and  all  pending  investigations  and  proceedings  of 
the  Bureau  of  Corporations  shall  be  continued  by  the  commission. 

All  clerks  and  employees  of  the  said  bureau  shall  be  transferred 
to  and  become  clerks  and  employees  of  the  commission  at  their 
present  grades  and  salaries.  All  records,  papers,  and  property  of 
the  said  bureau  shall  become  records,  papers,  and  property  of  the 
commission,  and  all  unexpended  funds  and  appropriations  for  the 
use  and  maintenance  of  the  said  bureau,  including  any  allotment 
already  made  to  it  by  the  Secretary  of  Comrherce  from  the  contingent 
appropriation  for  the  Department  of  Commerce  for  the  fiscal  year 
nineteen  hundred  and  fifteen,  or  from  the  departmental  printing  fund 
for  the  fiscal  year  nineteen  hundred  and  fifteen,  shall  become  funds 
and  appropriations  available  to  be  expended  by  the  commission  in 
the  exercise  of  the  powers,  authority,  and  duties  conferred  on  it 
by  this  Act. 

The  principal  office  of  the  commission  shall  be  in  the  city  of 
Washington,  but  it  may  meet  and  exercise  all  its  powers  at  any 
other  place.  The  commission  may,  by  one  or  more  of  its  members, 
or  by  such  examiners  as  it  may  designate,  prosecute  any  inquiry 
necessary  to  its  duties  in  any  part  of  the  United  States. 

Definitions. 

Sec.  4.  That  the  words  defined  in  this  section  shall  have  the 
following  meaning  when  found  in  this  Act,  to-wit : 

"Commerce"  means  commerce  among  the  several  States  or  with 
foreign  nations,  or  in  any  Territory  of  the  United  States  or  in  the 
District  of  Columbia,  or  between  any  such  Territory  and  another, 
or  between  any  such  Territory  and  any  State  or  foreign  nation,  or 
between  the  District  of  Columbia  and  any  State  or  Territory  or 
foreign  nation. 


Trade  Commission  Act  217 

"Corporation"  means  any  company  or  association  incorporated 
or  unincorjx)rated,  which  is  organized  to  carry  on  business  for 
profit  and  has  shares  of  capital  or  capital  stock,  and  any  company  or 
association,  incorporated  or  unincorporated,  without  shares  of  capital 
or  capital  stock,  except  partnerships,  w-hich  is  organized  to  carry  on 
business  for  its  own  profit  or  that  of  its  members. 

"Documentary  evidence"  means  all  documents,  papers,  and  cor- 
respondence in  existence  at  and  after  the  passage  of  this  Act. 

"Acts  to  regulate  commerce"  means  the  Act  entitled  "An  Act 
to  regulate  commerce,"  approved  February  fourteenth,  eighteen 
hundred  and  eighty-seven,  and  all  Acts  amendatory  thereof  and 
supplementary  thereto. 

"Antitrust  acts"  means  the  Act  entitled  "An  Act  to  protect  trade 
and  commerce  against  unlawful  restraints  and  monopolies,"  approved 
July  second,  eighteen  hundred  and  ninety ;  also  the  sections  seventy- 
three  to  seventy-seven,  inclusive,  of  an  Act  entitled  "An  Act  to 
reduce  taxation,  to  provide  revenue  for  the  Government,  and  for 
other  purposes,"  approved  August  twenty-seventh,  eighteen  hundred 
and  ninety-four;  and  also  the  Act  entitled  "An  Act  to  amend  sections 
seventy-three  and  seventy-six  of  the  Act  of  August  twenty-seventh, 
eighteen  hundred  and  ninety- four,  entitled  *An  Act  to  reduce  taxation, 
to  provide  revenue  for  the  Government,  and  for  other  purposes,'  "  ap- 
proved February  twelfth,  nineteen  hundred  and  thirteen. 

Unfair  Methods  Illegal. 

Sec.  5.  That  unfair  methods  of  competition  in  commerce  are  here- 
by declared  unlawful. 

The  commission  is  hereby  empowered  and  directed  to  prevent  per- 
sons, partnerships,  or  corporations,  except  banks  and  common  carriers 
subject  to  the  Acts  to  regulate  commerce,  from  using  unfair  methods  of 
competition  in  commerce. 

Whenever  the  commission  shall  have  reason  to  believe  that  any  such 
person,  partnership,  or  corporation  has  been  or  is  using  any  unfair 
method  of  competition  in  commerce,  and  if  it  shall  appear  to  the  com- 
mission that  a  proceeding  by  it  in  respect  thereof  would  be  to  the  inter- 
est of  the  public,  it  shall  issue  and  serve  upon  such  person,  partnership, 
or  corporation  a  complaint  stating  its  charges  in  that  respect,  and  con- 
taining a  notice  of  a  hearing  upon  a  day  and  at  a  place  therein  fixed  at 
least  thirty  days  after  the  service  of  said  complaint.  The  person,  part- 
nership, or  corporation  so  complained  of  shall  have  the  right  to  appear 
at  the  place  and  time  so  fixed  and  show  cause  why  an  order  should  not 
be  entered  by  the  commission  requiring  such  person,  partnership,  or  cor- 
poration to  cease  and  desist  from  the  violation  of  the  law  so  charged  in 
said  complaint.  Any  person,  partnership,  or  corporation  may  make  ap- 
plication, and  upon  good  cause  shown  may  be  allowed  by  the  commission, 
to  intervene  and  appear  in  said  proceeding  by  counsel  or  in  person.    The 


218  Important  Federal  Laws 

testimony  in  any  such  proceeding  shall  be  reduced  to  writing  and  filed 
in  the  office  of  the  commission.  If  upon  such  hearing  the  commission 
sh^ll  be  of  the  opinion  that  the  method  of  competition  in  question  is  pro- 
hibited by  this  Act,  it  shall  make  a  report  in  writing  in  which  it  shall 
state  its  findings  as  to  the  facts,  and  shall  issue  and  cause  to  be  served 
on  such  person,  partnership,  or  corporation  an  order  requiring  such  per- 
son, partnership,  or  corporation  to  cease  and  desist  from  using  such 
method  of  competition.  Until  a  transcript  of  the  record  in  such  hearing 
shall  have  been  filed  in  a  circuit  court  of  appeals  of  the  United  States,  as 
hereinafter  provided,  the  commission  may  at  any  time,  upon  such  notice 
and  in  such  manner  as  it  shall  deem  proper,  modify  or  set  aside,  in  whole 
or  in  part,  any  report  or  any  order  made  or  issued  by  it  under  this  section. 

If  such  person,  partnership,  or  corporation  fails  or  neglects  to  obey 
such  order  of  the  commission  while  the  same  is  in  effect,  the  commis- 
sion may  apply  to  the  circuit  court  of  appeals  of  the  United  States, 
within  any  circuit  where  the  method  of  competition  in  question  was 
used  or  where  such  person,  partnership,  or  corporation  resides  or  carries 
on  business,  for  the  enforcement  of  its  order,  and  shall  certify  and  file 
with  its  application  a  transcript  of  the  entire  record  in  the  proceeding, 
including  all  the  testimony  taken  and  the  report  and  order  of  the  com- 
mission. Upon  such  filing  of  the  application  and  transcript  the  court 
shall  cause  notice  thereof  to  be  served  upon  such  person,  partnership,  or 
corporation  and  thereupon  shall  have  jurisdiction  of  the  proceeding  and 
of  the  question  determined  therein,  and  shall  have  power  to  make  and 
enter  upon  the  pleadings,  testimony,  and  proceedings  set  forth  in  such 
transcript  a  decree  alifirming.  modifying,  or  setting  aside  the  order  of  the 
commission.  The  findings  of  the  commission  as  to  the  facts,  if  supported 
by  testimony,  shall  be  conclusive.  If  either  party  shall  apply  to  the 
court  for  leave  to  adduce  additional  evidence,  and  shall  show  to  the  satis- 
faction of  the  court  that  such  additional  evidence  is  material  and  that 
there  were  reasonable  grounds  for  the  failure  to  adduce  such  evidence 
in  the  proceeding  before  the  commission,  the  court  may  order  such  addi- 
tional evidence  to  be  taken  before  the  commission  and  to  be  adduced 
upon  the  hearing  in  such  manner  and  upon  such  terms  and  conditions  as 
to  the  court  may  seem  proper.  The  commission  may  modify  its  findings 
as  to  the  facts,  or  make  new  findings,  by  reason  of  the  additional  evi- 
dence so  taken,  and  it  shall  file  such  modified  or  new  findings,  which,  if 
supported  by  testimony,  shall  be  conclusive,  and  its  recommendation,  if 
any,  for  the  modification  or  setting  aside  of  its  original  order,  with  the 
return  of  such  additional  evidence.  The  judgment  and  decree  of  the 
court  shall  be  final,  except  that  the  same  shall  be  subject  to  review  by 
the  Supreme  Court  upon  certiorari  as  provided  in  section  two  hundred 
and  forty  of  the  Judicial  Code. 

Any  party  required  by  such  order  of  the  commission  to  cease  and 
desist  from  using  such  method  of  competition  may  obtain  a  review  of 
such  order  in  said  circuit  court  of  appeals  by  filing  in  the  court  a  written 


Trade  Commission  Act  219 

petition  praying  that  the  order  of  the  commission  be  set  aside.  A  copy 
of  such  petition  shall  be  forthwith  served  upon  the  commission,  and 
thereupon  the  commission  forthwith  shall  certify  and  file  in  the  court  a 
transcript  of  the  record  as  hereinbefore  provided.  Upon  the  filing  of 
the  transcript  the  court  shall  have  the  same  jurisdiction  to  affirm,  set 
aside,  or  modify  the  order  of  the  commission  as  in  the  case  of  an  applica- 
tion by  the  commission  for  the  enforcement  of  its  order,  and  the  findings 
of  the  commission  as  to  the  facts,  if  supported  by  testimony,  shall  in  like 
manner  be  conclusive. 

The  jurisdiction  of  the  circuit  court  of  appeals  of  the  United  States 
to  enforce,  set  aside,  or  modify  orders  of  the  commission  shall  be  ex- 
clusive. 

Such  proceedings  in  the  circuit  court  of  appeals  shall  be  given 
precedence  over  other  cases  pending  therein,  and  shall  be  in  every  way 
expedited.  No  order  of  the  commission  or  judgment  of  the  court  to 
enforce  the  same  shall  in  any  wise  relieve  or  absolve  any  person,  part- 
nership, or  corporation  from  any  liability  under  the  antitrust  acts. 

Complaints,  orders,  and  other  processes  of  the  commission  under 
this  section  may  be  served  by  anyone  duly  authorized  by  the  commission, 
either  (a)  by  delivering  a  copy  thereof  to  the  person  to  be  served,  or  to 
a  member  of  the  partnership  to  be  served,  or  to  the  president,  secretary, 
or  other  executive  officer  or  a  director  of  the  corporation  to  be  served  ; 
or  (b)  by  leaving  a  copy  thereof  at  the  principal  office  or  place  of  busi- 
ness of  such  person,  partnership,  or  corporation ;  or  (c)  by  registering 
and  mailing  a  copy  thereof  addressed  to  such  person,  partnership,  or 
corporation  at  his  or  its  principal  office  or  place  of  business.  The  verified 
return  by  the  person  so  serving  said  complaint,  order,  or  other  process 
setting  forth  the  manner  of  said  service  shall  be  proof  of  the  same,  and 
the  return  post-office  receipt  for  said  complaint,  order,  or  other  process 
registered  and  mailed  as  aforesaid  shall  be  proof  of  the  service  of  the 
same. 

Powers  of  Commission. 

Sec.  6.     That  the  commission  shall  also  have  power — 

(a)  To  gather  and  compile  information  concerning,  and  to  investi- 
gate from  time  to  time  the  organization,  business,  conduct,  practices, 
and  management  of  any  corporation  engaged  in  commerce,  excepting 
banks  and  common  carriers  subject  to  the  Act  to  regulate  commerce, 
and  its  relation  to  other  corporations  and  to  individuals,  associations, 
and  partnerships. 

(b)  To  require,  by  general  or  special  orders,  corporations  engaged 
in  commerce,  excepting  banks,  and  common  carriers  subject  to  the  Act 
to  regulate  commerce,  or  any  class  of  them,  or  any  of  them,  respectively, 
to  file  with  the  commission  in  such  form  as  the  commission  may  prescribe 
annual  or  special,  or  both  annual  and  special,  reports  or  answers  in  writ- 
ing to  specific  questions,  furnishing  to  the  commission  such  information 


220  Important  Federal  Laws 

as  it  may  require  as  to  the  organization,  business,  conduct,  practices,  man- 
agement, and  relation  to  other  corporations,  partnerships,  and  individuals 
of  the  respective  corporations  filing  such  reports  or  answers  in  writing. 
Such  reports  and  ansv/ers  shall  be  made  under  oath,  or  otherwise,  as  the 
commission  may  prescribe,  and  shall  be  filed  with  the  commission  within 
such  reasonable  period  as  the  commission  may  prescribe,  unless  additional 
time  be  granted  in  any  case  by  the  commission. 

(c)  Whenever  a  final  decree  has  been  entered  against  any  defend- 
ant corporation  in  any  suit  brought  by  the  United  States  to  prevent  and 
restrain  any  violation  of  the  antitrust  Acts,  to  make  investigation,  upon 
its  own  initiative,  of  the  manner  in  which  the  decree  has  been  or  is  being 
carried  out,  and  upon  the  application  of  the  Attorney-General  it  shall  be 
its  duty  to  make  such  investigation.  It  shall  transmit  to  the  Attorney- 
General  a  report  embodying  its  findings  and  recommendations  as  a  result 
of  any  such  investigation,  and  the  report  shall  be  made  public  in  the  dis- 
cretion of  the  commission. 

(d)  Upon  the  direction  of  the  President  or  either  House  of  Con- 
gress to  investigate  and  report  the  facts  relating  to  any  alleged  violations 
of  the  antitrust  Acts  by  any  corporation. 

(e)  Upon  the  application  of  the  Attorney-General  to  investigate 
and  make  recommendations  for  the  readjustment  of  the  business  of  any 
corporation  alleged  to  be  violating  the  antitrust  Acts  in  order  that  the 
corporation  may  thereafter  maintain  its  organization,  management,  and 
conduct  of  business  in  accordance  with  law. 

(f )  To  make  public  from  time  to  time  such  portions  of  the  informa- 
tion obtained  by  it  hereunder,  except  trade  secrets  and  names  of  cus- 
tomers, as  it  shall  deem  expedient  in  the  public  interest ;  and  to  make 
annual  and  special  reports  to  the  Congress  and  to  submit  therewith  recom- 
mendations for  additional  legislation  ;  and  to  provide  for  the  publication 
of  its  reports  and  decisions  in  such  form  and  manner  as  may  be  best 
adapted  for  public  information  and  use. 

(g)  From  time  to  time  to  classify  corporations  and  to  make  rules 
and  regulations  for  the  purpose  of  carrying  out  the  provisions  of  this 
Act. 

(h)  To  investigate,  from  time  to  time,  trade  conditions  in  and  with 
foreign  countries  where  associations,  combinations,  or  practices  of  manu- 
facturers, merchants,  or  traders,  or  other  conditions,  may  afifect  the  for- 
eign trade  of  the  United  States,  and  to  report  to  Congress  thereon,  with 
such  recommendations  as  it  deems  advisable. 

Commission    as    Master   in    Chancery. 

Sec.  7.  That  in  any  suit  in  equity  brought  by  or  under  the  direc- 
tion of  the  Attorney-General  as  provided  in  the  antitrust  Acts,  the  court 
may,  upon  the  conclusion  of  the  testimony  therein,  if  it  shall  be  then 
of  opinion  that  the  complainant  is  entitled  to  relief,  refer  said  suit  to> 
the  commission,  as  a  master  in  chancery,   to   ascertain   and   report   an 


Trade  Commission  Act  221 

appropriate  form  of  decree  therein.  The  commission  shall  proceed  upon 
such  notice  to  the  parties  and  under  such  rules  of  procedure  as  the  court 
may  prescribe,  and  upon  the  coming  in  of  such  report  such  exceptions 
may  be  filed  and  such  proceedings  had  in  relation  thereto  as  upon  the 
report  of  a  master  in  other  equity  causes,  but  the  court  may  adopt  or 
reject  such  report,  in  whole  or  in  part,  and  enter  such  decree  as  the 
nature  of  the  case  may  in  its  judgment  require. 

Departments  to  Furnish  Information — Testimony. 

Sec.  8.  That  the  several  departments  and  bureaus  of  the  Govern- 
ment when  directed  by  the  President  shall  furnish  the  commission,  upon 
its  request,  all  records,  papers,  and  information  in  their  possession  relat- 
ing to  any  corporation  subject  to  any  of  the  provisions  of  this  Act,  and 
shall  detail  from  time  to  time  such  officials  and  employees  to  the  com- 
mission as  he  may  direct. 

Sec.  9.  That  for  the  purposes  of  this  Act  the  commission,  or  its 
duly  authorized  agent  or  agents,  shall  at  all  reasonable  times  have  access 
to,  for  the  purpose  of  examination,  and  the  right  to  copy  any  documentary 
evidence  of  any  corporation  being  investigated  or  proceeded  against;  and 
the  commission  shall  have  power  to  require  by  subpoena  the  attendance 
and  testimony  of  witnesses  and  the  production  of  all  such  documentary 
evidence  relating  to  any  matter  under  investigation.  Any  member  of  the 
commission  may  sign  subpoenas,  and  members  and  examiners  of  the  com- 
mission may  administer  oaths  and  affirmations,  examine  witnesses,  and 
receive  evidence. 

Such  attendance  of  witnesses,  and  the  production  of  such  docu- 
mentary evidence,  may  be  required  from  any  place  in  the  United  States, 
at  any  designated  place  of  hearing.  And  in  case  of  disobedience  to  a 
subpoena  the  commission  may  invoke  the  aid  of  any  court  of  the  United 
States  in  requiring  the  attendance  and  testimony  of  witnesses  and  the 
production  of  documentary  evidence. 

Any  of  the  district  courts  of  the  United  States  within  the  juris- 
diction of  which  such  inquiry  is  carried  on  may,  in  case  of  contumacy 
or  refusal  to  obey  a  subpoena  issued  to  any  corporation  or  other  per- 
son, issue  an  order  requiring  such  corporation  or  other  person  to  appear 
before  the  commission,  or  to  produce  documentary  evidence  if  so  ordered, 
or  to  give  evidence  touching  the  matter  in  question  ;  and  any  failure  to 
obey  such  order  of  the  court  may  be  punished  by  such  court  as  a  con- 
tempt thereof. 

Upon  the  application  of  the  Attorney-General  of  the  United  States, 
at  the  request  of  the  commission,  the  district  courts  of  the  United  States 
shall  have  jurisdiction  to  issue  writs  of  mandamus  commanding  any  per- 
son or  corporation  to  comply  with  the  provisions  of  this  Act  or  any  order 
of  the  commission  made  in  pursuance  thereof. 

The  commission  may  order  testimony  to  be  taken  by  deposition  in 
any  proceeding  or  investigation  pending  under  this  Act  at  any  stage  of 


222  Important  Federal  Laws 

such  proceeding  or  investigation.  Such  depositions  may  be  taken  before 
any  person  designated  by  the  commission  and  having  power  to  administer 
oaths.  Such  testimony  shall  be  reduced  to  writing  by  the  person  taking 
the  deposition,  or  under  his  direction,  and  shall  then  be  subscribed  by 
the  deponent.  Any  person  may  be  compelled  to  appear  and  depose  and 
to  produce  documentary  evidence  in  the  same  manner  as  witnesses  may 
be  compelled  to  appear  and  testify  and  produce  documentary  evidence 
before  the  commission  as  hereinbefore  provided. 

Witnesses  summoned  before  the  commission  shall  be  paid  the  same 
fees  and  mileage  that  are  paid  witnesses  in  the  courts  of  the  United 
States,  and  witnesses  whose  depositions  are  taken  and  the  persons  taking 
the  same  shall  severally  be  entitled  to  the  same  fees  as  are  paid  for  like 
services  in  the  courts  of  the  United  States. 

Xo  person  shall  be  excused  from  attending  and  testifying  or  from 
producing  documentary  evidence  before  the  commission  or  in  obedience 
to  the  subpoena  of  the  commission  on  the  ground  or  for  the  reason  that 
the  testimony  or  evidence,  documentary  or  otherwise,  required  of  him 
may  tend  to  criminate  him  or  subject  him  to  a  penalty  or  forfeiture.  But 
no  natural  person  shall  be  prosecuted  or  subjected  to  any  penalty  or 
forfeiture  for  or  on  account  of  any  transaction,  matter,  or  thing  con- 
cerning which  he  may  testify,  or  produce  evidence,  documentary  or  other- 
wise, before  the  commission  in  obedience  to  a  subpoena  issued  by  it: 
Provided,  That  no  natural  person  so  testifying  shall  be  exempt  from 
prosecution  and  punishment  for  perjury  committed  in  so  testifying. 

Penalties. 

Sec.  10.  That  any  person  who  shall  neglect  or  refuse  to  attend  and 
testify,  or  to  answer  any  lawful  inquir\\  or  to  produce  documentary  evi- 
dence, if  in  his  power  to  do  so,  in  obedience  to  the  subpoena  or  lawful 
requirement  of  the  commission,  shall  be  guilty  of  an  offense  and  upon 
conviction  thereof  by  a  court  of  competent  jurisdiction  shall  be  punished 
by  a  fine  of  not  less  than  $1,000  nor  more  than  $5,000,  or  by  imprison- 
ment for  not  more  than  one  year,  or  by  both  such  fine  and  imprisonment. 

Any  person  who  shall  willfully  make,  or  cause  to  be  made,  any  false 
entry  or  statement  of  fact  in  any  report  required  to  be  made  under  this 
Act,  or  who  shall  willfully  make,  or  cause  to  be  made,  any  false  entry 
in  any  account,  record,  or  memorandum  kept  by  any  corporation  subject 
to  this  Act,  or  who  shall  willfully  neglect  or  fail  to  make,  or  to  cause  to 
be  made,  full,  true,  and  correct  entries  in  such  accounts,  records,  or 
memoranda  of  all  facts  and  transactions  appertaining  to  the  business  of 
such  corporation,  or  who  shall  willfully  remove  out  of  the  jurisdiction 
of  the  United  States,  or  willfully  mutilate,  alter,  or  by  any  other  means 
falsify  any  documentary  evidence  of  such  corporation,  or  who  shall  will- 
fully refuse  to  submit  to  the  commission  or  to  any  of  its  authorized 
agents,  for  the  purpose  of  inspection  and  taking  copies,  any  documentary' 
evidence  of  such  corporation  in  his  possession  or  within  his  control,  shall 


Antitrust  Laws  223 

be  deemed  guilty  of  an  offense  against  the  United  States,  and  shall  be 
subject,  upon  conviction  in  any  court  of  the  United  States  of  competent 
jurisdiction,  to  a  fine  of  not  less  than  $1,000  nor  more  than  $5,000,  or 
to  imprisonment  for  a  term  of  not  more  than  three  years,  or  to  both  such 
fine  and  imprisonment. 

If  any  corporation  required  by  this  Act  to  file  any  annual  or  special 
report  shall  fail  so  to  do  within  the  time  fixed  by  the  commission  for  fil- 
ing the  same,  and  such  failure  shall  continue  for  thirty  days  after  notice 
of  such  default,  the  corporation  shall  forfeit  to  the  United  States  the  sum 
of  $100  for  each  and  every  day  of  the  continuance  of  such  failure,  which 
forfeiture  shall  be  payable  into  the  Treasury  of  the  United  States,  and 
shall  be  recoverable  in  a  civil  suit  in  the  name  of  the  United  States 
brought  in  the  district  where  the  corporation  has  its  principal  office  or  in 
any  district  in  which  it  shall  do  business.  It  shall  be  the  duty  of  the 
various  district  attorneys,  under  the  direction  of  the  Attorney-General  of 
the  United  States,  to  prosecute  for  the  recovery  of  forfeitures.  The 
costs  and  expenses  of  such  prosecution  shall  be  paid  out  of  the  appropria- 
tion for  the  expenses  of  the  courts  of  the  United  States. 

Any  officer  or  employee  of  the  commission  who  shall  make  public 
any  information  obtained  by  the  commission  without  its  authority,  unless 
directed  by  a  court,  shall  be  deemed  guilty  of  a  misdemeanor,  and,  upon 
conviction  thereof,  shall  be  punished  by  a  fine  not  exceeding  $5,000,  or 
by  imprisonment  not  exceeding  one  year,  or  by  fine  and  imprisonment,  in 
the  discretion  of  the  court. 

Antitrust  Acts  Not  Affected. 

Sec.  11.  Nothing  contained  in  this  Act  shall  be  construed  to  pre- 
vent or  interfere  with  the  enforcement  of  the  provisions  of  the  antitrust 
Acts  or  the  Acts  to  regulate  commerce,  nor  shall  anything  contained  in 
the  Act  be  construed  to  alter,  modify,  or  repeal  the  said  antitrust  Acts 
or  the  Acts  to  regulate  commerce  or  any  part  or  parts  thereof. 


THE  FEDERAL  ANTITRUST  LAWS. 

THE  SHERMAN  ACT. 

Act  of  July  2,  1S90. 
An  Act  to  protect  trade  and  commerce  against  unlawful  restraint  and  monop- 
olies. 

Restraint  of  Trade  Illegal — States. 

Sec.  1.  Every  contract,  combination  in  the  form  of  trust  or  other- 
wise, or  conspiracy,  in  restraint  of  trade  or  commerce  among  the  several 
States,  or  with  foreign  nations,  is  hereby  declared  to  be  illegal.  Every 
person  who  shall  make  any  such  contract  or  engage  in  any  such  combi- 
nation or  conspiracy,  shall  be  deemed  guilty  of  a  misdemeanor,  and,  on 
conviction  thereof,  shall  be  punished  by  fine  not  exceeding  five  thousand 
dollars,  or  by  imprisonment  not  exceeding  one  year,  or  by  both  said 
punishments,  in  the  discretion  of  the  court. 


224  Important  Federal  Laws 

Penalty. 

Sec.  2.  Every  person  who  shall  monopolize,  or  attempt  to  monop- 
olize, or  combine  or  conspire  with  any  other  person  or  persons,  to 
monopolize  any  part  of  the  trade  or  commerce  among  the  several  States, 
or  with  foreign  nations,  shall  be  deemed  guilty  of  a  misdemeanor,  and, 
on  conviction  thereof,  shall  be  punished  by  fine  not  exceeding  five  thou- 
sand dollars  or  by  imprisonment  not  exceeding  one  year,  or  by  both  said 
punishments,  in  the  discretion  of  the  court. 

Restraint  of  Trade  Illegal — Territories. 

Sec.  3.  Every  contract,  combination  in  form  of  trust  or  otherwise, 
or  conspiracy,  in  restraint  of  trade  or  commerce  in  any  Territory  of  the 
United  States  or  of  the  District  of  Columbia,  or  in  restraint  of  trade 
or  commerce  between  any  such  Territory  and  another,  or  between  any 
such  Territory  or  Territories  and  any  State  or  States  or  the  District  of 
Columbia,  or  with  foreign  nations,  or  between  the  District  of  Colum- 
bia and  any  State  or  States  or  foreign  nations,  is  hereby  declared 
illegal.  Every  person  who  shall  make  any  such  contract  or  engage  in 
any  such  combination  or  conspiracy,  shall  be  deemed  guilty  of  a  misde- 
meanor, and,  on  conviction  thereof,  shall  be  punished  by  fine  not  exceed- 
ing five  thousand  dollars,  or  by  imprisonment  not  exceeding  one  year, 
or  by  both  said  punishments,  in  the  discretion  of  the  court. 

Jurisdiction  of  Courts. 

Sec.  4.  The  several  circuit  courts  of  the  United  States  are  hereby 
invested  with  jurisdiction  to  prevent  and  restrain  violations  of  this  act; 
and  it  shall  be  the  duty  of  the  several  district  attorneys  of  the  United 
States,  in  their  respective  districts,  under  the  direction  of  the  Attorney 
General,  to  institute  proceedings  in  equity  to  prevent  and  restrain  such 
violations.  Such  proceedings  may  be  by  way  of  petition  setting  forth 
the  case  and  praying  that  such  violation  shall  be  enjoined  or  otherwise 
prohibited.  When  the  parties  complained  of  shall  have  been  duly  noti- 
fied of  such  petition  the  court  shall  proceed,  as  soon  as  may  be.  to  the 
hearing  and  determination  of  the  case ;  and  pending  such  petition  and 
before  final  decree,  the  court  may  at  any  time  make  such  temporary 
restraining  order  or  prohibition  as  shall  be  deemed  just  in  the  premises. 

Same. 

Sec.  5.  Whenever  it  shall  appear  to  the  court  before  which  any 
proceeding  under  section  four  of  this  act  may  be  pending,  that  the  ends 
of  justice  require  that  other  parties  should  be  brought  before  the  court, 
the  court  may  cause  them  to  be  summoned,  whether  they  reside  in  the 
district  in  which  the  court  is  held  or  not ;  and  subpoenas  to  that  end  may 
be  served  in  any  district  by  the  marshal  thereof. 

Property  Forfeited. 

Sec.  6.  Any  property  owned  under  any  contract  or  by  any  combi- 
nation, or  pursuant  to  any  conspiracy  (and  being  the  subject  thereof) 


Antitrust  Laws  225 

mentioned  in  section  one  of  this  act,  and  being  in  the  course  of  trans- 
portation from  one  State  to  another,  or  to  a  foreign  country,  shall  be 
forfeited  to  the  United  States,  and  may  be  seized  and  condemned  by 
like  proceedings  as  those  provided  by  law  for  the  forfeiture,  seizure, 
and  condemnation  of  property  imported  into  the  United  States  contrary 
to  law. 

Damages  on  Account  of  Restraint  of  Trade. 

Sec.  7.  Any  person  who  shall  be  injured  in  his  business  or  prop- 
erty by  any  other  person  or  corporation  by  reason  of  anything  forbidden 
or  declared  to  be  unlawful  by  this  act,  may  sue  therefor  in  any  circuit 
court  of  the  United  States  in  the  district  in  which  the  defendant  resides 
or  is  found,  without  respect  to  the  amount  in  controversy,  and  shall 
recover  threefold  the  damages  by  him  sustained,  and  the  costs  of  suit, 
including  a  reasonable  attorney's  fee. 

Definitions. 

Sec.  8.  That  the  word  "person,"  or  "persons,"  wherever  used  in 
this  act  shall  be  deemed  to  include  corporations  and  associations  exist- 
ing under  or  authorized  by  the  laws  of  either  the  United  States,  the  laws 
of  any  of  the  Territories,  the  laws  of  any  State,  or  the  laws  of  any 
foreign  country. 


THE  CLAYTON  ACT. 

Act  of  October  15,  1914. 

An  Act  to  supplement  existing  laws  against  unlawful  restraints  and  monopolies, 
and  for  other  purposes. 

Scope  of  Antitrust  Acts  Definitions. 

Sec.  I.  That  "antitrust  laws,"  as  used  herein,  includes  the  Act 
entitled  "An  Act  to  protect  trade  and  commerce  against  unlawful 
restraints  and  monopolies,"  approved  July  second,  eighteen  hundred  and 
ninety ;  sections  seventy-three  to  seventy-seven,  inclusive,  of  an  Act 
entitled  "An  Act  to  reduce  taxation,  to  provide  revenue  for  the  Govern- 
ment, and  for  other  purposes,"  of  August  twenty-seventh,  eighteen  hun- 
dred and  ninety-four;  an  Act  entitled  "An  Act  to  amend  sections  sev- 
enty-three and  seventy-six  of  the  Act  of  August  twenty-seventh,  eighteen 
hundred  and  ninety-four,  entitled  'An  Act  to  reduce  taxation,  to  provide 
revenue  for  the  Government,  and  for  other  purposes,'  "  approved  Feb- 
ruary twelfth,  nineteen  hundred  and  thirteen;  and  also  this  Act. 

"Commerce,"  as  used  herein,  means  trade  or  commerce  among  the 
several  States  and  with  foreign  nations,  or  between  the  District  of 
Columbia  or  any  Territory  of  the  United  States  and  any  State,  Terri- 
tory, or  foreign  nation,  or  between  any  insular  possessions  or  other 
places  under  the  jurisdiction  of  the  United  States,  or  between  any  such 
possession  or  place  and  any  State  or  Territory  of  the  United  States  or 
the  District  of   Columbia  or  any  foreign  nation,  or  within  the  District 

(15) 


226  Important  Federal  Laws 

of  Columbia  or  any  Territory  or  any  insular  possession  or  other  place 
under  the  jurisdiction  of  the  United  States:  Provided,  That  nothing 
in  this  Act  contained  shall  apply  to  the  Philippine  Islands. 

The  word  "person"  or  "persons"  wherever  used  in  this  Act  shall 
be  deemed  to  include  corporations  and  associations  existing  under  or 
authorized  by  the  laws  of  either  the  United  States,  the  laws  of  any  of 
the  Territories,  the  laws  of  any  State,  or  the  laws  of  any  foreign  country. 

Discriminations. 

Sec.  2.  That  it  shall  be  unlawful  for  any  person  engaged  in  com- 
merce, in  the  course  of  such  commerce,  either  directly  or  indirectly  to 
discriminate  in  price  between  different  purchasers  of  commodities,  which 
commodities  are  sold  for  use,  consumption,  or  resale  within  the  United 
States  or  any  Territory  thereof  or  the  District  of  Columbia  or  any 
insular  possession  or  other  place  under  the  jurisdiction  of  the  United 
States,  where  the  effect  of  such  discrimination  may  be  to  substantially 
lessen  competition  or  tend  to  create  a  monopoly  in  any  line  of  com- 
merce: Provided,  That  nothing  herein  contained  shall  prevent  discrimi- 
nation in  price  between  purchasers  of  commodities  on  account  of  dift'er- 
ences  in  the  grade,  quality,  or  quantity  of  the  commodity  sold,  or  that 
makes  only  due  allowance  for  difference  in  the  cost  of  selling  or  trans- 
portation, or  discrimination  in  price  in  the  same  or  different  communities 
made  in  good  faith  to  meet  competition:  And  provided  further,  That 
nothing  herein  contained  shall  prevent  persons  engaged  in  selling  goods, 
wares,  or  merchandise  in  commerce  from  selecting  their  own  customers 
in  bona  fide  transactions  and  not  in  restraint  of  trade. 
Unlawful  to  Compel  Purchaser  Not  to  Handle  Competitor's  Goods. 

Sec.  3.  That  it  shall  be  unlawful  for  any  person  engaged  in  com- 
merce, in  the  course  of  such  commerce,  to  lease  or  make  a  sale  or  con- 
tract for  sale  of  goods,  wares,  merchandise,  machinery,  supplies  or  other 
commodities,  whether  patented  or  unpatented,  for  use.  consumption  or 
resale  within  the  United  States  or  any  Territory  thereof  or  the  District 
of  Columbia  or  any  insular  possession  or  other  place  under  the  jurisdic- 
tion of  the  United  States,  or  fix  a  price  charged  therefor,  or  discount 
from,  or  rebate  upon,  such  price,  on  the  condition,  agreement  or  under- 
standing that  the  lessee  or  purchaser  thereof  shall  not  use  or  deal  in  the 
goods,  wares,  merchandise,  machinery,  supplies  or  other  commodities  of 
a  competitor  or  competitors  of  the  lessor  or  seller,  where  the  effect  of 
such  lease,  sale,  or  contract  for  sale  or  such  condition,  agreement  or 
understanding  may  be  to  substantially  lessen  competition  or  tend  to 
create  a  monopoly  in  any  line  of  commerce. 

Damages. 

Sec.  4.  That  any  person  who  shall  be  injured  in  his  business  or 
property  by  reason  of  anything  forbidden  in  the  antitrust  laws  may  sue 
therefor  in  any  district  court  of  the  United  States  in  the  district  in 
which  the  defendant  resides  or  is  found  or  has  an  agent,  without  respect 


Antitrust  Laws  227 

to  the  amount  in  controversy,  and  shall  recover  threefold  the  damages 
by  him  sustained,  and  the  cost  of  suit,  including  a  reasonable  attorney's 
fee. 

Final  Judgment  Prima  Facie  Evidence  in  Other  Suits. 

Sec.  5.  That  a  final  judgment  or  decree  hereafter  rendered  in  any 
criminal  prosecution  or  in  any  suit  or  proceeding  in  equity  brought  by 
or  on  behalf  of  the  United  States  under  the  antitrust  laws  to  the  effect 
that  a  defendant  has  violated  said  laws  shall  be  prima  facie  evidence 
against  such  defendant  in  any  suit  or  proceeding  brought  by  any  other 
party  against  such  defendant  under  said  laws  as  to  all  matters  respecting 
which  said  judgment  or  decree  would  be  an  estoppel  as  between  the 
parties  thereto:  Provided,  This  section  shall  not  apply  to  consent  judg- 
ments or  decrees  entered  before  any  testimnoy  has  been  taken:  Pro- 
vided further.  This  section  shall  not  apply  to  consent  judgments  or 
decrees  rendered  in  criminal  proceedings  or  suits  in  equity,  now  pend- 
ing, in  which  the  taking  of  testimony  has  been  commenced  but  has  not 
been  concluded,  provided  such  judgments  or  decrees  are  rendered  before 
any  further  testimony  is  taken. 

Whenever  any  suit  or  proceeding  in  equity  or  criminal  prosecution 
is  instituted  by  the  United  States  to  prevent,  restrain  or  punish  viola- 
tions of  any  of  the  antitrust  laws,  the  running  of  the  statute  of  limita- 
tions in  respect  of  each  and  every  private  right  of  action  arising  under 
said  laws  and  based  in  whole  or  in  part  on  any  matter  complained  of 
in  said  suit  or  proceeding  shall  be  suspended  during  the  pendency  thereof. 

Human  Labor  Not  a  Commodity. 

Sec.  6.  That  the  labor  of  a  human  being  is  not  a  commodity  or 
article  of  commerce.  Nothing  contained  in  the  antitrust  laws  shall  be 
construed  to  forbid  the  existence  and  operation  of  labor,  agricultural,  or 
horticultural  organizations,  instituted  for  the  purposes  of  mutual  help, 
and  not  having  capital  stock  or  conducted  for  profit,  or  to  forbid  or 
restrain  individual  members  of  such  organizations  from  lawfully  carry- 
ing out  the  legitimate  objects  thereof;  nor  shall  such  organizations,  or 
the  members  thereof,  be  held  or  construed  to  be  illegal  combinations  or 
conspiracy  in  restraint  of  trade,  under  the  antitrust  laws. 

Monopoly  Unlawful. 

Sec.  7.  That  no  corporation  engaged  in  commerce  shall  acquire, 
directly  or  indirectly,  the  whole  or  any  part  of  the  stock  or  other  share 
capital  of  another  corporation  engaged  also  in  commerce,  where  the 
effect  of  such  acquisition  may  be  to  substantially  lessen  competition 
between  the  corporation  whose  stock  is  so  acquired  and  the  corporation 
making  the  acquisition,  or  to  restrain  such  commerce  in  any  section  or 
community,  or  tend  to  create  a  monopoly  of  any  line  of  commerce. 

No  corporation  shall  acquire,  directly  or  indirectly,  the  whole  or 
any  part  of  the  stock  or  other  share  capital  of  two  or  more  corporations 
engaged  in  commerce  where  the  effect  of  such  acquisition,  or  the  use 


228  Important  Federal  Laws 

of  such  stock  by  the  voting  or  granting  of  proxies  or  otherwise,  may  be 
to  substantially  lessen  competition  between  such  corporations,  or  any 
of  them,  whose  stock  or  other  share  capital  is  so  acquired,  or  to  restrain 
such  commerce  in  any  section  or  community,  or  tend  to  create  a  monop- 
oly of  any  line  of  commerce. 

This  section  shall  not  apply  to  corporations  purchasing  such  stock 
solely  for  investment  and  not  using  the  same  by  voting  or  otherwise  to 
bring  about,  or  in  attempting  to  bring  about,  the  substantial  lessening  of 
competition.  Nor  shall  anything  contained  in  this  section  prevent  a 
corporation  engaged  in  commerce  from  causing  the  formation  of  sub- 
sidiary corporations  for  the  actual  carrying  on  of  their  immediate  lawful 
business,  or  the  natural  and  legitimate  branches  or  extensions  thereof, 
or  from  owning  and  holding  all  or  a  part  of  the  stock  of  such  subsidiary 
corporations,  when  the  effect  of  such  formation  is  not  to  substantially 
lessen  competition. 

Nor  shall  anything  herein  contained  be  construed  to  prohibit  any 
common  carrier  subject  to  the  laws  to  regulate  commerce  from  aiding  in 
the  construction  of  branches  or  short  lines  so  located  as  to  become  feed- 
ers to  the  main  line  of  the  company  so  aiding  in  such  construction  or 
from  acquiring  or  owning  all  or  any  part  of  the  stock  of  such  branch 
lines,  nor  to  prevent  any  such  common  carrier  from  acquiring  and  own- 
ing all  or  any  part  of  the  stock  of  a  branch  or  short  line  constructed  by 
an  independent  company  where  there  is  no  substantial  competition  be- 
tween the  company  owning  the  branch  line  so  constructed  and  the  com- 
pany owning  the  main  line  acquiring  the  property  or  an  interest  therein, 
nor  to  prevent  such  common  carrier  from  extending  any  of  its  lines 
through  the  medium  of  the  acquisition  of  stock  or  otherwise  of  any 
other  such  common  carrier  where  there  is  no  substantial  competition 
between  the  company  extending  its  lines  and  the  company  whose  stock, 
property,  or  an  interest  therein  is  so  acquired. 

Nothing  contained  in  this  section  shall  be  held  to  affect  or  impair 
any  right  heretofore  legally  acquired:  Provided,  That  nothing  in  this 
section  shall  be  held  or  construed  to  authorize  or  make  lawful  anything 
heretofore  prohibited  or  made  illegal  by  the  antitrust  laws,  nor  to  exempt 
any  person  from  the  penal  provisions  thereof  or  the  civil  remedies 
therein  provided. 

Interlocking  Directorates  Prohibited  in  Certain  Cases. 

Sec.  8.  That  from  and  after  two  years  from  the  date  of  the  ap- 
proval of  this  Act  no  person  shall  at  the  same  time  be  a  director  or 
other  officer  or  employee  of  more  than  one  bank,  banking  association 
or  trust  company,  organized  or  operating  under  the  laws  of  the  United 
States,  either  of  which  has  deposits,  capital,  surplus,  and  undivided 
profits  aggregating  more  than  $5,000,000;  and  no  private  banker  or 
person  who  is  a  director  in  any  bank  or  trust  company,  organized  and 
operating  under  the  laws  of  a  State,  having  deposits,  capital,  surplus, 


Antitrust  Laws  229 

and  undivided  profits  aggregating  more  than  $5,000,000,  shall  be  eligible 
to  be  a  director  in  any  bank  or  banking  association  organized  or  operat- 
ing under  the  laws  of  the  United  States.  The  eligibility  of  a  director, 
officer,  or  employee  under  the  foregoing  provisions  shall  be  determined 
by  the  average  amount  of  deposits,  capital,  surplus  and  undivided  profits 
as  shown  in  the  official  statements  of  such  bank,  banking  association, 
or  trust  company  filed  as  provided  by  law  during  the  fiscal  year  next 
preceding  the  date  set  for  the  annual  election  of  directors,  and  when  a 
director,  officer,  or  employee  has  been  elected  or  selected  in  accordance 
with  the  provisions  of  this  Act  it  shall  be  lawful  for  him  to  continue 
as  such  for  one  year  thereafter  under  said  election  or  employment. 

No  bank,  banking  association  or  trust  company,  organized  or  operat- 
ing under  the  laws  of  the  United  States,  in  any  city  or  incorporated 
town  or  village  of  more  than  two  hundred  thousand  inhabitants,  as 
shown  by  the  last  preceding  decennial  census  of  the  United  States,  shall 
have  as  a  director  or  other  officer  or  employee,  any  private  banker 
or  any  director  or  other  officer  or  employee  of  any  other  bank,  bank- 
ing association  or  trust  company  located  in  the  same  place :  Provided, 
That  nothing  in  this  section  shall  apply  to  mutual  savings  banks  not  hav- 
ing a  capital  stock  represented  by  shares :  Provided  further.  That  a 
director  or  other  officer  or  employee  of  such  bank,  banking  association, 
or  trust  company  may  be  a  director  or  other  officer  or  employee  of  not 
more  than  one  other  bank  or  trust  company  organized  under  the  laws 
of  the  United  States  or  any  State  where  the  entire  capital  stock  of  one 
is  owned  by  stockholders  in  the  other:  And  provided  further,  That 
nothing  contained  in  this  section  shall  forbid  a  director  of  class  A  of  a 
Federal  reserve  bank,  as  defined  in  the  Federal  Reserve  Act  from  being, 
an  officer  or  director  or  both  an  officer  and  director  in  one  member  bank : 
And  provided  further.  That  nothing  in  this  Act  shall  prohibit  any  officer, 
director,  or  employee  of  any  member  bank  or  class  A  director  of  a 
Federal  Reserve  Bank,  who  shall  first  procure  the  consent  of  the 
Federal  Reserve  Board,  which  board  is  hereby  authorized,  at  its  discre- 
tion, to  grant,  withhold,  or  revoke  such  consent,  from  being  an  officer, 
director,  or  employee  of  not  more  than  two  other  banks,  banking  asssocia- 
tions,  or  trust  companies,  whether  organized  under  the  laws  of  the 
United  States  or  any  State,  if  such  other  bank,  banking  association,  or 
trust  company  is  not  in  substantial  competition  with  such  member  bank. 

The  consent  of  the  Federal  Reserve  Board  may  be  procured  before 
the  person  applying  therefor  has  been  elected  as  a  class  A  director  of 
a  Federal  reserve  bank  or  as  a  director  of  any  member  bank.  (As 
amended  May  15,  1916.) 

That  from  and  after  two  years  from  the  date  of  the  approval  of 
this  Act  no  person  at  the  same  time  shall  be  a  director  in  any  two  or 
more  corporations,  any  one  of  which  has  capital,  surplus,  and  undivided 
profits  aggregating  more  than  $1,000,000,  engaged  in  whole  or  in  part  in 
commerce,  other  than  banks,  banking  associations,  trust  companies  and 


230  Important  Federal  Laws 

common  carriers  subject  to  the  Act  to  regulate  commerce,  approved 
February  fourth,  eighteen  hundred  and  eighty-seven,  if  such  corpora- 
tions are  or  shall  have  been  theretofore,  by  virtue  of  their  business  and 
location  of  operation,  competitors,  so  that  the  elimination  of  competition 
by  agreement  between  them  would  constitute  a  violation  of  any  of  the 
provisions  of  any  of  the  antitrust  laws.  The  eligibility  of  a  director 
under  the  foregoing  provision  shall  be  determined  by  the  aggregate 
amount  of  the  capital,  surplus,  and  undivided  profits,  exclusive  of  divi- 
dends declared  but  not  paid  to  stockholders,  at  the  end  of  the  fiscal  year 
of  said  corporation  next  preceding  the  election  of  directors,  and  when 
a  director  has  been  elected  in  accordance  with  the  provisions  of  this 
Act  it  shall  be  lawful  for  him  to  continue  as  such  for  one  year  thereafter. 
When  any  person  elected  or  chosen  as  a  director  or  officer  or  selected 
as  an  employee  of  any  bank  or  other  corporation  subject  to  the  provi- 
sions of  this  Act  is  eligible  at  the  time  of  his  election  or  selection  to  act 
for  such  bank  or  other  corporation  in  such  capacity  his  eligibility  to  act 
in  such  capacity  shall  not  be  affected  and  he  shall  not  become  or  be 
deemed  amenable  to  any  of  the  provisions  hereof  by  reason  of  any 
change  in  the  affairs  of  such  bank  or  other  corporation  from  whatsoever 
cause,  whether  specifically  excepted  by  any  of  the  provisions  hereof  or 
not,  until  the  expiration  of  one  year  from  the  date  of  his  election  or 
employment. 

Penalty  for  Embezzlement. 

Sec.  9.  Every  president,  director,  officer  or  manager  of  any  firm, 
association  or  corporation  engaged  in  commerce  as  a  common  carrier, 
who  embezzles,  steals,  abstracts  or  willfully  misapplies,  or  willfully 
permits  to  be  misapplied,  any  of  the  moneys,  funds,  credits,  securities, 
property  or  assets  of  such  firm,  association  or  corporation,  arising  or 
accruing  from,  or  used  in,  such  commerce,  in  whole  or  in  part,  or  will- 
fully or  knowingly  converts  the  same  to  his  own  use  or  to  the  use  of 
another,  shall  be  deemed  guilty  of  a  felony  and  upon  conviction  shall 
be  fined  not  less  than  $500  or  confined  in  the  penitentiary  not  less  than 
one  year  nor  more  than  ten  years,  or  both,  in  the  discretion  of  the  court. 

Prosecutions  hereunder  may  be  in  the  district  court  of  the  United 
States  for  the  district  wherein  the  offense  may  have  been  committed. 

That  nothing  in  this  section  shall  be  held  to  take  away  or  impair 
the  jurisdiction  of  the  courts  of  the  several  States  under  the  laws  thereof ; 
and  a  judgment  of  conviction  or  acquittal  on  the  merits  under  the  laws 
of  any  State  shall  be  a  bar  to  any  prosecution  hereunder  for  the  same 
act  or  acts. 

Carriers — Regulation  of  Purchases. 

Sec.  10.  That  after  two  years  from  the  approval  of  this  Act  no 
common  carrier  engaged  in  commerce  shall  have  any  dealings  in  secur- 
ities, supplies  or  other  articles  of  commerce,  or  shall  make  or  have  any 
contracts  for  construction  or  maintenance  of  any  kind,  to  the  amount 


Antitrust  Laws  231 

of  more  than  $50,000,  in  the  aggregate,  in  any  one  year,  with  another 
corporation,  firm,  partnership  or  association  when  the  said  common  car- 
rier shall  have  upon  its  board  of  directors  or  as  its  president,  manager 
or  as  its  purchasing  or  selling  officer,  or  agent  in  the  particular  trans- 
action, any  person  who  is  at  the  same  time  a  director,  manager,  or 
purchasing  or  selling  officer  of,  or  who  has  any  substantial  interest  in, 
such  other  corporation,  firm,  partnership  or  association,  unless  and 
except  such  purchases  shall  be  made  from,  or  such  dealings  shall  be 
with,  the  bidder  whose  bid  is  the  most  favorable  to  such  common  car- 
rier, to  be  ascertained  by  competitive  bidding  under  regulations  to  be 
prescribed  by  rule  or  otherwise  by  the  Interstate  Commerce  Commission. 
No  bid  shall  be  received  unless  the  name  and  address  of  the  bidder  or  the 
names  and  addresses  of  the  officers,  directors  and  general  managers 
thereof,  if  the  bidder  be  a  corporation,  or  of  the  members,  if  it  be  a 
partnership  or  firm,  be  given  with  the  bid. 

Any  person  who  shall,  directly  or  indirectly,  do  or  attempt  to  do 
anything  to  prevent  anyone  from  bidding  or  shall  do  any  act  to  prevent 
free  and  fair  competition  among  the  bidders  or  those  desiring  to  bid 
shall  be  punished  as  prescribed  in  this  section  in  the  case  of  an  officer 
or  director. 

Every  such  common  carrier  having  any  such  transactions  or  making 
any  such  purchases  shall  within  thirty  days  after  making  the  same  file 
v/ith  the  Interstate  Commerce  Commission  a  full  and  detailed  statement 
of  the  transaction  showing  the  manner  of  the  competitive  bidding,  who 
were  the  bidders,  and  the  names  and  addresses  of  the  directors  and 
officers  of  the  corporations  and  the  members  of  the  firm  or  partnership 
bidding ;  and  whenever  the  said  commission  shall,  after  investigation  or 
hearing,  have  reason  to  believe  that  the  law  has  been  violated  in  and 
about  the  said  purchases  or  transactions  it  shall  transmit  all  papers  and 
documents  and  its  own  views  or  findings  regarding  the  transaction  to  the 
Attorney  General. 

If  any  common  carrier  shall  violate  this  section  it  shall  be  fined 
not  exceeding  $25,000;  and  every  such  director,  agent,  manager  or  officer 
thereof  who  shall  have  knowingly  voted  for  or  directed  the  act  consti- 
tuting such  violation  or  who  shall  have  aided  or  abetted  in  such  viola- 
tion shall  be  deemed  guilty  of  a  misdemeanor  and  shall  be  fined  not 
exceeding  $5,000,  or  confined  in  jail  not  exceeding  one  year,  or  both, 
in  the  discretion  of  the  court.  (This  section  takes  effect  January  8, 
1918,  by  resolution  of  Congress  March  4,  1917.) 

Enforcement  by  Interstate  Commerce  Commission  and  the  Federal 
Trade  Commission. 

Sec.  11.  That  authority  to  enforce  compliance  with  sections  two, 
three,  seven  and  eight  of  this  Act  by  the  persons  respectively  subject 
thereto  is  hereby  vested :  in  the  Interstate  Commerce  Commission  where 
applicable  to  common  carriers,   in   the   Federal   Reserve   Board   where 


232  Important  Federal  Laws 

applicable  to  banks,  banking  associations  and  trust  companies,  and  in  the 
Federal  Trade  Commission  where  applicable  to  all  other  character  of 
commerce,  to  be  exercised  as  follows : 

Whenever  the  commission  or  board  vested  with  jurisdiction  thereof 
shall  have  reason  to  believe  that  any  person  is  violating  or  has  violated 
any  of  the  provisions  of  sections  two,  three,  seven  and  eight  of  this  Act, 
it  shall  issue  and  serve  upon  such  person  a  complaint  stating  its  charges 
in  that  respect,  and  containing  a  notice  of  a  hearing  upon  a  day  and  at  a 
place  therein  fixed  at  least  thirty  days  after  the  service  of  said  complaint. 
The  person  so  complained  of  shall  have  the  right  to  appear  at  the  place 
and  time  so  fixed  and  show  cause  why  an  order  should  not  be  entered  by 
the  commission  or  board  requiring  such  person  to  cease  and  desist  from 
the  violation  of  the  law  so  charged  in  said  complaint.  Any  person  may 
make  application,  and  upon  good  cause  shown  may  be  allowed  by  the 
commission  or  board,  to  intervene  and  appear  in  said  proceeding  by  coun- 
sel or  in  person.  The  testimony  in  any  such  proceeding  shall  be  reduced 
to  writing  and  filed  in  the  office  of  the  commission  or  board.  If  upon 
such  hearing  the  commission  or  board,  as  the  case  may  be,  shall  be  ^f 
the  opinion  that  any  of  the  provisions  of  said  sections  have  been  or  are 
being  violated,  it  shall  make  a  report  in  writing  in  which  it  shall  state 
its  findings  as  to  the  facts,  and  shall  issue  and  cause  to  be  served  on  such 
person  an  order  requiring  such  person  to  cease  and  desist  from  such 
violations,  and  divest  itself  of  the  stock  held  or  rid  itself  of  the  directors 
chosen  contrary  to  the  provisions  of  sections  seven  and  eight  of  this  Act, 
if  any  there  be,  in  the  manner  and  within  the  time  fixed  by  said  order. 
Until  a  transcript  of  the  record  in  such  hearing  shall  have  been  filed  in  a 
circuit  court  of  appeals  of  the  United  States,  as  hereinafter  provided,  the 
commission  or  board  may  at  any  time,  upon  such  notice  and  in  such 
manner  as  it  shall  deem  proper,  modify  or  set  aside,  in  whole  or  in  part, 
any  report  or  any  order  made  or  issued  by  it  under  this  section. 

If  such  person  fails  or  neglects  to  obey  such  order  of  the  commis- 
sion or  board  while  the  same  is  in  effect,  the  commission  or  board  may 
apply  to  the  circuit  court  of  appeals  of  the  United  States,  within  any 
circuit  where  the  violation  complained  of  was  or  is  being  committed  or 
where  such  person  resides  or  carries  on  business,  for  the  enforcement 
of  its  order,  and  shall  certify  and  file  with  its  application  a  transcript 
of  the  entire  record  in  the  proceeding,  including  all  the  testimony  taken 
and  the  report  and  order  of  the  commission  or  board.  Upon  such  filing 
of  the  application  and  transcript  the  court  shall  cause  notice  thereof  to 
be  served  upon  such  person  and  thereupon  shall  have  jurisdiction  of  the 
proceeding  and  of  the  question  determined  therein,  and  shall  have  power 
to  make  and  enter  upon  the  pleadings,  testimony,  and  proceedings  set 
forth  in  such  transcript  a  decree  affirming,  modifying,  or  setting  aside 
the  order  of  the  commission  or  board.  The  findings  of  the  commission 
or  board  as  to  the  facts,  if  supported  by  testimony,  shall  be  conclusive. 
If  either  party  shall  apply  to  the  court  for  leave  to  adduce  additional 


Antitrust  Laws  233 

evidence,  and  shall  show  to  the  satisfaction  of  the  court  that  such  addi- 
tional evidence  is  material  and  that  there  were  reasonable  grounds  for 
the  failure  to  adduce  such  evidence  in  the  proceeding  before  the  com- 
mission or  board,  the  court  may  order  such  additional  evidence  to  be 
taken  before  the  commission  or  board  and  to  be  adduced  upon  the  hear- 
ing in  such  manner  and  upon  such  terms  and  conditions  as  to  the  court 
may  seem  proper.  The  commission  or  board  may  modify  its  findings  as 
to  the  facts,  or  make  new  findings,  by  reason  of  the  additional  evidence 
so  taken,  and  it  shall  file  such  modified  or  new  findings,  which,  if  sup- 
ported by  testimony,  shall  be  conclusive,  and  its  recommendation,  if  any, 
for  the  modification  or  setting  aside  of  its  original  order,  with  the  return 
of  such  additional  evidence.  The  judgment  and  decree  of  the  court 
shall  be  final,  except  that  the  same  shall  be  subject  to  review  by  the 
Supreme  Court  upon  certiorari  as  provided  in  section  two  hundred  and 
forty  of  the  Judicial  Code. 

Any  party  required  by  such  order  of  the  commission  or  board  to 
cease  and  desist  from  a  violation  charged  may  obtain  a  review  of  such 
order  in  said  circuit  court  of  appeals  by  filing  in  the  court  a  written 
petition  praying  that  the  order  of  the  commission  or  board  be  set  aside. 
A  copy  of  such  petition  shall  be  forthwith  served  upon  the  commission 
or  board,  and  thereupon  the  commission  or  board  forthwith  shall  certify 
and  file  in  the  court  a  transcript  of  the  record  as  hereinbefore  provided. 
Upon  the  filing  of  the  transcript  the  court  shall  have  the  same  jurisdiction 
to  affirm,  set  aside,  or  modify  the  order  of  the  commission  or  board 
as  in  the  case  of  an  application  by  the.  commission  or  board  for  the 
enforcement  of  its  order,  and  the  findings  of  the  commission  or  board 
as  to  the  facts,  if  supported  by  testimony,  shall  in  like  manner  be  con- 
clusive. 

The  jurisdiction  of  the  circuit  court  of  appeals  of  the  United  States 
to  enforce,  set  aside,  or  modify  orders  of  the  commission  or  board  shall 
be  exclusive. 

Such  proceedings  in  the  circuit  court  of  appeals  shall  be  given  prec- 
edence over  other  cases  pending  therein,  and  shall  be  in  every  way 
expedited.  No  order  of  the  commission  or  board  or  the  judgment  of  the 
court  to  enforce  the  same  shall  in  any  wise  relieve  or  absolve  any  person 
from  any  liability  under  the  antitrust  Acts. 

Complaints,  orders,  and  other  processes  of  the  commission  or  board 
under  this  section  may  be  served  by  anyone  duly  authorized  by  the  com- 
mission or  board,  either  (a)  by  delivering  a  copy  thereof  to  the  person 
to  be  served,  or  to  a  member  of  the  partnership  to  be  served,  or  to  the 
president,  secretary,  or  other  executive  officer  or  a  director  of  the  cor- 
poration to  be  served;  or  (b)  by  leaving  a  copy  thereof  at  the  principal 
office  or  place  of  business  of  such  person ;  or  (c)  by  registering  and  mail- 
ing a  copy  thereof  addressed  to  such  person  at  his  principal  office  or 
place  of  business.  The  verified  return  by  the  person  so  serving  said 
complaint,   order,    or   other   process    setting    forth   the    manner    of   said 


234  Important  Federal  Laws 

service  shall  be  proof  of  the  same,  and  the  return  post-office  receipt  for 
said  complaint,  order,  or  other  process  registered  and  mailed  as  aforesaid 
shall  be  proof  of  the  service  of  the  same. 

Jurisdiction. 

Sec.  12.  That  any  suit,  action,  or  proceeding  under  the  antitrust 
laws  against  a  corporation  may  be  brought  not  only  in  the  judicial  district 
whereof  it  is  an  inhabitant,  but  also  in  any  district  wherein  it  may  be 
found  or  transacts  business ;  and  all  process  in  such  cases  may  be  served 
in  the  district  of  which  it  is  an  inhabitant,  or  wherever  it  may  be  found. 

Subpoenas. 

Sec.  13.  That  in  any  suit,  action,  or  proceeding  brought  by  or  on 
behalf  of  the  United  States  subpoenas  for  witnesses  who  are  required 
to  attend  a  court  of  the  United  States  in  any  judicial  district  in  any  case, 
civil  or  criminal,  arising  under  the  antitrust  laws  may  run  into  any  other 
district :  Provided,  That  in  civil  cases  no  writ  of  subpoena  shall  issue 
for  witnesses  living  out  of  the  district  in  which  the  court  is  held  at  a 
greater  distance  than  one  hundred  miles  from  the  place  of  holding  the 
same  without  the  permission  of  the  trial  court  being  first  had  upon  proper 
application  and  cause  shown. 

Directors  Liable  to  Penalty. 

Sec.  14.  That  whenever  a  corporation  shall  violate  any  of  the 
penal  provisions  of  the  antitrust  laws,  such  violation  shall  be  deemed  to 
be  also  that  of  the  individual  directors,  officers,  or  agents  of  such  corpo- 
ration who  shall  have  authorized,  ordered,  or  done  any  of  the  acts  con- 
stituting in  whole  or  in  part  such  violation,  and  such  violation  shall  be 
deemed  a  misdemeanor,  and  upon  conviction  therefor  of  any  such 
director,  officer,  or  agent  he  shall  be  punished  by  a  fine  of  not  exceeding 
$5,000  or  by  imprisonment  for  not  exceeding  one  year,  or  by  both,  in 
the  discretion  of  the  court. 

District  Courts  to  Restrain  Violations. 

Sec.  15.  That  the  several  district  courts  of  the  United  States  are 
hereby  invested  with  jurisdiction  to  prevent  and  restrain  violations  of  this 
Act,  and  it  shall  be  the  duty  of  the  several  district  attorneys  of  the 
L'nited  States,  in  their  respective  districts,  under  the  direction  of  the 
Attorney  General,  to  institute  proceedings  in  equity  to  prevent  and  re- 
strain such  violations.  Such  proceedings  may  be  by  way  of  petition  set- 
ting forth  the  case  and  praying  that  such  violation  shall  be  enjoined  or 
otherwise  prohibited.  When  the  parties  complained  of  shall  have  been 
duly  notified  of  such  petition,  the  court  shall  proceed,  as  soon  as  may  be, 
to  the  hearing  and  determination  of  the  case ;  and  pending  such  petition, 
and  before  final  decree,  the  court  may  at  any  time  make  such  temporary 
restraining  order  or  prohibition  as  shall  be  deemed  just  in  the  premises. 
Whenever  it  shall  appear  to  the  court  before  which  any  such  proceeding 
may  be  pending  that  the  ends  of  justice  require  that  other  parties  should 


Antitrust  Laws  235 

be  brought  before  the  court,  the  court  may  cause  them  to  be  summoned 
whether  they  reside  in  the  district  in  which  the  court  is  held  or  not,  and 
subpoenas  to  that  end  may  be  served  in  any  district  by  the  marshal  thereof. 

Injunctions. 

Sec.  16.  That  any  person,  firm,  corporation,  or  association  shall  be 
entitled  to  sue  for  and  have  injunctive  relief,  in  any  court  of  the  United 
States  having  jurisdiction  over  the  parties,  against  threatened  loss  or 
damage  by  a  violation  of  the  antitrust  laws,  including  sections  two, 
three,  seven  and  eight  of  this  Act,  when  and  under  the  same  conditions 
and  principles  as  injunctive  relief  against  threatened  conduct  that  will 
cause  loss  or  damage  is  granted  by  courts  of  equity,  under  the  rules 
governing  such  proceedings,  and  upon  the  execution  of  proper  bond 
against  damages  for  an  injunction  improvidently  granted  and  a  showing 
that  the  danger  of  irreparable  loss  or  damage  is  immediate,  a  preliminary 
injunction  may  issue:  Provided,  That  nothing  herein  contained  shall 
be  construed  to  entitle  any  person,  firm,  corporation,  or  association, 
except  the  United  States,  to  bring  suit  in  equity  for  injunctive  relief 
against  any  common  carrier  subject  to  the  provisions  of  the  Act  to  regu- 
late commerce,  approved  February  fourth,  eighteen  hundred  and  eighty- 
seven,  in  respect  of  any  matter  subject  to  the  regulations,  supervision, 
or  other  jurisdiction  of  the  Interstate  Commerce  Commission. 

Preliminary  Injunction  Not  to  be  Granted  Without  Notice. 

Sec.  17.  That  no  preliminary  injunction  shall  be  issued  without 
notice  to  the  opposite  party. 

No  temporary  restraining  order  shall  be  granted  without  notice  to 
the  opposite  party  unless  it  shall  clearly  appear  from  specific  facts  shown 
by  affidavit  or  by  the  verified  bill  that  immediate  and  irreparable  injury, 
loss,  or  damage  will  result  to  the  applicant  before  notice  can  be  served 
and  a  hearing  had  thereon.  Every  such  temporary  restraining  order 
shall  be  indorsed  with  the  date  and  hour  of  issuance,  shall  be  forthwith 
filed  in  the  clerk's  office  and  entered  of  record,  shall  define  the  injury 
and  state  why  it  is  irreparable  and  why  the  order  was  granted  without 
notice,  and  shall  by  its  terms  expire  within  such  time  after  entry,  not  so 
exceed  ten  days,  as  the  court  or  judge  may  fix,  unless  within  the  time 
so  fixed  the  order  is  extended  for  a  like  period  for  good  cause  shown, 
and  the  reasons  for  such  extension  shall  be  entered  of  record.  In  case 
a  temporary  restraining  order  shall  be  granted  without  notice  in  the 
contingency  specified,  the  matter  of  the  issuance  of  a  preliminary  injunc- 
tion shall  be  set  down  for  a  hearing  at  the  earliest  possible  time  and 
shall  take  precedence  of  all  matters  except  older  matters  of  the  same 
character;  and  when  the  same  comes  up  for  hearing  the  party  obtaining 
the  temporary  restraining  order  shall  proceed  with  the  application  for  a 
preliminary  injunction,  and  if  he  does  not  do  so  the  court  shall  dissolve 
the  temporary  restraining  order.  Upon  two  days'  notice  to  the  party 
obtaining  such  temporary  restraining  order  the  opposite  party  may  ap- 


236  Important  Federal  Laws 

pear  and  move  the  dissolution  or  modification  of  the  order,  and  in  that 
event  the  court  or  judge  shall  proceed  to  hear  and  determine  the  motion 
as  expeditiously  as  the  ends  of  justice  may  require. 

Section  two  hundred  and  sixty-three  of  an  Act  entitled  "An  Act  to 
codify,  revise,  and  amend  the  laws  relating  to  the  judiciary,"  approved 
March  third,  nineteen  hundred  and  eleven,  is  hereby  repealed. 

Nothing  in  this  section  contained  shall  be  deemed  to  alter,  repeal, 
or  amend  section  two  hundred  and  sixty-six  of  an  Act  entitled  "An  Act 
to  codify,  revise,  and  amend  the  laws  relating  to  the  judiciary,"  approved 
March  third,  nineteen  hundred  and  eleven. 

Bond  Required. 

Sec.  18.  That,  except  as  otherwise  provided  in  section  16  of  this 
Act,  no  restraining  order  or  interlocutory  order  of  injunction  shall  issue, 
except  upon  the  giving  of  security  by  the  applicant  in  such  sum  as  the 
court  or  judge  may  deem  proper,  conditioned  upon  the  payment  of  such 
costs  and  damages  as  may  be  incurred  or  suffered  by  any  party  who  may 
be  found  to  have  been  wrongfully  enjoined  or  restrained  thereby. 

Injunction  Specific. 

Sec.  19.  That  every  order  of  injunction  or  restraining  order  shall 
set  forth  the  reasons  for  the  issuance  of  the  same,  shall  be  specific  in 
terms,  and  shall  describe  in  reasonable  detail,  and  not  by  reference  to 
the  bill  of  complaint  or  other  document,  the  act  or  acts  sought  to  be 
restrained,  and  shall  be  binding  only  upon  the  parties  to  the  suit,  their 
cfificers,  agents,  servants,  employees,  and  attorneys,  or  those  in  active 
concert  or  participating  with  them,  and  who  shall,  by  personal  service 
or  otherwise,  have  received  actual  notice  of  the  same. 

Injunctions  in  Labor  Disputes. 

Sec.  20.  That  no  restraining  order  or  injunction  shall  be  granted 
by  any  court  of  the  United  States,  or  a  judge  or  the  judges  thereof,  in 
any  case  between  an  employer  and  employees,  or  between  employers  and 
employees,  or  between  employees,  or  between  persons  employed  and  per- 
sons seeking  employment,  involving,  or  growing  out  of,  a  dispute  con- 
cerning terms  or  conditions  of  employment,  unless  necessary  to  prevent 
irreparable  injury  to  property,  or  to  a  property  right,  of  the  party  making 
the  application,  for  which  injury  there  is  no  adequate  remedy  at  law, 
and  such  property  or  property  right  must  be  described  with  particularity 
in  the  application,  which  must  be  in  writing  and  sworn  to  by  the  appli- 
cant or  by  his  agent  or  attorney. 

And  no  such  restraining  order  or  injunction  shall  prohibit  any  per- 
son or  persons,  whether  singly  or  in  concert,  from  terminating  any  rela- 
tion of  employment,  or  from  ceasing  to  perform  any  work  or  labor,  or 
from  recommending,  advising,  or  persuading  others  by  peaceful  means 
so  to  do ;  or  from  attending  at  any  place  where  any  such  person  or 
persons  may  lawfully  be,  for  the  purpose  of  peacefully  obtaining  or  com- 
municating information,   or   from  peacefully  persuading  any  person   to 


Antitrust  Laws  237 

work  or  to  abstain  from  working;  or  from  ceasing  to  patronize  or  to 
employ  any  party  to  such  dispute,  or  from  recommending,  advising, 
or  persuading  others  by  peaceful  and  lawful  means  so  to  do ;  or  from 
paying  or  giving  to,  or  withholding  from,  any  person  engaged  in  such 
dispute,  any  strike  benefits  or  other  moneys  or  things  of  value;  or  from 
peaceably  assembling  in  a  lawful  manner,  and  for  lawful  purposes;  or 
from  doing  any  act  or  thing  which  might  lawfully  be  done  in  the  absence 
of  such  dispute  by  any  party  thereto ;  nor  shall  any  of  the  acts  specified 
in  this  paragraph  be  considered  or  held  to  be  violations  of  any  law  of 
the  United  States. 

Penalty. 

Sec.  21.  That  any  person  who  shall  willfully  disobey  any  lawful 
writ,  process,  order,  rule,  decree,  or  command  of  any  district  court  of 
the  United  States  or  any  court  of  the  District  of  Columbia  by  doing  any 
act  or  thing  therein,  or  thereby  forbidden  to  be  done  by  him,  if  the  act 
or  thing  so  done  by  him  be  of  such  character  as  to  constitute  also  a 
criminal  offense  under  any  statute  of  the  United  States,  or  under  the 
laws  of  any  State  in  which  the  act  was  committed,  shall  be  proceeded 
against  for  his  said  contempt  as  hereinafter  provided. 

Contempt  Proceedings. 

Sec.  22.  That  whenever  it  shall  be  made  to  appear  to  any  district 
court  or  judge  thereof,  or  to  any  judge  therein  sitting,  by  the  return  of 
a  proper  officer  on  lawful  process,  or  upon  the  affidavit  of  some  credible 
person,  or  by  information  filed  by  any  district  attorney,  that  there  is 
reasonable  ground  to  believe  that  any  person  has  been  guilty  of  such 
contempt,  the  court  or  judge  thereof,  or  any  judge  therein  sitting,  may 
issue  a  rule  requiring  the  said  person  so  charged  to  show  cause  upon  a 
day  certain  why  he  should  not  be  punished  therefor,  which  rule,  together 
with  a  copy  of  the  affidavit  or  information,  shall  be  served  upon  the  per- 
son charged,  with  sufficient  promptness  to  enable  him  to  prepare  for  and 
make  return  to  the  order  at  the  time  fixed  therein.  If  upon  or  by  such 
return,  in  the  judgment  of  the  court,  the  alleged  contempt  be  not  suffi- 
ciently purged,  a  trial  shall  be  directed  at  a  time  and  place  fixed  by  the 
court :  Provided,  however,  That  if  the  accused,  being  a  natural  person, 
fail  or  refuse  to  make  return  to  the  rule  to  show  cause,  an  attachment 
may  issue  against  his  person  to  compel  an  answer,  and  in  case  of  his 
continued  failure  or  refusal,  or  if  for  any  reason  it  be  impracticable  to 
dispose  of  the  matter  on  the  return  day,  he  may  be  required  to  give 
reasonable  bail  for  his  attendance  at  the  trial  and  his  submission  to  the 
final  judgment  of  the  court.  Where  the  accused  is  a  body  corporate, 
an  attachment  for  the  sequestration  of  its  property  may  be  issued  upon 
like  refusal  or  failure  to  answer. 

In  all  cases  within  the  purview  of  this  Act  such  trial  may  be  by 
the  court,  or,  upon  demand  of  the  accused,  by  a  jury;  in  which  latter 
event  the  court  may  impanel  a  jury  from  the  jurors  then  in  attendance, 


238  Important  Federal  Laws 

or  the  court  or  the  judge  thereof  in  chambers  may  cause  a  sufficient 
number  of  jurors  to  be  selected  and  summoned,  as  provided  by  law,  to 
attend  at  the  time  and  place  of  trial,  at  which  time  a  jury  shall  be  selected 
and  impaneled  as  upon  a  trial  for  misdemeanor ;  and  such  trial  shall  con- 
form, as  near  as  may  be,  to  the  practice  in  criminal  cases  prosecuted 
by  indictment  or  upon  information. 

If  the  accused  be  found  guilty,  judgment  shall  be  entered  accord- 
ingly, prescribing  the  punishment,  either  by  fine  or  imprisonment,  or 
both,  in  the  discretion  of  the  court.  Such  fine  shall  be  paid  to  the  United 
States  or  to  the  complainant  or  other  party  injured  by  the  act  constitut- 
ing the  contempt,  or  may,  where  more  than  one  is  so  damaged,  be  divided 
or  apportioned  among  them  as  the  court  may  direct,  but  in  no  case 
shall  the  fine  to  be  paid  to  the  United  States  exceed,  in  case  the  accused 
is  a  natural  person,  the  sum  of  $1,000,  nor  shall  such  imprisonment  ex- 
ceed the  term  of  six  months :  Provided,  That  in  any  case  the  court  or  a 
judge  thereof  may,  for  good  cause  shown,  by  affidavit  or  proof  taken  in 
open  court  or  before  such  judge  and  filed  with  the  papers  in  the  case, 
dispense  with  the  rule  to  show  cause,  and  may  issue  an  attachment  for 
the  arrest  of  the  person  charged  with  contempt ;  in  which  event  such 
person,  when  arrested,  shall  be  brought  before  such  court  or  a  judge 
thereof  without  unnecessary  delay  and  shall  be  admitted  to  bail  in  a 
reasonable  penalty  for  his  appearance  to  answer  to  the  charge  or  for 
trial  for  the  contempt ;  and  thereafter  the  proceedings  shall  be  the  same 
as  provided  herein  in  case  the  rule  had  issued  in  the  first  instance. 

Writ  of  Error. 

Sec.  23.  That  the  evidence  taken  upon  the  trial  of  any  persons  so 
accused  may  be  preserved  by  bill  of  exceptions,  and  any  judgment  of 
conviction  may  be  reviewed  upon  writ  of  error  in  all  respects  as  now 
provided  by  law  in  criminal  cases,  and  may  be  affirmed,  reversed,  or 
modified  as  justice  may  require.  Upon  the  granting  of  such  writ  of 
error,  execution  of  judgment  shall  be  stayed,  and  the  accused,  if  thereby 
sentenced  to  imprisonment,  shall  be  admitted  to  bail  in  such  reasonable 
sum  as  may  be  required  by  the  court,  or  by  any  justice,  or  any  judge 
of  any  district  court  of  the  United  States  or  any  court  of  the  District 
of  Columbia. 

Contempts  in  Presence  of  Court  Punishable  as  Other  Contempts. 

Sec.  24.  That  nothing  herein  contained  shall  be  construed  to 
relate  to  contempts  committed  in  the  presence  of  the  court,  or  so  near 
thereto  as  to  obstruct  the  administration  of  justice,  nor  to  contempts 
committed  in  disobedience  of  any  lawful  writ,  process,  order,  rule,  de- 
cree, or  command  entered  in  any  suit  or  action  brought  or  prosecuted 
in  the  name  of,  or  on  behalf  of,  the  United  States,  but  the  same,  and  all 
other  cases  of  contempt  not  specifically  embraced  within  section  twenty- 
one  of  this  Act,  may  be  punished  in  conformity  to  the  usages  at  law  and 
in  equity  now  prevailing. 


Cotton  Futures  Act  239 

Contempt  Proceedings  to  be  Begun  Within  One  Year, 

Sec.  25.  That  no  proceedings  for  contempt  shall  be  instituted 
against  any  person  unless  begun  within  one  year  from  the  date  of  the 
act  complained  of ;  nor  shall  any  such  proceeding  be  a  bar  to  any  crim- 
inal prosecution  for  the  same  act  or  acts ;  but  nothing  herein  contained 
shall  afifect  any  proceedings  in  contempt  pending  at  the  time  of  the 
passage  of  this  Act. 

Saving  Clause. 

Sec.  26.  If  any  clause,  sentence,  paragraph,  or  part  of  this  Act 
shall,  for  any  reason,  be  adjudged  by  any  court  of  competent  jurisdic- 
tion to  be  invalid,  such  judgment  shall  not  affect,  impair,  or  invalidate 
the  remainder  thereof,  but  shall  be  confined  in  its  operation  to  the 
clause,  sentence,  paragra{)h,  or  part  thereof  directly  involved  in  the 
controversy  in  which  such  judgment  shall  have  been  rendered. 


COTTON  FUTURES  ACT. 

Act  of  August  11,  1916. 

An  Act  making  appropriations  for  the  Department  of  Agriculture  for  the  fiscal 
year  ending  June  thirtieth,  nineteen  hundred  and  seventeen,  and  for  other 
purposes. 

Part  A. 
That  this   Part,   to  be  known   as  the  United   States  cotton   futures 
Act,  be,  and  hereby  is,  enacted  to   read  and  be   effective  hereafter  as 
follows : 

That  this  Act  shall  be  known  by  the  short  title  of  the  ''United  States 
cotton  futures  Act." 

Definitions. 

Sec.  2.  That,  for  the  purposes  of  this  Act,  the  term  "contract  of 
sale"  shall  be  held  to  include  sales,  agreements  of  sale,  and  agreements 
to  sell.  That  the  word  "person,"  wherever  used  in  this  Act,  shall  be 
construed  to  import  the  plural  or  singular,  as  the  case  demands,  and 
shall  include  individuals,  associations,  partnerships,  and  corporations. 
When  construing  and  enforcing  the  provisions  of  this  Act,  the  act, 
omission,  or  failure  of  any  official,  agent,  or  other  person  acting  for  or 
employed  by  any  association,  partnership,  or  corporation  within  the 
scope  of  his  employment  or  offfce.  shall,  in  every  case,  also  be  deemed 
the  act,  omission,  or  failure  of  such  association,  partnership,  or  corpora- 
tion as  well  as  that  of  the  person. 

Tax. 

Sec.  3.  That  upon  each  contract  oi  sale  of  any  cotton  for  future 
delivery  made  at,  on,  or  in  any  exchange,  board  of  trade,  or  similar 
institution  or  place  of  business,  there  is  hereby  levied  a  tax  in  the  nature 
of  an  excise  of  2  cents  for  each  pound  of  the  cotton  involved  in  an}' 
such  contract. 


240  Important  Federal  Laws 

Contracts  to  be  in  Writing. 

Sec.  4.  That  each  contract  of  sale  of  cotton  for  future  delivery 
mentioned  in  section  three  of  this  Act  shall  be  in  writing-  plainly  stating, 
or  evidenced  by  written  memorandum  showing,  the  terms  of  such  con- 
tract, including  the  quantity  of  the  cotton  involved  and  the  names  and 
addresses  of  the  seller  and  buyer  in  such  contract,  and  shall  be  signed 
by  the  party  to  be  charged,  or  by  his  agent  in  his  behalf.  If  the  con- 
tract or  memorandum  specify  in  bales  the  quantity  of  the  cotton  in- 
volved, without  giving  the  weight,  each  bale  shall,  for  the  purposes  of 
this  Act,  be  deemed  to  weigh  five  hundred  pounds. 

Contracts  Not  Taxed  if  They  Comply  With  Conditions. 

Sec.  5.  That  no  tax  shall  be  levied  under  this  Act  on  any  contract 
of  sale  mentioned  in  section  three  hereof  if  the  contract  comply  with 
each  of  the  following  conditions : 

First.  Conform  to  the  requirements  of  section  four  of,  and  the 
rules  and  regulations  made  pursuant  to,  this  Act. 

Second.  Specify  the  basis  grade  for  the  cotton  involved  in  the 
contract,  which  shall  be  one  of  the  grades  for  which  standards  are 
established  by  the  Secretary  of  Agriculture,  except  grades  prohibited 
from  being  delivered  on  a  contract  made  under  this  section  by  the  fifth 
subdivision  of  this  section,  the  price  per  pound  at  which  the  cotton  of 
such  basis  grade  is  contracted  to  be  bought  or  sold,  the  date  when  the 
purchase  or  sale  was  made,  and  the  month  or  months  in  which  the  con- 
tract is  to  be  fulfilled  or  settled :  Provided,  That  middling  shall  be 
deemed  the  basis  grade  incorporated  into  the  contract  if  no  other  basis 
grade  be  specified  either  in  the  contract  or  in  the  memorandum  evi- 
dencing the  same. 

Third.  Provide  that  the  cotton  dealt  with  therein  or  delivered 
thereunder  shall  be  of  or  within  the  grades  for  which  standards  are 
established  by  the  Secretary  of  Agriculture  except  grades  prohibited 
from  being  delivered  on  a  contract  made  under  this  section  by  the  fifth 
subdivision  of  this  section  and  no  other  grade  or  grades. 

Fourth.  Provide  that  in  case  cotton  of  grade  other  than  the  basis 
grade  be  tendered  or  delivered  in  settlement  of  such  contract,  the  differ- 
ences above  or  below  the  contract  price  which  the  receiver  shall  pay  for 
such  grades  other  than  the  basis  grade  shall  be  the  actual  commercial 
differences,  determined  as  hereinafter  provided. 

Fifth.  Provide  that  cotton  that,  because  of  the  presence  of  extra- 
neous matter  of  any  character,  or  irregularities  or  defects,  is  reduced 
in  value  below  that  of  Good  Ordinary,  or  cotton  that  is  below  the  grade 
of  Good  Ordinary,  or,  if  tinged,  cotton  that  is  below  the  grade  of  Low 
Middling,  or,  if  stained,  cotton  that  is  below  the  grade  of  Middling,  the 
grades  mentioned  being  of  the  official  cotton  standards  of  the  United 
States,  or  cotton  that  is  less  than  seven-eighths  of  an  inch  in  length  of 
staple,  or  cotton  of  perished  staple  or  of  immature  staple,  or  cotton  that 


Cotton  Futures  Act  241 

is  "gin  cut"  or  reginned,  or  cotton  that  is  "repacked"  or  "false  packed" 
or  "mixed  packed"  or  "water  packed,"  shall  not  be  delivered  on,  under, 
or  in  settlement  of  such  contract. 

Sixth.  Provide  that  all  tenders  of  cotton  under  such  contract  shall 
be  the  full  number  of  bales  involved  therein,  except  that  such  variations 
of  the  number  of  bales  may  be  permitted  as  is  necessary  to  bring  the 
total  weight  of  the  cotton  tendered  within  the  provisions  of  the  contract 
as  to  weight;  that,  on  the  fifth  business  day  prior  to  delivery,  the  person 
making  the  tender  shall  give  to  the  person  receiving  the  same  written 
notice  of  the  date  of  delivery,  and  that,  on  or  prior  to  the  date  so  fixed 
for  delivery,  and  in  advance  of  final  settlement  of  the  contract,  the  per- 
son making  the  tender  shall  furnish  to  the  person  receiving  the  same  a 
written  notice  or  certificate  stating  the  grade  of  each  individual  bale  to 
be  delivered  and,  by  means  of  marks  or  numbers,  identifying  each  bale 
with  its  grade. 

Seventh.  Provide  that,  in  case  a  dispute  arises  between  the  person 
making  the  tender  and  the  person  receiving  the  same,  as  to  the  classi- 
fication of  any  cotton  tendered  under  the  contract,  either  party  may  refer 
the  question  of  the  true  classification  of  said  cotton  to  the  Secretary  of 
Agriculture  for  determination,  and  that  such  dispute  shall  be  referred 
and  determined,  and  the  costs  thereof  fixed,  assessed,  collected,  and  paid 
in  such  manner  and  in  accordance  with  such  rules  and  regulations  as 
may  be  prescribed  by  the  Secretary  of  Agriculture. 

The  provisions  of  the  third,  fourth,  fifth,  sixth,  and  seventh  sub- 
divisions of  this  section  shall  be  deemed  fully  incorporated  into  any 
such  contract  if  there  be  written  or  printed  thereon,  or  on  the  memo- 
randum evidencing  the  same,  at  or  prior  to  the  time  the  same  is  signed, 
the  phrase  "Subject  to  United  States  cotton  futures  Act,  section  five." 

The  Secretary  of  Agriculture  is  authorized  to  prescribe  rules  and 
regulations  for  carrying  out  the  purposes  of  the  seventh  subdivision  of 
this  section,  and  his  findings,  upon  any  dispute  referred  to  him  under 
said  seventh  subdivision,  made  after  the  parties  in  interest  have  had 
an  opportunity  to  be  heard  by  him  or  such  ofificer,  officers,  agent,  or 
agents  of  the  Department  of  Agriculture  as  he  may  designate,  shall  be 
accepted  in  the  courts  of  the  United  States  in  all  suits  between  such 
parties,  or  their  privies,  as  prima  facie  evidence  of  the  true  classification 
of  the  cotton  involved. 

Determining  Price. 

Sec.  6.  That  for  the  purposes  of  section  five  of  this  Act  the 
dififerences  above  or  below  the  contract  price  which  the  receiver  shall 
pay  for  cotton  of  grades  above  or  below  the  basis  grade  in  the  settle- 
ment of  a  contract  of  sale  for  the  future  delivery  of  cotton  shall  be 
determined  by  the  actual  commercial  dififerences  in  value  thereof  upon 
the  sixth  business  day  prior  to  the  day  fixed,  in  accordance  with  the 
sixth  subdivision  of  section  five,  for  the  delivery  of  cotton  on  the  con- 

(16) 


242  Important  Federal  Laws 

tract,  established  by  the  sale  of  spot  cotton  in  the  market  where  the 
future  transaction  involved  occurs  and  is  consummated  if  such  market 
be  a  bona  fide  spot  market ;  and  in  the  event  there  be  no  bona  fide  spot 
market  at  or  in  the  place  in  which  such  future  transaction  occurs,  then, 
and  in  that  case,  the  said  differences  above  or  below  the  contract  price 
which  the  receiver  shall  pay  for  cotton  above  or  below  the  basis  grade 
shall  be  determined  by  the  average  actual  commercial  differences  in 
value  thereof,  upon  the  sixth  business  day  prior  to  the  day  fixed,  in  ac- 
cordance with  the  sixth  subdivision  of  section  five,  for  the  delivery  of 
cotton  on  the  contract,  in  the  spot  markets  of  not  less  than  five  places 
designated  for  the  purpose  from  time  to  time  by  the  Secretary  of  Agri- 
culture, as  such  values  were  established  by  the  sales  of  spot  cotton,  in 
such  designated  five  or  more  markets :  Provided,  That  for  the  purposes 
of  this  section  such  values  in  the  said  spot  markets  be  based  upon  the 
standards  for  grades  of  cotton  established  by  the  Secretary  of  Agricul- 
ture: And  provided  further.  That  whenever  the  value  of  one  grade  is 
to  be  determined  from  the  sale  or  sales  of  spot  cotton  of  another  grade 
or  grades,  such  value  shall  be  fixed  in  accordance  with  rules  and  regula- 
tions which  shall  be  prescribed  for  the  purpose  by  the  Secretary  of 
Agriculture. 

Tax  Exemption  in  Certain  Cases. 

Sec.  6A.  That  no  tax  shall  be  levied  under  this  Act  on  any  con- 
tract of  sale  mentioned  in  section  three  hereof  if  the  contract  provide 
that,  in  case  cotton  of  grade  or  grades  other  than  the  basis  grade  speci- 
fied in  the  contract  shall  be  tendered  in  performance  of  the  contract, 
the  parties  to  such  contract  may  agree,  at  the  time  of  the  tender,  as  to 
the  price  of  the  grade  or  grades  so  tendered,  and  that  if  they  shall  not 
then  agree  as  to  such  price,  then,  and  in  that  event,  the  buyer  of  said 
contract  shall  have  the  right  to  demand  the  specific  fulfillment  of  such 
contract  by  the  actual  delivery  of  cotton  of  the  basis  grade  named 
therein  and  at  the  price  specified  for  such  basis  grade  in  said  contract, 
and  if  the  contract  also  comply  with  all  the  terms  and  conditions  of 
section  five  hereof  not  inconsistent  with  this  section :  Provided,  That 
nothing  in  this  section  shall  be  so  construed  as  to  relieve  from  the  tax 
levied  bv  section  three  of  this  Act  any  contract  in  which,  or  in  the  set- 
tlement of  or  in  respect  to  which,  any  device  or  arrangement  whatever 
is  resorted  to.  or  any  agreement  is  made,  for  the  determination  or  ad- 
justment of  the  price  of  the  grade  or  grades  tendered  other  than  the 
basis  grade  specified  in  the  contract  by  any  "fixed  difference"  system, 
or  by  arbitration,  or  by  any  other  method  not  provided  for  by  this  Act. 

Contracts  made  in  compliance  with  this  section  shall  be  known  as 
"Section  six  A  Contracts."  The  provisions  of  this  section  shall  be 
deemed  fully  incorporated  into  any  such  contract  if  there  be  written 
or  printed  thereon,  or  on  the  memorandum  evidencing  the  same,  at  or 


Cotton  Futures  Act  243 

prior  to  the  time  the  same  is  signed,  the  phrase   "Subject  to  United 
States  cotton  futures  Act,  section  six  A." 

Section  ten  of  this  Act  shall  not  be  construed  to  apply  to  any  con- 
tract of  sale  made  in  compliance  with  section  six  A  hereof. 

Markets  to  be  Approved  by  Secretary  of  Agriculture. 

Sec.  7.  That  for  the  purposes  of  this  Act  the  only  markets  which 
shall  be  considered  bona  fide  spot  markets  shall  be  those  which  the 
Secretary  of  Agriculture  shall,  from  time  to  time,  after  investigation, 
determine  and  designate  to  be  such,  and  of  which  he  shall  give  public 
notice. 

Kind  of  Markets  to  be  Approved. 

Sec.  8.  That  in  determining,  pursuant  to  the  provisions  of  this 
Act,  what  markets  are  bona  fide  spot  markets,  the  Secretary  of  Agri- 
culture is  directed  to  consider  only  markets  in  which  spot  cotton  is  sold 
in  such  volume  and  under  such  conditions  as  customarily  to  reflect  ac- 
curately the  value  of  middling  cotton  and  the  dififerences  between  the 
prices  or  values  of  middling  cotton  and  of  other  grades  of  cotton  for 
which  standards  shall  have  been  established  by  the  Secretary  of  Agri- 
culture: Provided,  That  if  there  be  not  sufficient  places,  in  the  markets 
of  which  are  made  bona  fide  sales  of  spot  cotton  of  grades  for  which 
standards  are  established  by  the  Secretary  of  Agriculture,  to  enable  him 
to  designate  at  least  five  spot  markets  in  accordance  with  section  six 
of  this  Act,  he  shall,  from  data  as  to  spot  sales  collected  by  him,  make 
rules  and  regulations  for  determining  the  actual  commercial  differences 
in  the  value  of  spot  cotton  of  the  grades  established  by  him  as  reflected 
by  bona  fide  sales  of  spot  cotton,  of  the  same  or  different  grades,  in  the 
markets  selected  and  designated  by  him,  from  time  to  time,  for  that  pur- 
pose, and  in  that  event,  differences  in  value  of  cotton  of  various  grades 
involved  in  contracts  made  pursuant  to  section  five  of  this  Act  shall  be 
determined  in  compliance  with  such  rules  and  regulations. 

Standards  to  be  Determined. 

Sec.  9.  That  the  Secretary  of  Agriculture  is  authorized,  from  time 
to  time,  to  establish  and  promulgate  standards  of  cotton  by  which  its 
quality  or  value  may  be  judged  or  determined,  including  its  grade,  length 
of  staple,  strength  of  staple,  color,  and  such  other  qualities,  properties, 
and  conditions  as  may  be  standardized  in  practical  form,  which,  for  the 
purposes  of  this  Act,  shall  be  known  as  the  "Official  cotton  standards  of 
the  United  States,"  and  to  adopt,  change,  or  replace  the  standard  for  any 
grade  of  cotton  established  under  the  Act  making  appropriations  for  the 
Department  of  Agriculture  for  the  fiscal  year  ending  June  thirtieth,  nine- 
teen hundred  and  nine  (Thirty-fifth  Statutes  at  Large,  page  two  hundred 
and  fifty-one),  and  Acts  supplementary  thereto:  Provided,  That  any 
standard  of  any  cotton  established  and  promulgated  under  this  Act  by 
the  Secretary  of  Agriculture  shall  not  be  changed  or  replaced  within  a 


244  Important  Federal  Laws 

period  less  than  one  year  from  and  after  the  date  of  the  promulgation 
thereof  by  the  Secretary  of  Agriculture:  Provided  further,  That,  sub- 
sequent to  six  months  after  the  date  section  three  of  this  Act  becomes 
effective,  no  change  or  replacement  of  any  standard  of  any  cotton  estab- 
lished and  promulgated  under  this  Act  by  the  Secretary  of  Agriculture 
shall  become  ettective  until  after  one  year's  public  notice  thereof,  which 
notice  shall  specify  the  date  when  the  same  is  to  become  effective.  The 
Secretary  of  Agriculture  is  authorized  and  directed  to  prepare  practical 
forms  of  the  official  cotton  standards  which  shall  be  established  by  him, 
and  to  furnish  such  practical  forms  from  time  to  time,  upon  request,  to 
any  person,  the  cost  thereof,  as  determined  by  the  Secretary  of  Agricul- 
ture, to  be  paid  by  the  person  requesting  the  same,  and  to  certify  such 
practical  forms  under  the  seal  of  the  Department  of  Agriculture  and 
under  the  signature  of  the  said  Secretary,  thereto  affixed  by  himself  or 
by  some  official  or  employee  of  the  Department  of  Agriculture  thereunto 
duly  authorized  by  the  said  Secretary. 

Tax  Exemption. 

Sec.  10.  That  no  tax  shall  be  levied  under  this  Act  on  any  con- 
tract of  sale  mentioned  in  section  three  hereof,  if  the  contract  comply 
with  each  of  the  following  conditions : 

First.  Conform  to  the  rules  and  regulations  made  pursuant  to 
this  Act. 

Second.  Specify  the  grade,  type,  sample,  or  description  of  the 
cotton  involved  in  the  contract,  the  price  per  pound  at  which  such  cotton 
is  contracted  to  be  bought  or  sold,  the  date  of  the  purchase  or  sale,  and 
the  time  when  shipment  or  delivery  of  such  cotton  is  to  be  made. 

Third.  Provide  that  cotton  of  or  within  the  grade  or  of  the  type, 
or  according  to  the  sample  or  description,  specified  in  the  contract  shall 
be  delivered  thereunder,  and  that  no  cotton  which  does  not  conform  to 
the  type,  sample,  or  description,  or  which  is  not  of  or  within  the  grade 
specified  in  the  contract  shall  be  tendered  or  delivered  thereunder. 

Fourth.  Provide  that  the  delivery  of  cotton  under  the  contract  shall 
not  be  effected  by  means  of  "set-off"  or  "ring"  settlement,  but  only  by  the 
actual  transfer  of  the  specified  cotton  mentioned  in  the  contract. 

The  provisions  of  the  first,  third,  and  fourth  subdivisions  of  this 
section  shall  be  deemed  fully  incorporated  into  any  such  contract  if  there 
be  written  or  printed  thereon,  or  on  the  document  or  memorandum  evi- 
dencing the  same,  at  or  prior  to  the  time  the  same  is  entered  into,  the 
words  "Subject  to  United  States  cotton  futures  Act,  section  ten." 

This  Act  shall  not  be  construed  to  impose  a  tax  on  any  sale  of 
spot  cotton. 

This  section  shall  not  be  construed  to  apply  to  any  contract  of  sale 
made  in  compliance  with  section  five  of  this  Act. 


Cotton  Futures  Act  245 

Tax  Paid  by  Stamps. 

Sec.  11.  That  the  tax  imposed  by  section  three  of  this  Act  shall  be 
paid  by  the  seller  of  the  cotton  involved  in  the  contract  of  sale,  by  means 
of  stamps  which  shall  be  afifixed  to  such  contracts,  or  to  the  memoranda 
evidencing  the  same,  and  canceled  in  compliance  with  rules  and  regula- 
tions which  shall  be  prescribed  by  the  Secretary  of  the  Treasury. 

Contracts  Not  Enforceable. 

Sec.  12.  That  no  contract  of  sale  of  cotton  for  future  delivery 
mentioned  in  section  three  of  this  Act  which  does  not  conform  to  the 
requirements  of  section  four  hereof  and  has  not  the  necessary  stamps 
affixed  thereto  as  required  by  section  eleven  hereof  shall  be  enforceable 
in  any  court  of  the  United  States  by,  or  on  behalf  of,  any  party  to  such 
contract  or  his  privies. 

Rules  for  Collection  of  Tax. 

Sec.  13.  That  the  Secretary  of  the  Treasury  is  authorized  to  make 
and  promulgate  such  rules  and  regulations  as  he  may  deem  necessary  to 
collect  the  tax  imposed  by  this  Act  and  otherwise  to  enforce  its  provi- 
sions. Further  to  effect  this  purpose,  he  shall  require  all  persons  coming 
within  its  provisions  to  keep  such  records  and  statements  of  account,  and 
may  require  such  persons  to  make  such  returns  verified  under  oath  or 
otherwise,  as  will  fully  and  correctly  disclose  all  transactions  mentioned 
in  section  three  of  this  Act,  including  the  making,  execution,  settlement, 
and  fulfillment  thereof ;  he  may  require  all  persons  who  act  in  the 
capacity  of  a  clearing  house,  clearing  association,  or  similar  institution  for 
the  purpose  of  clearing,  settling,  or  adjusting  transactions  mentioned  in 
section  three  of  this  Act  to  keep  such  records  and  to  make  such  returns 
as  will  fully  and  correctly  disclose  all  facts  in  their  possession  relating  to 
such  transactions  ;  and  he  may  appoint  agents  to  conduct  the  inspection 
necessary  to  collect  said  tax  and  otherwise  to  enforce  this  Act  and  all 
rules  and  regulations  made  by  him  in  pursuance  hereof,  and  may  fix 
the  compensation  of  such  agents.  The  provisions  of  the  internal-revenue 
laws  of  the  United  States,  so  far  as  applicable,  including  sections  thirty- 
one  hundred  and  seventy-three,  thirty-one  hundred  and  seventy-four,  and 
thirty-one  hundred  and  seventy-five  of  the  Revised  Statutes,  as  amended, 
are  hereby  extended,  and  made  to  apply,  to  this  Act. 

Penalty. 

Sec.  14.  That  any  person  liable  to  the  payment  of  any  tax  im- 
posed by  this  Act  who  fails  to  pay,  or  evades  or  attempts  to  evade  the 
payment  of  such  tax,  and  any  person  who  otherwise  violates  any  provi- 
sion of  this  Act,  or  any  rule  or  regulation  made  in  pursuance  hereof, 
shall  be  deemed  guilty  of  a  misdemeanor,  and,  upon  conviction  thereof, 
shall  be  fined  not  less  than  $100  nor  more  than  $20,000,  in  the  discretion 
of  the  court ;  and,  in  case  of  natural  persons,  may,  in  addition,  be  punished 


24^)  Important  Federal  Laws 

by  imprisonment  for  not  less  than  sixty  days  nor  more  than  three  years, 
in  the  discretion  of  the  court. 

Civil  Penalty. 

Sec.  15.  That  in  addition  to  the  foregoing  punishment  there  is 
hereby  imposed,  on  account  of  each  violation  of  this  Act,  a  penalty 
of  $2,000,  to  be  recovered  in  an  action  founded  on  this  Act  in  the  name 
of  the  United  States  as  plaintiff,  and  when  so  recovered  one-half  of  said 
amount  shall  be  paid  over  to  the  person  giving  the  information  upon 
which  such  recovery  was  based.  It  shall  be  the  duty  of  United  States 
Attorneys,  to  whom  satisfactory  evidence  of  violations  of  this  Act  is 
furnished,  to  institute  and  prosecute  actions  for  the  recovery  of  the 
penalties  prescribed  by  this  section. 

Witnesses  Not  to  be  Immune. 

Sec.  16.  That  no  person  whose  evidence  is  deemed  material  by 
the  officer  prosecuting  on  behalf  of  the  United  States  in  any  case  brought 
under  any  provision  of  this  Act  shall  withhold  his  testimony  because  of 
complicity  by  him  in  any  violation  of  this  Act  or  of  any  regulation  made 
pursuant  to  this  Act,  but  any  such  person  called  by  such  officer  who 
testifies  in  such  case  shall  be  exempt  from  prosecution  for  any  offense 
to  which  his  testimony  relates. 

Tax  Not  to  Exempt  From  Liability. 

Sec.  17.  That  the  payment  of  any  tax  levied  by  this  Act  shall 
not  exempt  any  person  from  any  penalty  or  punishment  now  or  here- 
after provided  by  the  laws  of  any  State  for  entering  into  contracts  of 
sale  of  cotton  for  future  delivery,  nor  shall  the  payment  of  any  tax  im- 
posed by  this  Act  be  held  to  prohibit  any  State  or  municipality  from 
imposing  a  tax  on  the  same  transaction. 

Appropriation. 

Sec.  18.  That  there  is  hereby  appropriated,  out  of  any  moneys  in 
the  Treasury  not  otherwise  appropriated,  for  the  fiscal  year  ending  June 
thirtieth,  nineteen  hundred  and  sixteen,  the  unexpended  balance  of  the 
sum  appropriated  by  the  Act  of  March  fourth,  nineteen  hundred  and 
fifteen  (Thirty-eighth  Statutes  at  Large,  page  one  thousand  and  seven- 
teen), for  "collecting  the  cotton  futures  tax,"  or  so  much  thereof  as  may 
be  necessarv,  to  enable  the  Secretary  of  the  Treasury  to  carry  out  the 
provisions  of  this  Act  and  any  duties  remaining  to  be  performed  by  him 
under  the  United  States  cotton  futures  Act  of  August  eighteenth,  nme- 
teen  hundred  and  fourteen. 

Appropriation  Regular. 

Sec.  19.  That  there  is  hereby  appropriated  out  of  any  moneys  m 
the  Treasury  not  otherwise  appropriated,  available  until  expended,  the 
unexpended  balance  of  the  sum  of  $150,000  appropriated  by  section 
twenty  of  the  said  Act  of  August  eighteenth,  nineteen  hundred  and  four- 
teen and  for  the  fiscal  vear  ending  June  thirtieth,  nineteen  hundred  and 


Cotton  Futures  Act  247 

sixteen,  the  unexpended  balance  of  the  sum  of  $75,000  appropriated  for 
the  "Enforcement  of  the  United  States  cotton  futures  Act"  by  the  Act 
making  appropriations  for  the  Department  of  Agriculture  for  the  fiscal 
year  ending  June  thirtieth,  nineteen  hundred  and  sixteen  (Thirty-eighth 
Statutes  at  Large,  page  one  thousand  and  eighty-six),  or  so  much  of 
each  of  said  unexpended  balances  as  may  be  necessary,  to  be  used  by  the 
.Secretary  of  Agriculture  for  the  same  purpose,  in  carrying  out  the  pro- 
visions of  this  Act,  as  those  for  which  said  sums,  respectively,  were 
originally  appropriated,  and  to  enable  the  Secretary  of  Agriculture  to 
carry  out  any  duties  remaining  to  be  performed  by  him  under  the  said 
Act  of  August  eighteenth,  nineteen  hundred  and  fourteen.  The  Secretary 
of  Agriculture  is  hereby  directed  to  publish  from  time  to  time  the  results 
of  investigations  made  in  pursuance  of  this  Act.  All  sums  collected  by 
the  Secretary  of  Agriculture  as  costs  under  section  five,  or  for  furnishing 
practical  forms  under  section  nine,  of  this  Act,  shall  be  deposited  and 
covered  into  the  Treasury  as  miscellaneous  receipts. 

Time  of  Taking  Effect. 

Sec.  20.  That  sections  nine,  eighteen,  and  nineteen  of  this  Act  and 
all  provisions  of  this  Act  authorizing  rules  and  regulations  to  be  pre- 
scribed shall  be  eflfective  immediately.  All  other  sections  of  this  Act 
shall  become  and  be  effective  on  and  after  the  first  day  of  the  calendar 
month  next  succeeding  the  date  of  the  passage  of  this  Act :  Provided, 
That  nothing  in  this  Act  shall  be  construed  to  apply  to  any  contract  of 
sale  of  any  cotton  for  future  delivery  mentioned  in  section  three  of  this 
Act  which  shall  have  been  made  prior  to  the  first  day  of  the  calendar 
month  next  succeeding  the  date  of  the  passage  of  this  Act. 

Repeals. 

Sec.  21.  That  the  Act  entitled  "An  Act  to  tax  the  privilege  of 
dealing  on  exchanges,  boards  of  trade,  and  similar  places  in  contracts 
of  sale  of  cotton  for  future  delivery,  and  for  other  purposes,"  approved 
August  eighteenth,  nineteen  hundred  and  fourteen  (Thirty-eighth  Stat- 
utes at  Large,  page  six  hundred  and  ninety-three),  is  hereby  repealed, 
effective  on  and  after  the  first  day  of  the  calendar  month  next  succeeding 
the  date  of  the  passage  of  this  Act:  Provided,  That  nothing  in  this  Act 
shall  be  construed  to  aft'ect  any  right  or  privilege  accrued,  any  penalty 
or  liability  incurred,  or  any  proceeding  commenced  under  said  Act  of 
August  eighteenth,  nineteen  hundred  and  fourteen,  or  to  diminish  any 
authority  conferred  by  said  Act  on  any  official  of  the  United  States 
necessary  to  enable  him  to  carry  out  any  duties  remaining  to  be  per- 
formed by  him  under  tke  said  Act,  or  to  impair  the  efi^ect  of  the  findings 
of  the  Secretary  of  Agriculture  upon  any  dispute  referred  to  him  under 
said  Act,  or  to  affect  any  right  in  respect  to,  or  arising  out  of,  any  con- 
tract mentioned  in  section  three  of  said  Act,  made  on  or  subsequent  to 
February  eighteenth,  nineteen  hundred  and  fifteen,  and  prior  to  the  first 
day  of  the  calendar  month  next  succeeding  the  date  of  the  passage  of 


248  Important  Federal  Laws 

this  Act,  but  so  far  as  concerns  any  such  contract  said  Act  of  August 
eighteenth,  nineteen  hundred  and  fourteen,  shall  remain  in  force  with 
the  same  effect  as  if  this  Act  had  not  been  passed. 

Saving  Clause. 

Sec.  22.  That  if  any  clause,  sentence,  paragraph,  or  part  of  this 
Act  shall  for  any  reason  be  adjudged  by  any  court  of  competent  juris- 
diction to  be  invalid,  such  judgment  shall  not  affect,  impair,  or  invalidate 
the  remainder  thereof,  but  shall  be  confined  in  its  operation  to  the  clause, 
sentence,  paragraph,  or  part  thereof  directly  involved  in  the  controversy 
in  which  such  judgment  shall  have  been  rendered. 


FOOD  AND  DRUGS. 


THE  FOOD  AND  DRUGS  ACT. 

Act  of  June  30,  1906,  as  amended. 
An  Act  for  preventing  the  manufacture,  sale,  or  transportation  of  adulterated 
or   misbranded   or  poisonous   or   deleterious   foods,   drugs,   medicines,   and 
liquors,  and  for  regulating  traffic  therein,  and  for  other  purposes. 

Adulterated  and  Misbranded  Food  Prohibited. 

Sec.  1.  That  it  shall  be  unlawful  for  any  person  to  manufacture 
within  any  Territory  or  the  District  of  Columbia  any  article  of  food  or 
drug  which  is  adulterated  or  misbranded,  within  the  meaning  of  this 
Act;  and  any  person  who  shall  violate  any  of  the  provisions  of  this 
section  shall  be  guilty  of  a  misdemeanor,  and  for  each  offense  shall, 
upon  conviction  thereof,  be  fined  not  to  exceed  five  hundred  dollars  or 
shall  be  sentenced  to  one  year's  imprisonment,  or  both  such  fine  and 
imprisonment,  in  the  discretion  of  the  court,  and  for  each  subsequent 
offense  and  conviction  thereof  shall  be  fined  not  less  than  one  thousand 
dollars  or  sentenced  to  one  year's  imprisonment,  or  both  such  fine  and 
imprisonment,  in  the  discretion  of  the  court. 

Commerce  in,  Prohibited. 

Sec.  2.  That  the  introduction  into  any  State  or  Territory  or  the 
District  of  Columbia  from  any  other  State  or  Territory  or  the  District 
of  Columbia,  or  from  any  foreign  country,  or  shipment  to  any  foreign 
country  of  any  article  of  food  or  drugs  which  is  adulterated  or  mis- 
branded, within  the  meaning  of  this  Act,  is  hereby  prohibited;  and  any 
person  who  shall  ship  or  deliver  for  shipment  from  any  State  or  Terri- 
tory or  the  District  of  Columbia  to  any  other  State  or  Territory  or 
the  District  of  Columbia,  or  to  a  foreign  country,  or  who  shall  receive 
in  any  State  or  Territory  or  the  District  of  Columbia  from  any  other 
State  or  Territory  or  the  District  of  Columbia,  or  foreign  country,  and 
having  so  received,  shall  deliver,  in  original  unbroken  packages,  for 
pay  or  otherwise,  or  ofifer  to  deliver  to  any  other  person,  any  such  article 
so  adulterated  or  misbranded  within  the  meaning  of  this  Act,  or  any 
person  who  shall  sell  or  offer  for  sale  in  the  District  of  Columbia  or 
the  Territories  of  the  United  States  any  such  adulterated  or  misbranded 
foods  or  drugs,  or  export  or  offer  to  export  the  same  to  any  foreign 
country,  shall  be  guilty  of  a  misdemeanor,  and  for  such  offense  be  fined 
not  exceeding  two  hundred  dollars  for  the  first  offense,  and  upon  con- 
viction for  each  subsequent  offense  not  exceeding  three  hundred  dollars 
or  be  imprisoned  not  exceeding  one  year,  or  both,  in  the  discretion  of 
the  court:  Provided,  That  no  article  shall  be  deemed  misbranded  or 
adulterated  within  the  provisions  of  this  Act  when  intended  for  export 


250  Important  Federal  Laws 

to  any  foreig-n  country  and  prepared  or  packed  according  to  the  specifica- 
tions or  directions  of  the  foreign  purchaser  when  no  substance  is  used 
in  the  preparation  or  packing  thereof  in  conflict  with  the  laws  of  the 
foreign  country  to  which  said  article  is  intended  to  be  shipped ;  but  if 
said  article  shall  be  in  fact  sold  or  offered  for  sale  for  domestic  use 
or  consumption,  then  this  proviso  shall  not  exempt  said  article  from  the 
operation  of  any  of  the  other  provisions  of  this  Act. 

Rules  and  Regulations. 

Sec.  3.  That  the  Secretary  of  the  Treasury,  the  Secretary  of  Agri- 
culture, and  the  Secretary  of  Commerce  and  Labor  shall  make  uniform 
rules  and  regulations  for  carrying  out  the  provisions  of  this  Act,  includ- 
ing the  collection  and  examination  of  specimens  of  foods  and  drugs 
manufactured  or  offered  for  sale  in  the  District  of  Columbia,  or  in  any 
Territory  of  the  United  States,  or  which  shall  be  offered  for  sale  in 
unbroken  packages  in  any  State  other  than  that  in  which  they  shell  have 
been  respectively  manufactured  or  produced,  or  which  shall  be  received 
from  any  foreign  country',  or  intended  for  shipment  to  any  foreign 
country,  or  which  may  be  submitted  for  examination  by  the  chief  health, 
food,  or  drug  officer  of  any  State,  Territory,  or  the  District  of  Columbia, 
or  at  any  domestic  or  foreign  port  through  which  such  product  is  offered 
for  interstate  commerce,  or  for  export  or  import  between  the  United 
States  and  any  foreign  port  or  country. 

Examination  of  Foods  and  Drugs. 

Sec.  4.  That  the  examinations  of  specimens  of  foods  and  drugs 
shall  be  made  in  the  Bureau  of  Chemistry  of  the  Department  of  Agricul- 
ture, or  under  the  direction  and  supervision  of  such  Bureau,  for  the 
purpose  of  determining  from  such  examinations  whether  such  articles 
are  adulterated  or  misbranded  within  the  meaning  of  this  Act ;  and  if 
it  shall  appear  from  any  such  examination  that  any  of  such  specimens 
is  adulterated  or  misbranded  within  the  meaning  of  this  Act,  the  Secre- 
tary of  Agriculture  shall  cause  notice  thereof  to  be  given  to  the  party 
from  whom  such  sample  was  obtained.  Any  party  so  notified  shall  be 
given  an  opportunity  to  be  heard,  under  such  rules  and  regulations  as 
may  be  prescribed  as  aforesaid,  and  if  it  appears  that  any  of  the  provi- 
sions of  this  Act  have  been  violated  by  such  party,  then  the  Secretary 
of  Agriculture  shall  at  once  certify  the  facts  to  the  proper  United  States 
district  attorney,  with  a  copy  of  the  results  of  the  analysis  or  the 
examination  of  such  article  duly  authenticated  by  the  analyst  or  officer 
making  such  examination,  under  the  oath  of  such  officer.  After  judgment 
of  the  court,  notice  shall  be  given  by  publication  in  such  manner  as  may 
"be  prescribed  by  the  rules  and  regulations  aforesaid. 

Duty  of  District  Attorney. 

Sec.  5.  That  it  shall  be  the  duty  of  each  district  attorney  to  whom 
the  Secretary  of  Agriculture  shall  report  any  violation  of  this  Act,  or 
to  whom  any  health  or  food  or  drug  officer  or  agent  of  any  State,  Terri- 


Food  and  Drug  Act  251 

tory,  or  the  District  of  Columbia  shall  present  satisfactory  evidence  of 
any  such  violation,  to  cause  appropriate  proceedings  to  be  commenced 
and  prosecuted  in  the  proper  courts  of  the  United  States,  without  delay, 
for  the  enforcement  of  the  penalties  as  in  such  case  herein  provided. 

Definitions. 

Sec.  6.  That  the  term  "drug"  as  used  in  this  Act,  shall  include 
all  medicines  and  preparations  recognized  in  the  United  States  Pharma- 
copoeia or  National  Formulary  for  internal  or  external  use,  and  any 
substance  or  mixture  of  substances  intended  to  be  used  for  the  cure, 
mitigation,  or  prevention  of  disease  of  either  man  or  other  animals.  The 
term  "food,"  as  used  herein,  shall  include  all  articles  used  for  food, 
drink,  confectioner^',  or  condiment  by  man  or  other  animals,  whether 
simple,  mixed,  or  compound. 

Meaning  of  Adulterated  Drugs  and  Food. 

Sec.  7.  That  for  the  purposes  of  this  Act  an  article  shall  be  deemed 
to  be  adulterated : 

In  case  of  drugs: 

First.  If,  when  a  drug  is  sold  under  or  by  a  name  recognized  in  the 
United  States  Pharmacopoeia  or  National  Formulary,  it  differs  from 
the  standard  of  strength,  quality,  or  purity,  as  determined  by  the  test 
laid  down  in  the  United  States  Pharmacopoeia  or  National  Formulary 
official  at  the  time  of  investigation:  Provided,  That  no  drug  defined  in 
the  United  States  Pharmacopoeia  or  National  Formulary  shall  be  deemed 
to  be  adulterated  under  this  provision  if  the  standard  of  strength,  quality, 
or  purity  be  plainly  stated  upon  the  bottle,  box,  or  other  container 
thereof  although  the  standard  may  differ  from  that  determined  by  the 
test  laid  down  in  the  United  States  Pharmacopoeia  or  National  Formu- 
lary. 

Second.  If  its  strength  or  purity  fall  below  the  professed  standard 
or  quality  under  which  it  is  sold. 

In  the  case  of  confectionery: 

If  it  contains  terra  alba,  barytes,  talc,  chrome  yellow,  or  other 
mineral  substance  or  poisonous  color  or  flavor,  or  other  ingredient  dele- 
terious or  detrimental  to  health,  or  any  vinous,  malt,  or  spirituous  liquor 
or  compound  or  narcotic  drug. 

In  the  case  of  food : 

First.  If  any  substance  has  been  mixed  and  packed  with  it  so  as  to 
reduce  or  lower  or  injuriously  affect  its  quality  or  strength. 

Second.  If  any  substance  has  been  substituted  wholly  or  in  part 
for  the  article. 

Third.  If  any  valuable  constituent  of  the  article  has  been  wholly 
or  in  part  abstracted. 

Fourth.  If  it  be  mixed,  colored,  powdered,  coated,  or  stained  in 
a  manner  whereby  damage  or  inferiority  is  concealed. 

Fifth.     If  it  contain  any  added  poisonous  or  other  added  deleterious 


252  Important  Federal  Laws 

ingredient  which  may  render  such  article  injurious  to  health:  Provided, 
That  when  in  the  preparation  of  food  products  for  shipment  they  are 
preserved  by  any  external  application  applied  in  such  manner  that  the 
preservative  is  necessarily  removed  mechanically,  or  by  maceration  in 
water,  or  otherwise,  and  directions  for  the  removal  of  said  preservative 
shall  be  printed  on  the  covering  or  the  package,  the  provisions  of  this 
Act  shall  be  construed  as  applying  only  when  said  products  are  ready 
for  consumption. 

Sixth.  If  it  consists  in  whole  or  in  part  of  a  filthy,  decomposed,  or 
putrid  animal  or  vegetable  substance,  or  any  portion  of  an  animal  unfit 
for  food,  whether  manufactured  or  not.  or  if  it  is  the  product  of  a 
diseased  animal,  or  one  that  has  died  otherwise  than  by  slaughter. 

Misbranded  Food  and  Drugs. 

Sec.  8.  That  the  term  "misbranded,"  as  used  herein,  shall  apply  to 
all  drugs,  or  articles  of  food,  or  articles  which  enter  into  the  composition 
of  food,  the  package  or  label  of  which  shall  bear  any  statement,  design, 
or  device  regarding  such  article,  or  the  ingredients  or  substances  con- 
tained therein  which  shall  be  false  or  misleading  in  any  particular,  and 
to  any  food  or  drug  product  which  is  falsely  branded  as  to  the  State, 
Territory,  or  country  in  which  it  is  manufactured  or  produced. 

That  for  the  purposes  of  this  Act  an  article  shall  also  be  deemed 
to  be  misbranded : 

In  case  of  drugs : 

First.  If  it  be  an  imitation  of  or  offered  for  sale  under  the  name 
of  another  article. 

Second.  If  the  contents  of  the  package  as  originally  put  up  shall 
have  been  removed,  in  whole  or  in  part,  and  other  contents  shall  have 
been  placed  in  such  package,  or  if  the  package  fail  to  bear  a  statement 
on  the  label  of  the  quantity  or  proportion  of  any  alcohol,  morphine, 
opium,  cocaine,  heroin,  alpha  or  beta  eucaine,  chloroform,  cannabis 
indica.  Chloral  hydrate,  or  acetanilide,  or  any  derivative  or  preparation 
of  any  such  substance  contained  therein. 

Third.  If  its  package  or  label  shall  bear  or  contain  any  statement, 
design,  or  device  regarding  the  curative  or  therapeutic  effect  of  such 
article  or  any  of  the  ingredients  or  substances  contained  therein,  which 
is  false  and  fraudulent.     (As  amended  August  23,  1912.) 

In  the  case  of  food: 

First.  If  it  be  an  imitation  of  or  offered  for  sale  under  the  dis- 
tinctive name  of  another  article. 

Second.  If  it  be  labeled  or  branded  so  as  to  deceive  or  mislead 
the  purchaser,  or  purport  to  be  a  foreign  product  when  not  so,  or  if  the 
contents  of  the  package  as  originally  put  up  shall  have  been  removed 
in  whole  or  in  part  and  other  contents  shall  have  been  placed  in  such 
package,  or  if  it  fail  to  bear  a  statement  on  the  label  of  the  quantity 


Food  and  Drug  Act  253 

or  proportion  of  any  morphine,  opium,  cocaine,  heroin,  alpha  or  beta 
eucaine,  chloroform,  cannabis  indica,  chloral  hydrate  or  acetanilide,  or 
any  derivative  or  preparation  of  any  of  such  substances  contained  therein. 

Third.  If  in  package  form,  the  quantity  of  the  contents  be  not 
plainly  and  conspicuously  marked  on  the  outside  of  the  package  in  terms 
of  weight,  measure,  or  numerical  count:  Provided,  however,  That  rea- 
sonable variations  shall  be  permitted,  and  tolerances  and  also  exemptions 
as  to  small  packages  shall  be  established  by  rules  and  regulations  made 
in  accordance  with  the  provisions  of  section  three  of  this  Act.  (As 
amended  March  3,  1913.) 

Fourth.  If  the  package  containing  it  or  its  label  shall  bear  any 
statement,  design,  or  device  regarding  the  ingredients  or  the  substances 
contained  therein,  which  statement,  design,  or  device  shall  be  false  or 
misleading  in  any  particular :  Provided,  That  an  article  of  food  which  does 
not  contain  any  added  poisonous  or  deleterious  ingredients  shall  not  be 
deemed  to  be  adulterated  or  misbranded  in  the  following  cases: 

First.  In  the  case  of  mixtures  or  compounds  which  may  be  now 
or  from  time  to  time  hereafter  known  as  articles  of  food,  under  their 
own  distinctive  names,  and  not  an  imitation  of  or  offered  for  sale  under 
the  distinctive  name  of  another  article,  if  the  name  be  accompanied  on 
the  same  label  or  brand  with  a  statement  of  the  place  where  said  article 
has  been  manufactured  or  produced. 

Second.  In  the  case  of  articles  labeled,  branded,  or  tagged  so  as 
to  plainly  indicate  that  they  are  compounds,  imitations,  or  blends,  and 
the  word  "compound,"  "imitation,"  or  "blend,"  as  the  case  may  be,  is 
plainly  stated  on  the  package  in  which  it  is  offered  for  sale:  Provided, 
That  the  term  blend  as  used  herein  shall  be  construed  to  mean  a  mixture 
of  like  substances,  not  excluding  harmless  coloring  or  flavoring  ingre- 
dients used  for  the  purpose  of  coloring  and  flavoring  only :  And  provided 
further,  That  nothing  in  this  Act  shall  be  construed  as  requiring  or 
compelling  proprietors  or  manufacturers  of  proprietary  foods  which 
contain  no  unwholesome  added  ingredient  to  disclose  their  trade 
formulas,  except  in  so  far  as  the  provisions  of  this  act  may  require  to 
secure  freedom  from  adulteration  or  misbranding. 

Guarantee  by  Wholesaler  or  Manufacturer. 

Sec.  9.  That  no  dealer  shall  be  prosecuted  under  the  provisions  of 
this  Act  when  he  can  establish  a  guaranty  signed  by  the  wholesaler, 
jobber,  manufacturer,  or  other  party  residing  in  the  United  States,  from 
whom  he  purchases  such  articles,  to  the  eflFect  that  the  same  is  not 
adulterated  or  misbranded  within  the  meaning  of  this  Act,  designating 
it.  Said  guaranty,  to  afford  protection,  shall  contain  the  name  and 
address  of  the  party  or  parties  making  the  sale  of  such  articles  to  such 
dealer,  and  in  such  case  said  party  or  parties  shall  be  arnenable  to  the 
prosecutions,  fines  and  other  penalties  which  would  attach,  in  due  course, 
to  the  dealer  under  the  provisions  of  this  Act. 


254  Important  Federal  Laws 

Condemnation  of  Food  and  Drugs. 

Sec.  10.  That  any  article  of  food,  drug,  or  liquor  that  is  adul- 
terated or  misbranded  within  the  meaning  of  this  Act,  and  is  being 
transported  from  one  State,  Territory,  District,  or  insular  possession  to 
another  for  sale,  or.  having  been  transported,  remains  unloaded,  unsold, 
or  in  original  unbroken  packages,  or  if  it  be  sold  or  offered  for  sale 
in  the  District  of  Columbia  or  the  Territories,  or  insular  possessions 
of  the  United  States,  or  if  it  be  imported  from  a  foreign  country  for 
sale,  or  if  it  is  intended  for  export  to  a  foreign  country,  shall  be  liable 
to  be  proceeded  against  in  any  district  court  of  the  United  States  within 
the  district  where  the  same  is  found,  and  seized  for  confiscation  by  a 
process  of  libel  for  condemnation.  And  if  such  article  is  condemned 
as  being  adulterated  or  misbranded,  or  of  a  poisonous  or  deleterious 
character,  within  the  meaning  of  this  Act,  the  same  shall  be  disposed  of 
by  destruction  or  sale,  as  the  said  court  may  direct,  and  the  proceeds 
thereof,  if  sold,  less  the  legal  costs  and  charges,  shall  be  paid  into  the 
Treasury  of  the  United  States,  but  such  goods  shall  not  be  sold  in  any 
jurisdiction  contrary  to  the  provisions  of  this  Act  or  the  laws  of  that 
jurisdiction:  Provided,  however,  That  upon  the  payment  of  the  cost  of 
such  libel  proceedings  and  the  execution  and  delivery  of  a  good  and 
sufficient  bond  to  the  effect  that  such  articles  shall  not  be  sold  or  other- 
wise disposed  of  contrary  to  the  provisions  of  this  Act,  or  the  laws  of 
any  State,  Territorj%  District,  or  insular  possession,  the  court  may  by 
order  direct  that  such  articles  be  delivered  to  the  owner  thereof.  The 
proceedings  of  such  libel  cases  shall  conform,  as  near  as  may  be,  to 
the  proceedings  in  admiralty,  except  that  either  party  may  demand  trial 
by  jury  of  any  issue  of  fact  joined  in  any  such  case,  and  all  such  pro- 
ceedings shall  be  at  the  suit  of  and  in  the  name  of  the  United  States. 

Examination  of  Food  Imported. 

Sec.  11.  The  Secretary  of  the  Treasury  shall  deliver  to  the  Secre- 
tary of  Agriculture,  upon  his  request  from  time  to  time,  samples  of  foods 
and  drugs  which  are  being  imported  into  the  United  States  or  offered 
for  import,  giving  notice  thereof  to  the  owner  or  consignee,  who  may 
appear  before  the  Secretary  of  Agriculture,  and  have  the  right  to  intro- 
duce testimony,  and  if  it  appear  from  the  examination  of  such  samples 
that  any  article  of  food  or  drug  offered  to  be  imported  into  the  United 
States  is  adulterated  or  misbranded  within  the  meaning  of  this  Act,  or  is 
otherwise  dangerous  to  the  health  of  the  people  of  the  United  States,  or  is 
of  a  kind  forbidden  entry  into,  or  forbidden  to  be'  sold  or  restricted 
in  sale  in  the  country  in  which  it  is  made  or  from  which  it  is  exported, 
or  is  otherwise  falsely  labeled  in  any  respect,  the  said  article  shall  be 
refused  admission,  and  the  Secretary  of  the  Treasury  shall  refuse 
delivery  to  the  consignee  and  shall  cause  the  destruction  of  any  goods 
refused  delivery  which  shall  not  be  exported  by  the  consignee  within 
three  months  from  the  date  of  notice  of  such  refusal  under  such  regu- 
lations   as   the    Secretary   of    the    Treasury   may    prescribe:    Provided, 


Meat  Inspection  Act  255 

That  the  Secretary  of  the  Treasury  may  deHver  to  the  consignee  such 
goods  pending  examination  and  decision  in  the  matter  on  execution 
of  a  penal  bond  for  the  amount  of  the  full  invoice  value  of  such  goods, 
together  with  the  duty  thereon,  and  on  refusal  to  return  such  goods 
for  any  cause  to  the  custody  of  the  Secretary  of  the  Treasury,  when 
demanded,  for  the  purpose  of  excluding  them  from  the  country,  or  for 
any  other  purpose,  said  consignee  shall  forfeit  the  full  amount  of  the 
bond:  And  provided  further,  That  all  charges  for  storage,  cartage,  and 
labor  on  goods  which  are  refused  admission  or  delivery  shall  be  paid 
by  the  owner  or  consignee,  and  in  default  of  such  payment  shall  con- 
stitute a  lien  against  any  future  importation  made  by  such  owner  or 
consignee. 

Definitions. 

Sec.  12.  That  the  term  "Territory"  as  used  in  this  Act  shall 
include  the  insular  possessions  of  the  United  States.  The  word  "person" 
as  used  in  this  Act  shall  be  construed  to  import  both  the  plural  and 
the  singular,  as  the  case  demands,  and  shall  include  corporations,  com- 
panies, societies  and  associations.  When  construing  and  enforcing  the 
provisions  of  this  Act,  the  act,  omission,  or  failure  of  any  officer,  agent, 
or  other  person  acting  for  or  employed  by  any  corporation,  company, 
society,  or  association,  within  the  scope  of  his  employment  or  office,  shall 
in  every  case  be  also  deemed  to  be  the  act,  omission,  or  failure  of  such 
corporation,  company,  society,  or  association  as  well  as  that  of  the 
person. 

Sec.  13.  That  this  Act  shall  be  in  force  and  effect  from  and  after 
the  first  day  of  January,  nineteen  hundred  and  seven. 


THE  MEAT  INSPECTION  ACT. 

Act  of  March  4,  1907. 

Extract  from  an  act  of  Congress  entitled  "An  act  making  appropriations  for 
the  Department  of  Agriculture  for  the  fiscal  year  ending  June  thirtieth, 
nineteen  hundred  and  eight,"  approved  March  4,  1907. 

Inspection  of  Meat. 

Sec.  1.  That  hereafter,  for  the  purpose  of  preventing  the  use  in 
interstate  or  foreign  commerce,  as  hereinafter  provided,  of  meat  and 
meat  food  products  which  are  unsound,  unhealthful,  unwholesome,  or 
otherwise  unfit  for  human  food,  the  Secretary  of  Agriculture,  at  his 
discretion,  may  cause  to  be  made,  by  inspectors  appointed  for  that  pur- 
pose, an  examination  and  inspection  of  all  cattle,  sheep,  swine  and  goats 
before  they  shall  be  allowed  to  enter  into  any  slaughtering,  packing,  meat- 
canning,  rendering,  or  similar  establishment,  in  which  they  are  to  be 
slaughtered  and  the  meat  and  meat  food  products  thereof  are  to  be  used 
in  interstate  or  foreign  commerce ;  and  all  cattle,  swine,  sheep  and  goats 
found  on  such  inspection  to  show  symptoms  of  disease  shall  be  set  apart 


256  Important  Federal  Laws 

and  slaughtered  separately  from  all  other  cattle,  sheep,  swine,  or  goats, 
and  when  so  slaughtered  the  carcasses  of  said  cattle,  sheep,  swine  or 
goats  shall  be  subject  to  a  careful  examination  and  inspection,  all  as  pro- 
vided by  the  rules  and  regulations  to  be  prescribed  by  the  Secretary  of 
Agriculture  as  herein  provided  for. 

Inspection  of  Carcasses. 

Sec.  2.  That  for  the  purposes  hereinbefore  set  forth  the  Secretary 
of  Agriculture  shall  cause  to  be  made  by  inspectors  appointed  for  that 
purpose,  as  hereinafter  provided,  a  post-mortem  examination  and  inspec- 
tion of  the  carcasses  and  parts  thereof  of  all  cattle,  sheep,  swine  and  goats 
to  be  prepared  for  human  consumption  at  any  slaughtering,  meat-canning, 
salting,  packing,  rendering,  or  similar  establishment  in  any  State,  Terri- 
tory, or  the  District  of  Columbia  for  transportation  or  sale  as  articles 
of  interstate  or  foreign  commerce ;  and  the  carcasses  and  parts  thereof 
of  all  such  animals  found  to  be  sound,  healthful,  wholesome  and  tit  for 
human  food  shall  be  marked,  stamped,  tagged,  or  labeled  as  "Inspected 
and  Passed" ;  and  said  inspectors  shall  label,  mark,  stamp,  or  tag  as  "In- 
spected and  Condemned,"  all  carcasses  and  parts  thereof  of  animals  found 
to  be  unsound,  unhealthful,  unwholesome,  or  otherwise  unfit  for  human 
food;  and  all  carcasses  and  parts  thereof  thus  inspected  and  condemned 
shall  be  destroyed  for  food  purposes  by  the  said  establishment  in  the 
presence  of  an  inspector,  and  the  Secretary  of  Agriculture  may  remove 
inspectors  from  any  such  establishment  which  fails  to  so  destroy  any 
such  condemned  carcass  or  part  thereof,  and  said  inspectors,  after  said 
first  inspection  shall,  when  they  deem  it  necessary,  reinspect  said  carcasses 
or  parts  thereof  to  determine  whether  since  the  first  inspection  the  same 
have  become  unsound,  unhealthful,  unwholesome,  or  in  any  way  unfit  for 
human  food,  and  if  any  carcass  or  any  part  thereof  shall,  upon  examina- 
tion and  inspection  subsequent  to  the  first  examination  and  inspection, 
be  found  to  be  unsound,  unhealthful,  unwholesome,  or  otherwise  unfit  for 
human  food,  it  shall  be  destroyed  for  food  purposes  by  the  said  establish- 
ment in  the  presence  of  an  inspector,  and  the  Secretary  of  Agriculture 
may  remove  inspectors  from  any  establishment  which  fails  to  so  destroy 
any  such  condemned  carcass  or  part  thereof. 

Application. 

Sec.  3.  The  foregoing  provisions  shall  apply  to  all  carcasses  or 
parts  of  carcasses  of  cattle,  sheep,  swine  and  goats,  or  the  meat  or  meat 
products  thereof  which  may  be  brought  into  any  slaughtering,  meat-can- 
ning, salting,  packing,  rendering  or  similar  establishment,  and  such  exam- 
ination and  inspection  shall  be  had  before  the  said  carcasses  or  parts 
thereof  shall  be  allowed  to  enter  into  any  department  wherein  the  same 
are  to  be  treated  and  prepared  for  meat  food  products ;  and  the  foregoing 
provisions  shall  also  apply  to  all  such  products  which,  after  having  been 
issued  from  any  slaughtering,  meat-canning,  salting,  packing,  rendering, 


Meat  Inspection  Act  257 

or  similar  establishment,  shall  be  returned  to  the  same  or  to  any  similar 
establishment  where  such  inspection  is  maintained. 

Inspection  and  Labeling  of  Food  Products. 

Sec.  4.  That  for  the  purposes  hereinbefore  set  forth  the  Secretary 
of  Agriculture  shall  cause  to  be  made  by  inspectors  appointed  for  that 
purpose  an  examination  and  inspection  of  all  meat  food  products  pre- 
pared for  interstate  or  foreign  commerce  in  any  slaughtering,  meat- 
canning,  salting,  packing,  rendering,  or  similar  establishment,  and  for 
the  purposes  of  any  examination  and  inspection  said  inspectors  shall  have 
access  at  all  times,  by  day  or  night,  whether  the  establishment  be  opened 
or  not,  to  every  part  of  said  establishment ;  and  said  inspectors  shall 
mark,  stamp,  tag,  or  label  as  "Inspected  and  Passed"  all  such  products 
found  to  be  sound,  healthful  and  wholesome,  and  which  contain  no  dyes, 
chemicals,  preservatives,  or  ingredients  which  render  such  meat  or  meat 
food  products  unsound,  unhealthful,  unw^holesome,  or  unfit  for  human 
food  :  and  said  inspectors  shall  label,  mark,  stamp,  or  tag  as  "Inspected 
and  Condemned"  all  such  products  found  unsound,  unhealthful  and  un- 
wholesome, or  which  contain  dyes,  chemicals,  preservatives,  or  ingredi- 
ents which  render  such  meat  or  meat  food  products  unsound,  unhealth- 
ful, unwholesome,  or  unfit  for  human  food,  and  all  such  condemned 
meat  food  products  shall  be  destroyed  for  food  purposes,  as  hereinbefore 
provided,  and  the  Secretary  of  Agriculture  may  remove  inspectors  from 
any  establishment  which  fails  to  so  destroy  such  condemned  meat  food 
products:  Provided,  That,  subject  to  the  rules  and  regulations  of  the 
Secretary  of  Agriculture,  the  provisions  hereof  in  regard  to  presen^atives 
shall  not  apply  to  meat  food  products  for  export  to  anv  foreign  country 
and  which  are  prepared  or  packed  according  to  the  specifications  or  direc- 
tions of  the  foreign  purchaser,  when  no  substance  is  used  in  the  prepara- 
tion or  packing  thereof  in  conflict  with  the  laws  of  the  foreign  country  to 
which  said  article  is  to  be  exported;  but  if  said  article  shall  be  in  fact 
sold  or  offered  for  sale  for  domestic  use  or  consumption,  then  this  pro- 
viso shall  not  exempt  said  article  from  the  operation  of  all  the  other  pro- 
visions of  this  act. 

Label  to  Indicate  Inspection. 

Sec.  5.  That  when  any  meat  or  meat  food  product  prepared  for 
interstate  or  foreign  commerce  which  has  been  inspected  as  hereinbefore 
provided  and  marked  "Inspected  and  Passed"  shall  be  placed  or  packed 
in  any  can,  pot,  tin,  canvas,  or  other  receptacle  or  covering  in  any  estab- 
lishment where  inspection  under  the  provisions  of  this  act  is  maintained, 
the  person,  firm,  or  corporation  preparing  said  product  shall  cause  a  label 
to  be  attached  to  said  can,  pot,  tin,  canvas,  or  other  receptable  or  cover- 
ing, under  the  supervision  of  an  inspector,  which  label  shall  state  that  the 
contents  thereof  have  been  "Inspected  and  Passed"  under  the  provisions 
of  this  act ;  and  no  inspection  and  examination  of  meat  or  meat  food  prod- 

(17) 


258  Important  Federal  Laws 

ucts  deposited  or  inclosed  in  cans,  tins,  pots,  canvas,  or  other  receptacle 
or  covering  in  any  establishment  where  inspection  under  the  provisions 
of  this  act  is  maintained  shall  be  deemed  to  be  complete  until  such  meat 
or  meat  food  products  have  been  sealed  or  inclosed  in  said  can,  tin,  pot, 
canvas,  or  other  receptacle  or  covering  under  the  supervision  of  an  in- 
spector, and  no  such  meat  or  meat  food  products  shall  be  sold  or  offered 
for  sale  by  any  person,  firm,  or  corporation  in  interstate  or  foreign  com- 
merce under  any  false  or  deceptive  name ;  but  established  trade  name  or 
names  vv^hich  are  usual  to  such  products  and  which  are  not  false  and 
deceptive  and  which  shall  be  approved  by  the  Secretary  of  Agriculture 
are  permitted. 

Inspection  of  Establishments. 

Sec.  6.  The  Secretary  of  Agriculture  shall  cause  to  be  made,  by 
experts  m  sanitation  or  by  other  competent  inspectors,  such  inspection  of 
all  slaughtering,  meat-canning,  salting,  packing,  rendering,  or  similar 
establishments  in  which  cattle,  sheep,  swine  and  goats  are  slaughtered 
and  the  meat  and  meat  food  products  thereof  are  prepared  for  interstate 
or  foreign  commerce  as  may  be  necessary  to  inform  himself  concerning 
the  sanitary  conditions  of  the  same,  and  to  prescribe  the  rules  and  regu- 
lations of  sanitation  under  which  such  establishments  shall  be  main- 
tained ;  and  where  the  sanitary  conditions  of  any  such  establishment  are 
such  that  the  meat  or  meat  food  products  are  rendered  unclean,  unsound, 
unhealthful,  unwholesome,  or  otherwise  unfit  for  human  food,  he  shall 
refuse  to  allow  said  meat  or  meat  food  products  to  he  labeled,  marked, 
stamped,  or  tagged  as  "Inspected  and  I'assed." 

Inspection  in  Nighttime. 

Sec.  7.  That  the  Secretary  of  Agriculture  shall  cause  an  examina- 
tion and  inspection  of  all  cattle,  sheep,  swine  and  goats  and  the  food  pro- 
ducts thereof,  slaughtered  and  prepared  in  the  establishments  herein- 
before described  for  the  purposes  of  interstate  or  foreign  commerce  to  be 
made  during  the  nighttime  as  well  as  during  the  daytime  when  the  slaugh- 
tering of  said  cattle,  sheep,  swine  and  goats,  or  the  preparation  of  said 
food  products  is  conducted  during  the  nighttime. 

Unlawful  to  Transfer  Meat  Without  Inspection. 

Sec.  8.  That  on  and  after  October  first,  nineteen  hundred  and  six, 
no  person,  firm  or  corporation  shall  transport  or  offer  for  transportation, 
and  no  carrier  of  interstate  or  foreign  commerce  shall  transport  or  receive 
for  transportation  from  one  State  or  Territory  or  the  District  of  Colum- 
bia to  any  other  State  or  Territory  or  the  District  of  Columbia,  or  to  any 
place  under  the  jurisdiction  of  the  United  States,  or  to  any  foreign 
country,  any  carcasses  or  parts  thereof,  meat,  or  meat  food  products 
thereof  which  have  not  been  inspected,  examined  and  marked  as  "In- 
spected and  Passed,"  in  accordance  with  the  terms  of  this  act  and  with 
the  rules  and  regulations  prescribed  by  the  Secretary  of  Agriculture: 
Provided,  That  all  meat  and  meat  food  products  on  hand  on  October  first. 


Meat  Inspection  Act  259 

nineteen  hundred  and  six,  at  establishments  where  inspection  has  not 
been  maintained,  or  which  have  been  inspected  under  existing-  law,  shall 
be  examined  and  labeled  under  such  rules  and  reg-ulations  as  the  Secre- 
tary of  Agriculture  shall  prescribe,  and  then  shall  be  allowed  to  be  sold 
in  interstate  or  foreign  commerce. 

Violations. 

Sec.  9.  That  no  person,  firm,  or  corporation,  or  officer,  agent,  or 
employee  thereof,  shall  forge,  counterfeit,  simulate,  or  falsely  represent, 
or  shall  without  proper  authority  use,  fail  to  use,  or  detach,  or  shall 
knowingly  or  wrongfully  alter,  deface,  or  destroy,  or  fail  to  deface  or 
destroy,  any  of  the  marks,  stamps,  tags,  labels,  or  other  identification 
devices  provided  for  in  this  act,  or  in  and  as  directed  by  the  rules  and 
regulations  prescribed  hereunder  by  the  Secretary  of  Agriculture,  on  any 
carcasses,  parts  of  carcasses,  or  the  food  product,  or  containers  thereof, 
subject  to  the  provisions  of  this  act,  or  any  certificate  in  relation  thereto, 
authorized  or  required  by  this  act  or  by  the  said  rules  and  regulations 
of  the  Secretary  of  Agriculture. 

Inspection  for  Export. 

Sec.  10.  That  the  Secretary  of  Agriculture  shall  cause  to  be  made 
a  careful  inspection  of  all  cattle,  sheep,  swine  and  goats  intended  and 
offered  for  export  to  foreign  countries  at  such  times  and  places,  and  in 
such  manner  as  he  may  deem  proper,  to  ascertain  whether  such  cattlCj 
sheep,  swine  and  goats  are  free  from  disease. 

Appointment  of  Inspectors. 

Sec.  11.  And  for  this  purpose  he  may  appoint  inspectors  w^ho  shall 
be  authorized  to  give  an  official  certificate  clearly  stating  the  condition  in 
which  such  cattle,  sheep,  swine,  and  goats  are  found. 

Clearance  Forbidden  Without  Certificate. 

Sec.  12.  And  no  clearance  shall  be  given  to  any  vessel  having  on 
board  cattle,  sheep,  swine  or  goats  for  export  to  a  foreign  country  until 
the  owner  or  shipper  of  such  cattle,  sheep,  swine,  or  goats  has  a  cer- 
tificate from  the  inspector  herein  authorized  to  be  appointed,  stating  that 
the  said  cattle,  sheep,  swine,  or  goats  are  sound  and  healthy,  or  unless 
the  Secretary  of  Agriculture  shall  have  waived  the  requirement  of  such 
certificate  for  export  to  the  particular  country  to  which  such  cattle,  sheep, 
swine  or  goats  are  to  be  exported. 

Inspection  of  Meat  for  Export. 

Sec.  13.  I'hat  the  Secretary  of  Agriculture  shall  also  cause  to  be 
made  a  careful  inspection  of  the  carcasses  and  parts  thereof  of  all  cattle, 
sheep,  swine  and  goats,  the  meat  of  which,  fresh,  salted,  canned,  corned^ 
packed,  cured,  or  otherwise  prepared,  is  intended  and  offered  for  export 
to  any  foreign  country,  at  such  times  and  places  and  in  such  manner  as  he 
may  deem  proper. 


260  Important  Federal  Laws 

Certificate  of  Condition. 

Sec.  14.  And  for  this  purpose  he  may  appoint  inspectors  who  shall 
be  authorized  to  give  an  official  certificate  stating  the  condition  in  which 
said  cattle,  sheep,  swine  or  goats,  and  the  meat  thereof,  are  found. 

Sec.  15.  And  no  clearance  shall  be  given  to  any  vessel  having  on 
board  any  fresh,  salted,  canned,  corned,  or  packed  beef,  mutton,  pork,  or 
goat  meat,  being  the  meat  of  animals  killed  after  the  passage  of  this  act, 
or  except  as  hereinbefore  provided  for  export  to  and  sale  in  a  foreign 
country  from  any  port  in  the  United  States,  until  the  owner  or  shipper 
thereof  shall  obtain  from  an  inspector  appointed  under  the  provisions  of 
this  act  a  certificate  that  the  said  cattle,  sheep,  swine  and  goats  were 
sound  and  healthy  at  the  time  of  inspection,  and  that  their  meat  is  sound 
and  wholesome,  unless  the  Secretary  of  Agriculture  shall  have  waived  the 
requirements  of  such  certificate  for  the  country  to  which  said  cattle,  sheep, 
swine  and  goats  or  meats  are  to  be  exported. 

Copies  of  Certificates. 

Sec.  16.  That  the  inspectors  provided  for  herein  shall  be  authorized 
to  give  official  certificates  of  the  sound  and  wholesome  condition  of  the 
cattle,  sheep,  swine  and  goats,  their  carcasses  and  products  as  herein 
described,  and  one  copy  of  ever>^  certificate  granted  under  the  provisions 
of  this  act  shall  be  filed  in  the  Department  of  Agriculture,  another  copy 
shall  be  delivered  to  the  owner  or  shipper,  and  when  the  cattle,  sheep, 
swine  and  goats  or  their  carcasses  and  products  are  sent  abroad,  a  third 
topy  shall  be  delivered  to  the  chief  officer  of  the  vessel  on  which  the  ship- 
ment shall  be  made. 

Compliance  With  Act. 

Sec.  17.  That  no  person,  fimi,  or  corporation  engaged  m  the  inter- 
state commerce  of  meat  or  meat  food  products  shall  transport  or  ofifer 
for  transportation,  sell  or  ofifer  to  sell  any  such  meat  or  meat  food  prod- 
ucts in  any  State  or  Territory  or  in  the  District  of  Columbia  or  any 
place  under  the  jurisdiction  of  the  United  States,  other  than  in  the  State 
or  Territory  or  in  the  District  of  Columbia  or  any  place  under  the  juris- 
diction of  the  United  States  in  which  the  slaughtering,  packing,  canning, 
rendering,  or  other  similar  establishment  owned,  leased,  operated  by  said 
firm,  person,  or  corporation  is  located  unless  and  until  said  person,  firm, 
or  corporation  shall  have  complied  with  all  of  the  provisions  of  this  act. 

Penalties.  . 

Sec.  18.  That  any  person,  firm,  or  corporation,  or  any  officer  or 
ao-ent  of  any  such  person,  firm,  or  corporation,  who  shall  violate  any  of 
the  provisions  of  this  act  shall  be  deemed  guilty  of  a  misdemeanor,  and 
shall  be  punished  on  conviction  thereof  by  a  fine  of  not  exceeding  ten 
thousand  dollars  or  imprisonment  for  a  period  not  more  than  two  years, 
or  bv  both  such  fine  and  imprisonment,  in  the  discretion  of  the  court. 


Meat  Inspection   Act  261 

Duties  of  Inspectors, 

Sec.  19.  That  the  Secretary  of  Agriculture  shall  appoint  from  time 
to  time  inspectors  to  make  examination  and  inspection  of  all  cattle,  sheep, 
swine  and  goats,  the  inspection  of  which  is  hereby  provided  for,  and  of 
all  carcasses  and  parts  thereof,  and  of  all  meats  and  meat  food  products 
thereof,  and  of  the  sanitary  conditions  of  all  establishments  in  which  such 
meat  and  meat  food  products  hereinbefore  described  are  prepared  ;  and 
said  inspectors  shall  refuse  to  stamp,  mark,  tag  or  label  any  carcass  or 
any  part  thereof,  or  meat  food  product  therefrom,  prepared  in  any  estab- 
lishment hereinbefore  mentioned,  until  the  same  shall  have  actually  been 
inspected  and  found  to  be  sound,  healthful,  wholesome  and  fit  for  human 
food,  and  to  contain  no  dyes,  chemicals,  preservatives,  or  ingredients 
which  render  such  meat  food  product  unsound,  unhealthful,  unwhole- 
some, or  unfit  for  human  food ;  and  to  have  been  prepared  under  proper 
sanitary  conditions,  hereinbefore  provided  for ;  and  shall  perform  such 
other  duties  as  are  provided  by  this  act  and  by  the  rules  and  regulations 
to  be  prescribed  by  said  Secretary  of  Agriculture;  and  said  Secretary  of 
Agriculture  shall,  from  time  to  time,  make  such  rules  and  regulations  as 
are  necessary  for  the  eflkient  execution  of  the  provisions  of  this  act,  and 
all  inspections  and  examinations  made  under  this  act  shall  be  such  and 
made  in  such  manner  as  described  in  the  rules  and  regulations  prescribed 
by  said  Secretary  of  Agriculture  not  inconsistent  with  the  provisions  of 
this  act. 

Penalties. 

Sec.  20.  That  any  person,  firm  or  corporation,  or  any  agent  or  em- 
ployee of  any  person,  firm,  corporation,  who  shall  give,  pay  or  offer, 
directly  or  indirectly,  to  any  inspector,  deputy  inspector,  chief  inspector, 
or  any  other  officer  or  employee  of  the  United  States  authorized  to  per- 
form any  of  the  duties  prescribed  by  this  act  or  by  the  rules  and  regula- 
tions of  the  Secretary  of  Agriculture  any  money  or  other  thing  of  value, 
with  intent  to  influence  said  inspector,  deputy  inspector,  chief  inspector, 
or  other  officer  or  employee  of  the  United  States  in  the  discharge  of 
any  duty  herein  provided  for,  shall  be  deemed  guilty  of  a  felony  and, 
upon  conviction  thereof,  shall  be  punished  by  a  fine  not  less  than  five 
thousand  dollars  nor  more  than  ten  thousand  dollars  and  by  imprison- 
ment not  less  than  one  year  nor  more  than  three  years ;  and  any  inspec- 
tor, deputy  inspector,  chief  inspector,  or  other  officer  or  employee  of 
the  United  States  authorized  to  perform  any  of  the  duties  prescribed 
by  this  act  who  shall  accept  any  money,  gift,  or  other  thing  of  value 
from  any  person,  firm,  or  corporation,  or  officers,  agents,  or  employees 
thereof,  given  with  intent  to  influence  his  official  action,  or  who  shall 
receive  or  accept  from  any  person,  firm,  or  corporation  engaged  in  inter- 
state or  foreign  commerce  any  gift,  money,  or  other  thing  of  value  given 
with  any  purpose  or  intent  whatsoever,  shall  be  deemed  guilty  of  a  felony 
and  shall,  upon  conviction  thereof,  be  summarily  discharged  from  office 


262  Important  Federal  Laws 

and  shall  be  punished  by  a  fine  not  less  than  one  thousand  dollars  nor 
more  than  ten  thousand  dollars  and  by  imprisonment  not  less  than  one 
year  nor  more  than  three  years. 

Not  to  Apply  to  Farmers  or  Retail  Butchers. 

Sec.  21.  That  the  provisions  of  this  act  requiring  inspection  to  be 
made  by  the  Secretary  of  Agriculture  shall  not  apply  to  animals  slaught- 
ered by  any  farmer  on  the  farm  and  sold  and  transported  as  interstate 
or  foreign  commerce,  nor  to  retail  butchers  and  retail  dealers  in  meat 
and  meat  food  products,  supplying  their  customers :  Provided,  That  if 
any  person  shall  sell  or  oiler  for  sale  or  transportation  for  interstate  or 
foreign  commerce  any  meat  or  meat  food  products  which  are  diseased, 
unsound,  unhealthful,  unwholesome,  or  otherwise  unfit  for  human  food, 
knowing  that  such  meat  food  products  are  intended  for  human  consump- 
tion, he  shall  be  guilty  of  a  misdemeanor,  and  on  conviction  thereof 
shall  be  punished  by  a  fine  not  exceeding  one  thousand  dollars  or  by 
imprisonment  for  a  period  of  not  exceeding  one  year,  or  by  both  such 
fine  and  imprisonment:  Provided  also.  That  the  Secretary  of  Agriculture 
is  authorized  to  maintain  the  inspection  in  this  act  provided  for  at  any 
slaughtering,  meat-canning,  salting,  packing,  rendering,  or  similar  estab- 
lishment notwithstanding  this  exception,  and  that  the  persons  operating 
the  same  may  be  retail  butchers  and  retail  dealers  or  farmers ;  and  where 
the  Secretary  of  Agriculture  shall  establish  such  inspection  then  the  pro- 
visions of  this  act  shall  apply  notwithstanding  this  exception. 


THE  IMPORTED  MEAT  ACT. 

From  Act  of  October  3,  1913. 

Extract  from  an  act  of  Congress  entitled  "An  act  to  reduce  tariff  duties  and 
to  provide  revenue  for  the  Government,  and  for  other  purposes." 

That  on  and  after  the  day  following  the  passage  of  this  act,  except 
as  otherwise  specifically  provided  for  in  this  act,  the  articles  mentioned 
in  the  following  paragraphs  shall  when  imported  into  the  United  States 
or  into  any  of  its  possessions  (except  the  Philippine  Islands  and  the 
Islands  of  Guam  and  Tutuila)  be  exempt  from  duty: 

545.  Meats :  Fresh  beef,  veal,  mutton,  lamb,  and  pork ;  bacon  and 
hams ;  meats  of  all  kinds,  prepared  or  preser\ed,  not  specially  provided 
for  in  this  section :  Provided,  however.  That  none  of  the  foregoing 
meats  shall  be  admitted  into  the  United  States  unless  the  same  is  health- 
ful, wholesome,  and  fit  for  human  food  and  contains  no  dye,  chemical, 
preservative,  or  ingredient  which  renders  the  same  unhealthful,  unwhole- 
some, or  unfit  for  human  food,  and  unless  the  same  also  complies  with 
the  rules  and  regulations  made  by  the  Secretary  of  Agriculture,  and  that, 
after  entry  into  the  United  States  in  compliance  with  said  rules  and  regu- 
lations, said  imported  meats  shall  be  deemed  and  treated  as  domestic 


Imported  Meat — Cocaine  and  Narcotics  263 

meats  within  the  meaning  of  and  shall  be  subject  to  the  provisions  of 
the  act  of  June  thirtieth,  nineteen  hundred  and  six  (Thirty-fourth  Stat- 
utes at  Large,  page  six  hundred  and  seventy-four),  commonly  called  the 
meat  inspection  amendment,  and  the  act  of  June  thirtieth,  nineteen  hun- 
dred and  six  (Thirty-fourth  Statutes  at  Large,  page  seven  hundred  and 
sixty-eight),  commonly  called  the  food  and  drugs  act,  and  that  the  Secre- 
tary of  Agriculture  be  and  hereby  is  authorized  to  make  rules  and  regula- 
tions to  carry  out  the  purposes  of  this  paragraph,  and  that  in  such  rules 
and  regulations  the  Secretary  of  Agriculture  may  prescribe  the  terms 
and  conditions  for  the  destruction  for  food  purposes  of  all  such  meats 
ottered  for  entry  and  refused  admission  into  the  United  States  unless  the 
same  be  exported  by  the  consignee  within  the  time  fixed  therefor  in  such 
rules  and  regulations. 


SALE  AND  USE  OF  COCAINE  AND  NARCOTICS  ACT. 

Act  of  December  17,  1914. 

An  Act  to  provide  for  the  registration  of,  with  collectors  of  internal  revenue, 
and  to  impose  a  special  tax  upon  all  persons  who  produce,  import,  manu- 
facture, compound,  deal  in,  dispense,  sell,  distribute,  or  give  away  opium 
or  coca  leaves,  their  salts,  derivatives,  or  preparations,  and  for  other  pur- 
poses. 

Registration  to  Sell  Cocaine  and  Narcotics. 

Section  1.  That  on  and  after  the  1st  day  of  March,  1915,  every  per- 
son who  produces,  imports,  manufactures,  compounds,  deals  in,  dis- 
penses, sells,  distributes,  or  gives  away  opium  or  coca  leaves  or  any  com- 
pound, manufacture,  salt  derivative,  or  preparation  thereof,  shall  register 
with  the  collector  of  internal  revenue  of  the  district  his  name  or  style, 
place  of  business,  and  place  or  places  where  such  business  is  to  be  carried 
on :  Provided,  That  the  office,  or  if  none,  then  the  residence  of  any  per- 
son shall  be  considered  for  the  purpose  of  this  act  to  be  his  place  of  busi- 
ness. At  the  time  of  such  registry  and  on  or  before  the  1st  day  of  July 
annually  thereafter  every  person  who  produces,  imports,  manufactures, 
compounds,  deals  in,  dispenses,  sells,  distributes,  or  gives  away  any  of 
the  aforesaid  drugs  shall  pay  to  the  said  collector  a  special  tax  at  the  rate 
of  $1  per  annum:  Provided,  That  no  employee  of  any  person  who  pro- 
duces, imports,  manufactures,  compounds,  deals  in,  dispenses,  sells,  dis- 
tributes, or  gives  away  any  of  the  aforesaid  drugs,  acting  within  the  scope 
of  his  employment,  shall  be  required  to  register  or  to  pay  the  special  tax 
provided  by  this  section :  Provided  further.  That  the  person  who  employs 
him  shall  have  registered  and  paid  the  special  tax  as  required  by  this 
section  :  Provided  further.  That  officers  of  the  United  States  Govern- 
ment who  are  lawfully  engaged  in  making  purchases  of  the  above-named 
drugs  for  the  various  departments  of  the  Army  and  Navy,  the  Public 
Health  Service,  and  for  Government  hospitals  and  prisons,  and  officers 
of  any  State  government,  or  of  any  county  or  municipality  therein  who 


264  Important  Federal  Laws 

are  lawfully  engaged  in  making  purchases  of  the  above-named  drugs  for 
State,  county,  or  municipal  hospitals  or  prisons,  and  officials  of  any 
Territory  or  insular  possession  or  the  District  of  Columbia  or  of  the 
United  States  who  are  lawfully  engaged  in  making  purchases  of  the 
above-named  drugs  for  hospitals  or  prisons  therein  shall  not  be  required 
to  register  and  pay  the  special  tax  as  herein  required. 

It  shall  be  unlawful  for  any  person  required  to  register  under  the 
terms  of  this  act  to  produce,  import,  manufacture,  compound,  deal  in, 
dispense,  sell,  distribute,  or  give  away  any  of  the  aforesaid  drugs  with- 
out having  registered  and  paid  the  special  tax  provided  for  in  this  section. 

That  the  word  "person"  as  used  in  this  act  shall  be  construed  to 
mean  and  include  a  partnership,  association,  company,  or  corporation,  as 
well  as  a  natural  person;  and  all  provisions  of  existing  law  relating  to 
special  taxes,  so  far  as  applicable,  including  the  provisions  of  section 
thirty-two  hundred  and  forty  of  the  Revised  Statutes  of  the  United 
States,  are  hereby  extended  to  the  special  tax  herein  imposed. 

That  the  Commissioner  of  Internal  Revenue,  with  the  approval  of 
the  Secretary  of  the  Treasury,  shall  make  all  needful  rules  and  regula- 
tions for  carrying  the  provisions  of  this  act  into  effect. 

Written  Order  for  Sale — Exceptions. 

Sec.  2.  That  it  shall  be  unlawful  for  any  person  to  sell,  barter,  ex- 
change, or  give  away  any  of  the  aforesaid  drugs  except  in  pursuance  of 
a  written  order  of  the  person  to  whom  such  article  is  sold,  bartered,  ex- 
changed, or  given,  on  a  form  to  be  issued  in  blank  for  that  purpose  by 
the  Commissioner  of  Internal  Revenue.  Every  person  who  shall  accept 
any  such  order,  and  in  pursuance  thereof  shall  sell,  barter,  exchange,  or 
give  away  any  of  the  aforesaid  drugs,  shall  preserve  such  order  for  a 
period  of  two  years  in  such  a  way  as  to  be  readily  accessible  to  inspec- 
tion by  any  officer,  agent,  or  employee  of  the  Treasury  Department  duly 
authorized  for  that  purpose,  and  the  State,  Territorial,  district,  munici- 
pal, and  insular  officials  named  in  section  five  of  this  act.  Every  person 
who  shall  give  an  order  as  herein  provided  to  any  other  person  for  any 
of  the  aforesaid  drugs  shall,  at  or  before  the  time  of  giving  such  order, 
make  or  cause  to  be  made  a  duplicate  thereof  on  a  form  to  be  issued  in 
blank  for  that  purpose  by  the  Commissioner  of  Internal  Revenue,  and 
in  case  of  the  acceptance  of  sucl;  order,  shall  preserve  such  duplicate  for 
said  period  of  two  years  in  such  a  way  as  to  be  readily  accessible  to  in- 
spection by  the  officers,  agents,  employees,  and  officials  hereinbefore  men- 
tioned.    Nothing  contained  in  this  section  shall  apply — 

(a)  To  the  dispensing  or  distribution  of  any  of  the  aforesaid  drugs 
to  a  patient  by  a  physician,  dentist,  or  veterinary  surgeon  registered  under 
this  act  in  the  course  of  his  professional  practice  only :  Provided,  That 
such  physician,  dentist,  or  veterinary  surgeon  shall  keep  a  record  of  all 
such  drugs  dispensed  or  distributed,  showing  the  amount  dispensed  or 
distributed,  the  date,  and  the  name  and  address  of  the  patient  to  whom 


Imported  Meat — Cocaine  and  Narcotics  265 

such  drugs  are  dispensed  or  distributed,  except  such  as  may  be  dispensed 
or  distributed  to  a  patient  upon  whom  such  physician,  dentist,  or  veterin- 
ary surgeon  shall  personally  attend ;  and  such  record  shall  be  kept  for  a 
period  of  two  years  from  the  date  of  dispensing  or  distributing  such 
drugs,  subject  to  inspection  as  provided  in  this  act. 

(b)  To  the  sale,  dispensing,  or  distribution  of  any  of  the  aforesaid 
drugs  by  a  dealer  to  a  consumer  under  and  in  pursuance  of  a  written  pre- 
scription issued  by  a  physician,  dentist,  or  veterinary  surgeon  registered 
under  this  act :  Provided,  however.  That  such  prescription  shall  be  dated 
as  of  the  day  on  which  signed  and  shall  be  signed  by  the  physician, 
dentist,  or  veterinary  surgeon  who  shall  have  issued  the  same :  And  pro- 
vided further.  That  such  dealer  shall  preserve  such  prescription  for  a 
period  of  two  years  from  the  day  on  which  such  prescription  is  filed  in 
such  a  way  as  to  be  readily  accessible  to  inspection  by  the  officers,  agents, 
employees,  and  officials  hereinbefore  mentioned. 

(c)  To  the  sale,  exportation,  shipment,  or  delivery  of  any  of  the 
aforesaid  drugs  by  any  person  within  the  United  States  or  any  Territory 
or  the  District  of  Columbia  or  any  of  the  insular  possessions  of  the 
United  States  to  any  person  in  a  foreign  country  regulating  their  entry 
in  accordance  with  such  regulations  for  importation  thereof  into  such 
foreign  country  as  are  prescribed  by  said  country,  such  regulations  to  be 
promulgated  from  time  to  time  by  the  Secretary  of  State  of  the  United 
States. 

(d)  To  the  sale,  barter,  exchange,  or  giving  away  of  any  of  the  afore- 
said drugs  to  any  officer  of  the  United  States  Government  or  of  any 
State,  Territorial,  District,  county,  or  municipal  or  insular  government 
lawfully  engaged  in  making  purchases  thereof  for  the  various  depart- 
ments of  the  Army  and  Navy,  the  Public  Health  Service,  and  for  Gov- 
ernment, State,  Territorial,  District,  county,  or  municipal  or  insular  hos- 
pitals or  prisons. 

The  Commissioner  of  Internal  Revenue,  with  the  approval  of  the 
Secretary  of  the  Treasury,  shall  cause  suitable  forms  to  be  prepared  for 
the  purposes  above  mentioned  and  shall  cause  the  same  to  be  distributed 
to  collectors  of  internal  revenue  for  sale  by  them  to  those  persons  who 
shall  have  registered  and  paid  the  special  tax  as  required  by  section  1  of 
this  act  in  their  districts,  respectively ;  and  no  collector  shall  sell  any  of 
such  forms  to  any  persons  other  than  a  person  who  has  registered  and 
paid  the  special  tax  as  required  by  section  1  of  this  act  in  his  district. 
The  price  at  which  such  forms  shall  be  sold  by  said  collectors  shall  be 
fixed  by  the  Commissioner  of  Internal  Revenue,  with  the  approval  of  the 
Secretarv  of  the  Treasury,  but  shall  not  exceed  the  sum  of  $1  per  hun- 
dred. Every  collector  shall  keep  an  account  of  the  number  of  such  forms 
sold  bv  him,  the  names  of  the  purchasers,  and  the  number  of  such  forms 
sold  to  each  of  such  purchasers.  Whenever  any  collector  shall  sell  any  of 
such  forms  he  shall  cause  the  name  of  the  purchaser  thereof  to  be  plainly 
written  or  stamped  thereon  before  delivering  the  same ;  and  no  person 


266  Important  Federal  Laws 

other  than  such  purchaser  shall  use  any  of  said  forms  bearing-  the  name 
of  such  purchaser  for  the  purpose  of  procuring  any  of  the  aforesaid 
drugs  or  furnish  any  of  the  forms  bearing  the  name  of  such  purchaser 
to  any  person  with  intent  thereby  to  procure  the  shipment  or  delivery  of 
any  of  the  aforesaid  drugs.  It  shall  be  unlawful  for  any  person  to  obtain 
by  means  of  said  order  forms  any  of  the  aforesaid  drugs  for  any  purpose 
other  than  the  use,  sale,  or  distribution  thereof  by  him  in  the  conduct  of 
a  lawful  business  in  said  drugs  or  in  the  legitimate  practice  of  his  pro- 
fession. 

The  provisions  of  this  act  shall  apply  to  the  United  States,  the  Dis- 
trict of  Columbia,  the  Territory  of  Alaska,  the  Territory  of  Hawaii,  the 
insular  possessions  of  the  United  States,  and  the  Canal  Zone.  In  Porto 
Rico  and  the  Philippine  Islands  the  administration  of  this  act,  the  collec- 
tion of  the  said  special  tax,  and  the  issuance  of  the  order  forms  specified 
in  section  2  shall  be  performed  by  the  appropriate  internal-revenue  offi- 
cers of  those  governments  ;  and  all  revenues  collected  hereunder  in  Porto 
Rico  and  the  Philippine  Islands  shall  accrue  intact  to  the  general  gov- 
ernments thereof,  respectively.  The  courts  of  first  instance  in  the  Phil- 
ippine Islands  shall  possess  and  exercise  jurisdiction  in  all  cases  arising 
under  this  act  in  said  islands.  The  President  is  authorized  and  directed 
to  issue  such  Executive  orders  as  will  carry  into  effect  in  the  Canal  Zone 
the  intent  and  purpose  of  this  act  by  providing  for  the  registration  and 
the  imposition  of  a  special  tax  upon  all  persons  in  the  Canal  Zone  who 
produce,  import,  compound,  deal  in,  dispense,  sell,  distribute,  or  give 
away  opium  or  coca  leaves,  their  salts,  derivatives,  or  preparations. 

Reports  May  Be  Required. 

Sec.  3.  That  any  person  who  shall  be  registered  in  any  internal- 
revenue  district  under  the  provisions  of  section  1  of  this  act  shall,  when- 
ever required  so  to  do  by  the  collector  of  the  district,  render  to  the  said 
collector  a  true  and  correct  statement  or  return,  verified  by  affidavit,  set- 
ting forth  the  quantity  of  the  aforesaid  drugs  received  by  him  in  said 
internal-revenue  district  during  such  period  immediately  preceding  the 
demand  of  the  collector,  not  exceeding  three  months,  as  the  said  collector 
may  fix  and  determine;  the  names  of  the  persons  from  whom  the  said 
drugs  were  received ;  the  quantity  in  each  instance  received  from  each  of 
such  persons ;  and  the  date  when  received. 

Unlaw^ful  for  Other  Than  Licensed  Dealers  to  Send  Cocaine,  Etc. 

Sec.  4.  That  it  shall  be  unlawful  for  any  person  who  shall  not  have 
registered  and  paid  the  special  tax  as  required  by  section  1  of  this  act 
to  send,  ship,  carry,  or  deliver  any  of  the  aforesaid  drugs  from  any  State 
or  Territory  or  the  District  of  Columbia,  or  any  insular  possession  of  the 
United  States,  to  any  person  in  any  other  State  or  Territory  or  the  Dis- 
trict of  Columbia  or  any  insular  possession  of  the  United  States :  Pro- 
vided, That  nothing  contained  in  this  section  shall  apply  to  common  car- 
riers engaged  in  transporting  the  aforesaid  drugs,  or  to  any  employee 


Cocaine  and  Narcotics  267 

acting  within  the  scope  of  his  employment,  of  any  person  who  shall  have 
registered  and  paid  the  special  tax  as  required  by  section  1  of  this  act, 
or  to  any  person  who  shall  deliver  any  such  drug  which  has  been  pre- 
scribed or  dispensed  by  a  physician,  dentist,  or  veterinarian,  required  to 
register  under  the  terms  of  this  act  who  has  been  employed  to  prescribe 
for  the  particular  patient  receiving  such  drug,  or  to  any  United  States, 
State,  county,  municipal.  District.  Territorial,  or  insular  officer  or  official 
acting  within  the  scope  of  his  official  duties. 

Orders  Open  to  Inspection. 

Sec.  5.  That  the  duplicate-order  forms  and  the  prescriptions  re- 
quired to  be  preserved  under  the  provisions  of  section  2  of  this  act,  and 
the  statements  or  returns  filed  in  the  office  of  the  collector  of  the  district, 
under  the  provisions  of  section  3  of  this  act,  shall  be  open  to  inspection  by 
officers,  agents,  and  employees  of  the  Treasury  Department  duly  author- 
ized for  that  purpose :  and  such  officials  of  any  State  or  Territory,  or  of 
any  organized  municipality  therein,  or  of  the  District  of  Columbia,  or 
any  insular  possession  of  the  United  States,  as  shall  be  charged  with  the 
enforcement  of  any  law  or  municipal  ordinance  regulating  the  sale,  pre- 
scribing, dispensing,  dealing  in,  or  distribution  of  the  aforesaid  drugs. 
Each  collector  of  internal  revenue  is  hereby  authorized  to  furnish,  upon 
written  request,  certified  copies  of  any  of  the  said  statements  or  returns 
filed  in  his  office  to  any  of  such  officials  of  any  State  or  Territory  or 
organized  municipality  therein,  or  the  District  of  Columbia,  or  any  insular 
possession  of  the  United  States,  as  shall  be  entitled  to  inspect  the  said 
statements  or  returns  filed  in  the  office  of  the  said  collector,  upon  the  pay- 
ment of  a  fee  of  $1  for  each  one  hundred  words  or  fraction  thereof  in 
the  copy  or  copies  so  requested.  Any  person  who  shall  disclose  the  infor- 
mation contained  in  the  said  statements  or  returns,  or  in  the  said  dupli- 
cate-order forms,  except  as  herein  expressly  provided,  and  except  for 
the  purpose  of  enforcing  the  provisions  of  this  act,  or  for  the  purpose  of 
enforcing  any  law  of  any  State  or  Territory,  or  the  District  of  Columbia, 
or  any  insular  possession  of  the  United  States,  or  ordinance  of  any  organ- 
ized municipality  therein,  regulating  the  sale,  prescribing,  dispensing, 
dealing  in,  or  distribution  of  the  aforesaid  drugs,  shall,  on  conviction,  be 
fined  or  imprisoned  as  provided  by  section  9  of  this  act.  Any  collectors 
of  internal  revenue  are  hereby  authorized  to  furnish  upon  written  re- 
quest, to  any  person,  a  certified  copy  of  the  names  of  any  or  all  persons 
who  may  be  listed  in  their  respective  collection  districts  as  special  tax- 
payers under  the  provisions  of  this  act,  upon  payment  of  a  fee  of  $1  for 
each  one  hundred  names  or  fraction  thereof  in  the  copy  so  requested. 

Not  to  Apply  to  Compounds  Having  Small  Part  of  Cocaine. 

Sec.  6.  That  the  provisions  of  this  act  shall  not  be  construed  to 
apply  to  the  sale,  distribution,  giving  away,  dispensing,  or  possession  of 
preparations  and  remedies  which  do  not  contain  more  than  two  grains  of 
opium,  or  more  than  one-fourth  of  a  grain  of  morphine,  or  more  than 


268  Important  Federal  Laws 

one-eighth  of  a  grain  of  heroin,  or  more  than  one  grain  of  codeine,  or 
any  salt  or  derivative  of  any  of  them  in  one  fluid  ounce  or  if  a  soUd  or 
semisolid  preparation,  in  one  avoirdupois  ounce ;  or  to  liniments,  oint- 
ments, or  other  preparations  which  are  prepared  for  external  use  only, 
except  liniments,  ointments,  and  other  preparations  which  contain  cocaine 
or  any  of  its  salts  or  alpha  or  beta  eucaine  or  any  of  their  salts  or 
any  synthetic  substitute  for  them:  Provided,  That  such  remedies  and 
preparations  are  sold,  distributed,  given  away,  dispensed  or  possessed  as 
medicines  and  not  for  the  purpose  of  evading  the  intentions  and  provi- 
sions of  this  act.  The  provisions  of  this  act  shall  not  apply  to  decocan- 
ized  coca  leaves  or  preparations  made  therefrom,  or  to  other  preparations 
of  coca  leaves  which  do  not  contain  cocaine. 

Other  Acts  Applicable. 

Sec.  7.  That  all  laws  relating  to  the  assessment,  collection,  remis- 
sion, and  refund  of  internal-revenue  taxes,  including  section  3229  of  the 
Revised  Statutes  of  the  United  States,  so  far  as  applicable  to  and  not  in- 
consistent with  the  provisions  of  this  act,  are  hereby  extended  and  made 
applicable  to  the  special  taxes  imposed  by  this  act. 

Possession  Unlawful. 

Sec.  8.  That  it  shall  be  unlawful  for  any  person  not  registered 
under  the  provisions  of  this  act,  and  who  has  not  paid  the  special  tax  pro- 
vided for  by  this  act.  to  have  in  his  possession  or  under  his  control  any 
of  the  aforesaid  drugs ;  and  such  possession  or  control  shall  be  presump- 
tive evidence  of  a  violation  of  this  section,  and  also  a  violation  of  the 
provisions  of  section  1  of  this  act:  Provided,  That  this  section  shall  not 
apply  to  any  employee  of  a  registered  person,  or  to  a  nurse  under  the 
supervision  of  a  physician,  dentist,  or  veterinary  surgeon  registered  under 
this  act,  having  such  possession  or  control  by  virtue  of  his  employment 
or  occupation,  and  not  on  his  own  account ;  or  to  the  possession  of  any  of 
the  aforesaid  drugs  which  has  or  have  been  prescribed  in  good  faith  by 
a  physician,  dentist,  or  veterinary  surgeon  registered  under  this  act ;  or 
to  any  United  States,  State,  county,  municipal,  District,  Territorial,  or 
insular  officer  or  official  who  has  possession  of  any  said  drugs  by  reason 
of  his  official  duties ;  or  to  a  warehouseman  holding  possession  for  a 
person  registered  and  who  has  paid  the  taxes  under  this  act ;  or  to  com- 
mon carriers  engaged  in  transporting  such  drugs :  Provided  further.  That 
it  shall  not  be  necessary  to  negative  any  of  the  aforesaid  exemptions  in 
any  complaint,  information,  indictment,  or  other  writ  or  proceeding  laid 
or  brought  under  this  act ;  and  the  burden  of  proof  of  any  such  exemp- 
tion shall  be  upon  the  defendant. 

Penalty. 

Sec.  9.  That  any  person  who  violates  or  fails  to  comply  with  any 
of  the  requirements  of  this  act  shall,  on  conviction,  be  fined  not  more  than 
$2,000  or  be  imprisoned  not  more  than  five  years,  or  both,  in  the  discre- 
tion of  the  court. 


Opium  Acts  269 

Assistants. 

Sec.  10.  That  the  Commissioner  of  Internal  Revenue,  with  the  ap- 
proval of  the  Secretary  of  the  Treasury,  is  authorized  to  appoint  such 
agents,  deputy  collectors,  inspectors,  chemists,  assistant  chemists,  clerks, 
and  messengers  in  the  field  and  in  the  Bureau  of  Internal  Revenue  in 
the  District  of  Columbia  as  may  be  necessary  to  enforce  the  provisions  of 
this  act. 
Appropriation. 

Sec.  11.     That  the  sum  of  $150,000,  or  so  much  thereof  as  may  be 
necessary,  be,  and  hereby  is,  appropriated,   out  of  any  moneys  in  the 
Treasury  not  otherwise  appropriated,  for  the  purpose  of  carrying  into 
efi:'ect  the  provisions  of  this  act. 
Not  to  Repeal  Pure  Food  and  Drug  Act. 

Sec.  12.  That  nothing  contained  in  this  act  shall  be  construed  to 
impair,  alter,  amend,  or  repeal  any  of  the  provisions  of  the  act  of  Con- 
gress approved  June  30.  1906,  entitled  "An  act  for  preventing  the  manu- 
facture, sale  or  transportation  of  adulterated  or  misbranded,  or  poison- 
ous, or  deleterious  foods,  drugs,  medicines,  and  liquors,  and  for  regulat- 
ing traffic  therein,  and  for  other  purposes,"  and  any  amendment  thereof, 
or  of  the  act  approved  February  9,  1909,  entitled  "xA.n  act  to  prohibit  the 
importation  and  use  of  opium  for  other  than  medicinal  purposes,"  and 
any  amendment  thereof. 


OPIUM  ACT. 

Act  of  January  17,  1914. 
"An  Act  to  prohibit  the  importation  and  use  of  opium  for  other  than  medicinal 
purposes,"  approved  February  9,  1909,  is  hereby  amended  so  as  to  read 
as  follows: 

Opium  Not  to  be  Imported. 

Sec.  1.  That  after  the  1st  day  of  April,  1909,  it  shall  be  unlaw- 
ful to  import  into  the  United  States  opium  in  any  form  or  any  preparation 
or  derivative  thereof  :  Provided,  That  opium  and  preparations  and  deriva- 
tives thereof,  other  than  smoking  opium  or  opium  prepared  for  smoking, 
may  be  imported  for  medicinal  purposes  only,  under  regulations  which 
the  Secretary  of  the  Treasury  is  hereby  authorized  to  prescribe,  and 
when  so  imported  shall  be  subject  to  the  duties  which  are  now  or  may 
hereafter  be  imposed  by  law. 

Penalty. 

Sec.  2.  That  if  any  person  shall  fraudulently  or  knowingly  import 
or  bring  into  the  United  States,  or  assist  in  so  doing,  any  opium  or  any 
preparation  or  derivative  thereof  contrary  to  law,  or  shall  receive,  con- 
ceal, buy,  sell,  or  in  any  manner  facilitate  the  transportation,  conceal- 
ment, or  sale  of  such  opium  or  preparation  or  derivative  thereof  after 
importation,  knowing  the  same  to  have  been  imported  contrary  to  law, 
such  opium  or  preparation  or  derivative  thereof  shall  be  forfeited  and 


270  Important  Federal  Laws 

shall  be  destroyed,  and  the  offender  shall  be  fined  in  any  sum  not  exceed- 
ing $5,000  nor  less  than  $50  or  by  imprisonment  for  any  time  not  exceed- 
ing two  years,  or  both.  Whenever,  on  trial  for  a  violation  of  this  section, 
the  defendant  is  shown  to  have,  or  to  have  had,  possession  of  such  opium 
or  preparation  or  derivative  thereof,  such  possession  shall  be  deemed 
sufficient  evidence  to  authorize  conviction  unless  the  defendant  shall  ex- 
plain the  possession  to  the  satisfaction  of  the  jury. 

Opium  Found  Presumed  to  be  Imported. 

Sec.  3.  That  on  and  after  July  1,  1913,  all  smoking  opium  or  opium 
prepared  for  smoking  found  within  the  United  States  shall  be  presumed 
to  have  been  imported  after  the  1st  day  of  April,  1909,  and  the  burden  of 
proof  shall  be  on  the  claimant  or  the  accused  to  rebut  such  presumption. 

Penalty  for  Carriers. 

Sec.  4.  That  any  person  subject  to  the  jurisdiction  of  the  United 
States  who  shall,  either  as  principal  or  as  accessory,  receive  or  have  in 
his  possession,  or  conceal  on  board  of  or  transport  on  any  foreign  or  do- 
mestic vessel  or  other  water  craft  or  railroad  car  or  other  vehicle  des- 
tined to  or  bound  from  the  United  States  or  any  possession  thereof,  any 
smoking  opium  or  opium  prepared  for  smoking,  or  who,  having  knowl- 
edge of  the  presence  in  or  on  any  such  vessel,  water  craft,  or  vehicle  of 
such  article,  shall  not  report  the  same  to  the  principal  officer  thereof, 
shall  be  subject  to  the  penalty  provided  in  section  2  of  this  act.  When- 
ever on  trial  for  violation  of  this  section  the  defendant  is  shown  to  have 
or  to  have  had  possession  of  such  opium,  such  possession  shall  be  deemed 
sufficient  evidence  to  authorize  conviction,  unless  the  defendant  shall  ex- 
plain the  possession  to  the  satisfaction  of  the  jury:  Provided,  however, 
That  any  master  of  a  vessel  or  other  water  craft,  or  person  in  charge  of 
a  railroad  car  or  other  vehicle,  shall  not  be  liable  under  this  section  if 
he  shall  satisfy  the  jury  that  he  had  no  knowledge  and  used  due  diligence 
to  prevent  the  presence  of  such  article  in  or  on  such  vessel,  water  craft, 
or  car,  or  other  vessel,  and  any  such  article  shall  be  forfeited  and  shall 
be  destroyed. 

Opium  Not  to  be  Transported  Through  United  States. 

Sec.  5.  That  no  smoking  opium  or  opium  prepared  for  smoking 
shall  be  admitted  into  the  United  States,  or  into  any  territory  under  the 
control  or  jurisdiction  thereof,  for  transportation  to  another  country,  nor 
shall  such  opium  be  transferred  or  transshipped  from  one  vessel  to  an- 
other vessel  within  any  waters  of  the  United  States  for  immediate  expor- 
tation or  any  other  purpose. 

Unlawful  to  Export. 

Sec.  6.  That  hereafter  it  shall  be  unlawful  for  any  person  subject 
to  the  jurisdiction  of  the  United  States  to  export,  or  cause  to  be  exported 
from  the  United  States,  or  from  territory  under  its  control  or  jurisdic- 
tion, or  from  countries  in  which  the  United  States  exercises  extraterri- 
torial jurisdiction,  any  opium  or  cocaine,  or  any  salt  derivative,  or  prepa- 


Opium  Acts  271 

ration  of  opium  or  cocaine,  to  any  other  country :  Provided,  That  opium 
or  cocaine,  and  salts,  derivatives,  or  preparations  thereof,  except  smoking 
opium  or  opium  prepared  for  smoking,  the  exportation  of  which  is  here- 
by absolutely  prohibited,  may  be  exported  to  countries  regulating  their 
entry  under  such  regulations  as  are  prescribed  by  such  country  for  the 
importation  thereof  into  such  country,  such  regulations  to  be  promul- 
gated from  time  to  time  by  the  Secretary  of  State  of  the  United  States. 

The  Secretary  of  State  shall  request  all  foreign  Governments  to 
communicate  through  the  diplomatic  channels  copies  of  laws  and  regula- 
tions promulgated  in  their  respective  countries  which  prohibit  or  regulate 
the  importation  of  the  aforesaid  drugs,  and  when  received  advise  the 
Secretary  of  the  Treasury  and  the  Secretary  of  Commerce  thereof; 
whereupon  the  Secretary  of  State,  the  Secretary  of  the  Treasury  and  the 
Secretary  of  Commerce  shall  make  and  publish  all  proper  regulations  for 
carrying  the  provisions  of  this  section  into  efifect. 

Penalty. 

Sec.  7.  That  any  person  who  exports  or  causes  to  be  exported  any 
of  the  aforesaid  drugs  in  violation  of  the  preceding  section  shall  be  fined 
in  any  sum  not  exceeding  $5,000  nor  less  than  $50,  or  by  imprisonment 
for  any  time  not  exceeding  two  years,  or  both.  And  one-half  of  any  fine 
recovered  from  any  person  or  persons  convicted  of  an  oft'ense  under  any 
section  of  this  act  may  be  paid  to  the  person  or  persons  giving  informa- 
tion leading  to  such  recovery,  and  one-half  of  any  bail  forfeited  and  col- 
lected in  any  proceedings  brought  under  this  act  may  be  paid  to  the  per- 
son or  persons  giving  the  information  which  led  to  the  institution  of  such 
proceedings,  if  so  directed  by  the  court  exercising  jurisdiction  in  the  case: 
Provided,  That  no  payment  for  giving  information  shall  be  made  to  any 
officer  or  employee  of  the  United  States. 

Sec.  8.  That  whenever  opium  or  cocaine,  or  any  preparations  or 
derivatives  thereof,  shall  be  found  upon  any  vessel  arriving  at  any  port 
of  the  United  States  which  is  not  shown  upon  the  vessel's  manifest,  as  is 
provided  by  sections  2806  and  2807  of  the  Revised  Statutes,  such  vessel 
shall  be  liable  for  the  penalty  and  forfeiture  prescribed  in  section  2809  of 
the  Revised  Statutes. 


MANUFACTURE  OF  OPIUM. 

Act  of  January  17,  1914. 

An  Act  regulating  the  manufacture  of  smoking  opium  within  the  United  States, 
and  for  other  purposes. 

Tax  and  Bond. 

Sec.  1.  That  an  internal-revenue  tax  of  $300  per  pound  shall 
be  levied  and  collected  upon  all  opium  manufactured  in  the  United  States 
for  smoking  purposes ;  and  no  person  shall  engage  in  such  manufacture 
who  is  not  a  citizen  of  the  United  States  and  who  has  not  given  the  bond 
required  by  the  Commissioner  of  Internal  Revenue.     Every  person  who 


272  Important  Federal  Laws 

prepares  opium  suitable  for  smoking  purposes  from  crude  gum  opium, 
or  from  any  preparation  thereof,  or  from  the  residue  of  smoked  or  par- 
tially smoked  opium,  commonly  known  as  yen  shee,  or  from  any  mixture 
of  the  above,  or  any  of  them,  shall  be  regarded  as  a  manufacturer  of 
smoking  opium  within  the  meaning  of  this  act. 

Reports,  Inventories,  Etc.,  to  be  Filed. 

Sec.  2.  That  every  manufacturer  of  such  opium  shall  file  with  the 
collector  of  internal  revenue  of  the  district  in  which  his  manufactory  is 
located  such  notices,  inventories,  and  bonds,  shall  keep  such  books  and 
render  such  returns  of  material  and  products,  shall  put  up  such  signs  and 
affix  such  number  to  his  factory,  and  conduct  his  business  under  such 
surveillance  of  officers  and  agents  as  the  Commissioner  of  Internal  Rev- 
enue, with  the  approval  of  the  Secretary  of  the  Treasury,  may  by  regula- 
tion require.  But  the  bond  required  of  such  manufacturer  shall  be  with 
sureties  satisfactory  to  the  collector  of  internal  revenue  and  in  a  penal 
sum  of  not  less  than  $100,000;  and  the  sum  of  said  bond  may  be  in- 
creased from  time  to  time  and  additional  sureties  required,  at  the  discre- 
tion of  the  collector  or  under  instructions  of  the  Commissioner  of  In- 
ternal Revenue. 

Stamp. 

Sec.  3.  That  all  opium  prepared  for  smoking  manufactured  in  the 
United  States  shall  be  duly  stamped  in  such  permanent  manner  as  to 
denote  the  payment  of  the  internal-revenue  tax  thereon. 

Engraving,  Etc. 

Sec.  4.  That  the  provisions  of  existing  laws  covering  the  engrav- 
ing, issue,  sale,  accountability,  eftacement,  cancellation,  and  the  destruc- 
tion of  stamps  relating  to  tobacco  and  snufif,  as  far  as  applicable,  are 
hereby  made  to  apply  to  stamps  provided  for  by  the  preceding  section. 

Penalty. 

Sec.  5.  That  a  penalty  of  not  less  than  $10,000  or  imprisonment  for 
not  less  than  five  years,  or  both,  in  the  discretion  of  the  court,  shall  be 
imposed  for  each  and  every  violation  of  the  preceding  sections  of  this  act 
relating  to  opium  by  any  person  or  persons ;  and  all  opium  prepared  for 
smoking  wherever  found  within  the  United  States  without  the  stamps 
required  by  this  act  shall  be  forfeited  and  destroyed. 

Repeal. 

Sec.  6.  The  provision  of  the  act  of  October  1,  1890  (26  Stat.,  p. 
1567),  in  so  far  as  they  relate  to  the  manufacture  of  smoking  opium,  are 
hereby  repealed. 


LABOR. 


MEDIATION  AND  ARBITRATION  LAW. 

Act  of  July  15,  1913. 

An  Act  relating  to  mediation  and  arbitration  of  disputes  of  certain  employees  on 
railroads. 

Scope  of  Law — Definitions. 

Sec.  1.  The  provisions  of  this  act  shall  apply  to  any  common  car- 
rier or  carriers  and  their  officers,  agents  and  employees,  except  masters 
of  vessels  and  seamen,  as  defined  in  section  forty-six  hundred  and  twelve. 
Revised  Statutes  of  the  United  States,  engaged  in  the  transportation  of 
passengers  or  property  wholly  by  railroad,  or  partly  by  railroad  and 
partly  by  water,  for  a  continuous  carriage  or  shipment  from  one  State 
or  Territory  of  the  United  States  or  the  District  of  Columbia  to  any 
other  State  or  Territory  of  the  United  States  or  the  District  of  Columbia, 
or  from  any  place  in  the  United  States  to  an  adjacent  foreign  country,  or 
from  any  place  in  the  United  States  through  a  foreign  country  to  any 
other  place  in  the  United  States. 

The  term  "railroad"  as  used  in  this  act  shall  include  all  bridges  and 
ferries  used  or  operated  in  connection  with  any  railroad,  and  also  all  the 
road  in  use  by  any  corporation  operating  a  railroad,  whether  owned  or 
operated  under  a  contract,  agreement,  or  lease;  and  the  term  "trans- 
portation" shall  include  all  instrumentalities  of  shipment  or  carriage. 

The  term  "employees"  as  used  in  this  act  shall  include  all  persons 
actually  engaged  in  any  capacity  in  train  operation  or  train  service  of 
any  description,  and  notwithstanding  that  the  cars  upon  or  in  which  they 
are  employed  may  be  held  and  operated  by  the  carrier  under  lease  or 
other  contract :  Provided,  however.  That  this  act  shall  not  be  held  to 
apply  to  employees  of  street  railroads  and  shall  apply  only  to  employees 
engaged  in  railroad  train  service.  In  every  such  case  the  carrier  shall 
be  responsible  for  the  acts  and  defaults  of  such  employees  in  the  same 
manner  and  to  the  same  extent  as  if  said  cars  were  owned  by  it  and  said 
employees  directly  employed  by  it,  and  any  provisions  to  the  contrary  of 
any  such  lease  or  other  contract  shall  be  binding  only  as  between  the 
parties  thereto  and  shall  not  afifect  the  obligations  of  said  carrier  either 
to  the  public  or  to  the  private  parties  concerned. 

A  common  carrier  subject  to  the  provisions  of  this   act  is  herein- 
after referred  to  as  an  "employer,"  and  the  employees  of  one  or  more  of 
such  carriers  are  hereinafter  referred  to  as  "employees." 
Applications  to  Board. 

Sec.  2.  Whenever  a  controversy  concerning  wages,  hours  of  labor, 
or  conditions  of  employment  shall  arise  between  an  employer  or  employ- 

(18) 


274  Important  Federal  Laws 

ers  and  employees  subject  to  this  act  interrupting  or  threatening  to  inter- 
rupt the  business  of  said  employer  or  employers  to  the  serious  detriment  of 
the  public  interest,  either  party  to  such  controversy  may  apply  to  the  Board 
of  Mediation  and  Conciliation  created  by  this  act  and  invoke  its  services 
for  the  purpose  of  bringing  about  an  amicable  adjustment  of  the  con- 
troversy; and  upon  the  request  of  either  party  the  said  board  shall  with 
all  practicable  expedition  put  itself  in  communication  with  the  parties 
to  such  controversy  and  shall  use  its  best  efforts,  by  mediation  and  con- 
ciliation, to  bring  them  to  an  agreement ;  and  if  such  efforts  to  bring 
about  an  amicable  adjustment  through  mediation  and  conciliation  shall  be 
unsuccessful,  the  said  board  shall  at  once  endeavor  to  induce  the  parties 
to  submit  their  controversy  to  arbitration  in  accordance  with  the  pro- 
visions of  this  act. 

In  any  case  in  which  an  interruption  of  traffic  is  imminent  and 
fraught  with  serious  detriment  to  the  public  interest,  the  Board  of  Media- 
tion and  Conciliation  may,  if  in  its  judgment  such  action  seem  desirable, 
proffer  its  services  to  the  respective  parties  to  the  controversy. 

In  any  case  in  which  a  controversy  arises  over  the  meaning  or  the 
application  of  any  agreement  reached  through  mediation  under  the  provi- 
sions of  this  act  either  party  to  the  said  agreement  may  apply  to  the 
Board  of  Mediation  and  Conciliation  for  an  expression  of  opinion  from 
such  board  as  to  the  meaning  or  application  of  such  agreement  and  the 
said  board  shall  upon  receipt  of  such  request  give  its  opinion  as  soon  as 
may  be  practicable. 

Boards  of  Arbitration. 

Sec.  3.  Whenever  a  controversy  shall  arise  between  an  employer  or 
employers  and  employees  subject  to  this  act,  which  can  not  be  settled 
through  mediation  and  conciliation  in  the  manner  provided  in  the  pre- 
ceding section,  such  controversy  may  be  submitted  to  the  arbitration  of 
a  board  of  six,  or,  if  the  parties  to  the  controversy  prefer  so  to  stipu- 
late, to  a  board  of  three  persons,  which  board  shall  be  chosen  in  the  fol- 
lowing manner:  In  the  case  of  a  board  of  three,  the  employer  or  em- 
ployers and  the  employees,  parties  respectively  to  the  agreement  to  arbi- 
trate, shall  each  name  one  arbitrator ;  and  the  two  arbitrators  thus  chosen 
shall  select  the  third  arbitrator;  but  in  the  event  of  their  failure  to  name 
the  third  arbitrator  within  five  days  after  their  first  meeting,  such  third 
arbitrator  shall  be  named  by  the  Board  of  Mediation  and  Conciliation. 
In  the  case  of  a  board  of  six.  the  employer  or  employers  and  the  em- 
ployees, parties  respectively  to  the  agreement  to  arbitrate,  shall  each 
name  two  arbitrators,  and  the  four  arbitrators  thus  chosen  shall,  by  a 
majority  vote,  select  the  remaining  two  arbitrators ;  but  in  the  event  of 
their  failure  to  name  the  two  arbitrators  within  fifteen  days  after  their 
first  meeting  the  said  two  arbitrators,  or  as  many  of  them  as  have  not 
been  named,  shall  be  named  by  the  Board  of  Mediation  and  Conciliation. 

In  the  event  that  the  employees  engaged  in  any  given  controversy 


Mediation  and  Arbitration  275 

are  not  members  of  a  labor  organization,  such  employees  may  select  a 
committee  which  shall  have  the  right  to  name  the  arbitrator,  or  the  arbi- 
trators, who  are  to  be  named  by  the  employees  as  provided  above  in  this 
section. 

Agreements  to  Arbitrate. 

Sec.  4.     The  agreement  to  arbitrate — 

First.     Shall  be  in  writing; 

Second.  Shall  stipulate  that  the  arbitration  is  had  under  the  pro- 
visions of  this  act ; 

Third.  Shall  state  whether  the  board  of  arbitration  is  to  consist  of 
three  or  six  members ; 

Fourth.  Shall  be  signed  by  duly  accredited  representatives  of  the 
employer  or  employers  and  of  the  employees ; 

Fifth.  Shall  state  specifically  the  questions  to  be  submitted  to  the 
said  board  for  decision ; 

Sixth.  Shall  stipulate  that  a  majority  of  said  board  shall  be  com- 
petent to  make  a  valid  and  binding  award ; 

Seventh.  Shall  fix  a  period  from  the  date  of  the  appointment  of 
the  arbitrator  or  arbitrators  necessary  to  complete  the  board,  as  provided 
for  in  the  agreement,  within  which  the  said  board  shall  commence  its 
hearings ; 

Eighth.  Shall  fix  a  period  from  the  beginning  of  the  hearings 
wMthin  wdiich  the  said  board  shall  make  and  file  its  award :  Provided, 
That  this  period  shall  be  thirty  days  unless  a  different  period  be  agreed 
to; 

Ninth.  Shall  provide  for  the  date  from  which  the  award  shall  be- 
come effective  and  shall  fix  the  period  during  which  the  said  award  shall 
continue  in  force ; 

Tenth.  Shall  provide  that  the  respective  parties  to  the  award  will 
each  faithfully  execute  the  same ; 

Eleventh.  Shall  provide  that  the  award  and  the  papers  and  pro- 
ceedings, including  the  testimony  relating  thereto,  certified  under  the 
hands  of  the  arbitrators,  and  which  shall  have  the  force  and  effect  of  a 
bill  of  exceptions,  shall  be  filed  in  the  clerk's  office  of  the  district  court 
of  the  United  States  for  the  district  wherein  the  controversy  arises  or 
the  arbitration  is  entered  into,  and  shall  be  final  and  conclusive  upon 
the  parties  to  the  agreement  unless  set  aside  for  error  of  law  apparent  on 
the  record ; 

Twelfth.  May  also  provide  that  any  difference  arising  as  to  the 
meaning  or  the  application  of  the  provisions  of  an  award  made  by  a 
board  of  arbitration  shall  be  referred  back  to  the  same  board  or  to  a  sub- 
committee of  such  board  for  a  ruling,  which  ruling  shall  have  the  same 
force  and  effect  as  the  original  award ;  and  if  any  member  of  the  original 
board  is  unable  or  unwilling  to  serve  another  arbitrator  shall  be  named 
in  the  same  manner  as  such  original  member  was  named. 


276  Important  Federal  Laws 

Powers  of  Arbitrators. 

Sec.  5.  For  the  purposes  of  this  act  the  arbitrators  herein  provided 
for,  or  either  of  them,  shall  have  power  to  administer  oaths  and  afifirma- 
tions,  sign  subpoenas,  require  the  attendance  and  testimony  of  witnesses, 
and  the  production  of  such  books,  papers,  contracts,  agreements  and  docu- 
ments material  to  a  just  determination  of  the  matters  under  investigation 
as  may  be  ordered  by  the  court;  and  may  invoke  the  aid  of  the  United 
States  courts  to  compel  witnesses  to  attend  and  testify  and  to  produce 
such  books,  papers,  contracts,  agreements  and  documents  to  the  same 
extent  and  under  the  same  conditions  and  penalties  as  is  provided  for 
in  the  act  to  regulate  comm.erce,  approved  February  fourth,  eighteen 
hundred  and  eighty-seven,  and  the  amendments  thereto. 

Agreements  to  be  Acknowledged. 

Sec.  6.  Everv  agreement  of  arbitration  under  this  act  shall  be 
acknowledged  by  the  parties  thereto  before  a  notary  public  or  a  clerk  of 
the  district  or  the  circuit  court  of  appeals  of  the  United  States,  or  before 
a  member  of  the  Board  of  Mediation  and  Conciliation,  the  members  of 
which  are  hereby  authorized  to  take  such  acknowledgments ;  and  when 
so  acknowledged  shall  be  delivered  to  a  member  of  said  board  or  trans- 
mitted to  said  board  to  be  filed  in  its  office. 

When  such  agreement  of  arbitration  has  been  filed  with  the  said  board, 
or  one  of  its  members,  and  when  the  said  board,  or  a  member  thereof, 
has  been  furnished  the  names  of  the  arbitrators  chosen  by  the  respective 
parties  to  the  controversy,  the  board,  or  a  member  thereof,  shall  cause  a 
notice  in  writing  to  be  served  upon  the  said  arbitrators,  notifying  them 
of  their  appointment,  requesting  them  to  meet  promptly  to  name  the 
remaining  arbitrator  or  arbitrators  necessary  to  complete  the  board,  and 
advising  them  of  the  period  within  which,  as  provided  in  the  agreement 
of  arbitration,  they  are  empowered  to  name  such  arbitrator  or  arbitrators. 

When  the  arbitrators  selected  by  the  respective  parties  have  agreed 
upon  the  remaining  arbitrator  or  arbitrators,  they  shall  notify  the  Board 
of  Mediation  and  Conciliation ;  and  in  the  event  of  their  failure  to  agree 
upon  any  or  upon  all  of  the  necessary  arbitrators  within  the  period  fixed 
by  this  act  they  shall,  at  the  expiration  of  such  period,  notify  the  Board 
of  Mediation  and  Conciliation  of  the  arbitrators  selected,  if  any,  or  of 
their  failure  to  make  or  to  complete  such  selection. 

If  the  parties  to  an  arbitration  desire  the  reconvening  of  a  board  to 
pass  upon  any  controversy  arising  over  the  meaning  or  application  of 
an  award,  they  shall  jointly  so  notify  the  Board  of  Mediation  and  Con- 
ciliation, and  shall  state  in  such  written  notice  the  question  or  questions 
to  be  submitted  to  such  reconvened  board.  The  Board  of  Mediation  and 
Conciliation  shall  thereupon  promptly  communicate  with  the  members  of 
the  board  of  arbitration  or  a  subcommittee  of  such  board  appointed  for 
such  purpose  pursuant  to  the  provisions  of  the  agreement  of  arbitration, 
and  arrange  for  the  reconvening  of  said  board  or  subcommittee,  and  shall 


Mediation  and  Arbitration  277 

notify  the  respective  parties  to  the  controversy  of  the  time  and  place  at 
which  the  board  will  meet  for  hearings  upon  the  matters  in  controversy 
to  be  submitted  to  it. 

Organization. 

Sec.  7.  The  board  of  arbitration  shall  organize  and  select  its  own 
chairman  and  make  all  necessary-  rules  for  conducting  its  hearings ;  but 
in  its  award  or  awards  the  said  board  shall  conline  itself  to  findings  or 
recommendations  as  to  the  questions  specincally  submitted  to  it  or  mat- 
ters direct! V  bearing  thereon.  All  testimonv  before  said  board  shall  be 
given  under  oath  or  afhrmation,  and  any  member  of  the  board  of  arbi- 
tration shall  have  the  power  to  administer  oaths  or  afHrmations.  It  may 
employ  such  assistants  as  may  be  necessan.-  in  carr\ing  on  its  work.  It 
shall,  whenever  practicable,  be  supplied  with  suitable  quarters  in  any 
Federal  building  located  at  its  place  of  meeting  or  at  any  place  where  the 
board  may  adjourn  for  its  deUberations.  The  board  of  arbitration  shall 
furnish  a  certihed  copy  of  its  award  to  the  respective  parties  to  the  con- 
troversy, and  shall  transmit  the  original,  together  with  the  papers  and 
proceedings  and  a  transcript  of  the  testimony  taken  at  the  hearings,  certi- 
fied under  the  hands  of  the  arbitrators,  to  the  clerk  of  the  district  court 
of  the  United  States  for  the  district  wherein  the  controversy  arose  or 
the  arbitration  is  entered  into,  to  be  tiled  in  said  clerk's  office  as  provided 
in  paragraph  eleven  of  section  four  of  this  act.  And  said  board  shall 
also  furnish  a  certified  copy  of  its  award,  and  the  papers  and  proceedings, 
including  the  testimony  relating  thereto,  to  the  Board  of  Mediation  and 
ConciHation.  to  be  filed  in  its  office.  The  United  States  Commerce  Court, 
the  Interstate  Commerce  Commission  and  the  Bureau  of  Labor  Statistics 
are  hereby  authorized  to  turn  over  to  the  Board  of  Mediation  and  Con- 
ciliation upon  its  request  any  papers  and  docimients  heretofore  filed  with 
them  and  bearing  upon  mediation  or  arbitration  proceedings  held  under 
the  provisions  of  the  act  approved  Tune  first,  eighteen  hundred  and  niner>-- 
eight.  providing  for  mediation  and  arbitration. 

Award  in  Effect — Exceptions,  Appeals. 

Sec.  8.  The  award,  being  filed  in  the  clerk's  office  of  a  district  court 
of  the  United  States  as  hereinbefore  provided,  shall  go  into  practical 
operation,  and  judgment  shall  be  entered  thereon  accordinglv  at  the  ex- 
piration of  ten  days  from  such  filing,  unless  within  such  ten  davs  either 
party  shall  file  exceptions  thereto  for  matter  of  law  apparent  upon  the 
record,  in  which  case  said  award  shall  go  into  practical  operation  and 
judgment  be  entered  accordingly  when  such  exceptions  shall  have  been 
finally  disposed  of  either  by  said  district  court  or  on  appeal  therefrom. 

At  the  expiration  of  ten  days  from  the  decision  of  the  district  court 
upon  exceptions  taken  to  said  award  as  aforesaid  judgment  shall  be 
entered  in  accordance  with  said  decision,  unless  during  said  ten  days 
either  party  shall  appeal  therefrom  to  the  circuit  court  of  appeals.  In 
such  case  onl}-  such  portion  of  the  record  shall  be  transmitted  to  the 


278  Important  Federal  Laws 

appellate  court  as  is  necessary  to  the  proper  understanding  and  con- 
sideration of  the  questions  of  law  presented  by  said  exceptions  and  to 
be  decided. 

The  determination  of  said  circuit  court  of  appeals  upon  said  ques- 
tions shall  be  final,  and,  being  certified  by  the  clerk  thereof  to  said  dis- 
trict court,  judgment  pursuant  thereto  shall  thereupon  be  entered  by  said 
district  court. 

If  exceptions  to  an  award  are  finally  sustained,  judgment  shall  be 
entered  setting  aside  the  award  in  whole  or  in  part ;  but  in  such  case  the 
parties  may  agree  upon  a  judgment  to  be  entered  disposing  of  the  sub- 
ject matter  of  the  controversy,  which  judgment  when  entered  shall  have 
the  same  force  and  effect  as  judgment  entered  upon  an  award. 

Nothing  in  this  act  contained  shall  be  construed  to  require  an  em- 
ployee to  render  personal  service  without  his  consent,  and  no  injunction 
or  other  legal  process  shall  be  issued  which  shall  compel  the  performance 
by  any  employee  against  his  will  of  a  contract  for  personal  labor  or 
service. 

Receiverships. 

Sec.  9.  Whenever  receivers  appointed  by  a  Federal  court  are  in  the 
possession  and  control  of  the  business  of  employers  covered  by  this  act 
the  employees  of  such  employers  shall  have  the  right  to  be  heard  through 
their  representatives  in  such  court  upon  all  questions  affecting  the  terms 
and  conditions  of  their  employment ;  and  no  reduction  of  wages  shall  be 
made  by  such  receivers  without  the  authority  of  the  court  therefor,  after 
notice  to  such  employees,  said  notice  to  be  given  not  less  than  twenty 
days  before  the  hearing  upon  the  receivers'  petition  or  application,  and 
to  be  posted  upon  all  customary  bulletin  boards  along  or  upon  the  rail- 
way or  in  the  customary  places  on  the  premises  of  other  employers  cov- 
ered by  this  act. 

Compensation. 

Sec.  10.  Each  member  of  the  board  of  arbitration  created  under 
the  provisions  of  this  act  shall  receive  such  compensation  as  may  be  fixed 
by  the  Board  of  Mediation  and  Conciliation,  together  with  his  traveling 
and  other  necessary  expenses.  The  sum  of  $25,000,  or  so  much  thereof 
as  may  be  necessary,  is  hereby  appropriated,  to  be  immediately  available 
and  to  continue  available  until  the  close  of  the  fiscal  year  ending  June 
thirtieth,  nineteen  hundred  and  fourteen,  for  the  necessary  and  proper 
expenses  incurred  in  connection  with  any  arbitration  or  with  the  carrying 
on  of  the  work  of  mediation  and  conciliation,  including  per  diem,  travel- 
ing and  other  necessary  expenses  of  members  or  employees  of  boards  of 
arbitration  and  rent  in  the  District  of  Columbia,  furniture,  office  fixtures 
and  supplies,  books,  salaries,  traveling  expenses  and  other  necessary  ex- 
penses of  members  or  employees  of  the  Board  of  ]\Iediation  and  Con- 
ciliation, to  be  approved  by  the  chairman  of  said  board  and  audited  by  the 
proper  accounting  officers  of  the  Treasury. 


Employers'  Liability  279 

Commissioner  of  Mediation  and  Conciliation. 

Sec.  11.  There  shall  be  a  Commissioner  of  Mediation  and  Concilia- 
tion, who  shall  be  appointed  by  the  President,  by  and  with  the  advice 
and  consent  of  the  Senate,  and  whose  salary  shall  be  $7,500  per  annum, 
who  shall  hold  his  office  for  a  term  of  seven  years ;  and  until  a  successor 
qualifies,  and  who  shall  be  removable  by  the  President  only  for  miscon- 
duct in  office.  The  President  shall  also  designate  not  more  than  two 
other  officials  of  the  Government  who  have  been  appointed  by  and  with 
the  advice  and  consent  of  the  Senate,  and  the  officials  thus  designated, 
together  with  the  Commissioner  of  Mediation  and  Conciliation,  shall 
constitute  a  board  to  be  known  as  the  United  States  Board  of  Mediation 
and  Conciliation. 

There  shall  also  be  an  Assistant  Commissioner  of  Mediation  and 
Conciliation,  who  shall  be  appointed  by  the  President,  by  and  with  the 
advice  and  consent  of  the  Senate,  and  whose  salary  shall  be  $5,000  per 
annum.  In  the  absence  of  the  Commissioner  of  Mediation  and  Con- 
ciliation, or  when  that  office  shall  become  vacant,  the  assistant  commis- 
sioner shall  exercise  the  functions  and  perform  the  duties  of  that  office. 
Under  the  direction  of  the  Commissioner  of  Mediation  and  Conciliation, 
the  assistant  commissioner  shall  assist  in  the  work  of  mediation  and  con- 
ciliation and  when  acting  alone  in  any  case  he  shall  have  the  right  to 
take  acknowledgments,  receive  agreements  of  arbitration,  and  cause  the 
notices  in  writing  to  be  served  upon  the  arbitrators  chosen  by  the  re- 
spective parties  to  the  controversy,  as  provided  for  in  section  five  of  this 
act. 

The  act  of  June  first,  eighteen  hundred  and  ninety-eight,  relating  to 
the  mediation  and  arbitration  of  controversies  between  railway  companies 
and  certain  classes  of  their  employees  is  hereby  repealed :  Provided, 
That  any  agreement  of  arbitration  which,  at  the  time  of  the  passage  of 
this  act,  shall  have  been  executed  in  accordance  with  the  provisions  of 
said  act  of  June  first,  eighteen  hundred  and  ninety-eight,  shall  be  gov- 
erned by  the  provisions  of  said  act  of  June  first,  eighteen  hundred  and 
ninety-eight,  and  the  proceedings  thereunder  shall  be  conducted  in  ac- 
cordance with  the  provisions  of  said  act. 


EMPLOYERS  LIABILITY. 

Act  of  April  22,  1908. 

An  act  relating  to  the  liability  of  common  carriers  by  railroad  to  their  em- 
ployees in  certain  cases. 

Liability  of  Carriers ;  Interstate  Commerce. 

Sec.  1.  That  every  common  carrier  by  railroad  while  engaging  in 
commerce  between  any  of  the  several  States  or  Territories,  or  between 
any  of  the  States  and  Territories,  or  between  the  District  of  Columbia 
and  any  of  the  States  or  Territories,  or  between  the  District  of  Columbia 


280  Important  Federal  Laws 

or  any  of  the  States  or  Territories  and  any  foreign  nation  or  nations, 
shall  be  liable  in  damages  to  any  person  suffering  injury  while  he  is 
employed  by  such  carrier  in  such  commerce,  or,  in  case  of  the  death  of 
such  employee,  to  his  or  her  personal  representative,  for  the  benefit  of 
the  surviving  widow  or  husband  and  children  of  such  employee ;  and,  if 
none,  then  of  such  employee's  parents ;  and.  if  none,  then  of  the  next  of 
kin  dependent  upon  such  employee,  for  such  injury  or  death  resulting  in 
whole  or  in  part  from  the  negligence  of  any  of  the  officers,  agents  or 
employees  of  such  carrier,  or  by  reason  of  any  defect  or  insufficiency, 
due  to  its  negligence,  in  its  cars,  engines,  appliances,  machinery,  track, 
roadbed,  works,  boats,  wharves  or  other  equipment. 

Liability  in  District  of  Columbia  and  Territories. 

Sec.  2.  That  every  common  carrier  by  railroad  in  the  Territories, 
the  District  of  Columbia,  the  Panama  Canal  Zone,  or  other  possessions 
of  the  United  States  shall  be  liable  in  damages  to  any  person  suft'ering 
injury  while  he  is  employed  by  such  carrier  in  any  of  said  jurisdictions, 
or,  in  case  of  the  death  of  such  employee,  to  his  or  her  personal  repre- 
sentative, for  the  benefit  of  the  surviving  widow  or  husband  and  children 
of  such  employee ;  and,  if  none,  then  of  such  employee's  parents ;  and,  if 
none,  then  of  the  next  of  kin  dependent  upon  such  employee,  for  such 
injury  or  death  resulting  in  whole  or  in  part  from  the  negligence  of  any 
of  the  officers,  agents  or  employees  of  such  carrier,  or  by  reason  of  any 
defect  or  insufficiency,  due  to  its  negligence,  in  its  cars,  engines,  ap- 
pliances, machinery,  track,  roadbed,  works,  boats,  wharves  or  other  equip- 
ment. 

Contributory  Negligence  not  a  Defense. 

Sec.  3.  That  in  all  actions  hereafter  brought  against  any  such  com- 
mon carrier  by  railroad  under  or  by  virtue  of  any  of  the  provisions  of 
this  act  to  recover  damages  for  personal  injuries  to  an  employee,  or 
where  such  injuries  have  resulted  in  his  death,  the  fact  that  the  employee 
may  have  been  guilty  of  contributory  negligence  shall  not  bar  a  recovery, 
but  the  damages  shall  be  diminished  by  the  jury  in  proportion  to  the 
amount  of  negligence  attributable  to  such  employee :  Provided,  That  no 
such  employee  who  may  be  injured  or  killed  shall  be  held  to  have  been 
guilty  of  contributory  negligence  in  any  case  where  the  violation  by  such 
common  carrier  of  any  statute  enacted  for  the  safety  of  employees  con- 
tributed to  the  injur}^  or  death  of  such  employee. 

Assumption  of  Risk  not  a  Defense. 

Sec.  4.  That  in  any  action  brought  against  any  common  carrier 
under  or  by  virtue  of  any  of  the  provisions  of  this  act  to  recover  dam- 
ages for  injuries  to,  or  the  death  of,  any  of  its  employees,  sucli  employee 
shall  not  be  held  to  have  assumed  the  risks  of  his  employment  in  any  case 
where  the  violation  by  such  common  carrier  of  any  statute  enacted  for 
the  safety  of  employees  contributed  to  the  injury  or  death  of  such 
employee. 


Employers'  Liability  281 

Contracts  of  Exemption  Void. 

Sec.  5.  That  any  contract,  rule,  regulation,  or  device  whatsoever, 
the  purpose  or  intent  of  which  shall  be  to  enable  any  common  carrier 
to  exempt  itself  from  any  liability  created  by  this  act,  shall  to  that  extent 
be  void :  Provided,  That  in  any  action  brought  against  any  such  com- 
mon carrier  under  or  by  virtue  of  any  of  the  provisions  of  this  act,  such 
common  carrier  may  set  off  therein  any  sum  it  has  contributed  or  paid 
to  any  insurance,  relief  benefit,  or  indemnity  that  may  have  been  paid  to 
the  injured  employee  or  the  person  entitled  thereto  on  account  of  the 
injury  or  death  for  which  said  action  was  brought. 

Procedure. 

Sec.  6.  That  no  action  shall  be  maintained  under  this  act  unless 
commenced  within  two  years  from  the  day  the  cause  of  action  accrued. 

Under  this  act  an  action  may  be  brought  in  a  circuit  court  of  the 
United  States,  in  the  district  of  the  residence  of  the  defendant,  or  in 
which  the  cause  of  action  arose,  or  in  which  the  defendant  shall  be  doing 
business  at  the  time  of  commencing  such  action.  The  jurisdiction  of  the 
courts  of  the  United  States  under  this  act  shall  be  concurrent  with  that 
of  the  courts  of  the  several  States,  and  no  case  arising  under  this  act 
and  brought  in  any  state  court  of  competent  jurisdiction  shall  be  removed 
to  any  court  of  the  United  States. 

Definitions. 

Sec.  7.  That  the  term  "common  carrier"  as  used  in  this  act  shall 
include  the  receiver  or  receivers  or  other  persons  or  corporations  charged 
with  the  duty  of  the  management  and  operation  of  the  business  of  a  com- 
mon carrier. 

Rights  Not  Affected. 

Sec.  8.  That  nothing  in  this  act  shall  be  held  to  limit  the  duty  or 
liability  of  common  carriers  or  to  impair  the  rights  of  their  employees 
under  any  other  act  or  acts  of  Congress,  or  to  affect  the  prosecution  of 
any  pending  proceeding  or  right  of  action  under  the  act  of  Congress 
entitled  "An  act  relating  to  liability  of  common  carriers  in  the  District 
of  Columbia  and  Territories,  and  to  common  carriers  engaged  in  com- 
merce between  the  States  and  between  the  States  and  foreign  nations  to 
their  employees,"  approved  June  eleventh,  nineteen  hundred  and  six. 

Right  of  Action  Survives. 

Sec.  9.  That  any  right  of  action  given  by  this  act  to  a  person 
suffering  injury  shall  survive  to  his  or  her  personal  representative,  for 
the  benefit  of  the  surviving  widow  or  husband  and  children  of  such 
employee,  and,  if  none,  then  of  such  employee's  parents;  and,  if  none, 
then  of  the  next  of  kin  dependent  upon  such  employee,  but  in  such  cases 
there  shall  be  only  one  recovery  for  the  same  injury. 


282  Important  Federal  Laws 

SAFETY  APPLIANCE  ACTS. 

Act  of  March  2,  1893,  as  amended. 

An  Act  to  promote  the  safety  of  employees  and  travelers  upon  railroads  hy 
compelliHg  common  carriers  engaged  in  interstate  commerce  to  equip 
their  cars  with  automatic  couplers  and  continuous  brakes  and  their  loco- 
motives with  driving-wheel  brakes,  and  for  other  purposes. 

Driving-wheel  and  Train  Brakes. 

Sec.  1.  That  from  and  after  the  first  day  of  January,  eighteen  hun- 
dred and  ninety-eight,  it  shall  be  unlawful  for  any  common  carrier  en- 
gaged in  interstate  commerce  by  railroad  to  use  on  its  line  any  locomotive 
engine  in  moving  interstate  traffic  not  equipped  with  a  power  driving- 
wheel  brake  and  appliances  for  operating  the  trainbrake  system,  or  to  run 
any  train  in  such  traffic  after  said  date  that  has  not  a  sufficient  number  of 
cars  in  it  so  equipped  with  power  or  train  brakes  that  the  engineer  on 
the  locomotive  drawing  such  train  can  control  its  speed  without  requir- 
ing brakemen  to  use  the  common  hand  brake  for  that  purpose. 

Automatic  Couplers. 

Sec.  2.  That  on  and  after  the  first  day  of  January,  eighteen  hun- 
dred and  ninety-eight,  it  shall  be  unlawful  for  any  such  common  carrier 
to  haul  or  permit  to  be  hauled  or  used  on  its  line  any  car  used  in  moving 
interstate  traffic  not  equipped  with  couplers  coupling  automatically  by  im- 
pact, and  which  can  be  uncoupled  without  the  necessity  of  men  going 
between  the  ends  of  the  cars. 

When  Carriers  May  Refuse  Cars  from  Connecting  Lines. 

Sec.  3.  That  when  any  person,  firm,  company,  or  corporation  en- 
gaged in  interstate  commerce  by  railroad  shall  have  equipped  a  sufficient 
number  of  its  cars  so  as  to  comply  with  the  provisions  of  section  one  of 
this  Act,  it  may  lawfully  refuse  to  receive  from  connecting  lines  of  road 
or  shippers  any  cars  not  equipped  sufficiently,  in  accordance  with  the  first 
section  of  this  Act,  with  such  power  or  train  brakes  as  will  work  and 
readily  interchange  with  the  brakes  in  use  on  its  own  cars,  as  required  by 
this  Act. 

Grab  Irons  and  Handholds. 

Sec.  4.  That  from  and  after  the  first  day  of  July,  eighteen  hundred 
and  ninety-five,  until  otherwise  ordered  by  the  Interstate  Commerce  Com- 
mission, it  shall  be  unlawful  for  any  railroad  company  to  use  any  car  in 
interstate  commerce  that  is  not  provided  with  secure  grab  irons  or  hand- 
holds in  the  ends  and  sides  of  each  car  for  greater  security  to  men  in 
coupling  and  uncoupling  cars. 

Standard  Height  of  Drawbars  for  Freight  Cars. 

Sec.  5.  That  within  ninety  days  from  the  passage  of  this  Act  the 
American  Railway  Association  is  authorized  hereby  to  designate  to  the 
Interstate  Commerce  Commission  the  standard  height  of  drawbars  for 
freight  cars,  measured  perpendicular  from  the  level  of  the  tops  of  the 


Safety  Appliance  Acts  283 

rails  to  the  centers  of  the  drawbars,  for  each  of  the  several  gauges  of 
railroads  in  use  in  the  United  States,  and  shall  fix  a  maximum  variation 
from  such  standard  height  to  be  allowed  between  the  drawbars  of  empty 
and  loaded  cars.  Upon  their  determination  being  certified  to  the  Inter- 
state Commerce  Commission,  said  Commission  shall  at  once  give  notice 
of  the  standard  fixed  upon  to  all  common  carriers,  owners,  or  lessees 
engaged  in  interstate  commerce  in  the  United  States  by  such  means  as 
the  Commission  may  deem  proper.  But  should  said  association  fail  to 
determine  a  standard  as  above  provided,  it  shall  be  the  duty  of  the  Inter- 
state Commerce  Commission  to  do  so,  before  July  first,  eighteen  hundred 
and  ninety-four,  and  immediately  to  give  notice  thereof  as  aforesaid. 
And  after  July  first,  eighteen  hundred  and  ninety-five,  no  cars,  either 
loaded  or  unloaded,  shall  be  used  in  interstate  traffic  which  do  not  com- 
ply with  the  standard  above  provided  for. 

Penalty. 

Sec.  6.  That  any  such  common  carrier  using  any  locomotive  engine, 
running  any  train,  or  hauling  or  permitting  to  be  hauled  or  used  on 
its  line  any  car  in  violation  of  any  of  the  provisions  of  this  Act,  shall 
be  liable  to  a  penalty  of  one  hundred  dollars  for  each  and  every  such 
violation,  to  be  recovered  in  a  suit  or  suits  to  be  brought  by  the 
United  States  district  attorney  in  the  district  court  of  the  United  States 
having  jurisdiction  in  the  locality  where  such  violation  shall  have  been 
committed;  and  it  shall  be  the  duty  of  such  district  attorney  to  bring  such 
suits  upon  duly  verified  information  being  lodged  with  him  of  such  vio- 
lation having  occurred ;  and  it  shall  also  be  the  duty  of  the  Interstate 
Commerce  Commission  to  lodge  with  the  proper  district  attorneys  in- 
formation of  any  such  violations  as  may  come  to  its  knowledge :  Pro- 
vided, That  nothing  in  this  Act  contained  shall  apply  to  trains  composed 
of  four-wheel  cars  or  to  trains  composed  of  eight-wheel  standard  logg- 
ing cars  where  the  height  of  such  car  from  top  of  rail  to  center  of  coup- 
ling does  not  exceed  twenty-five  inches,  or  to  locomotives  used  in  hauling 
such  trains  when  such  cars  or  locomotives  are  exclusively  used  for  the 
transportation  of  logs.     (As  amended  April  1,  1896.) 

Sec.  7.  That  the  Interstate  Commerce  Commission  may  from  time 
to  time  upon  full  hearing  and  for  good  cause  extend  the  period  within 
which  any  common  carrier  shall  comply  with  the  provisions  of  this  Act. 

Sec.  8.  That  any  employee  of  any  such  common  carrier  who  may 
be  injured  by  any  locomotive,  car,  or  train  in  use  contrary  to  the  provi- 
sions of  this  Act  shall  not  be  deemed  thereby  to  have  assumed  the  risk 
thereby  occasioned,  although  continuing  in  the  employment  of  such  car- 
rier after  the  unlawful  use  of  such  locomotive,  car,  or  train  had  been 
brought  to  his  knowledge. 

Act  of  March  2,  1903. 

An  Act  to  amend  an  Act  entitled  "An  Act  to  promote  the  safety  of  employees 
and  travelers  upon  railroads  by  compelling  common  carriers  engaged  in 
interstate  commerce  to  equip  their  cars  with  automatic  couplers  and  con- 


284  Important  Federal  Laws 

tinuous  brakes  and  their  locomotives  with  driving-wheel  brakes,  and  for 
other  purposes,"  approved  March  second,  eighteen  hundred  and  ninety- 
three,  and  amended  April  first,  eighteen  hundred  and  ninety-six. 

Application. 

Sec.  1.  That  the  provisions  and  requirements  of  the  Act  entitled  "An 
Act  to  promote  the  safety  of  employees  and  travelers  upon  railroads  by 
compelling  common  carriers  engaged  in  interstate  commerce  to  equip  their 
cars  with  automatic  couplers  and  continuous  brakes,  and  their  locomotives 
with  driving-wheel  brakes,  and  for  other  ptirposes,"  approved  March 
second,  eighteen  hundred  and  ninety-three,  and  amended  April  first, 
eighteen  hundred  and  ninety-six,  shall  be  held  to  apply  to  common  car- 
riers by  railroads  in  the  Territories  and  the  District  of  Columbia  and 
shall  apply  in  all  cases,  whether  or  not  the  couplers  brought  together  are 
of  the  same  kind,  make,  or  type ;  and  the  provisions  and  requirements 
hereof  and  of  said  Acts  relating  to  train  brakes,  automatic  couplers, 
grab  irons,  and  the  height  of  drawbars  shall  be  held  to  apply  to  all  trains, 
locomotives,  tenders,  cars,  and  similar  vehicles  used  on  any  railroad  en- 
gaged in  interstate  commerce,  and  in  the  Territories  and  the  District  of 
Columbia,  and  to  all  other  locomotives,  tenders,  cars,  and  similar  vehicles 
used  in  connection  therewith,  excepting  those  trains,  cars,  and  locomo- 
tives exempted  by  the  provisions  of  section  six  of  said  Act  of  March 
second,  eighteen  hundred  and  ninety-three,  as  amended  by  the  Act  of 
April  first,  eighteen  hundred  and  ninety-six,  or  which  are  used  upon 
street  railways. 

Power  Brakes. 

Sec.  2.  That  whenever,  as  provided  in  said  Act,  any  train  is  oper- 
ated with  power  or  train  brakes,  not  less  than  fifty  per  centum  of  the  cars 
in  such  train  shall  have  their  brakes  used  and  operated  by  the  engineer  of 
the  locomotive  drawing  such  train  ;  and  all  power-braked  cars  in  such 
train  which  are  associated  together  with  said  fifty  per  centum  shall  have 
their  brakes  so  used  and  operated ;  and,  to  more  fully  carry  into  efifect  the 
objects  of  said  Act,  the  Interstate  Commerce  Commission  may,  from  time 
to  time,  after  full  hearing,  increase  the  minimum  percentage  of  cars  in 
any  train  required  to  be  operated  with  power  or  train  brakes  which  must 
have  their  brakes  used  and  operated  as  aforesaid ;  and  failure  to  comply 
with  any  such  requirement  of  the  said  Interstate  Commerce  Commission 
shall  be  subject  to  the  like  penalty  as  failure  to  comply  with  any  require- 
ment of  this  section. 

Effect  of  Act. 

Sec.  3.  That  the  provisions  of  this  Act  shall  not  take  effect  until 
September  first,  nineteen  hundred  and  three.  Nothing  in  this  Act  shall 
be  held  or  construed  to  relieve  any  common  carrier,  the  Interstate  Com- 
merce Commission,  or  any  United  States  district  attorney  from  any  of 
the  provisions,  powers,  duties,  liabilities,  or  requirements  of  said  Act 
of  ]\Iarch  second,  eighteen  hundred  and  ninety-three,  as  amended  by  the 


Safety  Appliance  Act  285 

Act  of  April  first,  eighteen  hundred  and  ninety-six;  and  all  of  the  pro- 
visions, powers,  duties,  requirements,  and  liabilities  of  said  Act  of  March 
second,  eighteen  hundred  and  ninety-three,  as  amended  by  the  Act  of 
April  first,  eighteen  hundred  and  ninety-six,  shall,  except  as  specifically 
amended  by  this  Act,  apply  to  this  Act. 

Act  of  March  4,  1911. 
An  Act  to  supplement  "An  Act  to  promote  the  safety  of  employees  and  trav- 
elers upon  railroads  hy  compelling  common  carriers  engaged  in  interstate 
commerce  to  equip  their  cars  with  automatic  couplers  and  continuous 
brakes  and  their  locomotives  with  driving  wheel  brakes  and  for  other 
purposes,"  and  other  safety  appliance  Acts,  and  for  other  purposes. 

To  What  Carriers  Applicable. 

Sec.  1.  'lliat  the  provisions  of  this  Act  shall  apply  to  every  common 
carrier  and  every  vehicle  subject  to  the  Act  of  March  second,  eighteen 
hundred  and  ninety-three,  as  amended  April  first,  eighteen  hundred  and 
ninety-six,  and  March  second,  nineteen  hundred  and  three,  commonly 
known  as  the  "Safety  Appliance  Acts." 

Sill  Steps,  Hand  Brakes,  Ladders,  Running  Boards,  and  Grab  Irons. 

Sec.  1.  That  on  and  after  July  first,  nineteen  hundred  and  eleven, 
it  shall  be  unlawful  for  any  common  carrier  subject  to  the  provisions  of 
this  Act  to  haul,  or  permit  to  be  hauled  or  used  on  its  line  any  car  subject 
to  the  provisions  of  this  Act  not  equipped  with  appliances  provided  for 
in  this  Act,  to  wit :  x\ll  cars  must  be  equipped  wnth  secure  sill  steps  and 
efficient  hand  brakes ;  all  cars  requiring  secure  ladders  and  secure  running 
boards  shall  be  equipped  with  such  ladders  and  running  boards,  and  all 
cars  having  ladders  shall  also  be  equipped  with  secure  hand  holds  or  grab 
irons  on  their  roofs  at  the  tops  of  such  ladders :  Provided,  That  in  the 
loading  and  hauling  of  long  commodities,  requiring  more  than  one  car, 
the  hand  brakes  may  be  omitted  on  all  save  one  of  the  cars  while  they 
are  thus  combined  for  such  purpose. 

Powers  of  Commission. 

Sec.  3.  That  within  six  months  from  the  passage  of  this  Act  the 
Interstate  Commerce  Commission,  after  hearing,  shall  designate  the  num- 
ber, dimensions,  location,  and  manner  of  application  of  the  appliances 
provided  for  by  section  two  of  this  Act  and  section  four  of  the  Act  of 
March  second,  eighteen  hundred  and  ninety-three,  and  shall  give  notice  of 
such  designation  to  all  common  carriers  subject  to  the  provisions  of  this 
Act  by  such  means  as  the  Commission  may  deem  proper,  and  thereafter 
said  number,  location,  dimensions,  and  manner  of  application  as  desig- 
nated by  said  Commission  shall  remain  as  the  standards  of  equipment  to 
be  used  on  all  cars  subject  to  the  provisions  of  this  Act,  unless  changed 
by  an  order  of  said  Interstate  Commerce  Commission,  to  be  made  after 
full  hearing  and  for  good  cause  shown ;  and  failure  to  comply  with  any 
such  requirement  of  the  Interstate  Commerce  Commission  shall  be  sub- 
ject to  a  like  penalty  as  failure  to  comply  with  any  requirement  of  this 


286  Important  Federal  Laws 

Act :  Provided,  That  the  Interstate  Commerce  Commission  may,  upon 
full  hearing  and  for  good  cause,  extend  the  period  within  which  any  com- 
mon carrier  shall  comply  with  the  provisions  of  this  section  with  respect 
to  the  equipment  of  cars  actually  in  service  upon  the  date  of  the  passage 
of  this  Act.  Said  Commission  is  hereby  given  authority,  after  hearing, 
to  modify  or  change,  and  to  prescribe  the  standard  height  of  drawbars 
and  to  fix  the  time  within  which  such  modification  or  change  shall  be- 
come effective  and  obligatory,  and  prior  to  the  time  so  fixed  it  shall  be 
unlawful  to  use  any  car  or  vehicle  in  interstate  or  foreign  traffic  which 
does  not  comply  with  the  standard  now  fixed  or  the  standard  so  pre- 
scribed, and  after  the  time  so  fixed  it  shall  be  unlawful  to  use  any  car 
or  vehicle  in  interstate  or  foreign  traffic  which  does  not  comply  with  the 
standard  so  prescribed  by  the  Commission. 
Penalty. 

Sec.  4.  That  any  common  carrier  subject  to  this  Act  using,  haul- 
ing, or  permitting  to  be  used  or  hauled  on  its  line  any  car  subject  to  the 
requirements  of  this  Act  not  equipped  as  provided  in  this  Act  shall  be 
liable  to  a  penalty  of  one  hundred  dollars  for  each  and  every  such  viola- 
tion, to  be  recovered  as  provided  in  section  six  of  the  Act  of  March  sec- 
ond, eighteen  hundred  and  ninety-three,  as  amended  April  first,  eighteen 
hundred  and  ninety-six :  Provided,  That  where  any  car  shall  have  been 
properly  equipped,  as  provided  in  this  Act  and  the  other  Acts  mentioned 
herein,  and  such  equipment  shall  have  become  defective  or  insecure  while 
such  car  can  be  repaired,  without  liability  for  the  penalties  imposed  by 
car  may  be  hauled  from  the  place  where  such  equipment  was  first  dis- 
covered to  be  defective  or  insecure  to  the  nearest  available  point  where 
such  car  can  be  repaired,  without  liability  for  the  penalties  imposed  by 
section  four  of  this  Act  or  section  six  of  the  Act  of  March  second,  eigh- 
teen hundred  and  ninety-three,  as  amended  by  the  Act  of  April  first, 
eighteen  hundred  and  ninety-six,  if  such  movement  is  necessary  to  make 
such  repairs  and  such  repairs  can  not  be  made  except  at  such  repair  point ; 
and  such  movement  or  hauling  of  such  car  shall  be  at  the  sole  risk  of  the 
carrier,  and  nothing  in  this  section  shall  be  construed  to  relieve  such 
carrier  from  liability  in  any  remedial  action  for  the  death  or  injury  of 
any  railroad  employee  caused  to  such  employee  by  reason  of  or  in  con- 
nection with  the  movement  or  hauling  of  such  car  with  equipment  which 
is  defective  or  insecure  or  which  is  not  maintained  in  accordance  with  the 
requirements  of  this  Act  and  the  other  Acts  herein  referred  to;  and  noth- 
ing in  this  proviso  shall  be  construed  to  permit  the  hauling  of  defective 
cars  by  means  of  chains  instead  of  drawbars,  in  revenue  trains  or  in  asso- 
ciation with  other  cars  that  are  commercially  used,  unless  such  defective 
cars  contain  live  stock  or  "perishable"  freight. 

Carriers  Not  Relieved  from  Penalty,  Except  for  Causes  Above  Named. 

Sec.  5.  That  except  that,  within  the  limits  specified  in  the  preceding 
section  of  this  Act,  the  movement  of  a  car  with  defective  or  insecure 
equipment  may  be  made  without  incurring  the  penalty  provided  by  the 


Accident  Reports  Act  287 

statutes,  but  shall  in  all  other  respects  be  unlawful,  nothing  in  this  Act 
shall  be  held  or  construed  to  relieve  any  common  carrier,  the  Interstate 
Commerce  Commission,  or  any  United  States  attorney  from  any  of  the 
provisions,  powers,  duties,  liabilities,  or  requirements  of  said  Act  of 
March  second,  eighteen  hundred  and  ninety-three,  as  amended  by  the 
Acts  of  April  first,  eighteen  hundred  and  ninety-six,  and  March  second, 
nineteen  hundred  and  three;  and,  except  as  aforesaid,  all  of  the  provi- 
sions, powers,  duties,  requirements,  and  liabilities  of  said  Act  of  March 
second,  eighteen  hundred  and  ninety-three,  as  amended  by  the  Acts  of 
April  first,  eighteen  hundred  and  ninety-six,  and  March  second,  nineteen 
hundred  and  three,  shall  apply  to  this  Act. 

Enforcement. 

Sec.  6.  That  it  shall  be  the  duty  of  the  Interstate  Commerce  Com- 
mission to  enforce  the  provisions  of  this  Act,  and  all  powers  heretofore 
granted  to  said  Commission  are  hereby  extended  to  it  for  the  purpose  of 
the  enforcement  of  this  Act. 

Commission  May  Extend  Effective  Date  of  Supplementary  Act. 

That  the  jurisdiction  of  the  Interstate  Commerce  Commission  to  ex- 
tend the  period  within  which  any  common  carrier  shall  comply  with  the 
provisions  of  section  three  of  the  Act  entitled  "An  Act  to  supplement  'An 
Act  to  promote  the  safety  of  employees  and  travelers  upon  railroads  by 
compelling  common  carriers  engaged  in  interstate  commerce  to  equip 
their  cars  with  automatic  couplers  and  continuous  brakes  and  their  loco- 
motives with  driving-wheel  brakes,  and  for  other  purposes,'  and  other 
safety-appliance  acts,  and  for  other  purposes,"  approved  April  fourteenth, 
nineteen  hundred  and  ten,  shall  apply  to  cars  actually  placed  in  service 
between  the  date  of  the  passage  of  said  Act  and  the  first  day  of  July, 
nineteen  hundred  and  eleven,  in  the  same  manner  and  to  the  same  extent 
that  it  applies  to  cars  actually  in  service  upon  the  date  of  the  passage  of 
said  Act. 


ACCIDENT  REPORTS  ACT. 

Act  of  May  6,  1910. 

An  Act  requiring  common  carriers  engaged  in  interstate  and  foreign  commerce 
to  make  full  reports  of  all  accidents  to  the  Interstate  Commerce  Commis- 
sion, and  authorizing  investigations  thereof  by  said  Commission. 

Monthly  Reports  of  Railway  Accidents. 

Sec.  1.  That  it  shall  be  the  duty  of  the  general  manager,  superin- 
tendent, or  other  proper  officer  of  every  common  carrier  engaged  in  in- 
terstate or  foreign  commerce  by  railroad  to  make  to  the  Interstate  Com- 
merce Commission,  at  its  office  in  Washington,  District  of  Columbia,  a 
monthly  report,  under  oath,  of  all  collisions,  derailments,  or  other  acci- 
dents resulting  in  injury  to  persons,  equipment,  or  roadbed  arising  from 
the  operation  of  such  railroad  under  such  rules  and  regulations  as  may  be 


288  Important  Federal  Laws 

prescribed  by  the  said  Commission,  which  report  shall  state  the  nature  and 
causes  thereof  and  the  circumstances  connected  therewith :  Provided, 
That  hereafter  all  said  carriers  shall  be  relieved  from  the  duty  of  report- 
ing accidents  in  their  annual  financial  and  operating  reports  made  to  the 
Commission. 

Penalty. 

Sec.  2.  That  any  common  carrier  failing  to  make  such  report  within 
thirty  days  after  the  end  of  any  month  shall  be  deemed  guilty  of  a  mis- 
meanor,  and  upon  conviction  thereof  by  a  court  of  competent  jurisdic- 
tion shall  be  punished  by  a  fine  of  not  more  than  one  hundred  dollars  for 
each  and  every  ofifense  and  for  every  day  during  which  it  shall  fail  to 
make  such  report  after  the  time  herein  specified  for  making  the  same. 

Power  of  the  Commission. 

Sec.  3.  That  the  Interstate  Commerce  Commission  shall  have 
authority  to  investigate  all  collisions,  derailments,  or  other  accidents  re- 
sulting in  serious  injury  to  person  or  to  the  property  of  a  railroad  occur- 
ring on  the  line  of  any  common  carrier  engaged  in  interstate  or  foreign 
commerce  by  railroad.  The  Commission,  or  any  impartial  investigator 
thereunto  authorized  by  said  Commission,  shall  have  authority  to  investi- 
gate such  collisions,  derailments,  or  other  accidents  aforesaid,  and  all  the 
attending  facts,  conditions,  and  circumstances,  and  for  that  purpose  may 
subpcena  witnesses,  administer  oaths,  take  testimony,  and  require  the  pro- 
duction of  books,  papers,  orders,  memoranda,  exhibits,  and  other  evi- 
dence, and  shall  be  provided  by  said  carriers  with  all  reasonable  facil- 
ities :  Provided,  That  when  such  accident  is  investigated  by  a  commission 
of  the  State  in  which  it  occurred,  the  Interstate  Commerce  Commission 
shall,  if  convenient,  make  any  investigation  it  may  have  previously  deter- 
mined upon,  at  the  same  time  as,  and  in  connection  with,  the  state  com- 
mission investigation.  Said  Commission  shall,  when  it  deems  it  to  the 
public  interest,  make  reports  of  such  investigations,  stating  the  cause  of 
accident,  together  with  such  recommendations  as  it  deems  proper.  Such 
reports  shall  be  made  public  in  such  manner  as  the  Commission  deems 
proper. 

Reports  Not  to  be  Used  in  Damage  Suits. 

Sec.  4.  That  neither  said  report  nor  any  report  of  said  investigation 
nor  any  part  thereof  shall  be  admitted  as  evidence  or  used  for  any  pur- 
pose in  any  suit  or  action  for  damages  growing  out  of  any  matter  men- 
tioned in  said  report  or  investigation. 

Form  of  Report. 

Sec.  5.  That  the  Interstate  Commerce  Commission  is  authorized  to 
prescribe  for  such  common  carriers  a  method  and  form  for  making  the 
reports  hereinbefore  provided. 

Repeal  of  Prior  Act. 

Sec.  6.     That  the  Act  entitled  "An  Act  requiring  common  carriers 


Boiler  Inspection.  289 

engaged  in  interstate  commerce  to  make  full  reports  of  all  accidents  to 
the  Interstate  Commerce  Commission,"  approved  March  third,  nineteen 
hundred  and  one,  is  hereby  repealed. 

Definitions. 

Sec.  7.  That  the  term  "interstate  commerce,"  as  used  in  this  Act, 
shall  include  transportation  from  any  State  or  Territory  or  the  District 
of  Columbia  to  any  other  State  or  Territory  or  the  District  of  Colum- 
bia, and  the  term  "foreign  commerce,"  as  used  in  this  Act,  shall  in- 
clude transportation  from  any  State  or  Territory  or  the  District  of 
Columbia  to  any  foreign  country  and  from  any  foreign  country  to  any 
State  or  Territory  or  the  District  of  Columbia. 


BOILER  INSPECTION  ACT. 

Act  of  February  17,  1911. 
An  Act  to  promote  the  safety  of  employees  and  travelers  upon  railroads  by 
compelling  common  carriers  engaged  in  interstate  commerce  to  equip  their 
locomotive  with  safe  and  suitable  boilers  and  appurtenances  thereto. 

Application. 

Sec.  1.  That  the  provisions  of  this  Act  shall  apply  to  any  common 
carrier  or  carriers,  their  officers,  agents,  and  employees,  engaged  in  the 
transportation  of  passengers  or  property  by  railroad  in  the  District  of 
Columbia,  or  in  any  Territory  of  the  United  States  or  from  one  State  or 
Territory  of  the  United  States  or  the  District  of  Columbia  to  any  other 
State  or  Territory  of  the  United  States  or  the  District  of  Columbia,  or 
from  any  place  in  the  United  States  to  an  adjacent  foreign  country,  or 
from  any  place  in  the  United  States  through  a  foreign  country  to  any 
other  place  in  the  United  States.  The  term  "railroad"  as  used  in  this  Act 
shall  include  all  the  roads  in  use  by  any  common  carrier  operating  a  rail- 
road, whether  owned  or  operated  under  a  contract,  agreement,  or  lease, 
and  the  term  "employees"  as  used  in  this  Act  shall  be  held  to  mean 
persons  actually  engaged  in  or  connected  with  the  movement  of  any 
train. 

Safe  Boilers  Required. 

Sec.  2.  That  from  and  after  the  first  day  of  July,  nineteen  hundred 
and  eleven,  it  shall  be  unlawful  for  any  common  carriers,  its  officers  or 
agents,  subject  to  this  Act  to  use  any  locomotive  engine  propelled  by 
steam  power  in  moving  interstate  or  foreign  traffic  unless  the  boiler  of 
said  locomotive  and  appurtenances  thereof  are  in  proper  condition  and 
safe  to  operate  in  the  service  to  which  the  same  is  put,  that  the  same 
may  be  employed  in  the  active  service  of  such  carrier  in  moving  traffic 
without  unnecessary  peril  to  life  or  limb,  and  all  boilers  shall  be  inspected 
from  time  to  time  in  accordance  with  the  provisions  of  this  Act,  and 
be  able  to  withstand  such  test  or  tests  as  may  be  prescribed  in  the  rules 
and  regulations  hereinafter  provided  for. 

(19) 


290  Important  Federal  Lav/s 

Administration. 

Sec.  3.  That  there  shall  be  appointed  by  the  President,  by  and  with 
the  advice  and  consent  of  the  Senate,  a  chief  inspector  and  two  assistant 
chief  inspectors  of  locomotive  boilers,  who  shall  have  general  superin- 
tendence of  the  inspectors  hereinafter  provided  for,  direct  them  in  the 
duties  hereby  imposed  upon  them,  and  see  that  the  requirements  of  this 
Act  and  the  rules,  regulations,  and  instructions  made  or  given  hereunder 
are  observed  by  common  carriers  subject  hereto.  The  said  chief  inspector 
and  his  two  assistants  shall  be  selected  with  reference  to  their  practical 
knowledge  of  the  construction  and  repairing  of  boilers  and  to  their  fit- 
ness and  ability  to  systematize  and  carry  into  effect  the  provisions  hereof 
relating  to  the  inspection  and  maintenance  of  locomotive  boilers.  The 
chief  inspector  shall  receive  a  salary  of  four  thousand  dollars  per  year 
and  the  assistant  chief  inspectors  shall  each  receive  a  salary  of  three 
thousand  dollars  per  year ;  and  each  of  the  three  shall  be  paid  his  travel- 
ing expenses  incurred  in  the  performance  of  his  duties.  The  office  of  the 
chief  inspector  shall  be  in  Washington,  District  of  Columbia,  and  the 
Interstate  Commerce  Commission  shall  provide  such  stenographic  and 
clerical  help  as  the  business  of  the  officers  of  the  chief  inspector  and  his 
said  assistants  may  require. 

Inspection  Districts. 

Sec.  4.  That  immediately  after  his  appointment  and  qualification 
the  chief  inspector  shall  divide  the  territory  comprising  the  several  States, 
the  Territories  of  New  Mexico  and  Arizona,  and  the  District  of  Colum- 
bia into  fifty  locomotive  boiler-inspection  districts,  so  arranged  that  the 
service  of  the  inspector  appointed  for  each  district  shall  be  most  effective, 
and  so  that  the  work  required  of  each  inspector  shall  be  substantially  the 
same.  Thereupon  there  shall  be  appointed  by  the  Interstate  Commerce 
Commission  fifty  inspectors  of  locomotive  boilers.  Said  inspectors  shall 
be  in  the  classified  service  and  shall  be  appointed  after  competitive  exam- 
ination according  to  the  law  and  the  rules  of  the  Civil  Service  Commission 
governing  the  classified  service.  The  chief  inspector  shall  assign  one  in- 
spector so  appointed  to  each  of  the  districts  hereinbefore  named.  Each 
inspector  shall  receive  a  salary  of  one  thousand  eight  hundred  dollars  per 
year  and  his  traveling  expenses  while  engaged  in  the  performance  of  his 
duty.  He  shall  receive  in  addition  thereto  an  annual  allowance  for  office 
rent,  stationery,  and  clerical  assistance,  to  be  fixed  by  the  Interstate  Com- 
merce Commission,  but  not  to  exceed  in  the  case  of  any  district  inspector 
six  hundred  dollars  per  year.  In  order  to  obtain  the  most  competent  in- 
spectors possible,  it  shall  be  the  duty  of  the  chief  inspector  to  prepare  a 
list  of  questions  to  be  propounded  to  applicants  with  respect  to  construc- 
tion, repair,  operation,  testing,  and  inspection  of  locomotive  boilers,  and 
their  practical  experience  in  such  work,  which  list,  being  approved  by  the 
Interstate  Commerce  Commission,  shall  be  used  by  the  Civil  Service  Com- 
mission as  a  part  of  its  examination.  No  person  interested,  either  di- 
rectly or  indirectly,  in  any  patented  article  required  to  be  used  on  any 


Boiler  Inspection  291 

locomotive  under  supervision  or  who  is  intemperate  in  his  habits  shall  be 
eligible  to  hold  the  office  of  either  chief  inspector  or  assistant  or  district 
inspector. 

Inspection  by  Carriers. 

Sec.  5.  That  each  carrier  subject  to  this  Act  shall  file  its  rules  and 
instructions  for  the  inspection  of  locomotive  boilers  with  the  chief  in- 
spector within  three  months  after  the  approval  of  this  Act,  and  after 
hearing  and  approval  by  the  Interstate  Commerce  Commisson,  such 
rules  and  instructions,  with  such  modifications  as  the  Commission  re- 
quires, shall  become  obligatory  upon  such  carrier :  Provided,  however, 
That  if  any  carrier  subject  to  this  Act  shall  fail  to  file  its  rules  and 
instructions  the  chief  inspector  shall  prepare  rules  and  instructions  not 
inconsistent  herewith  for  the  inspection  of  locomotive  boilers,  to  be 
observed  by  such  carrier ;  which  rules  and  instructions,  being  approved 
by  the  Interstate  Commerce  Commission,  and  a  copy  thereof  being  served 
upon  the  president,  general  manager,  or  general  superintendent  of  such 
carrier,  shall  be  obligatory,  and  a  violation  thereof  punished  as  herein- 
after provided :  Provided  also,  That  such  common  carrier  may  from, 
time  to  time  change  the  rules  and  regulations  herein  provided  for,  but 
such  change  shall  not  take  efifect  and  the  new  rules  and  regulations  be  in 
force  until  the  same  shall  have  been  filed  with  and  approved  by  the 
Interstate  Commerce  Commission.  The  chief  inspector  shall  also  make 
all  needful  rules,  regulations,  and  instructions  not  inconsistent  herewith 
for  the  conduct  of  his  office  and  for  the  government  of  the  district 
inspectors :  Provided,  however.  That  all  such  rules  and  instructions 
shall  be  approved  by  the  Interstate  Commerce  Commission  before  they 
take  efifect. 

District  Inspection. 

Sec.  6.  That  it  shall  be  the  duty  of  each  inspector  to  become 
familiar,  so  far  as  practicable,  with  the  condition  of  each  locomotive 
boiler  ordinarily  housed  or  repaired  in  his  district,  and  if  any  locomotive 
is  ordinarily  housed  or  repaired  in  two  or  more  districts,  then  the  chief 
inspector  or  an  assistant  shall  make  such  division  betw^een  inspectors  as 
will  avoid  the  necessity  for  duplication  of  work.  Each  inspector  shall 
make  such  personal  inspection  of  the  locomotive  boilers  under  his  care 
from  time  to  time  as  may  be  necessary  to  fully  carry  out  the  provisions 
of  this  Act,  and  as  may  be  consistent  with  his  other  duties,  but  he  shall 
not  be  required  to  make  such  inspections  at  stated  times  or  at  regular 
intervals.  His  first  duty  shall  be  to  see  that  the  carriers  make  inspections 
in  accordance  with  the  rules  and  regulations  established  or  approved  by 
the  Interstate  Commerce  Commission,  and  that  carriers  repair  the  defects 
which  such  inspections  disclose  before  the  boiler  or  boilers  or  appur- 
tenances pertaining  thereto  are  again  put  in  service.  To  this  end  each 
carrier  subject  to  this  Act  shall  file  with  the  inspector  in  charge,  under 
oath  of  the  proper  officer  or  employee,  a  duplicate  of  the  report  of  each 


292  Important  Federal  Laws 

inspection  required  by  such  rules  and  regulations,  and  shall  also  file  with 
such  inspector,  under  the  oath  of  the  proper  officer  or  employee,  a  report 
showing  the  repair  of  the  defects  disclosed  by  the  inspection.  The  rules 
and  regulations  hereinbefore  provided  for  shall  prescribe  the  time  at 
which  such  reports  shall  be  made.  Whenever  any  district  inspector  shall, 
in  the  performance  of  his  duty,  find  any  locomotive  boiler  or  apparatus 
pertaining  thereto  not  conforming  to  the  recjuirements  of  the  law  or  the 
rules  and  regulations  established  and  approved  as  hereinbefore  stated, 
he  shall  notify  the  carrier  in  writing  that  the  locomotive  is  not  in  service- 
able condition,  and  thereafter  such  boiler  shall  not  be  used  until  in 
serviceable  condition :  Provided,  That  a  carrier,  when  notified  by  an 
inspector  in  writing  that  a  locomotive  boiler  is  not  in  serviceable  condi- 
tion because  of  defects  set  out  and  described  in  said  notice,  may, 
within  five  days  after  receiving  said  notice,  appeal  to  the  chief  inspector 
by  telegraph  or  by  letter  to  have  said  boiler  re-examined,  and  upon 
receipt  of  the  appeal  from  the  inspector's  decision  the  chief  inspector 
shall  assign  one  of  the  assistant  chief  inspectors  or  any  district  inspector 
other  than  the  one  from  whom  decision  the  appeal  is  taken  to  re-examine 
and  inspect  said  boiler  within  fifteen  days  from  date  of  notice.  If  upon 
such  re-examination  the  boiler  is  found  in  serviceable  condition,  the 
chief  inspector  shall  immediately  notify  the  carrier  in  writing,  whereupon 
such  boiler  may  be  put  into  service  without  further  delay ;  but  if  the 
re-examination  of  said  boiler  sustains  the  decision  of  the  district  in- 
spector, the  chief  inspector  shall  at  once  notify  the  carrier  owning  or 
operating  such  locomotive  that  the  appeal  from  the  decision  of  the 
inspector  is  dismissed,  and  upon  the  receipt  of  such  notice  the  carrier 
may,  within  thirty  days,  appeal  to  the  Interstate  Commerce  Commission, 
and  upon  such  appeal,  and  after  hearing,  said  Commission  shall  have 
power  to  revise,  modify,  or  set  aside  such  action  of  the  chief  inspector 
and  declare  that  said  locomotive  is  in  serviceable  condition  and  authorize 
the  same  to  be  operated :  Provided  further.  That  pending  either  appeal 
the  requirements  of  the  inspector  shall  be  effective. 

Annual  Report  of  Chief  Inspector. 

Sec.  7.  That  the  chief  inspector  shall  make  an  annual  report  to  the 
Interstate  Commerce  Commission  of  the  work  done  during  the  year,  and 
shall  make  such  recommendations  for  the  betterment  of  the  service  as  he 
may  desire. 

Accidents  from  Failure  of  Boilers, 

Sec.  8.  That  in  the  case  of  accident  resulting  from  failure  from 
any  cause  of  a  locomotive  boiler  or  its  appurtenances,  resulting  in 
serious  injury  or  death  to  one  or  more  persons,  a  statement  forthwith 
must  be  made  in  writing  of  the  fact  of  such  accident,  by  the  carrier 
owning  or  operating  said  locomotive,  to  the  chief  inspector ;  whereupon 
the  facts  concerning  such  accident  shall  be  investigated  by  the  chief 
inspector  or  one  of  his  assistants,  or  such  inspector  as  the  chief  inspector 


Boiler  Inspection  293 

may  designate  for  that  purpose.  And  where  the  locomotive  is  disabled 
to  the  extent  that  it  can  not  be  run  by  its  own  steam,  the  part  or  parts 
affected  by  the  said  accident  shall  be  preserved  by  said  carrier  intact, 
so  far  as  possible,  without  hindrance  or  interference  to  traffic  until 
after  said  inspection.  The  chief  inspector  or  an  assistant  or  the  desig- 
nated inspector  making  the  investigation  shall  examine  or  cause  to  be 
examined  thoroughly  the  boiler  or  part  aft'ected,  making  full  and  detailed 
report  of  the  cause  of  the  accident  to  the  chief  inspector. 

The  Interstate  Commerce  Commission  may  at  any  time  call  upon 
the  chief  inspector  for  a  report  of  any  accident  embraced  in  this  sec- 
tion, and  upon  the  receipt  of  said  report,  if  it  deems  it  to  the  public 
interest,  make  reports  of  such  investigations,  stating  the  cause  of  acci- 
dent, together  with  such  recommendations  as  it  deems  proper.  Such 
reports  shall  be  made  public  in  such  manner  as  the  Commission  deems 
proper.  Neither  said  report  nor  any  report  of  said  investigation  nor 
any  part  thereof  shall  be  admitted  as  evidence  or  used  for  any  purpose 
in  anv  suit  or  action  for  damages  growing  out  of  any  matter  mentioned 
in  said  report  or  investigation. 

Penalty  for  Violations  by  Carriers, 

Sec.  9.  That  any  common  carrier  violating  this  Act  or  any  rule 
or  regulation  made  under  its  provisions  or  any  lawful  order  of  any 
inspector  shall  be  liable  to  a  penalty  of  one  hundred  dollars  for  each 
and  every  such  violation,  to  be  recovered  in  a  suit  or  suits  to  be  brought 
by  the  United  States  attorney  in  the  district  court  of  the  United  States 
having  jurisdiction  in  the  locality  where  such  violation  shall  have  been 
committed ;  and  it  shall  be  the  duty  of  such  attorneys,  subject  to  the 
direction  of  the  Attorney  General,  to  bring  such  suits  upon  duly  verified 
information  being  lodged  with  them,  respectively,  of  such  violations  having 
occurred  ;  and  it  shall  be  the  duty  of  the  chief  inspector  of  locomotive 
boilers  to  give  information  to  the  proper  United  States  attorney  of  all 
violations  of  this  Act  coming  to  his  knowledge. 

Limit  of  Appropriation. 

Sec.  10.  That  the  total  amounts  directly  appropriated  to  carry  out 
the  provisions  of  this  Act  shall  not  exceed  for  any  one  fiscal  year  the 
sum  of  three  hundred  thousand  dollars. 

Act  of  March  4,  1915. 

Sec.  1.  That  section  two  of  the  Act  entitled  "An  Act  to  promote  the 
safety  of  employees  and  travelers  upon  railroads  by  compelling  common 
carriers  engaged  in  interstate  commerce  to  equip  their  locomotives  with 
safe  and  suitable  boilers  and  appurtenances  thereto,"  approved  February 
seventeenth,  nineteen  hundred  and  eleven,  shall  apply  to  and  include  the 
entire  locomotive  and  tender  and  all  parts  and  appurtenances  thereof. 

Sec.  2.  That  the  chief  inspector  and  the  two  assistant  chief  in- 
spectors, together  with  all  the  district  inspectors,  appointed  under  the  Act 
of  February  seventeenth,  nineteen  hundred  and  eleven,  shall  inspect  and 


294  Important  Federal  Laws 

shall  have  the  same  powers  and  duties  with  respect  to  all  the  parts  and 
appurtenances  of  the  locomotive  and  tender  that  they  now  have  with 
respect  to  the  boiler  of  a  locomotive  and  the  appurtenances  thereof,  and 
the  said  act  of  February  seventeenth,  nineteen  hundred  and  eleven,  shall 
apply  to  and  include  the  entire  locomotive  and  tender  and  all  their  parts 
with  the  same  force  and  effect  as  it  now  applies  to  locomotive  boilers  and 
their  appurtenances.  That  upon  the  passage  of  this  act  all  inspectors 
and  applicants  for  the  position  of  inspector  shall  be  examined  touching 
their  qualifications  and  fitness  with  respect  to  the  additional  duties  im- 
posed by  this  act. 

Sec.  3.  That  nothing  in  this  act  shall  be  held  to  alter,  amend, 
change,  repeal,  or  modify  any  other  Act  of  Congress  than  the  said  Act 
of  February  seventeenth,  nineteen  hundred  and  eleven,  to  which  reference 
is  herein  specifically  made,  or  any  order  of  the  Interstate  Commerce 
Commission  promulgated  under  the  safety  appliance  act  of  March  second, 
eighteen  hundred  and  ninety-three,  and  supplemental  acts. 


ASH-PAN  ACT. 

Act  of  May  30,  1908. 
An  Act  to  promote  the  safety  of  employees  on  railroads. 

Ash-pan  Equipment. 

Sec.  1.  That  on  and  after  the  first  day  of  January,  nineteen  hun- 
dred and  ten,  it  shall  be  unlawful  for  any  common  carrier  engaged  in 
interstate  or  foreign  commerce  by  railroad  to  use  any  locomotive  in 
moving  interstate  or  foreign  traffic,  not  equipped  with  an  ash  pan,  which 
can  be  dumped  or  emptied  and  cleaned  without  the  necessity  of  any 
employee  going  under  such  locomotive. 

Ash-pan  Equipment  in  Territories. 

Sec.  2.  That  on  and  after  the  first  day  of  January,  nineteen  hun- 
dred and  ten,  it  shall  be  unlawful  for  any  common  carrier  by  railroad  in 
any  Territory  of  the  United  States  or  the  District  of  Columbia  to  use 
any  locomotive  not  equipped  with  an  ash  pan,  which  can  be  dumped  or 
emptied  and  cleaned  without  the  necessity  of  any  employee  going  under 
such  locomotive. 

Penalties. 

Sec.  3.  That  any  such  common  carrier  using  any  locomotive  in 
violation  of  any  of  the  provisions  of  this  Act  shall  be  liable  to  a  penalty 
of  two  hundred  dollars  for  each  and  every  such  violation,  to  be  recov- 
ered in  a  suit  or  suits  to  be  brought  by  the  United  States  district  attorney 
in  the  district  court  of  the  United  States  having  jurisdiction  in  the 
localitv  where  such  violation  shall  have  been  committed ;  and  it  shall 
be  the  duty  of  such  district  attorney  to  bring  such  suits  upon  duly  veri- 
fied information  being  lodged  with  him  of  such  violation  having 
occurred ;  and  it  shall  also  be  the  dutv  of  the  Interstate  Commerce  Com- 


Ash-Pan  Act — Medals  of  Hoxor.  295 

mission  to  lodge  with  the  proper  district  attorneys  information  of  any 
such  violations  as  may  come  to  its  knowledge. 

Powers  of  Commission. 

Sec.  4.  That  it  shall  be  the  duty  of  the  Interstate  Commerce  Com- 
mission to  enforce  the  provisions  of  this  Act,  and  all  powers  heretofore 
granted  to  said  Commission  are  hereby  extended  to  it  for  the  purpose  of 
the  enforcement  of  this  Act. 

Receivers  Included. 

Sec.  5.  That  the  term  "common  carrier"  as  used  in  this  Act  shall 
include  the  receiver  or  receivers  or  other  persons  or  corporations  charged 
with  the  dutv  of  the  management  and  operation  of  the  business  of  a 
common  carrier. 

When  Ash-pan  Is  Not  Necessary. 

Sec.  6.  That  nothing  in  this  xA.ct  contained  shall  apply  to  any 
locomotive  upon  which,  by  reason  of  the  use  of  oil,  electricity,  or  other 
such  agency,  an  ash  pan  is  not  necessary. 

When  Act  Effective. 

Sec.  8.     That  this  Act  shall  take  effect  sixty  days  after  its  passage. 


MEDALS  OF  HONOR  ACT. 

Act  of  February  23,  1905. 
An  Act  to  promote  the  security  of  travel  upon  railroads  engaged  in  interstate 
commerce,  and  to  encourage  the  saving  of  life. 

Life-saving  on  Railroads — Medals  of  Honor  For. 

Sec.  1.  That  the  President  of  the  United  States  be,  and  he  is 
hereby,  authorized  to  cause  to  be  prepared  bronze  medals  of  honor, 
with  "^suitable  emblematic  devices,  which  shall  be  bestowed  upon  any 
persons  who  shall  hereafter,  by  extreme  daring,  endanger  their  own 
lives  in  saving,  or  endeavoring  to  save,  lives  from  any  wreck,  disaster, 
or  grave  accident,  or  in  preventing  or  endeavoring  to  prevent  such 
wreck,  disaster,  or  grave  accident,  upon  any  railroad  within  the  United 
States  engaged  in  interstate  commerce:  Provided,  That  no  award  of 
said  medal  shall  be  made  to  any  person  until  sufficient  evidence  of  his 
deserving  shall  have  been  furnished  and  placed  on  file,  under  such 
regulations  as  may  be  prescribed  by  the  President  of  the  United  States. 

Rosettes  and  Ribbons. 

Sec.  2.  That  the  President  of  the  United  States  be,  and  he  is 
hereby,  authorized  to  issue  to  any  person  to  whom  a  medal  of  honor 
may  be  awarded  under  the  provisions  of  this  Act  a  rosette  or  knot,  to 
be  worn  in  lieu  of  the  medal,  and  a  ribbon  to  be  worn  with  the  medal; 
said  rosette  or  knot  and  ribbon  to  be  each  of  a  pattern  to  be  pre- 
scribed by  the  President  of  the  United  States ;  Provided.  That  whenever 
a  ribbon' issued  under  the  provisions  of  this  Act  shall  have  been  lost. 


296  Important  Federal  Laws 

destroyed,  or  rendered  unfit  for  use  without  fault  or  neglect  on  the 
part  of  the  person  to  whom  it  was  issued,  a  new  ribbon  shall  be  issued 
to  such  person  without  charge  therefor. 

Payment  of  Expenses. 

Sec.  3.  That  the  appropriations  for  the  enforcement  and  execution 
of  the  provisions  of  the  Acts  to  promote  the  safety  of  employees  and 
travelers  upon  railroads  are  hereby  made  available  for  carrying  out 
the  provisions  of  this  Act. 


HOURS  OF  SERVICE  ACT. 

Act  of  March  4,  1907. 

An  Act  to  promote  the  safety  of  employees  and  travelers  upon  railroads  by 
limiting  the  hours  of  service  of  employees  thereon. 

Common  Carrier  and  Employees  Subject  to  Act. 

Sec.  1.  That  the  provisions  of  this  Act  shall  apply  to  any  common 
carrier  or  carriers,  their  officers,  agents,  and  employees,  engaged  in  the 
transportation  of  passengers  or  property  by  railroad  in  the  District  of 
Columbia  or  any  Territory'  of  the  United  States,  or  from  one  State  or 
Territory  of  the  United  States  or  the  District  of  Columbia  to  any  other 
State  or  Territory  of  the  United  States  or  the  District  of  Columbia, 
or  from  any  place  in  the  United  States  to  an  adjacent  foreign  country, 
or  from  any  place  in  the  United  States  through  a  foreign  country  to 
any  other  place  in  the  United  States.  The  term  "railroad"  as  used 
in  this  Act  shall  include  all  bridges  and  ferries  used  or  operated  in  con- 
nection with  any  railroad,  and  also  all  the  road  in  use  by  any  common 
carrier  operating  a  railroad,  whether  owned  or  operated  under  a  con- 
tract, agreement,  or  lease;  and  the  term  "employees"  as  used  in  this 
Act  shall  be  held  to  mean  persons  actually  engaged  in  or  connected  with 
the  movement  of  any  train. 

Sixteen  Hours  the  Maximum  Continuous  Service. 

Sec.  2.  That  it  shall  be  unlawful  for  any  common  carrier,  its 
officers  or  agents,  subject  to  this  Act  to  require  or  permit  any  employee 
subject  to  this  Act  to  be  or  remain  on  duty  for  a  longer  period  than  six- 
teen consecutive  hours,  and  whenever  any  such  employee  of  such  com- 
mon carrier  shall  have  been  continuously  on  duty  for  sixteen  hours  he 
shall  be  relieved  and  not  required  or  permitted  again  to  go  on  duty 
until  he  has  had  at  least  ten  consecutive  hours  ofif  duty ;  and  no  such 
employee  who  has  been  on  duty  sixteen  hours  in  the  aggregate  in  any 
twenty-four-hour  period  shall  be  required  or  permitted  to  continue  or 
again  go  on  duty  without  having  had  at  least  eight  consecutive  hours  ofif 
duty :  Provided,  That  no  operator,  train  dispatcher,  or  other  employee  who 
by  the  use  of  the  telegraph  or  telephone  dispatches,  reports,  transmits, 
receives,  or  delivers  orders  pertaining  to  or  affecting  train  movements 
shall  be  required  or  permitted  to  be  or  remain   on  duty   for  a  longer 


Hours  of  Service  297 

period  than  nine  hours  in  any  twenty-four-hour  period  in  all  towers, 
offices,  places,  and  stations  continuously  operated  night  and  day,  nor 
for  a  longer  period  than  thirteen  hours  in  all  towers,  offices,  places,  and 
stations  operated  only  during  the  daytime,  except  in  case  of  emergency, 
when  the  employees  named  in  this  proviso  may  be  permitted  to  be  and 
remain  on  duty  for  four  additional  hours  in  a  twenty-four-hour  period 
on  not  exceeding  three  days  in  any  week :  Provided  further,  The  Inter- 
state Commerce  Commission  may  after  full  hearing  in  a  particular  case 
and  for  good  cause  shown  extend  the  period  within  which  a  common 
carrier  shall  comply  with  the  provisions  of  this  proviso  as  to  such  case. 
Sec.  2.  That  nothing  in  this  Act  shall  affect,  or  be  held  to  affect, 
any  suit  that  may  be  instituted  for  recovery  of  penalty  for  violation  of  the 
Act  hereby  amended  occurring  prior  to  the  approval  of  this  Act,  or  any 
suit  for  such  penalty  or  growing  out  of  alleged  violation  of  the  Act  hereby 
amended  which  may  be  pending  in  any  court  at  the  time  of  the  approval 
of  this  Act.     (As  amended  May  4,  1916.) 

Penalty  for  Violation. 

Sec.  3.  That  any  such  common  carrier,  or  any  officer  or  agent  there- 
of, requiring  or  permitting  any  employee  to  go,  be,  or  remain  on  duty  in 
violation  of  the  second  section  hereof  shall  be  liable  to  a  penalty  of  not 
less  than  $100  nor  more  than  $500  for  each  and  every  violation,  to  be 
recovered  in  a  suit  or  suits  to  be  brought  by  the  United  States  district 
attorney  in  the  district  court  of  the  United  States  having  jurisdiction  in 
the  locality  where  such  violations  shall  have  been  committed ;  and  it  shall 
be  the  duty  of  such  district  attorney  to  bring  such  suit  upon  satisfactory 
information  being  lodged  w'ith  him  ;  but  no  such  suit  shall  be  brought  after 
the  expiration  of  one  year  from  the  date  of  such  violation ;  and  it  shall 
also  be  the  duty  of  the  Interstate  Commerce  Commission  to  lodge  with 
the  proper  district  attorney  information  of  any  such  violations  as  may 
come  to  its  knowledge.  In  all  prosecutions  under  this  act  the  common 
carrier  shall  be  deemed  to  have  knowledge  of  all  acts  of  all  its  officers 
and  agents :  Provided,  That  the  provisions  of  this  act  shall  not  apply  in 
any  case  of  casualty  or  unavoidable  accident  or  the  act  of  God;  nor 
where  the  delay  was  the  result  of  a  cause  not  known  to  the  carrier  or  its 
officer  or  agent  in  charge  of  such  employee  at  the  time  said  employee  left 
a  terminal,  and  which  could  not  have  been  foreseen :  Provided  further. 
That  the  provisions  of  this  Act  shall  not  apply  to  the  crews  of  wrecking 
or  relief  trains. 

Sec.  4.  It  shall  be  the  duty  of  the  Interstate  Commerce  Com- 
mission to  execute  and  enforce  the  provisions  of  this  Act,  and  all  powers 
granted  to  the  Interstate  Commerce  Commission  are  hereby  extended  to 
it  in  the  execution  of  this  Act. 

Effective. 

Sec.  5.  That  this  Act  shall  take  effect  and  be  in  force  one  year 
after  its  passage. 


298  Important  Federal  Laws 

COMPENSATION  FOR  INJURIES  OF  FEDERAL 

EMPLOYEES. 

Act  of  September  7.  1916. 

An  Act  to  provide  compensation  for  employees  of  the  United  States  suffering 
injuries  while  in  the  performance  of  their  duties,  and  for  other  purposes. 

Government  Employees — Compensation  for  Injuries  in  Service. 

Sec.  L  That  the  United  States  shall  pay  compensation  as  herein- 
after specified  for  the  disability  or  death  of  an  employee  resulting  from 
a  personal  injury  sustained  while  in  the  performance  of  his  duty,  but  no 
compensation  shall  be  paid  if  the  injury  or  death  is  caused  by  the  willful 
misconduct  of  the  employee  or  by  the  employee's  intention  to  bring 
about  the  injury  or  death  of  himself  or  of  another,  or  if  intoxication 
of  the  injured  employee  is  the  proximate  cause  of  the  injury  or  death. 

Days  Excluded. 

Sec.  2.  That  during  the  first  three  days  of  disability  the  employee 
shall  not  be  entitled  to  compensation  except  as  provided  in  section 
nine.     No  compensation  shall  at  any  time  be  paid  for  such  period. 

Total  Disability. 

Sec.  3.  That  if  the  disability  is  total  the  United  States  shall  pay 
to  the  disabled  employee  during  such  disability  a  monthly  compen- 
sation equal  to  sixty-six  and  two-thirds  per  centum  of  his  monthly 
pay,  except  as  hereinafter  provided. 

Partial  Disability. 

Sec.  4.  That  if  the  disability  is  partial  the  United  States  shall  pay 
to  the  disabled  employee  during  such  disability  a  monthly  compensa- 
tion equal  to  sixty-six  and  two-thirds  per  centum  of  the  difference 
between  his  monthly  pay  and  his  monthly  wage-earning  capacity 
after  the  beginning  of  such  partial  disability.  The  commission  may, 
from  time  to  time,  require  a  partially  disabled  employee  to  make 
an  affidavit  as  to  the  wages  which  he  is  then  receiving.  In  such 
affidavit  the  employee  shall  include  a  statement  of  the  value  of  hous- 
ing, board,  lodging,  and  other  advantages  which  are  received  from 
the  employer  as  a  part  of  his  remuneration  and  which  can  be  estimated 
in  money.  If  the  employee,  when  required,  fails  to  make  such  affidavit, 
he  shall  not  be  entitled  to  any  compensation  vrhile  such  failure  con- 
tinues, and  the  period  of  such  failure  shall  be  deducted  from  the 
period  during  which  compensation  is  payable  to  him. 

No  Pay  if  Refusing  Work. 

Sec.  5.  That  if  a  partially  disabled  employee  refuses  to  seek  suit- 
able work  or  refuses  or  neglects  to  work  after  suitable  work  is  oft'ered 
to,  procured  by,  or  secured  for  him,  he  shall  not  be  entitled  to  any 
compensation. 

Allowance  for  Disability. 

Sec.   6.     That  the   monthly   compensation   for  total   disability   shall 


Employees'  Compensation  299 

not  be  more  than  $66.67  nor  less  than  $33.33,  unless  the  employee's 
monthly  pay  is  less  than  $33.33,  in  which  case  his  monthly  compen- 
sation shall  be  the  full  amount  of  his  monthly  pay.  The  monthly 
compensation  for  partial  disability  shall  not  be  more  than  $66.67. 
In  the  case  of  persons  who  at  the  time  of  the  injury  were  minors  or 
employed  in  a  learner's  capacity  and  who  were  not  physically  or 
mentally  defective,  the  commission  shall,  on  any  review  after  the 
time  when  the  monthly  wage-earning-  capacity  of  such  persons  wovild 
probably,  but  for  the  injury,  have  increased,  award  compensation  based 
on  such  probaWe  monthly  wage-earning  capacity.  The  commission 
may,  on  any  review  after  the  time  w-hen  the  monthly  wage-earning 
capacity  of  the  disabled  employee  would  probably,  irrespective  of  the 
injury,  have  decreased  on  account  of  old  age,  award  compensation 
based   on   such  probable  monthly   wage-earning  capacity. 

Other  Pay  Restricted. 

Sec.  7.  That  as  long  as  the  employee  is  in  receipt  of  compensa- 
tion under  this  Act,  or,  if  he  has  been  paid  a  lump  sum  in  commuta- 
tion of  installment  payments,  until  the  exoiration  of  the  period  during 
which  such  installment  payments  would  have  continued,  he  shall  not 
receive  from  the  United  States  any  salary,  pay,  or  remuneration  what- 
soever except  in  return  for  services  actually  performed,  and  except  pen- 
sions for  service  in  the  Army  or  Navy  of  the  United  States. 

To  Use  Leave  With  Pay  First. 

Sec.  8.  That  if  at  the  time  the  disability  begins  the  employee  has 
annual  or  sick  leave  to  his  credit  he  may.  subject  to  the  approval 
of  the  head  of  the  department,  use  such  leave  until  it  is  exhausted, 
in  which  case  his  compensation  shall  begin  on  the  fourth  day  of  dis- 
ability after  the  annual  or  sick  leave  has  ceased. 

Immediate  Medical  Assistance  to  Be  Furnished. 

Sec.  9.  That  immediately  after  an  injury  sustained  by  an  em- 
ployee while  in  the  performance  of  his  duty,  whether  or  not  disability 
has  arisen,  and  for  a  reasonable  time  thereafter,  the  United  States  shall 
furnish  to  such  employee  reasonable  medical,  surgical,  and  hospital  serv- 
ices and  supplies  unless  he  refuses  to  accept  them.  Such  services  and 
supplies  shall  be  furnished  by  United  States  medical  officers  and  hos- 
pitals, but  where  this  is  not  practicable  shall  be  furnished  by  private 
physicians  and  hospitals  designated  or  approved  by  the  commission 
and  paid  for  from  the  employees'  compensation  fund.  If  necessary 
for  the  securing  of  proper  medical,  surgical,  and  hospital  treatment, 
the  employee,  in  the  discretion  of  the  commission,  may  be  furnished 
transportation  at  the  expense  of  the  employees'  compensation  fund. 

Allovi'ances  if  Death  Results — Regulations. 

Sec.  10.  That  if  death  results  from  the  injury  within  six  years  the 
United    States    shall    pay    to    the    following   persons    for    the    following 


300  Important  Federal  Laws 

periods  a  monthly  compensation  equal  to  the  following  percentages 
of  the  deceased  employee's  monthly  pay,  subject  to  the  modification 
that  no  compensation  shall  be  paid  where  the  death  takes  place  more 
than  one  year  after  the  cessation  of  disability  resulting  from  such 
injury,  or,  if  there  has  been  no  disability  preceding  death,  more  than 
one  year  after  the  injury: 

(A)  To  the  widow,  if  there  is  no  child,  thirty-five  per  centum. 
This  compensation  shall  be  paid  until  her  death  or  marriage. 

(B)  To  the  widower,  if  there  is  no  child,  thirty-five  per  centum 
if  wholly  dependent  for  support  upon  the  deceased  employee  at  the 
time  of  her  death.  This  compensation  shall  be  paid  until  his  death 
or  marriage. 

(C)  To  the  widow  or  widower,  if  there  is  a  child,  the  com- 
pensation payable  under  clause  (A)  or  clause  (B)  and  in  addition  there- 
to ten  per  centum  for  each  child,  not  to  exceed  a  total  of  sixty-six  and 
two-thirds  per  centum  for  such  widow  or  widower  and  children.  If 
a  child  has  a  guardian  other  than  the  surviving  widow  or  widower,  the 
compensation  payable  on  account  of  such  child  shall  be  paid  to  such 
guardian.  The  compensation  payable  on  account  of  any  child  shall 
cease  when  he  dies,  marries,  or  reaches  the  age  of  eighteen,  or,  if 
over  eighteen,  and  incapable  of  self-support,  becomes  capable  of  self- 
support. 

(D)  To  the  children,  if  there  is  no  widow  or  widower,  twenty- 
five  per  centum  for  one  child  and  ten  per  centum  additional  for  each 
additional  child,  not  to  exceed  a  total  of  sixty-six  and  two-thirds  per 
centum,  divided  among  such  children  share  and  share  alike.  The 
compensation  of  each  child  shall  be  paid  until  he  dies,  marries,  or 
reaches  the  age  of  eighteen,  or,  if  over  eighteen  and  incapable  of 
self-support,  becomes  capable  of  self-support.  The  compensation  of 
a  child  under  legal  age  shall  be  paid  to  its  guardian. 

(E)  To  the  parents,  if  one  is  wholly  dependent  for  support  upon 
the  deceased  employee  at  the  time  of  his  death  and  the  other  is  not 
dependent  to  any  extent,  twenty-five  per  centum;  if  both  are  wholly 
dependent,  twenty  per  centum  to  each;  if  one  is  or  both  are  partly 
dependent,  a  proportionate  amount  in  the  discretion  of  the  commission. 

The  above  percentages  shall  be  paid  if  there  is  no  widow,  widower, 
or  child.  If  there  is  a  widow,  widower,  or  child,  there  shall  be  paid 
so  much  of  the  above  percentages  as,  when  added  to  the  total  per- 
centages payable  to  the  widow,  widower,  and  children,  will  not  ex- 
ceed a  total  of  sixty-six  and  two-thirds  per  centum. 

(F)  To  the  brothers,  sisters,  grandparents,  and  grandchildren,  if 
one  is  wholly  dependent  upon  the  deceased  employee  for  support  at 
the  time  of  his  death,  twenty  per  centum  to  such  dependent ;  if  more 
than  one  are  wholly  dependent,  thirty  per  centum,  divided  among 
such   dependents   share   and   share  alike;   if   there   is   no   one  of   them 


Employees'  Compensaton  301 

wholly  dependent,  but  one  or  more  partly  dependent,   ten   per  centum 
divided  among  such  dependents  share  and  share  alike. 

The  above  percentages  shall  be  paid  if  there  is  no  widow,  widower, 
child,  or  dependent  parent.  If  there  is  a  widow,  widower,  child,  or 
dependent  parent,  there  shall  be  paid  so  much  of  the  above  per- 
centages as,  when  added  to  the  total  percentage  payable  to  the  widow, 
widower,  children,  and  dependent  parents,  will  not  exceed  a  total  of 
sixty-six  and  two-thirds  per  centum. 

(G)  The  compensation  of  each  beneficiary  under  clauses  (E)  and 
(F)  shall  be  paid  for  a  period  of  eight  years  from  the  time  of  the 
death,  unless  before  that  time  he,  if  a  parent  or  grandparent,  dies, 
marries,  or  ceases  to  be  dependent,  or,  if  a  brother,  sister,  or  grand- 
child, dies,  marries,  or  reaches  the  age  of  eighteen,  or,  if  over  eighteen 
and  incapable  of  self-support,  becomes  capable  of  self-support.  The 
compensation  of  a  brother,  sister,  or  grandchild  under  legal  age  shall 
be  paid  to  his  or  her  guardian. 

(H)  As  used  in  this  section,  the  term  "child"  includes  step- 
children, adopted  children,  and  posthumous  children,  but  does  not 
include  married  children.  The  terms  "brother"  and  "sister"  include 
stepbrothers  and  stepsisters,  half  brothers  and  half  sisters,  and  brothers 
and  sisters  by  adoption,  but  do  not  include  married  brothers  or  mar- 
ried sisters.  All  of  the  above  terms  and  the  term  "grandchild"  in- 
clude only  persons  who  at  the  time  of  the  death  of  the  deceased  em- 
ployee are  under  eighteen  years  of  age  or  over  that  age  and  incapable 
of  self-support.  The  term  "parent"  includes  step-parents  and  parents 
by  adoption.  The  term  "widow"  includes  only  the  decedent's  wife 
living  with  or  dependent  for  support  upon  him  at  the  time  of  his 
death.  The  tenn  "widower"  includes  only  the  decedent's  husband  de- 
pendent for  support  upon  her  at  the  time  of  her  death.  The  terms 
"adopted"  and  "adoption"  as  used  in  this  clause  include  only  legal 
adoption  prior  to  the  time  of  the  injury. 

(I)  Upon  the  cessation  of  compensation  under  this  section  to  or 
on  account  of  any  person,  the  compensation  of  the  remaining  persons 
entitled  to  compensation  for  the  unexpired  part  of  the  period  during 
which  their  compensation  is  payable  shall  be  that  which  such  persons 
would  have  received  if  they  had  been  the  only  persons  entitled  to 
compensation  at  the  time  of  the  decedent's  death. 

(J)  In  case  there  are  two  or  more  classes  of  persons  entitled  to 
compensation  under  this  section  and  the  apportionment  of  such  com- 
pensation, above  provided,  would  result  in  injustice,  the  commission 
may,  in  its  discretion,  modify  the  apportionment  to  meet  the  require- 
ments of  the  case. 

(K)  In  computing  compensation  under  this  section,  the  monthly 
pay  shall  be  considered  not  to  be  more  than  $100  nor  less  than  $50. 
but  the  total  monthly  compensation  shall  not  exceed  the  monthly  pay 
computed  as  provided  in  section  twelve. 


302  Important  Federal  Laws 

(L)  If  any  person  entitled  to  compensation  under  this  section, 
whose  compensation  by  the  terms  of  this  section  ceases  upon  his  mar- 
riage, accepts  any  payments  of  compensation  after  his  marriage  he 
shall  be  punished  by  a  fine  of  not  more  than  $2,000  or  by  imprison- 
ment for  not  more  than  one  year,  or  by  both  such  fine  and  imprison- 
ment. 

Burial  Expenses  Allowed. 

Sec.  11.  That  if  death  results  from  the  injury  within  six  years 
the  United  States  shall  pay  to  the  personal  representative  of  the  de- 
ceased employee  burial  expenses  not  to  exceed  $100,  in  the  discre- 
tion of  the  commission.  In  the  case  of  an  employee  whose  home  is 
within  the  United  States,  if  his  death  occurs  away  from  his  home 
office  or  outside  of  the  United  States,  and  if  so  desired  by  his  relatives, 
the  body  shall,  in  the  discretion  of  the  commission,  be  embalmed  and 
transported  in  a  hermetically  sealed  casket  to  the  home  of  the  em- 
plovee.  Such  burial  expenses  shall  not  be  paid  and  such  transporta- 
tion shall  not  be  furnished  where  the  death  takes  place  more  than  one 
year  after  the  cessation  of  disability  resulting  from  such  injury,  or, 
if  there  has  been  no  disability  preceding  death,  more  than  one  year 
after  the  injury. 

Computing  Employee's  Monthly  Pay. 

Sec.  12.  That  in  computing  the  monthly  pay  the  usual  practice 
of  the  service  in  which  the  employee  was  employed  shall  be  followed. 
Subsistence  and  the  value  of  quarters  furnished  an  employee  shall 
be  included  as  part  of  the  pay,  but  overtime  pay  shall  not  be  taken 
into  account. 

Wage-earning  Capacity  if  Partially  Disabled. 

Sec.  13.  That  in  the  determination  of  the  employee's  monthly 
wage-earning  capacity  after  the  beginning  of  partial  disability,  the 
value  of  housing,  board,  lodging,  and  other  advantages  which  are 
received  from  his  employer  as  a  part  of  his  remuneration  and  which 
can  be  estimated  in  money  shall  be  taken  into  account. 

Lump-sum  Commutations. 

Sec.  14.  That  in  cases  of  death  or  of  permanent  total  or  perma- 
nent partial  disability,  if  the  monthly  payment  to  the  beneficiary  is 
less  than  $5  a  month,  or  if  the  beneficiary  is  or  is  about  to  become  a 
non-resident  of  the  United  States,  or  if  the  commission  determines  that 
it  is  for  the  best  interests  of  the  beneficiary,  the  liability  of  the  United 
States  for  compensation  to  such  beneficiary  may  be  discharged  by 
the  payment  of  a  lump  sum  equal  to  the  present  value  of  all  future 
payments  of  compensation  computed  at  four  per  centum  true  dis- 
count'compounded  annually.  The  probability  of  the  beneficiary's  death 
before  the  expiration  of  the  period  during  which  he  is  entitled  to  com- 
pensation shall  be  determined  according  to  the  American  Experience 
Table    of    ^Mortality ;   but    in   case    of    compensation    to    the    widow    or 


Employees'  Compensation  303 

widower  of  the  deceased  employee,  such  lump  sum  shall  not  exceed 
sixty  months'  compensation.  The  probability  of  the  happening  of  any 
other  contingency  affecting  the  amount  or  duration  of  the  compensation 
shall  be  disregarded. 

Written  Notice  of  Injury  Required. 

Sec.  15.  That  every  employee  injured  in  the  performance  of  his 
duty,  or  some  one  on  his  behalf,  shall,  within  forty-eight  hours  after 
the  injury,  give  written  notice  thereof  to  the  immediate  superior  of 
the  employee.  Such  notice  shall  be  given  by  delivering  it  personally 
or  by  depositing  it  properly  stamped  and  addressed  in  the  mail. 

Particulars. 

Sec.   16.     That  the  notice  shall  state  the  name  and  address  of  the  ■ 
employee,    the    year,    month,    day,    and   hour    when    and    the   particular 
locality   where  the   injury  occurred,   and   the   cause  and   nature   of   the 
injury,  and  shall  be  signed  by  and  contain  the  address   of  the  person 
giving  the  notice. 

No  Pay  Without  Notice. 

Sec.  17.  That  unless  notice  is  given  within  the  time  specified  or 
unless  the  immediate  superior  has  actual  knowledge  of  the  injury,  no 
compensation  shall  be  allowed,  but  for  any  reasonable  cause  shown, 
the  commission  may  allow  compensation  if  the  notice  is  filed  within 
one  year  after  the  injury. 

Claim  Must  Be  Filed. 

Sec.  18.  That  no  compensation  under  this  Act  shall  be  allowed  to 
any  person,  except  as  provided  in  section  thirty-eight,  unless  he  or 
some  one  on  his  behalf  shall,  within  the  time  specified  in  section 
twenty,  make  a  written  claim  therefor.  Such  claim  shall  be  made  by 
delivering  it  at  the  office  of  the  commission  or  to  any  commissioner 
or  to  any  person  whom  the  commission  may  by  regulation  designate, 
or  by  depositing  it  in  the  mail  properly  stamped  and  addressed  to 
the  commission  or  to  any  person  whom  the  commission  may  by  regu- 
lation designate. 

Forms. 

Sec.  19.  That  every  claim  shall  be  made  on  forms  to  be  furnished 
by  the  commission  and  shall  contain  all  the  information  required  by 
the  commission.  Each  claim  shall  be  sworn  to  by  the  person  entitled 
to  compensation  or  by  the  person  acting  on  his  behalf,  and,  except 
in  case  of  death,  shall  be  accompanied  by  a  certificate  of  the  employee's 
physician  stating  the  nature  of  the  injury  and  the  nature  and  probable 
extent  of  the  disability.  For  any  reasonable  cause  shown  the  com- 
mission may  w'aive  the  provisions  of  this   section. 

Time  For  Making  Claims. 

Sec.  20.  That  all  original  claims  for  compensation  for  disability 
shall  be  made  within  sixty  days  after  the  injury.     All  original  claims 


304  Important  Federal  Laws 

for  compensation  for  death  shall  be  made  within  one  year  after  the 
death.  For  any  reasonable  cause  shown  the  commission  may  allow 
original  claims  for  compensation  for  disability  to  be  made  at  any  time 
within  one  year. 

Medical  Examinations. 

Sec.  21.  That  after  the  injury  the  employee  shall,  as  frequently 
and  at  such  times  and  places  as  may  be  reasonably  required,  submit 
himself  to  examination  by  a  medical  officer  of  the  United  States  or 
by  a  duly  qualified  physician  designated  or  approved  by  the  commis- 
sion. The  employee  may  have  a  duly  qualified  physician  designated 
and  paid  by  him  present  to  participate  in  such  examination.  For  all 
examinations,  after  the  first  the  employee  shall,  in  the  discretion  of  the 
commission,  be  paid  his  reasonable  traveling  and  other  expenses  and 
loss  of  wages  incurred  in  order  to  submit  to  such  examination.  If  the 
employee  refuses  to  submit  himself  for  or  in  any  way  obstructs  any 
examination,  his  right  to  claim  compensation  under  this  Act  shall  be 
suspended  until  such  refusal  or  obstruction  ceases.  No  compensation 
shall  be  payable  while  such  refusal  or  obstruction  continues,  and  the 
period  of  such  refusal  or  obstruction  shall  be  deducted  from  the  period 
for  which  compensation  is  payable  to  him. 

Re-examination  if  Physicians  Disagree. 

Sec.  22.  That  in  case  of  any  disagreement  between  the  physician 
making  an  examination  on  the  part  of  the  United  States  and  the  em- 
ployee's physician  the  commission  shall  appoint  a  third  physician,  duly 
qualified,  who  shall  make  an  examination. 

Examination  Fees. 

Sec.  23.  That  fees  for  examination  made  on  the  part  of  the 
United  States  under  sections  twenty-one  and  twenty-two  by  physicians 
who  are  not  already  in  the  service  of  the  United  States  shall  be  fixed 
by  the  commission.  Such  fees,  and  any  sum  payable  to  the  employee 
under  section  twenty-one,  shall  be  paid  out  of  the  appropriation  for  the 
work  of  the  commission. 

Superior  Officer  to  Report  Injury. 

Sec.  24.  That  immediately  after  an  injury  to  an  employee  result- 
ing in  his  death  or  in  his  probable  disability,  his  immediate  superior 
shall  make  a  report  to  the  commission  containing  such  information  as 
the  commission  may  require,  and  shall  thereafter  make  such  supple- 
mentary reports  as  the  commission  may  require. 

Assignments  Void. 

Sec.  25.  That  any  assignment  of  a  claim  for  compensation  under 
this  Act  shall  be  void  and  all  compensation  and  claims  therefor  shall 
be  exempt  from  all  claims  of  creditors. 

Injuries  Caused  by  Other  Persons. 

Sec.  26.     If  an  injury  or  death  for  which  compensation  is  payable 


Employees'  Compexsation  305 

under  this  Act  is  caused  under  circumstances  creating  a  legal  liability 
upon  some  person  other  than  the  United  States  to  pay  damages  there- 
for, the  commission  may  require  the  beneficiary  to  assign  to  the  United 
States  any  right  of  action  he  may  have  to  enforce  such  liability  of 
such  other  person  or  any  right  which  he  may  have  to  share  in  any 
money  or  other  property  received  in  satisfaction  of  such  liability  of 
such  other  person,  or  the  commission  may  require  said  beneficiary  to 
prosecute  said  action  in  his  own  name. 

If  the  beneficiary  shall  refuse  to  make  such  assignment  or  to  prose- 
cute said  action  in  his  own  name  when  required  by  the  commission, 
he  shall  not  be  entitled  to  any  compensation  under  this  Act. 

The  cause  of  action  when  assigned  to  the  United  States  may  be 
prosecuted  or  compromised  by  the  commission,  and  if  the  commission 
realizes  upon  such  cause  of  action,  it  shall  apply  the  money  or  other 
property  so  received  in  the  following  manner :  After  deducting  the 
amount  of  any  compensation  already  paid  to  the  beneficiary  and  the 
expenses  of  such  realization  or  collection,  which  sum  shall  be  placed 
to  the  credit  of  the  employees'  compensation  fund,  the  surplus,  if  any, 
shall  be  paid  to  the  beneficiary  and  credited  upon  any  future  pay- 
ments of  compensation  payable  to  him  on  account  of  the  same  injury. 

Damages  Received  by  Employee  from  Other  Party. 

Sec.  27.  That  if  an  injury  or  death  for  which  compensation  is  pay- 
able under  this  Act  is  caused  under  circumstances  creating  a  legal 
liability  in  some  person  other  than  the  United  States  to  pay  damages 
therefor,  and  a  beneficiary  entitled  to  compensation  from  the  United 
States  for  such  injury  or  death  receives,  as  a  result  of  a  suit  brought 
by  him  or  on  his  behalf,  or  as  a  result  of  a  settlement  made  by  him 
or  on  his  behalf,  any  money  or  other  property  in  satisfaction  of  the 
liability  of  such  other  person,  such  beneficiary  shall,  after  deducting 
the  costs  of  suit  and  a  reasonable  attorney's  fee,  apply  the  money  or 
other  property  so  received  in  the  following  manner: 

(A)  If  his  compensation  has  been  paid  in  whole  or  in  part,  he 
shall  refund  to  the  United  States  the  amount  of  compensation  which 
has  been  paid  by  the  United  States  and  credit  any  surplus  upon  future 
payments  of  compensation  payable  to  him  on  account  of  the  same 
injury.  Any  amount  so  refunded  to  the  United  States  shall  be  placed 
to  the  credit  of  the  employees'  compensation  fund. 

(B)  If  no  compensation  has  been  paid  to  him  by  the  United 
States,  he  shall  credit  the  money  or  other  property  so  received  upon 
any  compensation  payable  to  him  by  the  United  States  on  account  of 
the  same  injury. 

Employees'  Compensation  Commission. 

Sec.  28.  That  a  commission  is  hereby  created,  to  be  known  as  the 
United  States  Employees'  Compensation  Commission,  and  to  be  com- 
posed of  three  commissioners  appointed  by  the  President,  by  and  with 

(20) 


306  Important  Federal  Laws 

the  advice  and  consent  of  the  Senate,  one  of  whom  shall  be  designated 
by  the  President  as  chairman.  No  commissioner  shall  hold  any  other 
office  or  position  under  the  United  States.  No  more  than  two  of  said 
commissioners  shall  be  members  of  the  same  political  party.  One  of 
said  commissioners  shall  be  appointed  for  a  term^  of  two  years,  one 
for  a  term  of  four  years,  and  one  for  a  term  of  six  years,  and  at  the 
expiration  of  each  of  said  terms,  the  commissioner  then  appointed  shall 
be  appointed  for  a  period  of  six  years.  Each  commissioner  shall  receive 
a  salary  of  $4,000  a  year.  The  principal  office  of  said  commission  shall 
be  in  Washington,  District  of  Columbia,  but  the  said  commission  is 
authorized  to  perform  its  work  at  any  place  deemed  necessary  by  said 
commission,  subject  to  the  restrictions  and  limitations  of  this  Act. 

Jurisdiction  of  All  Other  Offices  Transferred. 

Sec.  28a.  Upon  the  organization  of  said  commission  and  notifi- 
cation to  the  heads  of  all  executive  departments  that  the  commission 
is  ready  to  take  up  the  work  devolved  upon  it^  by  this  Act,  all  com- 
missions and  independent  bureaus,  by  or  in  which  payments  for  com- 
pensation are  now  provided,  together  with  the  adjustment  and  settle- 
ment of  such  claims,  shall  cease  and  determine,  and  such  executive 
departments,  commissions,  and  independent  bureaus  shall  transfer  all 
pending  claims  to  said  commission  to  be  administered  by  it.  The 
said  commission  may  obtain,  in  all  cases,  in  addition  to  the  reports 
provided  in  section  twenty-four,  such  information  and  such  reports 
from  employees  of  the  departments  as  may  be  agreed  upon  by  the 
commission  and  the  heads  of  the  respective  departments.  All  clerks 
and  employees  now  exclusively  engaged  in  carrying  on  said  work  in  the 
various  executive  departments,  commissions,  and  independent  bureaus, 
shall  be  transferred  to,  and  become  employees  of,  the  commission  at 
their  present  grades  and  salaries. 

General  Authority  Conferred. 

Sec.  29.  That  the  commission,  or  any  commissioner  by  authority 
of  the  commission,  shall  have  power  to  issue  subpoenas  for  and  compel 
the  attendance  of  witnesses  within  a  radius  of  one  hundred  miles,  to 
require  the  production  of  books,  papers,  documents,  and  other  evidence 
to  administer  oaths,  and  to  examine  witnesses,  upon  any  matter  within 
the  jurisdiction  of  the  commission. 

Office  Force  Civil  Service  Appointees. 

Sec.  30.  That  the  commission  shall  have  such  assistants,  clerks, 
and  other  employees  as  may  be  from  time  to  time  provided  by  Con- 
gress. They  shall  be  appointed  from  lists  of  eligibles  to  be  supplied 
by  the  Civil  Service  Commission,  and  in  accordance  with  the  Civil- 
service  law. 

Annual  Estimates. 

Sec.  31.     That  the  commission  shall  submit  annually  to  the  Secre- 


Employees'  Compensation  307 

tary   of    the    Treasury   estimates    of    the    appropriations    necessary    for 
the  work  of  the  commission. 

Regulations  to  be  Made. 

Sec.  32.  That  the  commission  is  authorized  to  make  necessary 
rules  and  regulations  for  the  enforcement  of  this  Act,  and  shall  decide 
all  questions  arising  under  this  Act. 

Report  to  Congress. 

Sec.  33.  That  the  commission  shall  make  to  Congress  at  the  begin- 
ning of  each  regular  session  a  report  of  its  work  for  the  preceding 
fiscal  year,  including  a  detailed  statement  of  appropriations  and  ex- 
penditures, a  detailed  statement  showing  receipts  of  and  expenditures 
from  the  employees'  compensation  fund,  and  its  recommendations  for 
legislation. 

Amount  Authorized  for  Salaries  and  Expenses. 

Sec.  34.  That  for  the  fiscal  year  ending  June  thirtieth,  nineteen 
hundred  and  seventeen,  there  is  hereby  authorized  to  be  appropriated, 
from  any  money  in  the  Treasury  not  otherwise  appropriated,  the  sum 
of  $50,000  for  the  work  of  the  commission,  including  salaries  of  the 
commissioners  and  of  such  assistants,  clerks,  and  other  employees  as 
the  commission  may  deem  necessary,  and  for  traveling  expenses,  ex- 
penses of  medical  examinations  under  sections  twenty-one  and  twenty- 
two,  reasonable  traveling  and  other  expenses  and  loss  of  wages  pay- 
able to  employees  under  section  twenty-one,  rent  and  equipment  of 
offices,  purchase  of  books,  stationery,  and  other  supplies,  printing  and 
binding  to  be  done  at  the  Government  Printing  Office,  and  other  neces- 
sary expenses. 

Amount  for  Employees'  Compensation  Fund. 

Sec.  35.  That  there  is  hereby  authorized  to  be  appropriated,  from 
any  money  in  the  Treasury  not  otherwise  appropriated,  the  sum  of 
$500,000,  to  be  set  aside  as  a  separate  fund  in  the  Treasury,  to  be 
known  as  the  employees'  compensation  fund.  To  this  fund  there  shall 
be  added  such  sums  as  Congress  may  from  time  to  time  appropriate 
for  the  purpose.  Such  fund,  including  all  additions  that  may  be  made 
to  it,  is  hereby  authorized  to  be  permanently  appropriated  for  the  pay- 
ment of  the  compensation  provided  by  this  Act,  including  the  medical, 
surgical,  and  hospital  services  and  supplies  provided  by  section  nine, 
and  the  transportation  and  burial  expenses  provided  by  sections  nine 
and  eleven.  The  commission  shall  submit  annually  to  the  Secretary 
of  the  Treasury  estimates  of  the  appropriations  necessary  for  the 
maintenance  of  the  fund. 

Determination  of  Claims. 

Sec.  36.  The  commission,  upon  consideration  of  the  claim  pre- 
sented by  the  beneficiary,  and  the  report  furnished  by  the  immediate 
superior  and  the  completion  of  such  investigation    as    it    may    deem 


308  Important  Federal  Laws 

necessary,  shall  determine  and  make  a  finding  of  facts  thereon  and 
make  an  award  for  or  against  payment  of  the  compensation  provided 
for  in  this  Act.  Compensation  when  awarded  shall  be  paid  from  the 
employees'  compensation  fmid. 

Review  of  Awards. 

Sec.  yj.  That  if  the  original  claim  for  compensation  has  been 
made  within  the  time  specified  in  section  twenty,  the  commission  may, 
at  any  time,  on  its  own  motion  or  on  application,  review  the  award,_  and, 
in  accordance  with  the  facts  found  on  such  review,  may  end,  diminish, 
or  increase  the  compensation  previously  awarded,  or,  if  compensation 
has  been  refused  or  discontinued,  award  compensation. 

Cancellation  of  Mistakes. 

Sec.  38.  That  if  any  compensation  is  paid  under  a  mistake  of 
law  or  of  fact,  the  commission  shall  immediately  cancel  any  award 
under  which  such  compensation  has  been  paid  and  shall  recover,  as  far 
as  practicable,  any  amount  which  has  been  so  paid.  Any  amount  so 
recovered  shall  be  placed  to  the  credit  of  the  employees'  compensation 
fund. 

Punishment  for  False  Statements,  Etc. 

Sec.  39.  That  whoever  makes,  in  any  affidavit  required  under 
section  four  or  in  any  claim  for  compensation,  any  statement,  know- 
ing it  to  be  false,  shall  be  guilty  of  perjury  and  shall  be  punished  by 
a  fine  of  not  more  than  $2,000,  or  by  imprisonment  for  not  more  than 
one  year,  or  by  both  such  fine  and  imprisonment. 

Definition  of  Terms  Used. 

Sec.  40.     That  wherever  used  in  this  Act — 

The   singular  includes  the  plural   and   the  masculine   includes   the 

feminine. 

The  term  "employee"  includes  all  civil  employees  of  the  United 
States  and  of  the  Panama  Railroad  Company. 

The  term  "commission"  shall  be  taken  to  refer  to  the  United  States 
Employees'  Compensation  Commission  provided  for  in  section  twenty- 
eight. 

The  term  "physician"  includes  surgeons. 

The  term  "monthly  pay"  shall  be  taken  to  refer  to  the  monthly 
pay  at  the  time  of  the  injury. 

Inconsistent  Laws  Repealed ;  Injuries  Under  Panama  Railroad  Com- 
pany. .  •  ,       ,  •       A 

Sec.  41.  That  all  Acts  or  parts  of  Acts  inconsistent  with  this  Act 
are  hereby  repealed:  Provided,  however.  That  for  injuries  occurring 
prior  to  the  passage  of  this  Act  compensation  shall  be  paid  under  the 
law  in  force  at  the  time  of  the  passage  of  this  Act:  And  provided 
further.  That  if  an  injury  or  death  for  which  compensation  is  payable 
under  this  Act  is  caused  under  circumstances  creating  a  legal  liability 


Employees'  Compensation  309 

in  the  Panama  Railroad  Company  to  pay  damages  therefor  under  the 
laws  of  any  State,  Territory,  or  possession  of  the  United  States  or  of 
the  District  of  Columbia  or  of  any  foreigri  country,  no  compensation 
shall  be  payable  until  the  person  entitled  to  compensation  releases 
to  the  Panama  Railroad  Company  any  right  of  action  which  he  may 
have  to  enforce  such  liability  of  the  Panama  Railroad  Company,  or 
until  he  assigns  to  the  United  States  any  right  which  he  may  have  to 
share  in  any  money  or  other  property  received  in  satisfaction  of  such 
liability  of  the  Panama  Railroad  Company. 

Employees,  Panama  Canal  Railroad  and  Alaska  Railroad. 

Sec.  42.  That  the  President  may,  from  time  to  time,  transfer  the 
administration  of  this  Act  so  far  as  employees  of  the  Panama  Canal 
and  of  the  Panama  Railroad  Company  are  concerned  to  the  governor 
of  the  Panama  Canal,  and  so  far  as  employees  of  the  Alaskan  Engi- 
neering Commission  are  concerned  to  the  chairman  of  that  commis- 
sion, in  which  cases  the  words  "commission"  and  "its"  wherever  they 
appear  in  this  Act  shall,  so  far  as  necessary  to  give  effect  to  such 
transfer,  be  read  "governor  of  the  Panama  Canal"  or  "chairman  of 
the  Alaskan  Engineering  Commission,"  as  the  case  may  be,  and  "his" ; 
and  the  expenses  of  medical  examinations  under  sections  twenty-one 
and  twenty-two,  and  the  reasonable  traveling  and  other  expenses  and 
loss  of  wages  payable  to  employees  under  section  twenty-one,  shall  be 
paid  out  of  appropriations  for  the  Panama  Canal  or  for  the  Alaskan 
Enginering  Commission  or  out  of  funds  of  the  Panama  Railroad,  as  the 
case  may  be,  instead  of  out  of  the  appropriation  for  the  work  of  the 
commission. 

In  the  case  of  compensation  to  employees  of  the  Panama  Canal  or 
of  the  Panama  Railroad  Company  for  temporary  disability,  either 
total  or  partial,  the  President  may  authorize  the  governor  of  the 
Panama  Canal  to  waive,  at  his  discretion,  the  making  of  the  claim 
required  by  section  eighteen.  In  the  case  of  alien  employees  of  the 
Panama  Canal  or  of  the  Panama  Railroad  Company,  or  of  any  class 
or  classes  of  them,  the  President  may  remove  or  modify  the  minimum 
limit  established  by  section  six  on  the  monthly  compensation  for 
disability  and  the  minimum  limit  established  by  clause  (K)  of  sec- 
tion ten  on  the  monthly  pay  on  which  death  compensation  is  to  be 
computed.  The  President  may  authorize  the  governor  of  the  Panama 
Canal  and  the  chairman  of  the  Alaskan  Engineering  Commission  to 
pay  the  compensation  provided  by  this  Act,  including  the  medical, 
surgical,  and  hospital  services  and  supplies  provided  by  section  nine 
and  the  transportation  and  burial  expenses  provided  by  sections  nine 
and  eleven,  out  of  the  appropriations  for  the  Panama  Canal  and 
for  the  Alaskan  Engineering  Commission,  such  appropriations  to  be 
reimbursed  for  such  payments  by  the  transfer  of  funds  from  the  em- 
ployees' compensation  fund. 


310  Important  Federal  Laws 

CHILD  LABOR  ACT. 

Act  of  September  1,  1916. 
An  act  to  prevent  interstate  commerce  in  the  products  of  child  labor,  and  for 
other  purposes. 

Products  of  Child  Labor  Prohibited  in  Interstate  Commerce. 

Sec.  1.  That  no  producer,  manufacturer,  or  dealer  shall  ship  or 
deliver  for  shipment  in  interstate  or  foreign  commerce  any  article  or 
commodity  the  product  of  any  mine  or  quarry,  situated  in  the  United 
States,  in  which  within  thirty  days  prior  to  the  time  of  the  removal  of 
such  product  therefrom  children  under  the  age  of  sixteen  years  have 
been  employed  or  permitted  to  work,  or  any  article  or  commodity  the 
product  of  any  mill,  cannery,  workshop,  factory,  or  manufacturing  estab- 
lishment, situated  in  the  United  States,  in  which  within  thirty  days  prior 
to  the  removal  of  such  product  therefrom  children  under  the  age  of  four- 
teen years  have  been  employed  or  permitted  to  work,  or  children  between 
the  ages  of  fourteen  years  and  sixteen  years  have  been  employed  or  per- 
mitted to  work  more  than  eight  hours  in  any  day,  or  more  than  six  days 
in  any  week,  or  after  the  hour  of  seven  o'clock  postmeridian,  or  before 
the  hour  of  six  o'clock  antemeridian :  Provided,  That  a  prosecution  and 
conviction  of  a  defendant  for  the  shipment  or  delivery  for  shipment  of 
any  article  or  commodity  under  the  conditions  herein  prohibited  shall  be 
a  bar  to  anv  further  prosecution  against  the  same  defendant  for  ship- 
ments or  deliveries  for  shipment  of  any  such  article  or  commodity  before 
the  beginning  of  said  prosecution. 
Board  to  Enforce. 

Sec.  2.  That  the  Attorney-General,  the  Secretary  of  Commerce,  and 
the  Secretary  of  Labor  shall  constitute  a  board  to  make  and  publish  from 
time  to  time  uniform  rules  and  regulations  for  carrying  out  the  provi- 
sions of  this  Act. 

Power  of  Secretary  of  Labor. 

Sec.  3.  That  for  the  purpose  of  securing  proper  enforcement  of 
this  Act  the  Secretary  of  Labor,  or  any  person  duly  authorized  by  him, 
shall  have  authority  to  enter  and  inspect  at  any  time  mines,  quarries, 
mills,  canneries,  workshops,  factories,  manufacturing  establishments,  and 
other  places  in  which  goods  are  produced  or  held  for  interstate  com- 
merce ;  and  the  Secretary  of  Labor  shall  have  authority  to  employ  such 
assistance  for  the  purposes  of  this  Act  as  may  from  time  to  time  be 
authorized  by  appropriation  or  other  law. 

Duties  of  District  Attorneys. 

Sec.  4.  That  it  shall  be  the  duty  of  each  district  attorney  to  whom 
the  Secretary  of  Labor  shall  report  any  violation  of  this  Act,  or  to  whom 
any  State  factory  or  mining  or  quarry  inspector,  commissioner  of  labor. 
State  medical  inspector,  or  school-attendance  officer,  or  any  other  person 
shall  present  satisfactory  evidence  of  any  such  violation  to  cause  appro- 


Child  Labor  311 

priate  proceedings  to  be  commenced  and  prosecuted  in  the  proper  courts 
of  the  United  States  without  delay  for  the  enforcement  of  the  penalties 
in  such  cases  herein  provided :  Provided,  That  nothing  in  this  Act  shall 
be  construed  to  apply  to  bona  fide  boys'  and  girls'  canning  clubs  recog- 
nized by  the  Agricultural  Department  of  the  several  States  and  of  the 
United  States. 

Penalties. 

Sec.  5.  That  any  person  who  violates  any  of  the  provisions  of  sec- 
tion one  of  this  Act,  or  who  refuses  or  obstructs  entry  or  inspection 
aulhorized  by  section  three  of  this  Act,  shall  for  each  olTense  prior  to 
the  first  conviction  of  such  person  under  the  provisions  of  this  Act,  be 
punished  by  a  fine  of  not  more  than  $200,  and  shall  for  each  offense 
subsequent  to  such  conviction  be  punished  by  a  fine  of  not  more  than 
$1,000,  nor  less  than  $100,  or  by  imprisonment  for  not  more  than  three 
months,  or  by  both  such  fine  and  imprisonment,  in  the  discretion  of  the 
court:  Provided,  That  no  dealer  shall  be  prosecuted  under  the  pro- 
visions of  this  Act  for  a  shipment,  delivery  for  shipment,  or  transporta- 
tion who  establishes  a  guaranty  issued  by  the  person  by  whom  the  goods 
shipped  or  delivered  for  shipment  or  transportation  were  manufactured 
or  produced,  resident  in  the  United  States,  to  the  effect  that  such  goods 
were  produced  or  manufactured  in  a  mine  or  quarry  in  which  within 
thirty  days  prior  to  their  removal  therefrom  no  children  under  the  age  of 
sixteen  years  were  employed  or  permitted  to  work,  or  in  a  mill,  cannery, 
workshop,  factory  or  manufacturing  establishment,  in  which  within  thirty 
days  prior  to  the  removal  of  such  goods  therefrom  no  children  under  the 
age  of  fourteen  years  were  employed  or  permitted  to  work,  nor  children 
between  the  ages  of  fourteen  years  and  sixteen  years  employed  or  per- 
mitted to  work  more  than  eight  hours  in  any  day  or  more  than  six  days 
in  any  week  or  after  the  hour  of  seven  o'clock  postmeridian  or  before 
the  hour  of  six  o'clock  antemeridian;  and  in  such  event,  if  the  guaranty 
contains  any  false  statement  of  a  material  fact,  the  guarantor  shall  be 
amenable  to  prosecution  and  to  the  fine  or  imprisonment  provided  by  this 
section  for  violation  of  the  provisions  of  this  Act.  Said  guaranty,  to 
afford  the  protection  above  provided,  shall  contain  the  name  and  address 
of  the  person  giving  the  same :  And  provided  further.  That  no  producer, 
manufacturer  or  dealer  shall  be  prosecuted  under  this  Act  for  the  ship- 
ment, delivery  for  shipment,  or  transportation  of  a  product  of  any  mine, 
quarry,  mill,  cannery,  workshop,  factory  or  manufacturing  establishment, 
if  the  only  employment  therein,  within  thirty  days  prior  to  the  removal 
of  such  product  therefrom,  of  a  child  under  the  age  of  sixteen  years  has 
been  that  of  a  child  as  to  whom  the  producer  or  manufacturer  has  in  good 
faith  procured,  at  the  time  of  employing  such  child  and  has  since  in  good 
faith  relied  upon  and  kept  on  file  a  certificate,  issued  in  such  form,  under 
such  conditions,  and  by  such  persons  as  may  be  prescribed  by  the  board, 
showing  the  child  to  be  of  such  an  age  that  the  shipment,  delivery  for 


312  Important  Federal  Laws 

shipment,  or  transportation  was  not  prohibited  by  this  Act.  Any  person 
who  knowingly  makes  a  false  statement  or  presents  false  evidence  in  or 
in  relation  to  any  such  certificate  or  application  therefor  shall  be  amen- 
able to  prosecution  and  to  the  fine  or  imprisonment  provided  by  this  sec- 
tion for  violations  of  this  Act.  In  any  State  designated  by  the  board,  an 
employment  certificate  or  other  similar  paper  as  to  the  age  of  the  child, 
issued  under  the  laws  of  that  State  and  not  inconsistent  with  the  pro- 
visions of  this  Act,  shall  have  the  same  force  and  effect  as  a  certificate 
herein  provided  for. 

Definitions. 

Sec.  6.  That  the  word  "person"  as  used  in  this  Act  shall  be  con- 
strued to  include  any  individual  or  corporation  or  the  members  of  any 
partnership  or  other  unincorporated  association.  The  term  "ship  or 
deliver  for  shipment  in  interstate  or  foreign  commerce"  as  used  in  this 
Act  means  to  transport  or  to  ship  or  deliver  for  shipment  from  any  State 
or  Territory  or  the  District  of  Columbia  to  or  through  any  other  State 
or  Territory  or  the  District  of  Columbia  or  to  any  foreign  country ;  and 
in  the  case  of  a  dealer  means  only  to  transport  or  to  ship  or  deliver  for 
shipment  from  the  State,  Territory  or  district  of  manufacture  or  pro- 
duction. 

Sec.  7.  That  this  Act  shall  take  effect  from  and  after  one  year  from 
the  date  of  its  passage. 


CHILDREN'S  BUREAU. 

Act  of  April  9,  1912. 
An  Act  to  establish  in  the  Department  of  Labor  a  bureau  to  be  known  as  the 
Children's  Bureau. 

Sec.  I.  That  there  shall  be  established  in  the  Department  of  Labor 
a  bureau  to  be  known  as  the  Children's  Bureau.^ 

Sec.  2.  That  the  said  bureau  shall  be  under  the  direction  of  a 
chief,  to  be  appointed  by  the  President,  by  and  with  the  advice  and 
consent  of  the  Senate,  and  who  shall  receive  an  annual  compensation 
of  five  thousand  dollars.  The  said  bureau  shall  investigate  and  report 
to  said  department  upon  all  matters  pertaining  to  the  welfare  of  chil- 
dren and  child  life  among  all  classes  of  our  people,  and  shall  especially 
investigate  the  question  of  infant  mortality,  the  birth  rate,  orphanage, 
juvenile  courts,  desertion,  dangerous  occupations,  accidents  and  dis- 
eases of  children,  employment,  legislation  affecting  children  in  the  sev- 
eral States  and  Territories.  But  no  official,  or  agent,  or  representative 
of  said  bureau  shall,  over  the  objection  of  the  head  of  the  family,  enter 


1  Transferred  from  Department  of  Commerce  and  Labor  to  Department  of 
Labor  by  act  approved  March  4,  1913. 


Children's  Bureau — Eight-Hour  Day  313 

any  house  used  exclusively  as  a  family  residence.  The  chief  of  said 
bureau  may  from  time  to  time  publish  the  results  of  these  investiga- 
tions in  such  manner  and  to  such  extent  as  may  be  prescribed  by  the 
Secretary  of  Labor. 

Sec.  3.  That  there  shall  be  in  said  bureau,  until  otherwise  pro- 
vided for  by  law,  an  assistant  chief,  to  be  appointed  by  the  Secretary 
of  Labor,  wlho  shall  receive  an  annual  compensation  of  two  thousand 
four  hundred  dollars ;  one  private  secretary  to  the  chief  of  the  bureau, 
who  shall  receive  an  annual  compensation  of  one  thousand  five  hun- 
dred dollars ;  one  statistical  expert,  at  two  thousand  dollars ;  two  clerks 
of  class  four;  two  clerks  of  class  three;  one  clerk  of  class  two;  one 
clerk  of  class  one;  one  clerk,  at  one  thousand  dollars;  one  copyist,  at 
nine  hundred  dollars ;  one  special  agent,  at  one  thousand  four  hundred 
dollars ;  one  special  agent,  at  one  thousand  two  hundred  dollars ;  and 
one  messenger,  at  eight  hundred  and  forty  dollars. 

Sec.  4.  That  the  Secretary  of  Labor  is  hereby  directed  to  furnish 
sufficient  quarters  for  the  work  of  this  bureau  at  an  annual  rental  not 
to  exceed  two  thousand  dollars. 

Sec.  5.  That  this  act  shall  take  effect  and  be  in  force  from  and 
after  its  passage. 


EIGHT-HOUR  DAY  ACT. 

Act  of  September  3  and  September  5,  1916. 

An  act  to  establish  an  eight-hour  day  for  employees  of  carriers  engaged  in 
interstate  and  foreign  commerce,  and  for  other  purposes. 

Eight-Hour  Day  Established. 

Sec.  1.  That  beginning  January  first,  nineteen  hundred  and  seven- 
teen, eight  hours  shall,  in  contracts  for  labor  and  service,  be  deemed  a 
day's  work  and  the  measure  or  standard  of  a  day's  work  for  the  purpose 
of  reckoning  the  compensation  for  services  of  all  employees  who  are  now 
or  may  hereafter  be  employed  by  any  common  carrier  by  railroad,  except 
railroads  independently  owned  and  operated  not  exceeding  one  hundred 
miles  in  length,  electric  street  railroads  and  electric  interurban  railroads, 
which  is  subject  to  the  provisions  of  the  Act  of  February  fourth,  eighteen 
hundred  and  eighty-seven,  entitled  "An  Act  to  regulate  commerce,"  as 
amended,  and  who  are  now  or  may  hereafter  be  actually  engaged  in  any 
capacity  in  the  operation  of  trains  used  for  the  transportation  of  persons 
or  property  on  railroads,  except  railroads  independently  owned  and  oper- 
ated not  exceeding  one  hundred  miles  in  length,  electric  street  railroads, 
and  electric  interurban  railroads  from  any  State  or  Territory  of  the 
United  States  or  the  District  of  Columbia  to  any  other  State  or  Terri- 
tory of  the  United  States  or  the  District  of  Columbia,  or  from  one  place 


314  Important  Federal  Laws 

in  a  Territory  to  another  place  in  the  same  Territory,  or  from  any  place 
in  the  United  States  to  an  adjacent  foreign  country,  or  from  any  place  in 
the  United  States  through  a  foreign  country  to  any  other  place  in  the 
United  States:  Provided,  That  the  above  exceptions  shall  not  apply  to 
railroads  though  less  than  one  hundred  miles  in  length  whose  principal 
business  is  leasing  or  furnishing  terminal  or  transfer  facilities  to  other 
railroads,  or  are  themselves  engaged  in  transfers  of  freight  between  rail- 
roads or  between  railroads  and  industrial  plants. 

Commission  to  Investigate. 

Sec.  2.  That  the  President  shall  appoint  a  commission  of  three, 
which  shall  observe  the  operation  and  effects  of  the  institution  of  the 
eight-hour  standard  workday  as  above  defined  and  the  facts  and  condi- 
tions affecting  the  relations  between  such  common  carriers  and  employees 
during  a  period  of  not  less  than  six  months  nor  more  than  nine  months 
in  the  discretion  of  the  commission  and  within  thirty  days  thereafter  such 
commission  shall  report  its  findings  to  the  President  and  Congress ;  that 
each  member  of  the  commission  created  under  the  provisions  of  this  Act 
shall  receive  such  compensation  as  may  be  fixed  by  the  President.  That 
the  sum  of  $25,000,  or  so  much  thereof  as  may  be  necessary,  be,  and 
hereby  is,  appropriated,  out  of  any  money  in  the  United  States  Treasury 
not  otherwise  appropriated,  for  the  necessary  and  proper  expenses  in- 
curred in  connection  with  the  work  of  such  commission,  including  sal- 
aries, per  diem,  traveling  expenses  of  members  and  employees,  and  rent, 
furniture,  office  fixtures  and  supplies,  books,  salaries  and  other  neces- 
sary expenses,  the  same  to  be  approved  by  the  chairman  of  said  com- 
mission and  audited  by  the  proper  accounting  officers  of  the  Treasury. 

Wages  Not  to  be  Reduced  Pending  Inquiry  of  Commission. 

Sec.  3.  That  pending  the  report  of  the  commission  herein  provided 
for  and  for  a  period  of  thirty  days  thereafter  the  compensation  of  rail- 
way employees  subject  to  this  Act  for  a  standard  eight-hour  workday 
shall  not  be  reduced  below  the  present  standard  day's  wage,  and  for  all 
necessary  time  in  excess  of  eight  hours  such  employees  shall  be  paid  at  a 
rate  not  less  than  the  pro  rata  rate  for  such  standard  eight-hour  workday. 

Penalties. 

Sec.  4.  That  any  person  violating  any  provision  of  this  Act  shall 
be  guilty  of  a  misdemeanor  and  upon  conviction  shall  be  fined  not  less 
than  $100  and  not  more  than  $1,000,  or  imprisoned  not  to  exceed  one 
year,  or  both. 


Eight-Hour  Act  315 

EIGHT  HOURS  ON  PUBLIC  WORKS  ACT. 

Act  of  March  3.  1913. 

An  Act  relating  to  the  limitation  of  the  hours  of  daily  service  of  laborers  and 
mechanics  employed  upon  a  public  work  of  the  United  States  and  of  the 
District  of  Columbia,  and  of  all  persons  employed  in  constructing',  main- 
taining, or  improving  a  river  or  harbor  of  the  United  States  and  of  the 
District  of  Columbia.i 

That  sections  one,  two,  and  three  of  an  Act  entitled  "An  Act  relat- 
ing to  the  limitation  of  the  hours  of  daily  service  of  laborers  and  mechan- 
ics employed  upon  the  public  works  of  the  United  States  and  of  the  Dis- 
trict of  Columbia"  be  amended  to  read  as  follows : 

Section  1.  That  the  service  and  employment  of  all  laborers  and 
mechanics  who  are  now,  or  may  hereafter  be,  employed  by  the  Govern- 
ment of  the  United  States  or  the  District  of  Columbia,  or  by  any  con- 
tractor or  subcontractor,  upon  a  public  work  of  the  United  States  or  of 
the  District  of  Columbia,  and  of  all  persons  who  are  now,  or  may  here- 
after be,  employed  by  the  Government  of  the  United  States  or  the  Dis- 
trict of  Columbia,  or  any  contractor  or  subcontractor,  to  perform  services 
similar  to  those  of  laborers  and  mechanics  in  connection  with  dredging 
or  rock  excavation  in  any  river  or  harbor  of  the  United  States  or  of 
the  District  of  Columbia,  is  hereby  limited  and  restricted  to  eight  hours 
in  any  one  calendar  day;  and  it  shall  be  unlawful  for  any  officer  of  the 
United  States  Government  or  of  the  District  of  Columbia,  or  any  such 
contractor  or  subcontractor  whose  duty  it  shall  be  to  employ,  direct,  or 
control  the  services  of  such  laborers  or  mechanics  or  of  such  persons 
employed  to  perform  services  similar  to  those  of  laborers  and  mechanics 
in  connection  with  dredging  or  rock  excavation  in  any  river  or  harbor 
of  the  United  States  or  the  District  of  Columbia,  to  require  or  permit 
any  such  laborer  or  mechanic  or  any  such  person  employed  to  perform 
services  similar  to  those  of  laborers  and  mechanics  in  connection  with 
dredging  or  rock  excavation  in  any  river  or  harbor  of  the  United  States 
or  of  the  District  of  Columbia,  to  work  more  than  eight  hours  in  any 
calendar  day,  except  in  case  of  extraordinary  emergency:  Provided, 
That  nothing  in  this  Act  shall  apply  or  be  construed  to  apply  to  persons 
employed  in  connection  with  dredging  or  rock  excavation  in  any  river  or 
harbor  of  the  United  States  or  of  the  District  of  Columbia  while  not 
directly  operating  dredging  or  rock  excavating  machinery  or  tools,  nor  to 
persons  engaged  in  construction  or  repair  of  levees  or  revetments  neces- 
sary for  protection  against  floods  or  overflows  on  the  navigable  rivers  of 
the  United  States. 

Sec.  2.  That  any  officer  or  agent  of  the  Government  of  the  United 
States  or  of  the  District  of  Columbia,  or  any  contractor  or  subcontractor 
whose  duty  it  shall  be  to  employ,  direct,  or  control  any  laborer  or 
mechanic  employed  upon  a  public  work  of  the  United  States  or  of  the 
District  of  Columbia,  or  any  person  employed  to  perform  services  sim- 

1  This  act  entirely  supersedes  the  act  which  it  amends. 


316  Important  Federal  Laws 

ilar  to  those  of  laborers  and  mechanics  in  connection  with  dredging  or 
rock  excavation  in  any  river  or  harbor  of  the  United  States  or  of  the 
District  of  Columbia,  who  shall  intentionally  violate  any  provision  of 
this  Act,  shall  be  deemed  guilty  of  a  misdemeanor,  and  for  each  and 
every  such  offense  shall,  upon  conviction,  be  punished  by  a  fine  not  to 
exceed  one  thousand  dollars,  or  by  imprisonment  for  not  more  than 
six  months,  or  by  both  such  fine  and  imprisonment,  in  the  discretion  of 
the  court  having  jurisdiction  thereof. 

Sec.  3.  That  the  provisions  of  this  Act  shall  not  be  so  construed 
as  to  in  any  manner  apply  to  or  affect  contractors  or  subcontractors, 
or  to  limit  the  hours  of  daily  service  of  laborers  or  mechanics  engaged 
upon  a  public  work  of  the  United  States  or  of  the  District  of  Columbia, 
or  persons  employed  to  perform  services  similar  to  those  of  laborers  and 
mechanics  in  connection  with  dredging  or  rock  excavation  in  any  river 
or  harbor  of  the  United  States  or  of  the  District  of  Columbia,  for  which 
contracts  have  been  entered  into  prior  to  the  passing  of  this  Act  or  may 
be  entered  into  under  the  provisions  of  appropriation  Acts  approved 
prior  to  the  passage  of  this  Act. 

Sec.  4.  That  this  Act  shall  become  effective  and  be  in  force  on 
and  after  March  first,  nineteen  hundred  and  thirteen. 


TAXATION  AND  REVENUE. 


FEDERAL  TAX  LAWS. 

Act  of  September  8,  1916. 
An  act  to  increase  the  revenue,  and  for  other  purposes. 

TITLE  I— INCOME  TAX. 
Part  I — On  Individuals. 

Sec.  1.  (a)  That  there  shall  be  levied,  assessed,  collected  and  paid 
annually  upon  the  entire  net  income  received  in  the  preceding  calendar 
year  from  all  sources  by  every  individual,  a  citizen  or  resident  of  the 
United  States,  a  tax  of  two  per  centum  upon  such  income;  and  a  like 
tax  shall  be  levied,  assessed,  collected  and  paid  annually  upon  the  entire 
net  income  received  in  the  preceding  calendar  year  from  all  sources 
within  the  United  States  by  every  individual,  a  nonresident  alien,  includ- 
ing interest  on  bonds,  notes,  or  other  interest-bearing  obligations  of  resi- 
dents, corporate  or  otherwise. 

(b)  In  addition  to  the  income  tax  imposed  by  subdivision  (a)  of 
this  section  (herein  referred  to  as  the  normal  tax)  there  shall  be  levied, 
assessed,  collected  and  paid  upon  the  total  net  income  of  every  indi- 
vidual, or,  in  the  case  of  a  non-resident  alien,  the  total  net  income  re- 
ceived from  all  sources  within  the  United  States,  an  additional  income 
tax  (herein  referred  to  as  the  additional  tax)  of  one  per  centum  per 
annum  upon  the  amount  by  which  such  total  net  income  exceeds  $20,000 
and  does  not  exceed  $40,000,  two  per  centum  per  annum  upon  the  amount 
by  which  such  total  net  income  exceeds  $40,000  and  does  not  exceed 
$60,000,  three  per  centum  per  annum  upon  the  amount  by  which  such 
total  net  income  exceeds  $60,000  and  does  not  exceed  $80,000,  four  per 
centum  per  annum  upon  the  amount  by  which  such  total  net  income  ex- 
ceeds $80,000  and  does  not  exceed  $100,000,  five  per  centum  per  annum 
upon  the  amount  by  which  such  total  net  income  exceeds  $100,000  and 
does  not  exceed  $150,000,  six  per  centum  per  annum  upon  the  amount 
by  which  such  total  net  income  exceeds  $150,000  and  does  not  exceed 
$200,000,  seven  per  centum  per  annum  upon  the  amount  by  which  such 
total  net  income  exceeds  $200,000  and  does  not  exceed  $250,000,  eight 
per  centum  per  annum  upon  the  amotmt  by  which  such  total  net  income 
exceeds  $250,000  and  does  not  exceed  $300,000,  nine  per  centum  per 
annum  upon  the  amount  by  which  such  total  net  income  exceeds  $300,000 
and  does  not  exceed  $500,000,  ten  per  centum  per  annum  upon  the 
amount  by  which  such  total  net  income  exceeds  $500,000,  and  does  not 
exceed  $1,000,000,  eleven  per  centum  per  annum  upon  the  amount  by 
W'hich   such  total   net   income  exceeds  $1,000,000  and   does   not   exceed 


318  Important  Federal  Laws 

$1,500,CXX),  twelve  per  centum  per  annum  upon  the  amount  by  which 
such  total  net  income  exceeds  $1,500,000  and  does  not  exceed  $2,000,000, 
and  thirteen  per  centum  per  annum  upon  the  amount  by  which  such 
total  net  income  exceeds  $2,000,000. 

For  the  purpose  of  the  additional   tax  there  shall  be   included  as 

income  the  income  derived  from  dividends  on  the  capital  stock  or  from 
the  net  earnings  of  any  corporation,  joint-stock  company  or  association, 
or  insurance  company,  except  that  in  the  case  of  non-resident  aliens  such 
income  derived  from  sources  without  the  United  States  shall  not  be 
included. 

All  the  provisions  of  this  title  relating  to  the  normal  tax  on  indi- 
viduals, so  far  as  they  are  applicable  and  are  not  inconsistent  with  this 
subdivision  and  section  three,  shall  apply  to  the  imposition,  levy,  assess- 
ment and  collection  of  the  additional  tax  imposed  under  this  subdivision. 

(c)  The  foregoing  normal  and  additional  tax  rates  shall  apply  to 
the  entire  net  income,  except  as  hereinafter  provided,  received  by  every 
taxable  person  in  the  calendar  year  nineteen  hundred  and  sixteen  and  in 
each  calendar  year  thereafter. 

Income  Defined. 

Sec.  2.  (a)  That,  subject  only  to  such  exemptions  and  deductions 
as  are  hereinafter  allowed,  the  net  income  of  a  taxable  person  shall  in- 
clude gains,  profits  and  income  derived  from  salaries,  wages,  or  compen- 
sation for  personal  service  of  whatever  kind  and  in  whatever  form  paid, 
or  from  professions,  vocations,  businesses,  trade,  commerce,  or  sales,  or 
dealings  in  property,  whether  real  or  personal,  growing  out  of  the  owner- 
ship or  use  of  or  interest  in  real  or  personal  property,  also  from  interest, 
rent,  dividends,  securities  or  the  transaction  of  any  business  carried  on 
for  gain  or  profit,  or  gains  or  profits  and  income  derived  from  any  source 
whatever :  Provided,  That  the  term  "dividend"  as  used  in  this  title  shall 
be  held  to  mean  any  distribution  made  or  ordered  to  be  made  by  a  cor- 
poration, joint-stock  company,  association,  or  insurance  company,  out  of 
its  earnings  or  profits  accrued  since  March  first,  nineteen  hundred  and 
thirteen,  and  payable  to  its  shareholders,  whether  in  cash  or  in  stock  of 
the  corporation,  joint-stock  company,  association,  or  insurance  company, 
which  stock  dividend  shall  be  considered  income,  to  the  amount  of  its 
cash  value. 

(b)  Income  received  by  estates  of  deceased  persons  during  the 
period  of  administration  or  settlement  of  the  estate,  shall  be  subject  to 
the  normal  and  additional  tax  and  taxed  to  their  estates,  and  also  such 
income  of  estates  or  any  kind  of  property  held  in  trust,  including  such 
income  accumulated  in  trust  for  the  benefit  of  unborn  or  unascertained 
persons,  or  persons  with  contingent  interests,  and  income  held  for  future 
distribution  under  the  terms  of  the  will  or  trust  shall  be  likewise  taxed, 
the  tax  in  each  instance,  except  when  the  income  is  returned  for  the  pur- 
pose of  the  tax  by  the  beneficiary,  to  be  assessed  to  the  executor,  ad- 


Income  Tax  319 

ministrator  or  trustee,  as  the  case  may  be :  Provided,  That  where  the 
income  is  to  be  distributed  annually  or  regularly  between  existing  heirs 
or  legatees,  or  beneficiaries  the  rate  of  tax  and  method  of  computing  the 
same  shall  be  based  in  each  case  upon  the  amount  of  the  individual  share 
to  be  distributed. 

Such  trustees,  executors,  administrators  and  other  fiduciaries  are 
hereby  indemnified  against  the  claims  or  demands  of  every  beneficiary  for 
all  payments  of  taxes  which  they  shall  be  required  to  make  under  the  pro- 
visions of  this  title,  and  they  shall  have  credit  for  the  amount  of  such 
payments  against  the  beneficiary  or  principal  in  any  accounting  which 
they  make  as  such  trustees  or  other  fiduciaries. 

(c)  For  the  purpose  of  ascertaining  the  gain  derived  from  the  sale 
or  other  disposition  of  property,  real,  personal  or  mixed,  acquired  before 
March  first,  nineteen  hundred  and  thirteen,  the  fair  market  price  or 
value  of  such  property  as  of  March  first,  nineteen  hundred  and  thirteen, 
shall  be  the  basis  for  determining  the  amount  of  such  gain  derived. 

Additional  Tax  Includes  Undistributed  Profits. 

Sec.  3.  For  the  purpose  of  the  additional  tax,  the  taxable  income 
of  any  individual  shall  include  the  share  to  which  he  would  be  entitled 
of  the  gains  and  profits,  if  divided  or  distributed,  whether  divided  or 
distributed  or  not,  of  all  corporations,  joint-stock  companies  or  associa- 
tions, or  insurance  companies,  however  created  or  organized,  formed  or 
fraudulently  availed  of  for  the  purpose  of  preventing  the  imposition  of 
such  tax  through  the  medium  of  permitting  such  gains  and  profits  to 
accumulate  instead  of  being  divided  or  distributed ;  and  the  fact  that  any 
such  corporation,  joint-stock  company  or  association,  or  insurance  com- 
pany, is  a  mere  holding  company,  or  that  the  gains  and  profits  are  per- 
mitted to  accumulate  beyond  the  reasonable  needs  of  the  business,  shall 
be  prima  facie  evidence  of  a  fraudulent  purpose  to  escape  such  tax ;  but 
the  fact  that  the  gains  and  profits  are  in  any  case  permitted  to  accumulate 
and  become  surplus  shall  not  be  construed  as  evidence  of  a  purpose  to 
escape  the  said  tax  in  such  case  unless  the  Secretary  of  the  Treasury 
shall  certify  that  in  his  opinion  such  accumulation  is  unreasonable  for 
the  purposes  of  the  business.  When  requested  by  the  Commissioner  of 
Internal  Revenue,  or  any  district  collector  of  internal  revenue,  such  cor- 
poration, joint-stock  company  or  association,  or  insurance  company  shall 
forward  to  him  a  correct  statement  of  such  gains  and  profits  and  the 
names  and  addresses  of  the  individuals  or  shareholders  who  would  be 
entitled  to  the  same  if  divided  or  distributed. 

Income  Exempt  From  Law. 

Sec.  4.  The  following  income  shall  be  exempt  from  the  provisions 
of  this  title: 

The  proceeds  of  life  insurance  policies  paid  to  individual  beneficiaries 
upon  the  death  of  the  insured ;  the  amount  received  by  the  insured,  as  a 
return  of  premium  or  premiums  paid  by  him  under  life  insurance,  endow- 


.320  Important  Federal  Laws 

ment  or  annuity  contracts,  either  during  the  term  or  at  the  maturity  of 
Ihe  term  mentioned  in  the  contract  or  upon  the  surrender  of  the  contract; 
the  vakie  of  property  acquired  by  gift,  bequest,  devise  or  descent  (but  the 
income  from  such  property  shall  be  included  as  income)  ;  interest  upon 
the  obligations  of  a  State  or  any  political  subdivision  thereof  or  upon  the 
obligations  of  the  United  States  or  its  possessions  or  securities  issued 
under  the  provisions  of  the  Federal  farm  loan  Act  of  July  seventeenth, 
nineteen  hundred  and  sixteen ;  the  compensation  of  the  present  President 
-of  the  United  States  during  the  term  for  which  he  has  been  elected,  and 
the  judges  of  the  Supreme  and  inferior  courts  of  the  United  States  now 
in  office,  and  the  compensation  of  all  officers  and  employees  of  a  State, 
or  any  political  subdivision  thereof,  except  when  such  compensation  is 
paid  by  the  United  States  Government. 

Deductions  Allowed. 

Sec.  5.  That  in  computing  net  income  in  the  case  of  a  citizen  or 
resident  of  the  United  States — 

(a)  For  the  purpose  of  the  tax  there  shall  be  allowed  as  deduc- 
tions— 

First.  The  necessary  expenses  actually  paid  in  carrying  on  any 
business  or  trade,  not  including  personal,  living  or  family  expenses ; 

Second.     All  interest  paid  within  the  year  on  his  indebtedness ; 

Third.  Taxes  paid  within  the  year  imposed  by  the  authority  of  the 
United  States,  or  its  Territories,  or  possessions,  or  any  foreign  country, 
or  under  the  authority  of  any  State,  county,  school  district,  or  muni- 
cipality, or  other  taxing  subdivision  of  any  State,  not  including  those 
assessed  against  local  benefits; 

Fourth.  Losses  actually  sustained  during  the  year,  incurred  in  his 
business  or  trade,  or  arising  from  fires,  storms,  shipwreck  or  other 
casualty,  and  from  theft,  when  such  losses  are  not  compensated  for  by 
insurance  or  otherwise :  Provided,  That  for  the  purpose  of  ascertaining 
the  loss  sustained  from  the  sale  or  other  disposition  of  property,  real, 
personal  or  mixed,  acquired  before  March  first,  nineteen  hundred  and 
thirteen,  the  fair  market  price  or  value  of  such  property  as  of  March 
first,  nineteen  hundred  and  thirteen,  shall  be  the  basis  for  determining 
the  amount  of  such  loss  sustained; 

Fifth.  In  transactions  entered  into  for  profit  but  not  connected  with 
Ins  business  or  trade,  the  losses  actually  sustained  therein  during  the  year 
to  an  amount  not  exceeding  the  profits  arising  therefrom ; 

Sixth.  Debts  due  to  the  taxpayer  actually  ascertained  to  be  worth- 
less and  charged  off  within  the  year ; 

Seventh.  A  reasonable  allowance  for  the  exhaustion,  wear  and  tear 
of  property  arising  out  of  its  use  or  employment  in  the  business  or  trade; 

Eighth,  (aj  In  the  case  of  oil  and  gas  wells  a  reasonable  allow- 
ance for  actual  reduction  in  flow  and  production  to  be  ascertained  not  by 
.the  flush  flow,  but  by  the  settled  production  or  regular  flow;   (b)  in  the 


Income  Tax  321 

case  of  mines  a  reasonable  allowance  for  depletion  thereof  not  to  exceed 
the  market  value  in  the  mine  of  the  product  thereof,  which  has  been 
mined  and  sold  during  the  year  for  which  the  return  and  computation 
are  made,  such  reasonable  allowance  to  be  made  in  the  case  of  both  (a) 
and  (b)  under  rules  and  regulations  to  be  prescribed  by  the  Secretary  of 
the  Treasury:  Provided,  That  when  the  allowances  authorized  in  (a) 
and  (b)  shall  equal  the  capital  originally  invested  or  in  case  of  purchase 
made  prior  to  March  first,  nineteen  hundred  and  thirteen,  the  fair  market 
value  as  of  that  date,  no  further  allowance  shall  be  made.  No  deduction 
shall  be  allowed  for  any  amount  paid  out  for  new  buildings,  permanent 
improvements,  or  betterments,  made  to  increase  the  value  of  any  prop- 
erty or  estate,  and  no  deduction  shall  be  made  for  any  amount  of  expense 
of  restoring  property  or  making  good  the  exhaustion  thereof  for  which 
an  allowance  is  or  has  been  made. 

Credits  Allowed. 

(b)  For  the  purpose  of  the  normal  tax  only,  the  income  embraced 
in  a  personal  return  shall  be  credited  with  the  amount  received  as  divi- 
dends upon  the  stock  or  from  the  net  earnings  of  any  corporation,  joint- 
stock  company  or  association,  trustee  or  insurance  company,  which  is 
taxable  upon  its  net  income  as  hereinafter  provided; 

(c)  A  like  credit  shall  be  allowed  as  to  the  amount  of  income,  the 
normal  tax  upon  which  has  been  paid  or  withheld  for  payment  at  the 
source  of  the  income  under  the  provisions  of  this  title. 

Nonresident  Aliens. 

Sec.  6.  That  in  computing  net  income  in  the  case  of  a  nonresident 
alien — 

(a)  For  the  purpose  of  the  tax  there  shall  be  allowed  as  deduc- 
tions— 

First.  The  necessary  expenses  actually  paid  in  carrying  on  any 
business  or  trade  conducted  by  him  within  the  United  States,  not  includ- 
ing personal,  living  or  family  expenses ; 

Second.  The  proportion  of  all  interest  paid  within  the  year  by  such 
person  on  his  indebtedness  which  the  gross  amount  of  his  income  for 
the  year  derived  from  sources  within  the  United  States  bears  to  the  gross 
amount  of  his  income  for  the  year  derived  from  all  sources  within  and 
without  the  United  States,  but  this  deduction  shall  be  allowed  only  if 
such  person  includes  in  the  return  required  by  section  eight  all  the  in- 
formation necessary  for  its  calculation  ; 

Third.  Taxes  paid  within  the  year  imposed  by  the  authority  of  the 
United  States,  or  its  Territories,  or  possessions,  or  under  the  authority 
of  any  State,  county,  school  district,  or  municipality,  or  other  taxing  sub- 
division of  any  State,  paid  within  the  United  States,  not  including  those 
assessed  against  local  benefits ; 

Fourth.  Losses  actually  sustained  during  the  year,  incurred  in  busi- 
ness or  trade  conducted  by  him  within  the  United  States  and  losses  of 

(21) 


322  Important  Federal  Laws 

property  within  the  United  States  arising  from  fires,  storms,  shipwreck, 
or  other  casuaky  and  from  theft,  when  such  losses  are  not  compensated 
for  by  insurance  or  otherwise :  Provided,  That  for  the  purpose  of  ascer- 
taining the  amount  of  such  loss  or  losses  sustained  in  trade,  or  specu- 
lative transactions  not  in  trade,  from  the  same  or  any  kind  of  property 
acquired  before  March  first,  nineteen  hundred  and  thirteen,  the  fair  mar- 
ket price  or  value  of  such  property  as  of  March  first,  nineteen  hundred 
and  thirteen,  shall  be  the  basis  for  determining  the  amount  of  such  loss 
or  losses  sustained ; 

Fifth.  In  transactions  entered  into  for  profit  but  not  connected 
with  his  business  or  trade,  the  losses  actually  sustained  therein  during 
the  year  to  an  amount  not  exceeding  the  profits  arising  therefrom  in  the 
United  States ; 

Sixth.  Debts  arising  in  the  course  of  business  or  trade  conducted 
by  him  within  the  United  States  due  to  the  taxpayer  actually  ascertained 
to  be  worthless  and  charged  ofif  within  the  year ; 

Seventh.  A  reasonable  allowance  for  the  exhaustion,  wear  and  tear 
of  property  within  the  United  States  arising  out  of  its  use  or  employment 
in  the  business  or  trade;  (a)  in  the  case  of  oil  and  gas  weUs  a  reasonable 
allowance  for  actual  reduction  in  flow  and  production  to  be  ascertained 
not  by  the  flush  flow,  but  by  the  settled  production  or  regular  flow ;  (b) 
in  the  case  of  mines  a  reasonable  allowance  for  depletion  thereof  not  to 
exceed  the  market  value  in  the  mine  of  the  product  thereof  which  has 
been  mined  and  sold  during  the  year  for  which  the  return  and  computa- 
tion are  made,  such  reasonable  allowance  to  be  made  in  the  case  of  both 
(a)  and  (b)  under  rules  and  regulations  to  be  prescribe^  by  the  Secre- 
tary of  the  Treasury :     Provided,  That  when  the  allowance  authorized  in 

(a)  and  (b)  shall  equal  the  capital  originally  invested,  or  in  case  of  pur- 
chase made  prior  to  March  first,  nineteen  hundred  and  thirteen,  the  fair 
market  value  as  of  that  date,  no  further  allowance  shall  be  made.  No 
deduction  shall  be  allowed  for  any  amount  paid  out  for  new  buildings, 
permanent  improvements,  or  betterments,  made  to  increase  the  value  of 
any  propertv  or  estate,  and  no  deduction  shall  be  made  for  any  amount 
of' expense  of  restoring  property  or  making  good  the  exhaustion  thereof 
for  which  an  allowance  is  or  has  been  made. 

(b)     There  shall  also  be  allowed  the  credits  specified  by  subdivisions 

(b)  and  (c)  of  section  five. 

Personal  Exemptions. 

Sec.  7.  (a)  That  for  the  purpose  of  the  normal  tax  only,  there  shall 
be  allowed  as  an  exemption  in  the  nature  of  a  deduction  from  the  amount 
of  the  net  income  of  each  of  said  persons,  ascertained  as  provided  herein, 
the  sum  of  $3,000.  plus  $1,000  additional  if  the  person  making  the  return 
be  a  head  of  a  family  or  a  married  man  with  a  wife  living  with  him,  or 
plus  the  sum  of  $1,000  additional  if  the  person  making  the  return  be  a 
married  woman  with  a  husband  living  with  her;  but  in  no  event  shall 


Income  Tax  323 

this  additional  exemption  of  $1,000  be  deducted  by  both  a  husband  and 
wife:  Provided,  That  only  one  deduction  of  $4,000  shall  be  made  from 
the  aggregate  income  of  both  husband  and  wife  when  living  together: 
Provided  further,  That  guardians  or  trustees  shall  be  allowed  to  make 
this  personal  exemption  as  to  income  derived  from  the  property  of  which 
such  guardian  or  trustee  has  charge  in  favor  of  each  ward  or  cestui  que 
trust :  Provided  further,  That  in  no  event  shall  a  ward  or  cestui  que 
trust  be  allowed  a  greater  personal  exemption  than  $3,000,  or,  if  married, 
$4,000,  as  provided  in  this  paragraph,  from  the  amount  of  net  income 
received  from  all  sources.  There  shall  also  be  allowed  an  exemption  from 
the  amount  of  the  net  income  of  estates  of  deceased  persons  during  the 
period  of  administration  or  settlement,  and  of  trust  or  other  estates  the 
income  of  which  is  not  distributed  annually  or  regularly  under  the  pro- 
visions of  paragraph  (b),  section  two,  the  sum  of  $3,000,  including  such 
deductions  as  are  allowed  under  section  five. 

(b)  A  nonresident  alien  individual  may  receive  the  benefit  of  the 
exemption  provided  for  in  this  section  only  by  filing  or  causing  to  be 
filed  with  the  collector  of  internal  revenue  a  true  and  accurate  return  of 
his  total  income,  received  from  all  sources,  corporate  or  otherwise,  in  the 
United  States,  in  the  manner  prescribed  by  this  title ;  and  in  case  of  his 
failure  to  file  such  return  the  collector  shall  collect  the  tax  on  such  income 
and  all  property  belonging  to  such  nonresident  alien  individual  shall  be 
liable  to  distraint  for  the  tax. 

Returns. 

Sec.  8.  (a)  The  tax  shall  be  computed  upon  the  net  income,  as 
thus  ascertained,  of  each  person  subject  thereto,  received  in  each  pre- 
ceding calendar  year  ending  December  thirty-first. 

(b)  On  or  before  the  first  day  of  March,  nineteen  hundred  and 
seventeen,  and  the  first  day  of  March  in  each  year  thereafter,  a  true  and 
accurate  return  under  oath  shall  be  made  by  each  person  of  lawful  age, 
except  as  hereinafter  provided,  having  a  net  income  of  $3,000  or  over 
for  the  taxable  year  to  the  collector  of  internal  revenue  for  the  district 
in  wdiich  such  person  has  his  legal  residence  or  principal  place  of  busi- 
ness, or  if  there  be  no  legal  residence  or  place  of  business  in  the  United 
States,  then  with  the  collector  of  internal  revenue  at  Baltimore,  Marv- 
land,  in  such  form  as  the  Commissioner  of  Internal  Revenue,  with  the 
approval  of  the  Secretary  of  the  Treasury,  shall  prescribe,  setting  forth 
specifically  the  gross  amount  of  income  from  all  separate  sources,  and 
from  the  total  thereof  deducting  the  aggregate  items  of  allowances  herein 
authorized :  Provided,  That  the  Commissioner  of  Internal  Revenue 
shall  have  authority  to  grant  a  reasonable  extension  of  time,  in  meritorious 
cases,  for  filing  returns  of  income  by  persons  residing  or  traveling  abroad 
who  are  required  to  make  and  file  returns  of  income  and  who  are  unable 
to  file  said  returns  on  or  before  March  first  of  each  year:  Provided 
further,  That  the  aforesaid  return  may  be  made  by  an  agent  when  by  rea- 


324  Important  Federal  Laws 

son  of  illness,  absence,  or  nonresidence  the  person  liable  for  said  return 
is  unable  to  make  and  render  the  same,  the  agent  assuming  the  responsi- 
bility of  making  the  return  and  incurring  penalties  provided  for  erroneous, 
false  or  fraudulent  return. 

(c)  Guardians,  trustees,  executors,  administrators,  receivers,  con- 
servators and  all  persons,  corporations  or  associations  acting  in  any 
fiduciary  capacity,  shall  make  and  render  a  return  of  the  income  of  the 
person,  trust  or  estate  for  whom  or  which  they  act,  and  be  subject  to  all 
the  provisions  of  this  title  which  apply  to  individuals.  Such  fiduciary 
shall  make  oath  that  he  has  sufficient  knowledge  of  the  affairs  of  such 
person,  trust,  or  estate  to  enable  him  to  make  such  return  and  that  the 
same  is,  to  the  best  of  his  knowledge  and  belief,  true  and  correct,  and  be 
subject  to  all  the  provisions  of  this  title  which  apply  to  individuals :  Pro- 
vided, That  a  return  made  by  one  of  two  or  more  joint  fiduciaries  filed  in 
the  district  where  such  fiduciary  resides,  under  such  regulations  as  the 
Secretary  of  the  Treasury  may  prescribe,  shall  be  a  sufficient  compliance 
with  the  requirements  of  this  paragraph. 

(d)  All  persons,  firms,  companies,  copartnerships,  corporations, 
joint-stock  companies,  or  associations,  and  insurance  companies,  except 
as  hereinafter  provided,  in  whatever  capacity  acting,  having  the  control, 
receipt,  disposal,  or  payment  of  fixed  or  determinable  annual  or  period- 
ical gains,  profits  and  income  of  another  individual  subject  to  tax,  shall  in 
behalf  of  such  person  deduct  and  withhold  from  the  payment  an  amount 
equivalent  to  the  normal  tax  upon  the  same  and  make  and  render  a  return, 
as  aforesaid,  but  separate  and  distinct,  of  the  portion  of  the  income  of 
each  person  from  which  the  normal  tax  has  been  thus  withheld  and  con- 
taining also  the  name  and  address  of  such  person  or  stating  that  the  name 
and  address  or  the  address,  as  the  case  may  be,  are  unknown :  Provided, 
That  the  provision  requiring  the  normal  tax  of  individuals  to  be  deducted 
and  withheld  at  the  source  of  the  income  shall  not  be  construed  to  require 
the  withholding  of  such  tax  according  to  the  two  per  centum  normal 
tax  rate  herein  prescribed  until  on  and  after  January  first,  nineteen  hun- 
dred and  seventeen,  and  the  law  existing  at  the  time  of  the  passage  of 
this  Act  shall  govern  the  amount  withheld  or  to  be  withheld  at  the  source 
until  January  first,  nineteen  hundred  and  seventeen. 

That  in  either  case  mentioned  in  subdivisions  (c)  and  (d)  of  this 
section  no  return  of  income  not  exceeding  $3,000  shall  be  required,  ex- 
cept as  in  this  title  provided. 

(e)  Persons  carrying  on  business  in  partnership  shall  be  liable  for 
income  tax  only  in  their  individual  capacity,  and  the  share  of  the  profits 
of  the  partnership  to  v/hich  any  taxable  partner  would  be  entitled  if  the 
same  were  divided,  whether  divided  or  otherwise,  shall  be  returned  for 
taxation  and  the  tax  paid  under  the  provisions  of  this  title :  Provided, 
That  from  the  net  distributive  interests  on  which  the  individual  members 
shall  be  liable  for  tax,  normal  and  additional,  there  shall  be  excluded 
their  proportionate  shares  received  from  interest  on  the  obligations  of  a 


Income  Tax  325 

State  or  any  political  or  taxing  subdivision  thereof,  and  upon  the  obliga- 
tions of  the  United  States  and  its  possessions,  and  all  taxes  paid  to  the 
United  States  or  to  any  possession  thereof,  or  to  any  State,  county,  or 
taxing  subdivision  of  a  State  and  that  for  the  purpose  of  computing  the 
normal  tax  there  shall  be  allowed  a  credit,  as  provided  by  section  five, 
subdivision  (b),  for  their  proportionate  share  of  the  profits  derived  from 
dividends.  And  such  partnership,  when  requested  by  the  Commissioner 
of  Internal  Revenue,  or  any  district  collector,  shall  render  a  correct  re- 
turn of  the  earnings,  profits  and  income  of  the  partnership,  except  income 
exempt  under  section  four  of  this  Act,  setting  forth  the  item  of  the  gross 
income  and  the  deductions  and  credits  allowed  by  this  title,  and  the  names 
and  addresses  of  the  individuals  who  would  be  entitled  to  the  net  earn- 
ings, profits  and  income,  if  distributed. 

(f)  In  every  return  shall  be  included  the  income  derived  from  divi- 
dends on  the  capital  stock  or  from  the  net  earnings  of  any  corporation, 
joint-stock  company  or  association,  or  insurance  company,  except  that 
in  the  case  of  non-resident  ahens  such  income  derived  from  sources 
without  the  United  States  shall  not  be  included. 

(g)  An  individual  keeping  accounts  upon  any  basis  other  than  that 
of  actual  receipts  and  disbursements,  unless  such  other  basis  does  not 
clearly  reflect  his  income,  may,  subject  to  regulations  made  by  the  Com- 
missioner of  Internal  Revenue,  with  the  approval  of  the  Secretary  of  the 
Treasury,  make  his  return  upon  the  basis  upon  which  his  accounts  are 
kept,  in  which  case  the  tax  shall  be  computed  upon  his  income  as  so 
returned. 

Assessment  and  Administration. 

Sec.  9.  (a)  That  all  assessments  shall  be  made  by  the  Commis- 
sioner of  Internal  Revenue  and  all  persons  shall  be  notified  of  the  amount 
for  which  they  are  respectively  liable  on  or  before  the  first  day  of  June 
of  each  successive  year,  and  said  amounts  shall  be  paid  on  or  before  the 
fifteenth  day  of  June,  except  in  cases  of  refusal  or  neglect  to  make  such 
return  and  in  cases  of  erroneous,  false  or  fraudulent  returns,  in  which 
cases  the  Commissioner  of  Internal  Revenue  shall,  upon  the  discovery 
thereof,  at  any  time  within  three  years  after  said  return  is  due,  or  has 
been  made,  make  a  return  upon  information  obtained  as  provided  for  in 
this  title  or  by  existing  law,  or  require  the  necessary  corrections  to  be 
made,  and  the  assessment  made  by  the  Commissioner  of  Internal  Revenue 
thereon  shall  be  paid  by  such  person  or  persons  immediately  upon  notifica- 
tion of  the  amount  of  such  assessment;  and  to  any  sum  or  sums  due  and 
unpaid  after  the  fifteenth  day  of  June  in  any  year,  and  for  ten  days 
after  notice  and  demand  thereof  by  the  collector,  there  shall  be  added  the 
sum  of  five  per  centum  on  the  amount  of  tax  unpaid,  and  interest  at  the 
rate  of  one  per  centum  per  month  upon  said  tax  from  the  time  the  same 
became  due,  except  from  the  estates  of  insane,  deceased,  or  insolvent 
persons. 


326  Important  Federal  Laws 

(b)  All  persons,  firms,  copartnerships,  companies,  corporations, 
joint-stock  companies,  or  associations,  and  insurance  companies,  in  what- 
ever capacity  acting,  including  lessees  or  mortgagors  of  real  or  personal 
property,  trustees  acting  in  any  trust  capacity,  executors,  administrators, 
receivers,  conservators,  employers,  and  all  officers  and  employees  of  the 
United  States  having  the  control,  receipt,  custody,  disposal  or  payment 
of  interest,  rent,  salaries,  wages,  premiums,  annuities,  compensation,  re- 
muneration, emoluments  or  other  fixed  or  determinable  annual  or  period- 
icals gains,  profits  and  income  of  another  person,  exceeding  $3,000  for 
any  taxable  year,  other  than  income  derived  from  dividends  on  capital 
stock,  or  from  the  net  earnings  of  corporations  and  joint-stock  companies 
or  associations,  or  insurance  companies,  the  income  of  which  is  taxable 
under  this  title,  who  are  required  to  make  and  render  a  return  in  behalf 
of  another,  as  provided  herein,  to  the  collector  of  his,  her,  or  its  district, 
are  hereby  authorized  and  required  to  deduct  and  withhold  from  such 
annual  or  periodical  gains,  profits  and  income  such  sum  as  will  be  suffi- 
cient to  pay  the  nornial  tax  imposed  thereon  by  this  title  and  shall  pay  the 
amount  withheld  to  the  officer  of  the  United  States  Government  author- 
ized to  receive  the  same ;  and  they  are  each  hereby  made  personally  lia- 
ble for  such  tax,  and  they  are  each  hereby  indemnified  against  every  per- 
son, corporation,  association  or  demand  whatsoever  for  all  payments 
which  they  shall  make  in  pursuance  and  by  virtue  of  this  title. 

In  all  cases  where  the  income  tax  of  a  person  is  withheld  and  deducted 
and  paid  or  to  be  paid  at  the  source,  such  person  shall  not  receive  the  ben- 
efit of  the  personal  exemption  allowed  in  section  seven  of  this  title  except 
by  an  application  for  refund  of  the  tax  unless  he  shall,  not  less  than  thirty 
days  prior  to  the  day  on  which  the  return  of  his  income  is  due,  file  with 
the  person  who  is  required  to  withhold  and  pay  tax  for  him  a  signed 
notice  in  writing  claiming  the  benefit  of  such  exemption  and  thereupon 
no  tax  shall  be  withheld  upon  the  amount  of  such  exemption:  Provided, 
That  if  any  person  for  the  purpose  of  obtaining  any  allowance  or  reduc- 
tion by  virtue  of  a  claim  for  such  exemption,  either  for  himself  or  for 
any  other  person,  knowingly  makes  any  false  statement  or  false  or  fraud- 
ulent representation,  he  shall  be  liable  to  a  penalty  of  not  exceeding  $300. 

And  where  the  income  tax  is  paid  or  to  be  paid  at  the  source,  no 
person  shall  be  allowed  the  benefit  of  any  deduction  provided  for  in  sec- 
tions five  or  six  of  this  title  unless  he  shall,  not  less  than  thirty  days  prior 
to  the  day  on  which  the  return  of  his  income  is  due,  either  (1)  file  with 
the  person  who  is  required  to  withhold  and  pay  tax  for  him  a  true  and 
correct  return  of  his  gains,  profits  and  income  from  all  other  sources. 
and  also  the  deductions  asked  for,  and  the  showing  thus  made  shall  then 
become  a  part  of  the  return  to  be  made  in  his  behalf  by  the  person  re- 
quired to  withhold  and  pay  the  tax,  or  (2)  likewise  make  application 
for  deductions  to  the  collector  of  the  district  in  which  return  is  made  or 
to  be  made  for  him:  Provided,  That  when  any  amount  allowable  as  a 
deduction  is  known  at  the  time  of  receipt  of  fixed  annual  or  periodical 


Income  Tax  327 

income  by  an  individual  subject  to  tax,  he  may  file  with  the  person,  firm 
or  corporation  making  the  payment  a  certificate,  under  penalty  for  false 
claim,  and  in  such  form  as  shall  be  prescribed  by  the  Commissioner  of 
Internal  Revenue,  stating  the  amount  of  such  deduction  and  making  a 
claim  for  an  allowance  of  the  same  against  the  amount  of  tax  otherwise 
required  to  be  deducted  and  withheld  at  the  source  of  the  income,  and 
such  certificate  shall  likewise  become  a  part  of  the  return  to  be  made  in 
his  behalf. 

If  such  person  is  absent  from  the  United  States,  or  is  unable  owing 
to  serious  illness  to  make  the  return  and  application  above  provided  for, 
the  return  and  application  may  be  made  by  an  agent,  he  making  oath  that 
he  has  sufficient  knowledge  of  the  affairs  and  property  of  his  principal 
to  enable  him  to  make  a  full  and  complete  return,  and  that  the  return  and 
application  made  by  him  are  full  and  complete. 

(c)  The  amount  of  the  normal  tax  hereinbefore  imposed  shall  be 
deducted  and  withheld  from  fixed  or  determinable  annual  or  periodical 
gains,  profits  and  income  derived  from  interest  upon  bonds  and  mort- 
gages, or  deeds  of  trust  or  other  similar  obligations  of  corporations, 
joint-stock  companies,  associations  and  insurance  companies,  whether 
payable  annually  or  at  shorter  or  longer  periods,  although  such  interest 
does  not  amount  to  $3,000,  subject  to  the  provisions  of  this  title  requir- 
ing the  tax  to  be  withheld  at  the  source  and  deducted  from  annual  income 
and  returned  and  paid  to  the  Government. 

(d)  And  likewise  the  amount  of  such  tax  shall  be  deducted  and 
withheld  from  coupons,  checks  or  bills  of  exchange  for  or  in  payment 
of  interest  upon  bonds  of  foreign  countries  and  upon  foreign  mortgages 
or  like  obligations  (not  payable  in  the  United  States),  and  also  from 
coupons,  checks,  or  bills  of  exchange  for  or  in  payment  of  any  dividends 
upon  the  stock  or  interest  upon  the  obligations  of  foreign  corporations, 
associations  and  insurance  companies  engaged  in  business  in  foreign 
countries.  , 

And  the  tax  In  such  cases  shall  be  withheld,  deducted  and  returned 
for  and  in  behalf  of  any  person  subject  to  the  tax  hereinbefore  imposed, 
although  such  interest  or  dividends  do  not  exceed  $3,000,  by  (1)  any 
banker  or  person  who  shall  sell  or  otherwise  realize  coupons,  checks  or 
bills  of  exchange  drawn  or  made  in  payment  of  any  such  interest  or  divi- 
dends (not  payable  in  the  United  States),  and  (2)  any  person  who  shall 
obtain  payment  (not  in  the  United  States),  in  behalf  of  another  of  such 
dividends  and  interest  by  means  of  coupons,  checks  or  bills  of  exchange, 
and  also  (3)  any  dealer  in  such  coupons  who  shall  purchase  the  same  for 
any  such  dividends  or  interest  (not  payable  in  the  United  States),  other- 
wise than  from  a  banker  or  another  dealer  in  such  coupons. 

(e)  Where  the  tax  is  withheld  at  the  source,  the  benefit  of  the 
exemption  and  the  deductions  allowable  under  this  title  may  be  had  by 
complying  with  the  foregoing  provisions  of  this  section. 

(f)  All  persons,  firms  or  corporations  undertaking  as  a  matter  of 


328  Important  Federal  Laws 

business  or  for  profit  the  collection  of  foreign  payments  of  such  interest 
or  dividends  by  means  of  coupons,  checks  or  bills  of  exchange  shall  obtain 
a  license  from  the  Commissioner  of  Internal  Revenue,  and  shall  be  sub- 
ject to  such  regulations  enabling  the  Government  to  ascertain  and  verify 
the  due  withholding  and  payment  of  the  income  tax  required  to  be  with- 
held and  paid  as  the  Commissioner  of  Internal  Revenue,  with  the  ap- 
proval of  the  Secretary  of  the  Treasury,  shall  prescribe ;  and  any  person 
who  shall  knowingly  undertake  to  collect  such  payments  as  aforesaid 
without  having  obtained  a  license  therefor,  or  without  complying  with 
such  regulations,  shall  be  deemed  guilty  of  a  misdemeanor  and  for  each 
oflense  be  fined  in  a  sum  not  exceeding  $5,000,  or  imprisoned  for  a  term 
not  exceeding  one  year,  or  both,  in  the  discretion  of  the  court. 

(g)  The  tax  herein  imposed  upon  gains,  profits  and  income  not  fall- 
ing under  the  foregoing  and  not  returned  and  paid  by  virtue  of  the  fore- 
going shall  be  assessed  by  personal  return  under  rules  and  regulations 
to  be  prescribed  by  the  Commissioner  of  Internal  Revenue  and  approved 
by  the  Secretary  of  the  Treasury.  The  intent  and  purpose  of  this  title 
is  that  all  gains^  profits  and  income  of  a  taxable  class,  as  defined  by  this 
title,  shall  be  charged  and  assessed  with  the  corresponding  tax,  normal 
and  additional,  prescribed  by  this  title  and  said  tax  shall  be  paid  by  the 
owner  of  such  income,  or  the  proper  representative  having  the  receipt, 
custody,  control  or  disposal  of  the  same.  For  the  purpose  of  this  title 
ownership  or  liability  shall  be  determined  as  of  the  year  for  which  a 
return  is  required  to  be  rendered. 

The  provisions  of  this  title  relating  to  the  deduction  and  payment 
of  the  tax  at  the  source  of  income  shall  only  apply  to  the  normal  tax 
hereinbefore  imposed  upon  individuals. 

Part  II — The  Corporation  Tax. 
Act  of  September  8,  1916. 
Sec.  10.  That  there  shall  be  levied,  assessed,  collected  and  paid 
annually  upon  the  total  net  income  received  in  the  preceding  calendar 
year  from  all  sources  by  every  corporation,  joint-stock  company  or  asso- 
ciation, or  insurance  company,  organized  in  the  United  States,  no  matter 
how  created  or  organized  but  not  including  partnerships,  a  tax  of  two  per 
centum  upon  such  income ;  and  a  like  tax  shall  be  levied,  assessed,  col- 
lected and  paid  annually  upon  the  total  net  income  received  in  the  pre- 
ceding calendar  year  from  all  sources  within  the  United  States  by  every 
corpol-ation,  joint-stock  company  or  association,  or  insurance  company 
organized,  authorized  or  existing  under  the  laws  of  any  foreign  country, 
including  interest  on  bonds,  notes  or  other  interest-bearing  obligations  of 
residents,  corporate  or  otherwise  and  including  the  income  derived  from 
dividends  on  capital  stock  or  from  net  earnings  of  resident  corporations, 
joint-stock  companies  or  associations,  or  insurance  companies  whose  net 
income  is  taxable  under  this  title :     Provided,  That  the  term  "dividends" 


Corporation  Income  Tax  329 

as  used  in  this  title  shall  be  held  to  mean  any  distribution  made  or  ordered 
to  be  made  by  a  corporation,  joint-stock  company,  association  or  insur- 
ance company,  out  of  its  earnings  or  profits  accrued  since  March  first, 
nineteen  hundred  and  thirteen,  and  payable  to  its  shareholders,  whether 
in  cash  or  in  stock  of  the  corporation,  joint-stock  company,  association 
or  insurance  company,  which  stock  dividend  shall  be  considered  income, 
to  the  amount  of  its  cash  value. 

The  foregoing  tax  rate  shall  apply  to  the  total  net  income  received 
by  every  taxable  corporation,  joint-stock  company  or  association,  or  in- 
surance company  in  the  calendar  year  nineteen  hundred  and  sixteen  and 
in  each  year  thereafter,  except  that  if  it  has  fixed  its  own  fiscal  year 
under  the  provisions  of  existing  law,  the  foregoing  rate  shall  apply _  to 
the  proportion  of  the  total  net  income  returned  for  the  fiscal  year  ending 
prior  to  December  thirty-first,  nineteen  hundred  and  sixteen,  which  the 
period  between  January  first,  nineteen  hundred  and  sixteen,  and  the  end 
of  such  fiscal  year  bears  to  the  whole  of  such  fiscal  year,  and  the  rate 
fixed  in  Section  II  of  the  Act  approved  October  third,  nineteen  hundred 
and  thirteen,  entitled  "An  Act  to  reduce  tarifif  duties  and  to  provide 
revenue  for  the  Government,  and  for  other  purposes,"  shall  apply  to  the 
remaining  portion  of  the  total  net  income  returned  for  such  fiscal  year. 

For  the  purpose  of  ascertaining  the  gain  derived  or  loss  sustained 
from  the  sale  or  other  disposition  by  a  corporation,  joint-stock  company 
or  association,  or  insurance  company,  or  property,  real,  personal,  or  mixed, 
acquired  before  March  first,  nineteen  hundred  and  thirteen,  the  fair  mar- 
ket price  or  value  of  such  property  as  of  March  first,  nineteen  hundred 
and  thirteen,  shall  be  the  basis  for  determining  the  amount  of  such  gain 
derived  or  loss  sustained. 

Conditional  and  Other  Exemptions. 

Sec.  11.  (a)  That  there  shall  not  be  taxed  under  this  title  any 
income  received  by  any — 

First.     Labor,  agricultural,  or  horticultural  organization ; 

Second.  Mutual  savings  bank  not  having  a  capital  stock  represented 
by  shares ; 

Third.  Fraternal  beneficiary  society,  order,  or  association,  operat- 
ing under  the  lodge  system  or  for  the  exclusive  benefit  of  the  members 
of  a  fraternity  itself  operating  under  the  lodge  system  and  providing  for 
the  payment  of  life,  sick,  accident  or  other  benefits  to  the  members  of  such 
society,  order  or  association  or  their  dependents ; 

Fourth.  Domestic  building  and  loan  association  and  cooperative 
banks  without  capital  stock  organized  and  operated  for  mutual  purposes 
and  without  profit ; 

PMfth.  Cemetery  company  owned  and  operated  exclusively  for  the 
benefit  of  its  members ; 

Sixth.  Corporation  or  association  organized  and  operated  exclu- 
sively for  religious,  charitable,  scientific,  or  educational  purposes,  no  part 


330  Important  Federal  Laws 

of  the  net  income  of  which  inures  to  the  benefit  of  any  private  stockholder 
or  individual ; 

Seventh.  Business  league,  chamber  of  commerce,  or  board  of  trade, 
not  organized  for  profit  and  no  part  of  the  net  income  of  which  inures 
to  the  benefit  of  any  private  stockholder  or  individual ; 

Eighth.  Civic  league  or  organization  not  organized  for  profit  but 
operated  exclusively  for  the  promotion  of  social  welfare; 

Ninth.  Club  organized  and  operated  exclusively  for  pleasure,  rec- 
reation, and  other  nonprofitable  purposes,  no  part  of  the  net  income  of 
which  inures  to  the  benefit  of  any  private  stockholder  or  member ; 

Tenth.  Farmers"  or  other  mutual  hail,  cyclone,  or  fire  insurance 
company,  mutual  ditch  or  irrigation  company,  mutual  or  cooperative 
telephone  company,  or  like  organization  of  a  purely  local  character,  the 
income  of  which  consists  solely  of  assessments,  dues,  and  fees  collected 
from  members  for  the  sole  purpose  of  meeting  its  expenses ; 

Eleventh.  Farmers',  fruit  growers,'  or  like  association,  organized 
and  operated  as  a  sales  agent  for  the  purpose  of  marketing  the  products 
of  its  members  and  turning  back  to  them  the  proceeds  of  sales,  less  the 
necessary  selling  expenses,  on  the  basis  of  the  quantity  of  produce  fur- 
nished by  them; 

Twelfth.  Corporation  or  association  organized  for  the  exclusive 
purpose  of  holding  title  to  property,  collecting  income  therefrom,  and 
turning  over  the  entire  amount  thereof,  less  expenses,  to  an  organization 
which  itself  is  exempt  from  the  tax  imposed  by  this  title;  or 

Thirteenth.  Federal  land  banks  and  national  farm-loan  associations 
as  provided  in  section  twenty-six  of  the  Act  approved  July  seventeenth, 
nineteen  hundred  and  sixteen,  entitled  "An  Act  to  provide  capital  for 
agricultural  development,  to  create  standard  forms  of  investment  based 
upon  farm  mortgage,  to  equalize  rates  of  interest  upon  farm  loans,  to 
furnish  a  market  for  United  States  bonds,  to  create  Government  deposi- 
taries and  financial  agents  for  the  United  States,  and  for  other  purposes." 

Fourteenth.  Joint  stock  land  banks  as  to  income  derived  from  bonds 
or  debentures  of  other  joint  stock  land  banks  or  any  Federal  land  bank 
belonging  to  such  joint  stock  land  bank. 

(b)  There  shall  not  be  taxed  under  this  title  any  income  derived 
from  any  public  utility  or  from  the  exercise  of  any  essential  govern- 
mental function  accruing  to  any  State,  Territory,  or  the  District  of 
Columbia,  or  any  political  subdivision  of  a  State  or  Territory,  nor  any 
income  accruing  to  the  government  of  the  Philippine  Islands  or  Porto 
Rico,  or  of  any  political  subdivision  of  the  Philippine  Islands  or  Porto 
Rico :  Provided,  That  whenever  any  State,  Territory,  or  the  District  of 
Columbia,  or  any  political  subdivision  of  a  State  or  Territory,  has,  prior 
to  the  passage  of  this  title,  entered  in  good  faith  into  a  contract  with  any 
person  or  corporation,  the  object  and  purpose  of  which  is  to  acquire, 
construct,  operate,  or  maintain  a  public  utility,  no  tax  shall  be  levied 
under  the  provisions  of  this  title  upon  the  income  derived  from  the  oper- 


Corporation  Income  Tax  331 

ation  of  such  public  utility,  so  far  as  the  payment  thereof  will  hnpose  a 
loss  or  burden  upon  such  State,  Territory,  or  the  District  of  Columbia, 
or  a  political  subdivision  of  a  State  or  Territory ;  but  this  provision  is  not 
intended  to  confer  upon. such  person  or  corporation  any  financial  gain  or 
exemption  or  to  relieve  such  person  or  corporation  from  the  payment  of 
a  tax  as  provided  for  in  this  title  upon  the  part  or  portion  of  the  said 
income  to  which  such  person  or  corporation  shall  be  entitled  under  such 
contract. 

Deductions. 

Sec.  12.  (a)  In  the  case  of  a  corporation,  joint-stock  company  or 
association,  or  insurance  company,  organized  in  the  United  States,  such 
net  income  shall  be  ascertained  by  deducting  from  the  gross  amount  of 
its  income  received  within  the  year  from  all  sources — 

First.  All  the  ordinary  and  necessary  expenses  paid  within  the  year 
in  the  maintenance  and  operation  of  its  business  and  properties,  including 
rentals  or  other  payments  required  to  be  made  as  a  condition  to  the  con- 
tinued use  or  possession  of  property  to  which  the  corporation  has  not 
taken  or  is  not  taking  title,  or  in  which  it  has  no  equity. 

Second.     All  losses  actually  sustained  and  charged  off  within  the 
year  and  not  compensated  by  insurance  or  otherwise,  including  a  reason- 
able allowance  for  the  exhaustion,  wear  and  tear  of  property  arising  out 
of  its  use  or  employment  in  the  business  or  trade;  (a)  in  the  case  of  oil 
and  gas  wells  a  reasonable  allowance  for  actual  reduction  in  flow  and  pro- 
duction to  be  ascertained  not  by  the  flush  flow,  but  by  the  settled  produc- 
tion or  regular  flow;  (b)  in  the  case  of  mines  a  reasonable  allowance  for 
depletion  thereon  not  to  exceed  the  market  value  in  the  mine  of  the  prod- 
uct thereof  which  has  been  mined  and  sold  during  the  year  for  which 
the  return  and  computation  are  made,  such  reasonable  allowance  to  be 
made  in  the  case  of  both  (a)  and  (b)  under  rules  and  regulations  to  be 
prescribed  by  the  Secretary  of  the  Treasury:  Provided,  That  when  the 
allowance  authorized  in   (a)   and    (b)   shall  equal  the  capital  originally 
invested,   or  in   case  of   purchase  made  prior  to   March   first,   nineteen 
hundred  and  thirteen,  the  fair  market  value  as  of  that  date,  no  further 
allowance  shall  be  made ;  and  (c)  in  the  case  of  insurance  companies,  the 
net  addition,  if  any,  required  by  law  to  be  made  within  the  year  to  reserve 
funds  and  the  sums  other  than  dividends  paid  within  the  year  on  policy 
and  annuity  contracts :  Provided,  That  no  deduction  shall  be  allowed  for 
any  amount  paid   out   for   new  buildings,  permanent   improvements,   or 
betterments  made  to  increase  the  value  of  any  property  or  estate,  and  no 
deduction  shall  be  made  for  any  amount  of  expense  of  restoring  property 
or  making  good  the  exhaustion  thereof  for  which  an  allowance  is  or  has 
been  made:  Provided  further,  That  mutual  fire  and  mutual  employers' 
liability  and  mutual  workmen's  compensation  and  mutual  casualty  insur- 
ance companies  requiring  their  members  to  make  premium  deposits  to 
provide  for  losses  and  expenses  shall  not  return  as  income  any  portion  of 


332  Important  Federal  Laws 

the  premium  deposits  returned  to  their  policyholders,  but  shall  return  as 
taxable  income  all  income  received  by  them  from  all  other  sources  plus 
such  portions  of  the  premium  deposits  as  are  retained  by  the  companies 
for  purposes  other  than  the  payment  of  losses  and  expenses  and  rein- 
surance reserves:  Provided  further,  That  mutual  marine  insurance  com- 
panies shall  include  in  their  return  of  gross  income  gross  premiums  col- 
lected and  received  by  them  less  amounts  paid  for  reinsurance,  but  shall 
be  entitled  to  include  in  deductions  from  gross  income  amounts  repaid 
to  policyholders  on  account  of  premiums  previously  paid  by  them  and 
interest  paid  upon  such  amounts  between  the  ascertainment  thereof  and 
the  payment  thereof,  and  life  insurance  companies  shall  not  include  as 
income  in  any  year  such  portion  of  any  actual  premium  received  from  any 
individual  policyholder  as  shall  have  been  paid  back  or  credited  to  such 
individual  policyholder,  or  treated  as  an  abatement  of  premium  of  such 
individual  policyholder,  within  such  year; 

Third.  The  amount  of  interest  paid  within  the  year  on  its  indebted- 
ness to  an  amount  of  such  indebtedness  not  in  excess  of  the  sum  of  (a) 
the  entire  amount  of  the  paid-up  capital  stock  outstanding  at  the  close  of 
the  year,  or,  if  no  capital  stock,  the  entire  amount  of  capital  employed 
in  the  business  at  the  close  of  the  year,  and  (b)  one-half  of  its  interest- 
bearing  indebtedness  then  outstanding:  Provided,  That  for  the  purpose 
of  this  title  preferred  capital  stock  shall  not  be  considered  interest-bearing 
indebtedness,  and  interest  or  dividends  paid  upon  this  stock  shall  not  be 
deductible  from  gross  income:  Provided  further,  That  in  cases  wherein 
shares  of  capital  stock  are  issued  without  par  or  nominal  value,  the 
amount  of  paid-up  capital  stock,  within  the  meaning  of  this  section,  as 
represented  by  such  shares,  will  be  the  amount  of  cash,  or  its  equivalent, 
paid  or  transferred  to  the  corporation  as  a  consideration  for  such  shares : 
Provided  further,  That  in  the  case  of  indebtedness  wholly  secured  by 
property  collateral,  tangible  or  intangible,  the  subject  of  sale  or  hypotheca- 
tion in  the  ordinary  business  of  such  corporation,  joint-stock  company  or 
association  as  a  dealer  only  in  the  property  constituting  such  collateral,  or 
in  loaning  the  funds  thereby  procured,  the  total  interest  paid  by  such 
corporation,  company,  or  association  within  the  year  on  any  such  indebt- 
edness may  be  deducted  as  a  part  of  its  expenses  of  doing  business,  but 
interest  on  such  indebtedness  shall  only  be  deductible  on  an  amount  of 
such  indebtedness  not  in  excess  of  the  actual  value  of  such  property 
collateral :  Provided  further.  That  in  the  case  of  bonds  or  other  indebt- 
edness, which  have  been  issued  with  a  guaranty  that  the  interest  payable 
thereon  shall  be  free  from  taxation,  no  deduction  for  the  payment  of  the 
tax  herein  imposed,  or  any  other  tax  paid  pursuant  to  such  guaranty, 
shall  be  allowed ;  and  in  the  case  of  a  bank,  banking  association,  loan  or 
trust  company,  interest  paid  within  the  year  on  deposits  or  on  moneys 
received  for  investment  and  secured  by  interest-bearing  certificates  of 
indebtedness  issued  by  such  bank,  banking  association,  loan  or  trust 
company ; 


Corporation  Income  Tax  333 

Fourth.  Taxes  paid  within  the  year  imposed  by  the  authority  of  the 
United  States,  or  its  Territories,  or  possessions,  or  foreign  country,  or 
under  the  authority  of  any  State,  county,  school  district,  or  municipaUty, 
or  other  taxing  subdivision  of  any  State,  not  including  those  assessed 
against  local  benefits. 

(b)  In  the  case  of  a  corporation,  joint-stock  company  or  association, 
or  insurance  company,  organized,  authorized,  or  existing  under  the  laws 
of  any  foreign  country,  such  net  income  shall  be  ascertained  by  deduct- 
ing from  the  gross  amount  of  its  income  received  within  the  year  from 
all  sources  within  the  United  States — 

First.  All  the  ordinary  and  necessary  expenses  actually  paid  within 
the  year  out  of  earnings  in  the  maintenance  and  operation  of  its  business 
and  property  within  the  United  States,  including  rentals  or  other  pay- 
ments required  to  be  made  as  a  condition  to  the  continued  use  or  posses- 
sion of  property  to  which  the  corporation  has  not  taken  or  is  not  taking 
title,  or  in  which  it  has  no  equity. 

Second.  All  losses  actually  sustained  within  the  year  in  business  or 
trade  conducted  by  it  within  the  United  States  and  not  compensated  by 
insurance  or  otherwise,  including  a  reasonable  allowance  for  the  exhaus- 
tion, wear  and  tear  of  property  arising  out  of  its  use  or  employment  in 
the  business  or  trade;  (a)  and  in  the  case  of  oil  and  gas  wells  a 
reasonable  allowance  for  actual  reduction  in  flow  and  production  to  be 
ascertained  not  by  the  flush  flow,  but  by  the  settled  production  or  regular 
flow ;  (b)  in  the  case  of  mines  a  reasonable  allowance  for  depletion  there- 
of not  to  exceed  the  market  value  in  the  mine  of  the  product  thereof 
which  has  been  mined  and  sold  during  the  year  for  which  the  return  and 
computation  are  made,  such  reasonable  allowance  to  be  made  in  the 
case  of  both  (a)  and  (b)  under  rules  and  regulations  to  be  prescribed 
by  the  Secretary  of  the  Treasury :  Provided,  That  when  the  allowance 
authorized  in  (a)  and  (b)  shall  equal  the  capital  originally  invested,  or 
in  case  of  purchase  made  prior  to  March  first,  nineteen  hundred  and  thir- 
teen, the  fair  market  value  as  of  that  date,  no  further  allowance  shall  be 
made;  and  (c)  in  the  case  of  insurance  companies,  the  net  addition,  if 
any,  required  by  law  to  be  made  within  the  year  to  reserve  funds  and 
the  sums  other  than  dividends  paid  within  the  year  on  policy  and  annuity 
contracts :  Provided,  That  no  deduction  shall  be  allowed  for  any  amount 
paid  out  for  new  buildings,  permanent  improvements,  or  betterments, 
made  to  increase  the  value  of  any  property  or  estate,  and  no  deduction 
shall  be  made  for  any  amount  of  expense  of  restoring  property  or  mak- 
insr  eood  the  exhaustion  thereof  for  which  an  allowance  is  or  has  been 
made :  Provided,  further.  That  mutual  fire  and  mutual  employers'  liability 
and  mutual  workmen's  compensation  and  mutual  casualty  insurance  com- 
panies requiring  their  members  to  make  premium  deposits  to  provide  for 
losses  and  expenses  shall  not  return  as  income  any  portion  of  the  prem- 
ium deposits  returned  to  their  policyholders,  but  shall  return  as  taxable 
income  all  income  received  by  them  from  all  other  sources  plus  such  por- 


334  Important  Federal  Laws 

tions  of  the  premium  deposits  as  are  retained  by  the  companies  for  pur- 
poses other  than  the  payment  of  losses  and  expenses  and  reinsurance 
reserves :  Provided  further,  That  mutual  marine  insurance  companies 
shall  include  in  their  return  of  gross  income  gross  premiums  collected 
and  received  by  them  less  amounts  paid  for  reinsurance,  but  shall  be  en- 
titled to  include  in  deductions  from  gross  income  amounts  repaid  to 
policyholders  on  account  of  premiums  previously  paid  by  them,  and  in- 
terest paid  upon  such  amounts  between  the  ascertainment  thereof  and 
the  payment  thereof,  and  life  insurance  companies  shall  not  include  as 
income  in  any  year  such  portion  of  any  actual  premium  received  from  any 
individual  policyholder  as  shall  have  been  paid  back  or  credited  to  such 
individual  policyholder,  or  treated  as  an  abatement  of  premium  of  such 
individual  policyholder,  within  such  year; 

Third.  The  amount  of  interest  paid  within  the  year  on  its  indebted- 
ness to  an  amount  of  such  indebtedness  not  in  excess  of  the  proportion 
of  the  sum  of  (a)  the  entire  amount  of  the  paid-up  capital  stock  out- 
standing at  the  close  of  the  year,  or,  if  no  capital  stock,  the  entire  amount 
of  the  capital  employed  in  the  business  at  the  close  of  the  year,  and  (b) 
one-half  of  its  interest-bearing  indebtedness  then  outstanding,  which  the 
gross  amount  of  its  income  for  the  year  from  business  transacted  and 
capital  invested  within  the  United  States  bears  to  the  gross  amount  of  its 
income  derived  from  all  sources  within  and  without  the  United  States : 
Provided,  That  in  the  case  of  bonds  or  other  indebtedness  which  have 
been  issued  with  a  guaranty  that  the  interest  payable  thereon  shall  be  free 
from  taxation,  no  deduction  for  the  payment  of  the  tax  herein  imposed 
or  any  other  tax  paid  pursuant  to  such  guaranty  shall  be  allowed ;  and  in 
case  of  a  bank,  banking  association,  loan  or  trust  company,  or  branch 
thereof,  interest  paid  within  the  year  on  deposits  by  or  on  moneys  re- 
ceived for  investment  from  either  citizens  or  residents  of  the  United 
States  and  secured  by  interest-bearing  certificates  of  indebtedness  issued 
by  such  bank,  banking  association,  loan  or  trust  company,  or  branch 
thereof ; 

Fourth.  Taxes  paid  within  the  year  imposed  by  the  authority  of 
the  United  States,  or  its  Territories,  or  possessions,  or  under  the  author- 
ity of  any  State,  county,  school  district,  or  municipality,  or  other  taxing 
subdivision  of  any  State,  paid  within  the  United  States,  not  including 
those  assessed  against  local  benefits ; 

(c)  In  the  case  of  assessment  insurance  companies,  whether  domestic 
or  foreign,  the  actual  deposit  of  sums  with  State  or  Territorial  officers, 
pursuant  to  law,   as   additions  to  guarantee  or   reserve   funds   shall  be 
treated  as  being  payments  required  by  law  to  reserve  funds. 
Returns. 

Sec.  13.  (a)  The  tax  shall  be  computed  upon  the  net  income,  as 
thus  ascertained,  received  within  each  preceding  calendar  year  ending 
December  thirty-first :  Provided,  That  any  corporation,  joint-stock  com- 
pany or  association,  or  insurance  company,  subject  to  this  tax,  may  desig- 


Corporation  Income  Tax  335 

nate  the  last  day  of  any  month  in  the  year  as  the  day  of  the  closing  of  its 
fiscal  year  and  shall  be  entitled  to  have  the  tax  payable  by  it  computed 
upon  the  basis  of  the  net  income  ascertained  as  herein  provided  for  the 
year  ending  on  the  day  so  designated  in  the  year  preceding  the  date  of 
assessment  instead  of  upon  the  basis  of  the  net  income  for  the  calendar 
year  preceding  the  date  of  assessment ;  and  it  shall  give  notice  of  the  day 
it  has  thus  designated  as  the  closing  of  its  fiscal  year  to  the  collector  of 
the  district  in  which  its  principal  business  office  is  located  at  any  time  not 
less  than  thirty  days  prior  to  the  first  day  of  March  of  the  year  in  which 
its  return  would  be  filed  if  made  upon  the  basis  of  the  calendar  year; 

(b)  Every  corporation,  joint-stock  company  or  association,  or  in- 
surance company,  subject  to  the  tax  herein  imposed,  shall,  on  or  before 
the  first  day  of  March,  nineteen  hundred  and  seventeen,  and  the  first  day 
of  March  in  each  year  thereafter,  or  if  it  has  designated  a  fiscal  year  for 
the  computation  of  its  tax,  then  within  sixty  days  after  the  close  of  such 
fiscal  year  ending  prior  to  December  thirty-first,  nineteen  hundred  and 
sixteen,  and  the  close  of  each  such  fiscal  year  thereafter,  render  a 
true  and  accurate  return  of  its  annual  net  income  in  the  manner  and 
form  to  be  prescribed  by  the  Commissioner  of  Internal  Revenue,  with 
the  approval  of  the  Secretary  of  the  Treasury,  and  containing  such  facts, 
data,  and  information  as  are  appropriate  and  in  the  opinion  of  the  com- 
missioner necessary  to  determine  the  correctness  of  the  net  income  re- 
turned and  to  carry  out  the  provisions  of  this  title.  The  return  shall  be 
sworn  to  by  the  president,  vice  president,  or  other  principal  officer,  and 
by  the  treasurer  or  assistant  treasurer.  The  return  shall  be  made  to 
the  collector  of  the  district  in  which  is  located  the  principal  office  of  the 
corporation,  company,  or  association,  where  are  kept  its  books  of 
account  and  other  data  from  which  the  return  is  prepared,  or  in  the 
case  of  a  foreign  corporation,  company,  or  association,  to  the  collector 
of  the  district  in  which  is  located  its  principal  place  of  business  in  the 
United  States,  or  if  it  have  no  principal  place  of  business,  office,  or 
agency  in  the  United  States,  then  to  the  collector  of  internal  revenue  at 
Baltimore,  Maryland.  All  such  returns  shall  as  received  be  transmitted 
forthwith  by  the  collector  to  the  Commissioner  of  Internal  Revenue; 

(c)  In  cases  wherein  receivers,  trustees  in  bankruptcy,  or  assignees 
are  operating  the  property  or  business  of  corporations,  joint-stock  com- 
panies or  associations,  or  insurance  companies,  subject  to  tax  imposed 
by  this  title,  such  receivers,  trustees  or  assignees  shall  make  returns  of 
net  income  as  and  for  such  corporations,  joint-stock  companies  or  asso- 
ciations and  insurance  companies  in  the  same  manner  and  form  as  such 
organizations  are  hereinbefore  required  to  make  returns,  and  any  income 
tax  due  on  the  basis  of  such  returns  made  by  receivers,  trustees  or  as- 
signees shall  be  assessed  and  collected  in  the  same  manner  as  if  assessed 
directly  against  the  organizations  of  whose  business  or  properties  they 
have  custody  and  control : 

(d)  A  corporation,   joint-stock  company  or  association,  or  insur- 


336  Important  Federal  Laws 

ance  company,  keeping  accounts  upon  any  basis  other  than  that  of  actual 
receipts  and  disbursements,  unless  such  other  basis  does  not  clearly  reflect 
its  income,  may,  subject  to  regulations  made  by  the  Commissioner  of 
Internal  Revenue,  with  the  approval  of  the  Secretary  of  the  Treasury, 
makes  its  return  upon  the  basis  upon  which  its  accounts  are  kept,  in 
which  case  the  tax  shall  be  computed  upon  its  income  as  so  returned ; 

(e)  All  the  provisions  of  this  title  relating  to  the  tax  authorized 
and  required  to  be  deducted  and  withheld  and  paid  to  the  officer  of  the 
United  States  Government  authorized  to  receive  the  same  from  the  in- 
come of  nonresident  alien  individuals  from  sources  within  the  United 
States  shall  be  made  applicable  to  incomes  derived  from  interest  upon 
bonds  and  mortgages  or  deeds  of  trust  or  similar  obligations  of  domestic 
or  other  resident  corporations,  joint-stock  companies  or  associations,  and 
insurance  companies  by  nonresident  alien  firms,  copartnerships,  com- 
panies, corporations,  joint-stock  companies  or  associations  and  insurance 
companies  not  engaged  in  business  or  trade  within  the  United  States  and 
not  having  any  office  or  place  of  business  therein ; 

(f)  Likewise,  all  the  provisions  of  this  title  relating  to  the  tax 
authorized  and  required  to  be  deducted  and  withheld  and  paid  to  the 
officer  of  the  United  States  Government  authorized  to  receive  the  same 
from  the  income  of  nonresident  alien  individuals  from  sources  within 
the  United  States  shall  be  made  applicable  to  income  derived  from  divi- 
dends upon  the  capital  stock  or  from  the  net  earnings  of  domestic  or 
other  resident  corporations,  joint-stock  companies  or  associations  and  in- 
surance companies  by  nonresident  alien  companies,  corporations,  joint- 
stock  companies  or  associations  and  insurance  companies  not  engaged  in 
business  or  trade  within  the  United  States  and  not  having  any  office  or 
place  of  business  therein. 

Assessment  and  Administration. 

Sec.  14.  (a)  All  assessments  shall  be  made  and  the  several  cor- 
porations, joint-stock  companies  or  associations  and  insurance  companies 
shall  be  notified  of  the  amount  for  which  they  are  respectively  liable  on 
or  before  the  first  day  of  June  of  each  successive  year,  and  said  assess- 
ment shall  be  paid  on  or  before  the  fifteenth  day  of  June:  Provided, 
That  every  corporation,  joint-stock  company  or  association  and  insurance 
company,  computing  taxes  upon  the  income  of  the  fiscal  year  which  it 
may  designate  in  the  manner  hereinbefore  provided,  shall  pay  the  taxes 
due  under  its  assessment  within  one  hundred  and  five  days  after  the  date 
upon  which  it  is  required  to  file  its  list  or  return  of  income  for  assess- 
ment; except  in  cases  of  refusal  or  neglect  to  make  such  return,  and  in 
cases  of  erroneous,  false  or  fraudulent  returns,  in  which  cases  the  Com- 
missioner of  Internal  Revenue  shall,  upon  the  discovery  thereof,  at  any 
time  within  three  years  after  said  return  is  due,  make  a  return  upon 
information  obtained  as  provided  for  in  this  title  or  by  existing  law ;  and 
the  assessment  made  by  the  Commissioner  of  Internal  Revenue  thereon 


Corporation  Income  Tax  337 

shall  be  paid  by  such  corporation,  joint-stock  company  or  association,  or 
insurance  company  immediately  upon  notiticatio'n  of  the  amount  of  such 
assessment;  and  to  any  sum  or  sums  due  and  unpaid  after  the  fifteenth 
day  of  June,  in  any  year,  or  after  one  hundred  and  five  days  from  the 
date  on  which  the  return  of  income  is  required  to  be  made  by  the  tax- 
payer and  after  ten  days'  notice  and  demand  thereof  by  the  collector, 
there  shall  be  added  the  sum  of  five  per  centum  on  the  amount  of  tax 
unpaid  and  interest  at  the  rate  of  one  per  centum  per  month  upon  said 
tax  from  the  time  the  same  becomes  due :  Provided,  That  upon  the 
examination  of  any  return  of  income  made  pursuant  to  this  title,  the  Act 
of  August  fifth,  nineteen  hundred  and  nine,  entitled,  "An  Act  to  provide 
revenue,  equalize  duties  and  encourage  the  industries  of  the  United 
States,  and  for  other  purposes,"  and  the  Act  of  October  third,  nineteen 
hundred  and  thirteen,  entitled,  "An  Act  to  reduce  tariff  duties  and  to 
provide  revenue  for  the  Government  and  for  other  purposes,"  if  it  shall 
appear  that  amounts  of  tax  have  been  paid  in  excess  of  those  properly 
due,  the  taxpayer  shall  be  permitted  to  present  a  claim  for  refund  thereof 
notwithstanding  the  provisions  of  section  thirty-two  hundred  and  twenty- 
eight  of  the  Revised  Statutes ; 

(b)  When  the  assessment  shall  be  made,  as  provided  in  this  title, 
the  returns,  together  with  any  corrections  thereof  which  may  have  been 
made  by  the  commissioner,  shall  be  filed  in  the  oftice  of  the  Commissioner 
of  Internal  Revenue  and  shall  constitute  public  records  and  be  open  to 
inspection  as  such:  Provided,  That  any  and  all  such  returns  shall  be 
open  to  inspection  only  upon  the  order  of  the  President,  under  rules  and 
regulations  to  be  prescribed  by  the  Secretary  of  the  Treasury  and  ap- 
proved by  the  President :  Provided  further,  That  the  proper  officers  of 
any  State  imposing  a  general  income  tax  may,  upon  the  request  of  the 
governor  thereof,  have  access  to  said  returns  or  to  an  abstract  thereof, 
showing  the  name  and  income  of  each  such  corporation,  joint-stock  com- 
pany or  association,  or  insurance  company,  at  such  times  and  in  such 
manner  as  the  Secretary  of  the  Treasury  may  prescribe; 

(c)  If  any  of  the  corporations,  joint-stock  companies  or  associa- 
tions, or  insurance  companies  aforesaid  shall  refuse  or  neglect  to  make  a 
return  at  the  time  or  times  hereinbefore  specified  in  each  year,  or  shall 
render  a  false  or  fraudulent  return,  such  corporation,  joint-stock  com- 
pany or  association  or  insurance  company  shall  be  liable  to  a  penalty  of 
not  exceeding  $10,000:  Provided,  That  the  Commissioner  of  Internal 
Revenue  shall  have  authority,  in  the  case  of  either  corporations  or  indi- 
viduals, to  grant  a  reasonable  extension  of  time  in  meritorious  cases,  as 
he  may  deem  proper. 

(d)  That  section  thirty-two  hundred  and  twenty-five  of  the  Re- 
vised Statutes  of  the  United  States  be,  and  the  same  is  hereby  amended 
so  as  to  read  as  follows : 

"Sec.  3225.  When  a  second  assessment  is  mnde  in  c'^'^.'^  of  any  list, 
statement  or  return,  which  in  the  opinion  of  the  collector  or  deputy  col- 

(22) 


338  Important  Federal  Laws 

lector  was  false  or  fraudulent,  or  contained  any  understatement  or  under- 
valuation, no  tax  collected  under  such  assessment  shall  be  recovered  by 
any  suit  unless  it  is  proved  that  the  said  list,  statement  or  return  was 
not  false  nor  fraudulent  and  did  not  contain  any  understatement  or 
undervaluation ;  but  this  section  shall  not  apply  to  statements  or  returns 
made  or  to  be  made  in  good  faith  under  the  laws  of  the  United  States 
regarding  annual  depreciation  of  oil  or  gas  wells  and  mines." 

Part  III. — General  Administrative  Provisions  of  Tax  Act. 

Act  of  September  8,  1916. 

Sec.  15.  That  the  word  "State"  or  ''United  States"  when  used  in 
this  title  shall  be  construed  to  include  any  Territory,  the  District  of 
Columbia,  Porto  Rico  and  the  Philippine  Islands,  when  such  construc- 
tion is  necessary  to  carry  out  its  provisions. 

Information  Not  to  be  Divulged. 

Sec.  16.  That  sections  thirty-one  hundred  and  sixty-seven,  thirty- 
one  hundred  and  seventy-two,  thirty-one  hundred  and  seventy-three  and 
thirty-one  hundred  and  seventy-six  of  the  Revised  Statutes  of  the  United 
States  as  amended  are  hereby  amended  so  as  to  read  as  follows : 

"Sec.  3167.  It  shall  be  unlawful  for  any  collector,  deputy  collector, 
agent,  clerk  or  other  officer  or  employee  of  the  United  States  to  divulge 
or  to  make  known  in  any  manner  whatever  not  provided  by  law  to  any 
person  the  operations,  style  of  work,  or  apparatus  of  any  manufacturer 
or  producer  visited  by  him  in  the  discharge  of  his  official  duties,  or  the 
amount  or  source  of  income,  profits,  losses,  expenditures  or  any  particular 
thereof,  set  forth  or  disclosed  in  any  income  return,  or  to  permit  any 
income  return  or  copy  thereof  or  any  book  containing  any  abstract  or 
particulars  thereof  to  be  seen  or  examined  by  any  person  except  as  pro- 
vided by  law ;  and  it  shall  be  unlawful  for  any  person  to  print  or  pub- 
lish in  any  manner  whatever  not  provided  by  law  any  income  return  or 
any  part  thereof  or  source  of  income,  profits,  losses  or  expenditures 
appearing  in  any  income  return;  and  any  offense  against  the  foregoing 
provision  shall  be  a  misdemeanor  and  be  punished  by  a  fine  not  exceed- 
ino-  $1,000  or  by  imprisonment  not  exceeding  one  year,  or  both,  at  the 
discretion  of  the  court ;  and  if  the  offender  be  an  officer  or  employee  of 
the  United  States  he  shall  be  dismissed  from  office  or  discharged  from 
employment. 

Investigation  by  Collector. 

"Sec.  3172.  Every  collector  shall,  from  time  to  time,  cause  his 
deputies  to  proceed  through  every  part  of  his  district  and  inquire  after 
and  concerning  all  persons  therein  who  are  liable  to  pay  any  internal- 
revenue  tax,  and  all  persons  owning  or  having  the  care  and  management 
of  any  objects  liable  to  pay  any  tax  and  to  make  a  list  of  such  persons 
and  enumerate  said  objects. 


Administrative  Provisions  of  Tax  Act  339 

Return  of  List. 

"Sec.  3173.  It  shall  be  the  duty  of  any  person,  partnership,  firm, 
association  or  corporation,  made  liable  to  any  duty,  special  tax  or  other 
tax  imposed  by  law,  when  not  otherwise  provided  for  (1)  in  case  of  a 
special  tax  on  or  before  the  thirty-first  day  of  July  in  each  year;  (2)  in 
case  of  income  tax  on  or  before  the  first  day  of  March  in  each  year,  or 
on  or  before  the  last  day  of  the  sixty-day  period  next  following  the  clos- 
ing date  of  the  fiscal  year  for  which  it  makes  a  return  of  its  income,  and 
(3)  in  other  cases  before  the  day  on  which  the  taxes  accrue,  to  make 
a  list  or  return,  verified  by  oath,  to  the  collector  or  a  deputy  collector  of 
the  district  where  located,  of  the  articles  or  objects,  including  the  amount 
of  annual  income  charged  with  a  duty  or  tax,  the  quantity  of  goods, 
wares  and  merchandise,  made  or  sold  and  charged  with  a  tax,  the  several 
rates  and  aggregate  amount,  according  to  the  forms  and  regulations  to 
be  prescribed  by  the  Commissioner  of  Internal  Revenue,  with  the  ap- 
proval of  the  Secretary  of  the  Treasury,  for  which  such  person,  part- 
nership, firm,  association  or  corporation  is  liable :  Provided,  That  if  any 
person  liable  to  pay  any  duty  or  tax,  or  owning,  possessing  or  having  the 
care  or  management  of  property,  goods,  wares  and  merchandise,  article 
or  objects  liable  to  pay  any  duty,  tax  or  license,  shall  fail  to  make  and 
exhibit  a  list  or  return  required  by  law,  but  shall  consent  to  disclose  the 
particulars  of  any  and  all  the  property,  goods,  wares  and  merchandise, 
articles  and  objects  liable  to  pay  any  duty  or  tax,  or  any  business  or  occu- 
pation liable  to  pay  any  tax  as  aforesaid,  then,  and  in  that  case,  it  shall 
be  the  duty  of  the  collector  or  deputy  collector  to  make  such  list  or 
return,  which,  being  distinctly  read,  consented  to  and  signed  and  verified 
by  oath  by  the  person  so  owning,  possessing  or  having  the  care  and  man- 
agement as  aforesaid,  may  be  received  as  the  list  of  such  person :  Pro- 
vided further,  That  in  case  no  annual  list  or  return  has  been  rendered 
by  such  person  to  the  collector  or  deputy  collector  as  required  by  law,  and 
the  person  shall  be  absent  from  his  or  her  residence  or  place  of  business 
at  the  time  the  collector  or  a  deputy  collector  shall  call  for  the  annual  list 
or  return,  it  shall  be  the  duty  of  such  collector  or  deputy  collector  to 
leave  at  such  place  of  residence  or  business,  with  some  one  of  suitable 
age  and  discretion,  if  such  be  present,  otherwise  to  deposit  in  the  nearest 
post  office,  a  note  or  memorandum  addressed  to  such  person,  requiring 
him  or  her  to  render  to  such  collector  or  deputy  collector  the  list  or  re- 
turn required  by  law  within  ten  days  from  the  date  of  such  note  or 
memorandum,  verified  by  oath.  And  if  any  person,  on  being  notified 
or  required  as  aforesaid,  shall  refuse  or  neglect  to  render  such  list  or 
return  within  the  time  required  as  aforesaid,  or  whenever  any  person 
who  is  required  to  deliver  a  monthly  or  other  return  of  objects  subject 
to  tax  fails  to  do  so  at  the  time  required,  or  delivers  any  return  which 
in  the  opinion  of  the  collector,  is  erroneous,  false  or  fraudulent,  or  con- 
tains any  undervaluation  or  understatement,  or  refuses  to  allow  any 
regularly  authorized  Government  ofScer  to  examine  the  books  of  such 


340  Important  Federal  Laws 

person,  firm  or  corporation,  it  shall  be  lawful  for  the  collector  to  sum- 
mon such  person,  or  any  other  person  having  possession,  custody  or 
care  of  books  of  account  containing  entries  relating  to  the  business  of 
such  person  or  any  other  person  he  may  deem  proper,  to  appear  before 
him  and  produce  such  books  at  a  time  and  place  named  in  the  summons, 
and  to  give  testimony  or  answer  interrogatories,  under  oath,  respecting 
any  objects  or  income  liable  to  tax  or  the  returns  thereof.  The  collector 
may  summon  any  person  residing  or  found  within  the  State  or  Terri- 
tory in  which  his  district  lies ;  and  when  the  person  intended  to  be  sum- 
moned does  not  reside  and  can  not  be  found  within  such  State  or  Terri- 
tory, he  may  enter  any  collection  district  where  such  person  may  be 
found  and  there  make  the  examination  herein  authorized.  And  to  this 
end  he  may  there  exercise  all  the  authority  which  he  might  lawfully  exer- 
cise in  the  district  for  which  he  was  commissioned:  Provided,  That 
'person,'  as  used  in  this  section,  shall  be  construed  to  include  any  cor- 
poration, joint-stock  company  or  association,  or  insurance  company  when 
such  construction  is  necessary  to  carry  out  its  provisions. 

Penalties. 

"Sec.  3176.  If  any  person,  corporation,  company  or  association 
fails  to  make  and  file  a  return  or  list  at  the  time  prescribed  by  law,  or 
makes,  willfully  or  otherwise,  a  false  or  fraudulent  return  or  list,  the  col- 
lector or  deputy  collector  shall  make  the  return  or  list  from  his  own 
knowledge  and  from  such  information  as  he  can  obtain  through  testimony 
or  otherwise.  Any  return  or  list  so  made  and  subscribed  by  a  collector 
or  deputy  collector  shall  be  prima  facie  good  and  sufficient  for  all  legal 
purposes. 

"If  the  failure  to  file  a  return  or  list  is  due  to  sickness  or  absence 
the  collector  may  allow  such  further  time,  not  exceeding  thirty  days,  for 
making  and  filing  the  return  or  list  as  he  deems  proper. 

"The  Commissioner  of  Internal  Revenue  shall  assess  all  taxes,  other 
than  stamp  taxes,  as  to  which  returns  or  lists  are  so  made  by  a  collector 
or  deputv  collector.  In  case  of  any  failure  to  make  and  file  a  return  or 
list  within  the  time  prescribed  by  law  or  by  the  collector,  the  Commis- 
sioner of  Internal  Revenue  shall  add  to  the  tax  fifty  per  centum  of  its 
amount  except  that,  when  a  return  is  voluntarily  and  without  notice 
from  the  collector  filed  after  such  time  and  it  is  shown  that  the  failure 
to  file  it  was  due  to  a  reasonable  cause  and  not  to  willful  neglect,  no 
such  addition  shall  be  made  to  the  tax.  In  case  a  false  or  fraudulent 
return  or  list  is  willfully  made,  the  Commissioner  of  Internal  Revenue 
shall  add  to  the  tax  one  hundred  per  centum  of  its  amount. 

"The  amount  so  added  to  any  tax  shall  be  collected  at  the  same  time 
and  in  the  same  manner  and  as  part  of  the  tax  unless  the  tax  has  been 
paid  before  the  discovery  of  the  neglect,  falsity  or  fraud,  in  which  case 
the  amount  so  added  shall  be  collected  in  the  same  manner  as  the  tax." 


Administrative   Provisions   of  Tax   Act  341 

Receipts. 

Sec.  17.  That  it  shall  be  the  duty  of  every  collector  of  internal 
revenue,  to  whom  any  payment  of  any  taxes  is  made  under  the  provisions 
of  this  title,  to  give  to  the  person  making  such  payment  a  full  written  or 
printed  receipt,  expressing  the  amount  paid  and  the  particular  account 
for  which  such  payment  was  made  ;  and  whenever  such  payment  is  made 
such  collector  shall,  if  required,  give  a  separate  receipt  for  each  tax 
paid  by  any  debtor,  on  account  of  payments  made  to  or  to  be  made  by 
him  to  separate  creditors  in  such  form  that  such  debtor  can  conveniently 
produce  the  same  separately  to  his  several  creditors  in  satisfaction  of 
their  respective  demands  to  the  amounts  specified  in  such  receipts;  and 
such  receipts  shall  be  sufficient  evidence  in  favor  of  such  debtor  to  justify 
him  in  withholding  the  amount  therein  expressed  from  his  next  payment 
to  his  creditor ;  but  such  creditor  may,  upon  giving  to  his  debtor  a  full 
written  receipt,  acknowledging  the  payment  to  him  of  whatever  sum  may 
be  actually  paid,  and  accepting  the  amount  of  tax  paid  as  aforesaid 
(specifying  the  same)  as  a  further  satisfaction  of  the  debt  to  that  amount, 
require  the  surrender  to  him  of  such  collector's  receipt. 

Penalty. 

Sec.  18.  That  if  any  individual  liable  to  make  the  return  or  pay  the 
tax  aforesaid  shall  refuse  or  neglect  to  make  such  return  at  the  time  or 
times  hereinbefore  specified  in  each  year,  he  shall  be  liable  to  a  penalty 
of  not  less  than  $20  nor  more  than  $1,000.  Any  individual  or  any  officer 
of  any  corporation,  joint-stock  company  or  association,  or  insurance  com- 
pany required  by  law  to  make,  render,  sign  or  verify  any  return  who 
makes  any  false  or  fraudulent  return  or  statement  with  intent  to  defeat 
or  evade  the  assessment  required  by  this  title  to  be  made  shall  be  guilty 
of  a  misdemeanor  and  shall  be  fined  not  exceeding  $2,000  or  be  im- 
prisoned not  exceeding  one  year,  or  both,  in  the  discretion  of  the  court, 
with  the  costs  of  prosecution :  Provided,  That  where  any  tax  heretofore 
due  and  payable  has  been  duly  paid  by  the  taxpayer,  it  shall  not  be  re- 
collected from  any  person  or  corporation  required  to  retain  it  at  its 
source,  nor  shall  any  penalty  be  imposed  or  collected  in  such  cases  from 
the  taxpaver,  or  such  person  or  corporation  whose  duty  it  was  to  retain 
it,  for  failure  to  return  or  pay  the  same,  unless  such  failure  was  fraudu- 
lent and  for  the  purpose  of  evading  payment. 

Returns  to  be  Verified. 

Sec.  19.  The  collector  or  deputy  collector  shall  require  every  return 
to  be  verified  by  the  oath  of  the  party  rendering  it.  If  the  collector  or 
deputy  collector  have  reason  to  believe  that  the  amount  of  any  income 
returned  is  understated,  he  shall  give  due  notice  to  the  person  making 
the  return  to  show  cause  why  the  amount  of  the  return  should  not  be 
increased  and  upon  proof  of  the  amount  understated  may  increase  the 
same  accordingly.  Such  person  may  furnish  sworn  testimony  to  prove 
any  relevant  facts,  and,  if  dissatisfied  with  the  decision  of  the  collector, 


342  Important  Federal  Laws 

may  appeal  to  the  Commissioner  of  Internal  Revenue   for  his  decision 
under  such  rules  of  procedure  as  may  be  prescribed  by  regulation. 

Jurisdiction  of  District  Court. 

Sec.  20.  That  jurisdiction  is  hereby  conferred  upon  the  district 
courts  of  the  United  States  for  the  district  within  which  any  person  sum- 
moned under  this  title  to  appear  to  testify  or  to  produce  books  shall 
reside,  to  compel  such  attendance,  production  of  books  and  testimony  by 
appropriate  process. 

Publication  of  Statistics. 

Sec.  21.  That  the  preparation  and  publication  of  statistics  reason- 
ably available  with  respect  to  the  operation  of  the  income  tax  law  and 
containing  classifications  of  taxpayers  and  of  income,  the  amounts  allowed 
as  deductions  and  exemptions  and  any  other  facts  deemed  pertinent  and 
valuable  shall  be  made  annually  by  the  Commissioner  of  Internal  Revenue 
with  the  approval  of  the  Secretary  of  the  Treasury. 

Old  Laws  in  Force. 

Sec.  22.  That  all  administrative,  special  and  general  provisions  of 
law,  including  the  laws  in  relation  to  the  assessment,  remission,  collection 
and  refund  of  internal-revenue  taxes  not  heretofore  specifically  repealed 
and  not  inconsistent  with  the  provisions  of  this  title,  are  hereby  extended 
and  made  applicable  to  all  the  provisions  of  this  title  and  to  the  tax 
herein  imposed. 

Applies  to  Philippines  and  Porto  Rico. 

Sec.  23.  That  the  provisions  of  this  title  shall  extend  to  Porto  Rico 
and  the  Philippine  Islands:  Provided,  That  the  administration  of  the 
law  and  the  collection  of  the  taxes  imposed  in  Porto  Rico  and  the  Phil- 
ippine Islands  shall  be  by  the  appropriate  internal-revenue  officers  of 
those  governments  and  all  revenues  collected  in  Porto  Rico  and  the  Phil- 
ippine Islands  thereunder  shall  accrue  intact  to  the  general  Governments 
thereof,  respectively:  Provided  further.  That  the  jurisdiction  in  this 
title  conferred  upon  the  district  courts  of  the  United  States  shall,  so  far 
as  the  Philippine  Islands  are  concerned,  be  vested  in  the  courts  of  the 
first  instance  of  said  islands:  And  provided  further.  That  nothing  in 
this  title  shall  be  held  to  exclude  from  the  computation  of  the  net  income 
the  compensation  paid  any  ofiicial  by  the  governments  of  the  District  of 
Columbia,  Porto  Rico  and  the  Philippine  Islands,  or  the  political  sub- 
divisions thereof. 

Repeal. 

Sec.  24.  That  Section  II  of  the  Act  approved  October  third,  nme- 
teen  hundred  and  thirteen,  entitled  "An  Act  to  reduce  tariff  duties  and  to 
provide  revenue  for  the  CTOvernment  and  for  other  purposes,"  is  hereby 
repealed,  except  as  herein  otherwise  provided  and  except  that  it  shall 
remain  in  force  for  the  assessment  and  collection  of  all  taxes  which  have 


Inheritance  Tax  343 

accrued  thereunder  and  for  the  imposition  and  collection  of  all  penalties 
or  forfeitures  which  have  accrued  or  may  accrue  in  relation  to  any  of 
such  taxes  and  except  that  the  unexpended  balance  of  any  appropriation 
heretofore  made  and  now  available  for  the  administration  of  such  sec- 
tion or  any  provision  thereof  shall  be  available  for  the  administration  of 
this  title  or  the  corresponding  provision  thereof. 

Sec.  25.  That  income  on  which  has  been  assessed  the  tax  imposed 
by  Section  II  of  the  Act  entitled  "An  Act  to  reduce  tariff  duties  and  to 
provide  revenue  for  the  Government,  and  for  other  purposes,"  approved 
October  third,  nineteen  hundred  and  thirteen,  shall  not  be  considered  as 
income  within  the  meaning  of  this  title :  Provided,  That  this  section 
shall  not  conflict  with  that  portion  of  section  ten,  of  this  title,  under 
which  a  taxpayer  has  fixed  its  own  fiscal  year. 

TITLE  II— THE  INHERITANCE  TAX. 

Act  of  September  8,  1916. 
Definitions. 

Sec.  200.     That  when  used  in  this  title — 

The  term  "person"  includes  partnerships,  corporations  and  associa- 
tions ; 

The  term  "United  States"  means  only  the  States,  the  Territories  of 
Alaska  and  Hawaii,  and  the  District  of  Columbia ; 

The  term  "executor"  means  the  executor  or  administrator  of  the 
decedent,  or,  if  there  is  no  executor  or  administrator,  any  person  who 
takes  possession  of  any  property  of  the  decedent;  and 

The  term  "collector"  means  the  collector  of  internal  revenue  of  the 
district  in  which  was  the  domicile  of  the  decedent  at  the  time  of  his 
death,  or,  if  there  was  no  such  domicile  in  the  United  States,  then  the 
collector  of  the  district  in  which  is  situated  the  part  of  the  gross  estate 
of  the  decedent  in  the  United  States,  or,  if  such  part  of  the  gross  estate 
is  situated  in  more  than  one  district,  then  the  collector  of  internal  revenue 
at  Baltimore,  Maryland. 

Rate  of  Tax. 

Sec.  201.  That  a  tax  (hereinafter  in  this  title  referred  to  as  the 
tax),  equal  to  the  following  percentages  of  the  value  of  the  net  estate, 
to  be  determined  as  provided  in  section  two  hundred  and  three,  is  hereby 
imposed  upon  the  transfer  of  the  net  estate  of  every  decedent  dying 
after  the  passage  of  this  Act,  whether  a  resident  or  nonresident  of  the 
United  States : 

One  and  one-half  per  centum  of  the  amount  of  such  net  estate  not 
in  excess  of  $50,000 ; 

Three  per  centum  of  the  amount  by  which  such  net  estate  exceeds 
$50,000  and  does  not  exceed  $150,000; 

Four  and  one-half  per  centum  of  the  amount  by  which  such  net 
estate  exceeds  $150,000  and  does  not  exceed  $250,000; 


'344  •  Important  Federal  Laws 

Six  per  centum  of  the  amount  by  which  such  net  estate  exceeds 
$250,000  and  does  not  exceed  $450,000; 

Seven  and  one-half  per  centum  of  the  amount  by  which  such  net 
estate  exceeds  $450,000  and  does  not  exceed  $1,000,000; 

Nine  per  centum  of  the  amount  by  which  such  net  estate  exceeds 
$1,000,000  and  does  not  exceed  $2,000,000; 

Ten  and  one-half  per  centum  of  the  amount  by  which  such  net 
estate  exceeds  $2,000,000  and  does  not  exceed  $3,000,000 : 

Twelve  per  centum  of  the  amount  bv  which  such  net  estate  exceeds 
$3,000,000  and  does  not  exceed  $4,000,000; 

Thirteen  and  one-half  per  centum  of  the  amount  by  which  such  net 
estate  exceeds  $4,000,000  and  does  not  exceed  $5,000,000;  and 

Fifteen  per  centum  of  the  amount  bv  which  such  net  estate  exceeds 
$5,000,000.     (As  amended  March  3,  1917.) 

Method  of  Fixing  Gross  Value. 

Sec.  202.  That  the  value  of  the  gross  estate  of  the  decedent  shall 
be  determined  by  including  the  value  at  the  time  of  his  death  of  all  prop- 
erty, real  or  personal,  tangible  or  intangible,  wherever  situated : 

(a)  To  the  extent  of  the  interest  therein  of  the  decedent  at  the 
time  of  his  death  which  after  his  death  is  subject  to  the  payment  of  the 
charges  against  his  estate  and  the  expenses  of  its  administration  and 
is  subject  to  distribution  as  part  of  his  estate. 

(b)  To  the  extent  of  any  interest  therein  of  which  the  decedent  has 
at  any  time  made  a  transfer,  or  with  respect  to  which  he  has  created  a 
trust,  in  contemplation  of  or  intended  to  take  eftect  in  possession  or 
enjoyment  at  or  after  his  death,  except  in  case  of  a  bona  fide  sale  fof 
a  fair  consideration  in  money  or  money's  worth.  Any  transfer  of  a 
material  part  of  his  property  in  the  nature  of  a  final  disposition  or  dis- 
tribution thereof,  made  by  the  decedent  within  two  years  prior  to  his 
death  without  such  a  consideration,  shall,  unless  shown  to  the  contrary, 
be  deemed  to  have  been  made  in  contemplation  of  death  within  the  mean- 
ing of  this  title ;  and 

(c)  To  the  extent  of  the  interest  therein  held  jointly  or  as  tenants 
in  the  entirety  by  the  decedent  and  any  other  person,  or  deposited  in 
banks  or  other  institutions  in  their  joint  names  and  payable  to  either 
or  the  survivor,  except  such  part  thereof  as  may  be  shown  to  have  origin- 
ally belonged  to  such  other  person  and  never  to  have  belonged  to  the 
decedent. 

For  the  purpose  of  this  title  stock  in  a  domestic  corporation  owned 
and  held  by  a  nonresident  decedent  shall  be  deemed  property  within  the 
United  States  and  any  property  of  which  the  decedent  has  made  a  trans- 
fer or  with  respect  to  which  he  has  created  a  trust,  within  the  meaning 
of  subdivision  (b)  of  this  section,  shall  be  deemed  to  be  situated  in  the 
United  States,  if  so  situated  either  at  the  time  of  the  transfer  or  the 
creation  of  the  trust,  or  at  the  time  of  the  decedent's  death. 


Inheritance  Tax  345 

Method  of  Fixing  Net  Value. 

Sec.  203.  That  for  the  purpose  of  the  tax  the  vahie  of  the  net 
estate  shall  be  determined — 

(a)  In  the  case  of  a  resident,  by  deducting  from  the  value  of  the 
gross  estate — 

(1)  Such  amounts  for  funeral  expenses,  administration  expenses, 
claims  against  the  estate,  unpaid  mortgages,  losses  incurred  during  the 
settlement  of  the  estate  arising  from  fires,  storms,  shipwreck  or  other 
casualty,  and  from  theft,  when  such  losses  are  not  compensated  for  by 
insurance  or  otherwise,  support  during  the  settlement  of  the  estate  of 
those  dependent  upon  the  decedent,  and  such  other  charges  against  the 
estate,  as  are  allowed  by  the  laws  of  the  jurisdiction,  whether  within  or 
without  the  United  States,  under  which  the  estate  is  being  adminis- 
tered ;  and 

(2)  An  exemption  of  $50,000; 

(b)  In  the  case  of  a  nonresident,  by  deducting  from  the  value  of 
that  part  of  his  gross  estate  which  at  the  time  of  his  death  is  situated  in 
the  United  States,  that  proportion  of  the  deductions  specified  in  para- 
graph (1)  of  subdivision  (a)  of  this  section  which  the  value  of  such  part 
bears  to  the  value  of  his  entire  gross  estate,  wherever  situated.  But  no 
deductions  shall  be  allowed  in  the  case  of  a  nonresident  unless  the  execu- 
tor includes  in  the  return  required  to  be  filed  under  section  two  hun- 
dred and  five  the  value  at  the  time  of  his  death  of  that  part  of  the  gross 
estate  of  the  nonresident  not  situated  in  the  United  States. 

Time  of  Payment. 

Sec.  204.  That  the  tax  shall  be  due  one  year  after  the  decedent's 
death.  If  the  tax  is  paid  before  it  is  due  a  discount  at  the  rate  of  five 
per  centum  per  annum,  calculated  from  the  time  payment  is  made  to  the 
date  when  the  tax  is  due,  shall  be  deducted.  If  the  tax  is  not  paid  within 
ninety  days  after  it  is  due  interest  at  the  rate  of  ten  per  centum  per 
annum  from  the  time  of  the  decedent's  death  shall  be  added  as  part  of 
the  tax,  unless  because  of  claims  against  the  estate,  necessary  litigation, 
or  other  unavoidable  delay  the  collector  finds  that  the  tax  can  not  be 
determined,  in  which  case  the  interest  shall  be  at  the  rate  of  six  per 
centum  per  annum  from  the  time  of  the  decedent's  death  until  the  cause 
of  such  delay  is  removed  and  thereafter  at  the  rate  of  ten  per  centum 
per  annum.  Litigation  to  defeat  the  payment  of  the  tax  shall  not  be 
deemed  necessary  litigation. 

Duties  of  Executors. 

Sec.  205.  That  the  executor,  within  thirty  days  after  qualifying  as 
such,  or  after  coming  into  possession  of  any  property  of  the  decedent, 
whichever  event  first  occurs,  shall  give  written  notice  thereof  to  the  col- 
lector. The  executor  shall  also  at  such  times  and  in  such  manner  as  may 
be  required  by  the  regulations  made  under  this  title,  file  with  the  collector 
a  return  under  oath  in  duplicate,  setting  forth  (a)  the  value  of  the  gross 


346  Important  Federal  Laws 

estate  of  the  decedent  at  the  time  of  his  death,  or,  in  case  of  a  nonresi- 
dent, of  that  part  of  his  gross  estate  situated  in  the  United  States ;  (b) 
the  deductions  allowed  under  section  two  hundred  and  three;  (c)  the 
value  of  the  net  estate  of  the  decedent  as  defined  in  section  two  hundred 
and  three ;  and  (d)  the  tax  paid  or  payable  thereon ;  or  such  part  of  such 
information  as  may  at  the  time  be  ascertainable  and  such  supplemental 
data  as  may  be  necessary  to  establish  the  correct  tax. 

Return  shall  be  made  in  all  cases  of  estates  subject  to  the  tax  or 
where  the  gross  estate  at  the  death  of  the  decedent  exceeds  $60,000,  and 
in  the  case  of  the  estate  of  every  nonresident  any  part  of  whose  gross 
estate  is  situated  in  the  United  States.  If  the  executor  is  unable  to  make 
a  complete  return  as  to  any  part  of  the  gross  estate  of  the  decedent,  he 
shall  include  in  his  return  a  description  of  such  part  and  the  name  of 
every  person  holding  a  legal  or  beneficial  interest  therein,  and  upon 
notice  from  the  collector  such  person  shall  in  like  manner  make  a  return 
as  to  such  part  of  the  gross  estate.  The  Commissioner  of  Internal 
Revenue  shall  make  all  assessments  of  the  tax  under  the  authority  of 
existing  administrative  special  and  general  provisions  of  law  relating  to 
the  assessment  and  collection  of  taxes. 

Duties  of  Collectors  in  Certain  Cases. 

Sec.  206.  That  if  no  administration  is  granted  upon  the  estate  of  a 
decedent,  or  if  no  return  is  filed  as  provided  in  section  two  hundred  and 
five,  or  if  a  return  contains  a  false  or  incorrect  statement  of  a  material 
fact,  the  collector  or  deputy  collector  shall  make  a  return  and  the  Com- 
missioner of  Internal  Revenue  shall  assess  the  tax  thereon. 

Payment  of  Tax. 

Sec.  207.  That  the  executor  shall  pay  the  tax  to  the  collector  or 
deputy  collector.  If  for  any  reason  the  amount  of  the  tax  can  not  be 
determined,  the  payment  of  a  sum  of  money  sufificient,  in  the  opinion  of 
the  collector,  to  discharge  the  tax  shall  be  deemed  payment  in  full  of  the 
tax,  except  as  in  this  section  otherwise  provided.  If  the  amount  po  paid 
exceeds  the  amount  of  the  tax  as  finally  determined,  the  Commissioner 
of  Internal  Revenue  shall  refund  such  excess  to  the  executor.  If  the 
amount  of  the  tax  as  finally  determined  exceeds  the  amount  so  paid  the 
commissioner  shall  notify  the  executor  of  the  amount  of  such  excess. 
From  the  time  of  such  notification  to  the  time  of  the  final  payment  of 
such  excess  part  of  the  tax,  interest  shall  be  added  thereto  at  the  rate  of 
ten  per  centum  per  annum,  and  the  amount  of  such  excess  shall  be  a 
lien  upon  the  entire  gross  estate,  except  such  part  thereof  as  may  have 
been  sold  to  a  bona  fide  purchaser  for  a  fair  consideration  in  money  or 
money's  worth. 

The  collector  shall  grant  to  the  person  paying  the  tax  duplicate  re- 
ceipts, either  of  which  shall  be  sufficient  evidence  of  such  payment,  and 
shall  entitle  the  executor  to  be  credited  and  allowed  the  amount  thereof 
by  any  court  having  jurisdiction  to  audit  or  settle  his  accounts. 


Inheritance  Tax  347 

Collector  to  Enforce  Payment. 

Sec.  208.  That  if  the  tax  herein  imposed  is  not  paid  within  sixty 
days  after  it  is  due,  the  collector  shall,  unless  there  is  reasonable  cause 
for  further  delay,  commence  appropriate  proceedings  in  any  court  of 
the  United  States,  in  the  name  of  the  United  States,  to  subject  the  prop- 
erty of  the  decedent  to  be  sold  under  the  judgment  or  decree  of  the 
court.  From  the  proceeds  of  such  sale  the  amount  of  the  tax,  together 
with  the  costs  and  expenses  of  every  description  to  be  allowed  by  the 
court,  shall  be  first  paid,  and  the  balance  shall  be  deposited  according  to 
the  order  of  the  court,  to  be  paid  under  its  direction  to  the  person  entitled 
thereto.  If  the  tax  or  any  part  thereof  is  paid  by,  or  collected  out  of 
that  part  of  the  estate  passing  to  or  in  the  possession  of,  any  person  other 
than  the  executor  in  his  capacity  as  such,  such  person  shall  be  entitled  to 
reimbursement  out  of  any  part  of  the  estate  still  undistributed  or  by  a 
just  and  equitable  contribution  by  the  persons  whose  interest  in  the  estate 
of  the  decedent  would  have  been  reduced  if  the  tax  had  been  paid  before 
the  distribution  of  the  estate  or  whose  interest  is  subject  to  equal  or  prior 
liability  for  the  payment  of  taxes,  debts  or  other  charges  against  the 
estate,  it  being  the  purpose  and  intent  of  this  title  that  so  far  as  is  prac- 
ticable and  unless  otherwise  directed  by  the  will  of  the  decedent  the  tax 
shall  be  paid  out  of  the  estate  before  its  distribution. 

Lien  Upon  Gross  Estate. 

Sec.  209.  That  unless  the  tax  is  sooner  paid  in  full,  it  shall  be  a 
lien  for  ten  years  upon  the  gross  estate  of  the  decedent,  except  that  such 
part  of  the  gross  estate  as  is  used  for  the  payment  of  charges  against  the 
estate  and  expenses  of  its  administration,  allowed  by  any  court  having 
jurisdiction  thereof,  shall  be  divested  of  such  lien. 

If  the  decedent  makes  a  transfer  of,  or  creates  a  trust  with  respect 
to,  any  property  in  contemplation  of  or  intended  to  take  effect  in  posses- 
sion or  enjoyment  at  or  after  his  death  (except  in  the  case  of  a  bona 
fide  sale  for  a  fair  consideration  in  money  or  money's  worth)  and  if  the 
tax  in  respect  thereto  is  not  paid  when  due,  the  transferee  or  trustee  shall 
be  personally  liable  for  such  tax,  and  such  property,  to  the  extent  of  the 
decedent's  interest  therein  at  the  time  of  such  transfer,  shall  be  subject 
to  a  like  lien  equal  to  the  amount  of  such  tax.  Any  part  of  such  prop- 
erty sold  by  such  transferee  or  trustee  to  a  bona  fide  purchaser  for  a  fair 
consideration  in  money  or  money's  worth  shall  be  divested  of  the  lien  and 
a  like  lien  shall  then  attach  to  all  the  property  of  such  transferee  or 
trustee,  except  any  part  sold  to  a  bona  fide  purchaser  for  a  fair  con- 
sideration in  money  or  money's  worth. 

Penalties. 

Sec.  210.  That  whoever  knowingly  makes  any  false  statement  in 
any  notice  or  return  required  to  be  filed  by  this  title  shall  be  liable  to  a 
penalty  of  not  exceeding  $5,000,  or  imprisonment  not  exceeding  one  year, 
or  both,  in  the  discretion  of  the  court. 


348  Important  Federal  Laws 

Whoever  fails  to  comply  with  any  duty  imposed  upon  him  by  sec- 
tion two  hundred  and  five,  or,  having  in  his  possession  or  control  any 
record,  file  or  paper,  containing  or  supposed  to  contain  any  information 
concerning  the  estate  of  the  decedent,  fails  to  exhibit  the  same  upon  re- 
quest to  the  Commissioner  of  Internal  Revenue  or  any  collector  or  law 
officer  of  the  United  States,  or  his  duly  authorized  deputy  or  agent,  who 
desires  to  examine  the  same  in  the  performance  of  his  duties  under  this 
title,  shall  be  liable  to  a  penalty  of  not  exceeding  $500,  to  be  recovered, 
with  costs  of  suit,  in  a  civil  action  in  the  name  of  the  United  States. 

Application  of  Other  Laws. 

Sec.  21L  That  all  administrative,  special  and  general  provisions  of 
law,  including  the  laws  in  relation  to  the  assessment  and  collection  of 
taxes,  not  heretofore  specifically  repealed  are  hereby  made  to  apply  to 
this  title  so  far  as  applicable  and  not  inconsistent  with  its  provisions. 

Rules  and  Regulations. 

Sec.  212.  That  the  Commissioner  of  Internal  Revenue,  with  the 
approval  of  the  Secretary  of  the  Treasury,  shall  make  such  regulations 
and  prescribe  and  require  the  use  of  such  books^  and  forms,  as  he  may 
deem  necessary  to  carry  out  the  provisions  of  this  title. 

TITLE  III— MUNITION  MANUFACTURER'S  TAX. 

Act  of  September  8,  1916. 
Definitions. 

Sec.  300.     That  when  used  in  this  title— 

The  term  "person"  includes  partnerships,  corporations  and  asso- 
ciations ; 

The  term  "taxable  year"  means  the  twelve  months  endmg  Decem- 
ber thirty-first.  The  first  taxable  year  shall  be  the  twelve  months  end- 
ing December  thirty-first,  nineteen  hundred  and  sixteen ;  and 

The  term  "United  States"  means  only  the  States,  the  Territories 
of  Alaska,  and  Hawaii  and  the  District  of  Columbia. 

Special  Tax. 

Sec.  301.  (1)  That  every  person  manufacturing  (a)  gunpowder 
and  other  explosives,  excepting  blasting  powder  and  dynamite  used  for 
industrial  purposes;  (b)  cartridges,  loaded  and  unloaded  caps  or  prim- 
ers, exclusive  of  those  used  for  industrial  purposes;  (c)  projectiles, 
shells  or  torpedoes  of  any  kind,  including  shrapnel,  loaded  or  unloaded, 
or  fuses,  or  complete  rounds  of  ammunition;  (d)  fire-arms  of  any  kind 
and  appendages,  including  small  arms,  cannon,  machine  guns,  rifles  and 
bayonets;  (e)  electric  motor  boats,  submarine  or  submersible  vessels  or 
boats;  or  (f)  any  part  of  any  of  the  articles  mentioned  in  (b),  (c),  (d) 
or  (e)  ;  shall  pay  for  each  taxable  year,  in  addition  to  the  income  tax 
imposed  by  Title  I,  an  excise  tax  of  twelve  and  one-half  per  centum 


Munition  Manufacturers'  Tax  349 

upon  the  entire  net  profits  actually  received  or  accrued  for  said  year 
from  the  sale  or  disposition  of  such  articles  manufactured  within  the 
United  States:  Provided,  however,  That  no  person  shall  pay  such  tax 
upon  net  profits  received  during  the  year  nineteen  hundred  and  sixteen 
derived  from  the  sale  and  delivery  of  the  articles  enumerated  in  this 
section  under  contracts  executed  'and  fully  performed  by  such  person 
prior  to  January  first,  nineteen  hundred  and  sixteen. 

(2)  This  section  shall  cease  to  be  of  effect  at  the  end  of  one  year 
after  the  termination  of  the  present  European  war,  which  shall  be  evi- 
denced by  the  proclamation  of  the  President  of  the  United  States  declar- 
ing such  war  to  have  ended. 

Method  of  Computing  Net  Profits. 

Sec.  302.  That  in  computing  net  profits  under  the  provisions  of 
this  title,  for  the  purpose  of  the  tax  there  shall  be  allowed  as  deduc- 
tions from  the  gross  amount  received  or  accrued  for  the  taxable  year 
from  the  sale  or  disposition  of  such  articles  manufactured  within  the 
United  States,  the  following  items: 

(a)  The  cost  of  raw  materials  entering  into  the  manufacture ; 

(b)  Running  expenses,  including  rentals,  cost  of  repairs  and  main- 
tenance, heat,  power,  insurance,  management,  salaries  and  wages : 

(c)  Interest  paid  within  the  taxable  year  on  debts  or  loans  con- 
tracted to  meet  the  needs  of  the  business,  and  the  proceeds  of  which 
have  been  actually  used  to  meet  such  needs ; 

(d)  Taxes  of  all  kinds  paid  during  the  taxable  year  with  resp^t 
to  the  business  or  property  relating  to  the  manufacture ; 

(e)  Losses  actually  sustained  within  the  taxable  year  in  connection 
with  the  business  of  manufacturing  such  articles,  including  losses  from 
fire,  flood,  storm  or  other  casualty,  and  not  compensated  for  by  insurance 
or  otherwise ;  and 

(f)  A  reasonable  allowance  according  to  the  conditions  peculiar  to 
each  concern,  far  amortization  of  the  values  of  buildings  and  machinery, 
account  being  taken  of  the  exceptional  depreciation  of  special  plants. 

Sales  Belowr  Market  Value. 

Sec.  303.  If  any  person  manufactures  any  article  specified  in  sec- 
tion three  hundred  and  one  and,  during  any  taxable  year  or  part  thereof, 
whether  under  any  agreement,  arrangement  or  understanding,  or  other- 
wise, sells  or  disposes  of  any  such  article  at  less  than  the  fair  market 
price  obtainable  therefor,  either  (a)  in  such  manner  as_  directly  or  in- 
directly to  benefit  such  person  or  any  person  directly  or  indirectly  inter- 
ested in  the  business  of  such  person  or  (b)  with  intent  to  cause  such 
benefit,  the  gross  amount  received  or  accrued  for  such  year  or  part 
thereof  from  the  sale  or  disposition  of  such  article  shall  be  taken  to  be 
the  amount  which  w^ould  have  been  received  or  accrued  from  the  sale 
or  disposition  of  such  article  if  sold  at  the  fair  market  price. 


350  Important  Federal  Laws 

Return  to  Collector. 

Sec.  304.  On  or  before  the  first  day  of  March,  nineteen  hundred 
and  seventeen,  and  the  first  day  of  March  in  each  year  thereafter,  a  true 
and  accurate  return  under  oath  shall  be  made  by  each  person  manufac- 
turing articles  specified  in  section  three  hundred  and  one  to  the  collector 
of  internal  revenue  for  the  district  in  which  such  person  has  his  principal 
office  or  place  of  business  in  such  form  as  the  Commissioner  of  Internal 
Revenue  with  the  approval  of  the  Secretary  of  the  Treasury  shall  pre- 
scribe, setting  forth  specifically  the  gross  amount  of  income  received  or 
accrued  from  the  sale  or  disposition  of  the  articles  specified  in  section 
three  hundred  and  one  and  from  the  total  thereof  deducting  the  aggre- 
gate items  of  allowance  authorized  in  section  three  hundred  and  tAvo,  and 
such  other  particulars  as  to  the  gross  receipts  and  items  of  allowance 
as  the  Commissioner  of  Internal  Revenue,  with  the  approval  of  the  Sec- 
retary of  the  Treasury,  may  require. 

Returns  Transmitted  to  Collector  of  Internal  Revenue. 

Sec.  305.  All  such  returns  shall  be  transmitted  forthwith  by  the 
collector  to  the  Commissioner  of  Internal  Revenue,  who  shall,  as  soon  as 
practicable,  assess  the  tax  found  due  and  notify  the  person  making  such 
return  of  the  amount  of  tax  for  which  such  person  is  liable  and  such 
person  shall  pay  the  tax  to  the  collector  on  or  before  thirty  days  from 
the  date  of  such  notice. 

Investigation. 

Sec.  306.  If  the  Secretary  of  the  Treasury  or  the  Commissioner  of 
Internal  Revenue  shall  have  reason  to  be  dissatisfied  with  the  return  as 
made,  or  if  no  return  is  made,  the  commissioner  is  authorized  to  make 
an  investigation  and  to  determine  the  amount  of  net  profits  and  may 
assess  the  proper  tax  accordingly.  He  shall  notify  the  person  making,  or 
who  should  have  made,  such  return  and  shall  proceed  to  collect  the  tax 
in  the  same  manner  as  provided  in  this  title,  unless  the  person  so  notified 
shall  file  a  written  request  for  a  hearing  with  the  commissioner  within 
thirty  days  after  the  date  of  such  notice ;  and  on  such  hearing  the  burden 
of  establishing  to  the  satisfaction  of  the  commissioner  that  the  gross 
amount  received  or  accrued  or  the  amount  of  net  profits,  as  determined 
by  the  commissioner,  is  incorrect,  shall  devolve  upon  such  person. 

Assessment  in  Certain  Cases. 

Sec.  307.  The  tax  may  be  assessed  on  any  person  for  the  time 
being  owning  or  carrying  on  the  business,  or  on  any  person  acting  as 
agent  for  that  person  in  carrying  on  the  business,  or  where  a  business 
has  ceased,  on  the  person  who  owned  or  carried  on  the  business,  or  acted 
as  agent  in  carrying  on  the  business  immediately  before  the  time  at 
which  the  business  ceased. 

Pow^er  of  Commissioner  of  Internal  Revenue. 

Sec.  308.     For  the  purpose  of  carrying  out  the  provisions  of  this 


Miscellaneous  Taxes  351 

title  the  Commissioner  of  Internal  Revenue  is  authorized,  personally  or 
by  his  agent,  to  examine  the  books,  accounts  and  records  of  any  person 
subject  to  this  tax. 

Information  Not  to  be  Divulged. 

Sec.  309.  No  person  employed  by  the  United  States  shall  com- 
municate, or  allow  to  be  communicated  to  any  person  not  legally  entitled 
thereto,  any  information  obtained  under  the  provisions  of  this  title,  or 
allow  any  such  person  to  inspect  or  have  access  to  any  return  furnished 
under  the  provisions  of  this  title. 

Penalties. 

Sec.  310.  Whoever  violates  any  of  the  provisions  of  this  title  or 
the  regulations  made  thereunder,  or  who  knowingly  makes  false  state- 
ments in  any  return,  or  refuses  to  give  such  information  as  may  be  called 
for,  is  guilty  of  a  misdemeanor  and  upon  conviction  shall,  in  addition  to 
paying  any  tax  to  which  he  is  liable,  be  fined  not  more  than  $10,000,  or 
imprisoned  not  exceeding  one  year,  or  both,  in  the  discretion  of  the  court. 

Old  Laws  in  Force. 

Sec.  311.  All  administrative,  special  and  general  provisions  of 
law,  relating  to  the  assessment  and  collection  of  taxes  not  specifically 
repealed,  are  hereby  made  to  apply  to  this  title  so  far  as  applicable  and 
not  inconsistent  with  its  provisions. 

Rules  and  Regulations. 

Sec.  312.  The  Commissioner  of  Internal  Revenue,  with  the  ap- 
proval of  the  Secretary  of  the  Treasury,  shall  make  all  necessarv  regu- 
lations for  carrying' out  the  provisions  of  this  title  and  may  require  any 
person  subject  to  such  provisions  to  furnish  him  with  further  informa- 
tion whenever  in  his  judgment  the  same  is  necessary  to  collect  the  tax 
provided  for  herein. 

TITLE  IV— MISCELLANEOUS  TAXES. 

Act  of  September  8,  1916. 
Fermented  Liquor. 

Sec.  400.  That  there  shall  be  levied,  collected  and  paid  a  tax  of 
$1.50  on  all  beer,  lager  beer,  ale,  porter  and  other  similar  fermented 
liquor,  brewed  or  manufactured  and  sold,  or  stored  in  warehouse,  or 
removed  for  consumption  or  sale,  within  the  United  States,  by  whatever 
name  such  liquors  may  be  called,  for  every  barrel  containing  not  more 
than  thirty-one  gallons  ;  and  at  a  like  rate  for  any  other  quantity  or  for 
the  fractional  parts  of  a  barrel  authorized  and  defined  by  law.  And 
section  thirty-three  hundred  and  thirty-nine  of  the  Revised  Statutes  is 
hereby  amended  accordingly. 

Natural  Wine  Definition. 

Sec.  401.     That  natural  wine  within  the  meaning  of  this  Act  shall 


352  Important  Federal  Laws 

be  deemed  to  be  the  product  made  from  the  normal  alcohohc  fernien- 
tation  of  the  juice  of  sound,  ripe  grapes,  without  addition  or  abstraction, 
except  such  as  may  occur  in  the  usual  cellar  treatment  of  clarifying  and 
aging:  Provided,  however.  That  the  product  made  from  the  juice  of 
sound,  ripe  grapes  by  complete  fermentation  of  the  must  under  proper 
cellar  treatment  and  corrected  by  the  addition  (under  the  supervision 
of  a  ganger  or  storekeeper-ganger  in  the  capacity  of  ganger)  of  a  solu- 
tion of  water  and  pure  cane,  beet  or  dextrose  sugar  (containing,  respec- 
tively, not  less  than  ninetv-five  per  centum  of  actual  sugar,  calculated  on 
a  dry  basis)  to  the  must'  or  to  the  wine,  to  correct  natural  deficiencies, 
when  such  addition  shall  not  increase  the  volume  of  the  resultant  product 
more  than  thirty-five  per  centum,  and  the  resultant  product  does  not 
contain  less  than  five  parts  per  thousand  of  acid  before  fermentation 
and  not  more  than  thirteen  per  centum  of  alcohol  after  complete  fer- 
mentation, shall  be  deemed  to  be  wine  within  the  meaning  of  this  Act, 
and  may  be  labeled,  transported  and  sold  as  "wine,"  qualified  by  the 
name  of  the  locality  where  produced  and  may  be  further  qualified  by 
the  name  of  its  own  particular  type  or  variety:  And  provided  further, 
That  wine  as  defined  in  this  section  may  be  sweetened  with  cane  sugar 
or  beet  sugar  or  pure  condensed  grape  must  and  fortified  under  the  pro- 
visions of  this  Act,  and  wines  so  sweetened  or  fortified  shall  be  consid- 
ered sweet  wine  within  the  meaning  of  this  Act. 

Tax  Upon  Wines. 

Sec.  402.  (a)  That  upon  all  still  wines,  including  vermuth,  and 
upon  all  artificial  or  imitation  wines  or  compound  sold  as  wine  hereafter 
produced  in  or  imported  into  the  United  States,  and  upon  all  like  wines 
which  on  the  date  this  section  takes  effect  shall  be  in  the  possession  or 
under  the  control  of  the  producer,  holder,  dealer  or  compounder  there 
shall  be  levied,  collected  and  paid  taxes  at  rates  as  follows: 

On  wines  containing  not  more  than  fourteen  per  centum  of  abso- 
lute alcohol  4  cents  per  wine  gallon,  the  per  centum  of  alcohol  taxable 
under  this  section  to  be  reckoned  by  volume  and  not  by  weight. 

On  wines  containing  more  than  fourteen  per  centum  and  not  exceed- 
ing twenty-one  per  centum  of  absolute  alcohol,  10  cents  per  wine  gallon. 

On  wines  containing  more  than  twenty-one  per  centum  and  not 
exceeding  twenty-four  per  centum  of  absolute  alcohol,  25  cents  per  wine 
gallon. 

All  such  wines  containing  more  than  twenty-four  per  centum  of 
absolute  alcohol  by  volume  shall  be  classed  as  distilled  spirits  and  shall 
pay  tax  accordingly:  Provided,  That  on  all  unsold  still  wines  in  the 
actual  possession  of  the  producer  at  the  time  this  title  takes  effect,  upon 
which  the  tax  imposed  by  the  Act  approved  October  twenty-second,  nine- 
teen hundred  and  fourteen,  entitled  "An  Act  to  increase  the  internal  rev- 
enue and  for  other  purposes,"  and  the  joint  resolution  approved  De- 
cember seventeenth,  nineteen  hundred  and  fifteen,  entitled  "Joint  resolu- 


Miscellaneous  Taxes  353 

tion  extending  the  provisions  of  the  Act  entitled  'An  Act  to  increase  the 
internal  revenue  and  for  other  purposes,'  approved  October  twenty- 
second,  nineteen  hundred  and  fourteen,  to  December  thirty-first,  nineteen 
hundred  and  sixteen,"  has  been  assessed,  the  tax  so  assessed  shall  be 
abated,  or,  if  paid,  refunded  under  such  regulations  as  the  Commissioner 
of  Internal  Revenue,  with  the  approval  of  the  Secretary  of  the  Treasury 
may  prescribe. 

(b)  That  the  taxes  imposed  by  this  section  shall  be  paid  by  stamp 
on  removal  of  the  wines  from  the  customhouse,  winery  or  other  bonded 
place  of  storage  for  consumption  or  sale,  and  every  person  hereafter 
producing,  or  having  in  his  possession  or  under  his  control  when  this 
section  takes  effect,  any  wines  subject  to  the  tax  imposed  in  this  section 
shall  file  such  notice,  describing  the  premises  on  which  such  wines  are 
produced  or  stored ;  shall  execute  a  bond  in  such  form ;  shall  make  such 
inventories  under  oath ;  and  shall,  prior  to  sale  or  removal  for  consump- 
tion, affix  to  each  cask  or  vessel  containing  such  wine  such  marks,  labels 
or  stamps  as  the  Commissioner  of  Internal  Revenue,  with  the  approval 
of  the  Secretary  of  the  Treasury,  may  from  time  to  time  prescribe ;  and 
the  premises  described  in  such  notice  shall,  for  the  purpose  of  this  sec- 
tion, be  regarded  as  bonded  premises.  But  the  provisions  of  this  sub- 
division of  this  section,  except  as  to  payment  of  tax  and  the  affixing  of 
the  required  stamps  or  labels,  shall  not  apply  to  wines  held  by  retail 
dealers  as  defined  in  section  thirty-two  hundred  and  forty-four  of  the 
Revised  Statutes  of  the  United  States,  nor,  subject  to  regulations  pre- 
scribed by  the  Commissioner  of  Internal  Revenue,  with  the  approval  of 
the  Secretary  of  the  Treasury,  shall  the  tax  imposed  by  this  section  apply 
to  wines  produced  for  the  family  use  of  the  producer  thereof  and  not 
sold  or  otherwise  removed  from  the  place  of  manufacture  and  not  exceed- 
ing in  any  case  two  hundred  gallons  per  year.  The  Commissioner  of 
Internal  Revenue  is  hereby  authorized  to  have  prepared  and  issue  such 
stamps  denoting  payment  of  the  tax  imposed  by  this  section  as  he  may 
deem  requisite  and  necessary ;  and  until  such  stamps  are  provided  the 
taxes  imposed  by  this  section  shall  be  assessed  and  collected  as  other 
taxes  are  assessed  and  collected,  and  all  provisions  of  law  relating  to 
assessment  and  collection  of  taxes,  so  far  as  applicable,  are  hereby  ex- 
tended to  the  taxes  imposed  by  this  section. 

(c)  That  under  such  regulations  and  official  supervision  and  upon 
the  giving  of  such  notices,  entries,  bonds  and  other  security  as  the  Com- 
missioner of  Internal  Revenue,  with  the  approval  of  the  Secretary  of 
the  Treasury,  may  prescribe,  any  producer  of  wines  defined  under  the 
provisions  of  this  section  or  section  four  hundred  and  one  of  this  Act, 
may  withdraw  from  any  fruit  distillery  or  special  bonded  warehouse 
grape  brandy,  or  wine  spirits  for  the  fortification  of  such  wines  on  the 
premises  where  actually  made :  Provided;  That  there  shall  be  levied  and 
assessed  against  the  producer  of  such  wines  a  tax  of  10  cents  per  proof 
gallon  of  grape  brandv  or  wine  spirits  so  used  by  him  in  the  fortification 

(23) 


354  Important  Federal  Laws 

of  such  wines  during  the  preceding  month,  which  assessment  shall  be 
paid  by  him  within  six  months  from  the  date  of  notice  thereof:  Pro- 
vided further,  That  nothing  herein  contained  shall  be  construed  as  ex- 
empting any  wines,  cordials,  liqueurs  or  similar  compounds  from  the 
payment  of  any  tax  provided  for  in  this  section. 

That  sections  forty-two,  forty-three  and  forty-five  of  the  Act  of 
October  first,  eighteen  hundred  and  ninety,  as  amended  by  section  sixty- 
eight  of  the  Act  of  August  twenty-seventh,  eighteen  hundred  and  ninety- 
four,  are  further  amended  to  read  as  follows : 

Preparation  of  Sweet  Wines. 

"Sec.  42.  That  any  producer  of  pure  sweet  wines  may  use  in  the 
preparation  of  such  sweet  wines,  under  such  regulations  and  after  the 
filing  of  such  notices  and  bonds,  together  with  the  keeping  of  such  records 
and  the  rendition  of  such  reports  as  to  materials  and  products  as  the 
Commissioner  of  Internal  Revenue,  with  the  approval  of  the  Secretary 
of  the  Treasury,  may  prescribe,  wine  spirits  produced  by  any  duly  author- 
ized distiller  and  the  Commissioner  of  Internal  Revenue,  in  determining 
the  liability  of  any  distiller  of  wine  spirits  to  assessment  under  section 
thirtv-three  hundred  and  nine  of  the  Revised  Statutes,  is  authorized  to 
allow  such  distiller  credit  in  his  computations  for  the  wine  spirits  with- 
drawn to  be  used  in  fortifying  sweet  wines  under  this  Act. 

Regulation  of  Manufacturer. 

"Sec.  43.  That  the  wine  spirits  mentioned  in  section  forty-two 
herein  mentioned  is  the  product  resulting  from  the  distillation  of  fer- 
mented grape  juice,  to  which  water  may  have  been  added  prior  to,  dur- 
ing, or  after  fermentation,  for  the  sole  purpose  of  facilitating  the  fer- 
mentation and  economical  distillation  thereof,  and  shall  be  held  to  in- 
clude the  product  from  grapes  or  their  residues  commonly  known  as 
grape  brandy,  and  shall  include  commercial  grape  brandy  which  may 
have  been  colored  with  burnt  sugar  or  caramel :  and  the  pure  sweet  wine 
which  may  be  fortified  with  wine  spirits  under  the  provisions  of  this  Act 
is  fermented  or  partially  fermented  grape  juice  only,  with  the  usual  cellar 
treatment  and  shall  contain  no  other  substance  whatever  introduced  be- 
fore, at  the  time  of,  or  after  fermentation,  except  as  herein  expressly 
provided :  Provided,  That  the  addition  of  pure  boiled  or  condensed 
grape  must  or  pure  crystallized  cane  or  beet  sugar,  or  pure  dextrose 
sugar  containing,  respectively,  not  less  than  ninety-five  per  centum  of 
actual  sugar,  calculated  on  a  dry  basis,  or  water,  or  any  or  all  of  them, 
to  the  pure  grape  juice  before  fermentation,  or  to  the  fermented  product 
of  such  grape  juice,  or  to  both,  prior  to  the  fortification  herein  provided 
for,  either  for  the  purpose  of  perfecting  sweet  wines  according  to  com- 
mercial standards  or  for  mechanical  purposes,  shall  not  be  excluded  by 
the  definition  of  pure  sweet  wine  aforesaid :  Provided,  however.  That 
the  cane  or  beet  sugar,  or  pure  dextrose  sugar  added  for  sweetening 
purposes  shall  not  be  in  excess  of  eleven  per  centum  of  the  weight  of 


Miscellaneous  Taxes  355 

the  wine  to  be  fortified :  And  provided  further,  That  the  addition  of 
water  herein  authorized  shall  be  under  such  regulations  as  the  Commis- 
sioner of  Internal  Revenue,  with  the  approval  of  the  Secretary  of  the 
Treasury,  may  from  time  to  time  prescribe:  Provided,  however,  That 
records  kept  in  accordance  with  such  regulations  as  to  the  percentage  of 
saccharine,  acid,  alcoholic  and  added  water  content  of  the  wine  offered 
for  fortification  shall  be  open  to  inspection  by  any  official  of  the  Depart- 
ment of  Agriculture  thereto  duly  authorized  by  the  Secretary  of  Agri- 
culture ;  but  in  no  case  shall  such  wines  to  which  water  has  been  added 
be  eligible  for  fortification  under  the  provisions  of  this  Act,  where  the 
same,  after  fermentation  and  before  fortification,  have  an  alcoholic 
strength  of  less  than  five  per  centum  of  their  volume. 

Withdrawal  from  Bonded  Warehouses. 

"Sec.  45.  That  under  such  regulations  and  official  supervision,  and 
upon  the  execution  of  such  entries  and  the  giving  of  such  bonds,  bills  of 
lading  and  other  security  as  the  Commissioner  of  Internal  Revenue,  with 
the  approval  of  the  Secretary  of  the  Treasury,  shall  prescribe,  any  pro- 
ducer of  pure  sweet  Avines  as  defined  by  this  Act  may  withdraw  wine 
spirits  from  any  special  bonded  warehouse  in  original  packages  or  from 
any  registered  distillery  in  any  quantity  not  less  than  eighty  wine  gallons, 
and  may  use  so  much  of  the  same  as  may  be  required  by  him  under  such 
regulations,  and  after  the  filing  of  such  notices  and  bonds  and  the  keep- 
ing of  such  records  and  the  rendition  of  such  reports  as  to  materials  and 
products  and  the  disposition  of  the  same  as  the  Commissioner  of  In- 
ternal Revenue,  with  the  approval  of  the  Secretary  of  the  Treasury, 
shall  prescribe,  in  fortifying  the  pure  sweet  wines  made  bv  him,  and  for 
no  other  purpose,  in  accordance  with  the  foregoing  limitations  and  pro- 
visions ;  and  the  Commissioner  of  Internal  Revenue,  with  the  approval 
of  the  Secretary  of  the  Treasury,  is  authorized  whenever  he  shall  deem 
it  to  be  necessary  for  the  prevention  of  violations  of  this  law  to  pre- 
scribe that  wine  spirits  withdrawn  under  this  section  shall  not  be  used 
to  fortify  wines  except  at  a  certain  distance  prescribed  by  him  from  any 
distillery,  rectifying  house,  winer}%  or  other  establishment  used  for  pro- 
ducing or  storing  distilled  spirits,  or  for  making  or  storing  wines  other 
than  wines  which  are  so  fortified,  and  that  in  the  building  in  which  such 
fortification  of  wines  is  practiced  no  wines  or  spirits  other  than  those 
permitted  by  this  regulation  shall  be  stored  in  any  room  or  part  of  the 
building  in  which  fortification  of  wines  is  practiced.  The  use  of  wine 
spirits  for  the  fortification  of  sweet  wines  under  this  Act  shall  be  under 
the  immediate  supervision  of  an  officer  of  internal  revenue,  who  shall 
make  returns  describing  the  kinds  and  quantities  of  wine  so  fortified, 
and  shall  affix  such  stamps  and  seals  to  the  packages  containing  such 
wines  as  may  be  prescribed  by  the  Commissioner  of  Internal  Revenue, 
with  the  approval  of  the  Secretary  of  the  Treasury ;  and  the  Commis- 
sioner of  Internal  Revenue,  with  the  approval  of  the  Secretary  of  the 


356  Important  Federal  Laws 

Treasury,  shall  provide  by  regulations  the  time  within  which  wines  so 
fortilied  with  the  wine  spirits  so  withdrawn  may  be  subject  to  inspection, 
and  for  fmal  accounting  for  the  use  of  such  wine  spirits  and  for  re  ware- 
housing or  for  payment  of  the  tax  on  any  portion  of  such  wine  spirits 
which  remain  not  used  in  fortifying  pure  sweet  wines." 

(d)  That  under  such  regulations  and  upon  the  execution  of  such 
notices,  entries,  bonds  and  other  security  as  the  Commissioner  of  Internal 
Revenue,  with  the  approval  of  the  Secretary  of  the  Treasury,  may  pre- 
scribe, domestic  wines  subject  to  the  tax  imposed  by  this  section  may  be 
removed  from  the  winery  where  produced,  free  of  tax,  for  storage  on 
other  bonded  premises  or  from  said  premises  to  other  bonded  premises: 
Provided,  That  not  more  than  one  such  additional  removal  shall  be  al- 
lowed, or  for  exportation  from  the  United  States  or  for  use  as  distilling 
material  at  any  regularly  registered  distillery :  Provided,  however,  That 
the  distiller  using  any  such  wine  as  material  shall,  subject  to  the  pro- 
visions of  section  thirty-three  hundred  and  nine  of  the  Revised  Statutes 
of  the  United  States,  as  amended,  be  held  to  pay  the  tax  on  the  product 
of  such  wines  as  will  include  both  the  alcoholic  strength  therein  pro- 
duced by  fermentation  and  that  obtained  from  the  brandy  or  wine  spirits 
added  to  such  wines  at  the  time  of  fortification. 

Sparkling  Wines — Tax. 

(e)  That  upon  all  domestic  and  imported  sparkling  wines,  liqueurs, 
cordials  and  similar  compounds  remaining  in  the  hands  of  dealers  when 
this  section  takes  effect,  or  thereafter  removed  from  the  place  of  manu- 
acture  or  storage  for  sale  or  consumption,  there  shall  be  levied  and  paid, 
by  stamp,  taxes  as  follows : 

On  each  bottle  or  other  container  of  champagne  or  sparkling  wine, 
3  cents  on  each  one-half  pint  or  fraction  thereof. 

On  each  bottle  or  other  container  of  artificially  carbonated  wine, 
ly^  cents  on  each  one-half  pint  or  fraction  thereof. 

On  each  bottle  or  other  container  of  liqueurs,  cordials  or  similar 
compounds,  by  whatever  name  sold  or  offered  for  sale,  containing  sweet 
wine,  fortified  with  grape  brandy  under  the  provisions  of  paragraph  (c) 
of  this  section,  1^^  cents  on  each  one-half  pint  or  fraction  thereof. 

The  taxes  imposed  by  this  section  shall  not  apply  to  wines,  liqueurs, 
or  cordials  on  which  the  tax  imposed  by  the  Act  approved  October 
twenty-second,  nineteen  hundred  and  fourteen,  entitled  "An  Act  to  in- 
crease the  internal  revenue  and  for  other  purposes,"  and  the  joint  resolu- 
tion approved  December  seventeenth,  nineteen  hundred  and  fifteen,  en- 
titled "Joint  resolution  extending  the  provisions  of  the  Act  entitled  'An 
Act  to  increase  the  internal  revenue,  and  for  other  purposes,'  approved 
October  twenty-second,  nineteen  hundred  and  fourteen,  to  December 
thirty-first,  nineteen  hundred  and  sixteen,"  has  been  paid  by  stamp. 

The  Commissioner  of  Internal  Revenue,  with  the  approval  of  the 
Secretary  of  the  Treasury,  is  hereby  authorized  to  have  prepared  suit- 


Miscellaneous  Taxes  357 

able  revenue  stamps  denoting  the  payment  of  the  taxes  imposed  by  this 
section;  and  all  provisions  of  law  relating  to  internal-revenue  stamps, 
so  far  as  applicable,  are  hereby  extended  to  the  taxes  imposed  by  this 
section:  Provided,  That  the  collection  of  the  tax  herein  prescribed  on 
imported  still  wines,  including  vermuth  and  sparkling  wines,  including 
champagne  and  on  imported  liqueurs,  cordials  and  similar  compounds, 
may  be  made  within  the  discretion  of  the  Commissioner  of  Internal 
Revenue,  with  the  approval  of  the  Secretary  of  the  Treasury,  by  assess- 
ment instead  of  by  stamps. 

Penalties. 

(f)  That  any  person  who  shall  evade  or  attempt  to  evade  the  tax 
imposed  by  this  section,  or  any  requirement  of  this  section  or  regulation 
issued  pursuant  thereof,  or  who  shall,  otherwise  than  provided  in  this 
section,  recover  or  attempt  to  recover  any  spirits  from  domestic  or  im- 
ported wine,  or  who  shall  rectify,  mix  or  compound  with  distilled  spirits 
any  domestic  wines,  other  than  in  the  manufacture  of  liqueurs,  cordials 
or  similar  compounds  taxable  under  the  provisions  of  this  section,  shall, 
on  conviction,  be  punished  for  each  such  offense  by  a  fine  of  not  exceed- 
ing $5,000,  or  imprisonment  for  not  more  than  five  years,  or  both,  and 
all  wines,  spirits,  liqueurs,  cordials,  or  similar  compounds  as  to  which 
such  violation  occurs  shall  be  forfeited  to  the  United  States.  But  the 
provision  of  this  subdivision  of  this  section  and  the  provision  of  section 
thirty-two  hundred  and  forty-four  of  the  Revised  Statutes  of  the  United 
States,  as  amended,  relating  to  rectification  or  other  internal-revenue  laws 
of  the  United  States,  shall  not  be  held  to  apply  to  or  prohibit  the  mixing 
or  blending  of  wines  subject  to  tax  under  the  provisions  of  this  section 
with  each  other  or  with  other  wines  for  the  sole  purpose  of  perfecting 
such  wines  according  to  commercial  standards :  Provided,  That  nothing 
herein  contained  shall  be  construed  as  prohibiting  the  use  of  tax-paid 
grain  or  other  ethyl  alcohol  in  the  fortification  of  sweet  wines  as  defined 
in  section  fifty-three  of  this  Act. 

Spirit  Meters. 

(g)  That  the  Commissioner  of  Internal  Revenue,  by  regulations 
to  be  approved  by  the  Secretary  of  the  Treasury,  may  require  the  use 
at  each  fruit  distillery  of  such  spirit  meters,  and  such  locks  and  seals  to 
be  ai^xed  to  fermenters,  tanks,  or  other  vessels  and  to  such  pipe  con- 
nections as  may  in  his  judgment  be  necessary  or  expedient ;  and  the 
said  commissioner  is  hereby  authorized  to  assign  to  any  such  distillery 
and  to  each  winery  where  wines  are  to  be  fortified  such  number  of 
gangers  or  storekeeper-gaugers  in  the  capacity  of  gangers  as  may  be 
necessary  for  the  proper  supervision  of  the  manufacture  of  brandy  or 
the  making  or  fortifying  of  wines  subject  to  tax  imposed  by  this  sec- 
tion ;  and  the  compensation  of  such  officers  shall  not  exceed  $5  per  diem 
while  so  assigned,  together  with  their  actual  and  necessary  traveling 
expenses,  and  also  a  reasonable  allowance  for  their  board  bills,  to  be 


358  Important  Federal  Laws 

fixed  by  the  Commissioner  of  Internal  Revenue,  with  the  approval  of  the 
Secretary  of  the  Treasury,  but  not  to  exceed  $2.50  per  diem  for  said 
board  bills. 

(h)  That  the  Commissioner  of  Internal  Revenue,  with  the  approval 
of  the  Secretary  of  the  Treasury,  is  hereby  authorized  to  make  such 
allowances  for  unavoidable  loss  of  wines  while  on  storage  or  during 
cellar  treatment  as  in  his  judgment  may  be  just  and  proper,  and  to  pre- 
pare all  necessary  regulations  for  carrying  into  effect  the  provisions  of 
this  section. 

Measurements. 

(i)  That  the  second  paragraph  of  section  thirty-two  hundred  and 
sixty-four,  Revised  Statutes  of  the  United  States  of  America,  as 
amended  by  section  five  of  the  Act  of  March  first,  eighteen  hundred 
and  seventy-nine,  and  as  further  amended  by  the  Act  of  Congress 
approved  June  twenty-second,  nineteen  hundred  and  ten,  be  amended 
so  as  to  read  as  follows : 

"In  all  surveys  forty-five  gallons  of  mash  or  beer  brewed  or  fer- 
mented from  grain  shall  represent  not  less  than  one  bushel  of  grain, 
and  seven  gallons  of  mash  or  beer  brewed  or  fermented  from  molasses 
shall  represent  not  less  than  one  gallon  of  molasses,  except  in  distil- 
leries operated  on  the  sour-mash  principle,  in  which  distilleries  sixty 
gallons  of  beer  brewed  or  fermented  from  grain  shall  represent  not 
less  than  one  bushel  of  grain,  and  except  that  in  distilleries  where  the 
filtration-aeration  process  is  used,  with  the  approval  of  the  Commis- 
sioner of  Internal  Revenue;  that  is,  where  the  mash  after  it  leaves  the 
mash  tub  is  passed  through  a  filtering  machine  before  it  is  run  into  the 
fermenting  tub,  and  only  the  filtered  liquor  passes  into  the  fermenting 
tub,  there  shall  hereafter  be  no  limitation  upon  the  number  of  gallons 
of  water  which  may  be  used  in  the  process  of  mashing  or  filtration  for 
fermentation;  but  the  Commissioner  of  Internal  Revenue,  with  the  ap- 
proval of  the  Secretary  of  the  Treasury,  in  order  to  protect  the  revenue, 
shall  be  authorized  to' prescribe  by  regulation,  to  be  made  by  him,  such 
character  of  survey  as  he  may  find  suitable  for  distilleries  using  such 
filtration-aeration  process.  The  provisions  hereof  relating  to  filtration- 
aeration  process  shall  apply  only  to  sweet-mash  distilleries." 

Distilled  Spirits  for  Export. 

Sec.  403.  That  under  such  regulations  as  the  Commissioner  of 
Internal  Revenue,  with  the  approval  of  the  Secretary  of  the  Treasury, 
may  prescribe,  alcohol  or  other  distilled  spirits  of  a  proof  strength  of 
not  less  than  one  hundred  and  eighty  degrees  intended  for  export  free 
of  tax  may  be  drawn  from  receiving  cisterns  at  any  distillery,  or  from 
storage  tanks  in  any  distillery  warehouse,  for  transfer  to  tanks  or  tank 
cars  lor  export  from  the  United  States,  and  all  provisions  of  existing 
law  relating  to  the  exportation  of  distilled  spirits  not  inconsistent  here- 


Miscellaneous  Taxes  359 

with  shall  apply  to  spirits  removed  for  export  under  the  provisions  of 
this  Act. 

Distillers  of  Brandy  from  Fruit  May  be  Exempted. 

Sec.  404.  That  section  thirty-two  hundred  and  fifty-five  of  the 
Revised  Statutes  as  amended  by  Act  of  June  third,  eighteen  hundred 
and  ninety-six,  and  as  further  amended  by  Act  of  March  second,  nine- 
teen hundred  and  eleven,  be  further  amended  so  as  to  read  as  follows : 

"Sec.  3255.  The  Commissioner  of  Internal  Revenue,  with  the  ap- 
proval of  the  Secretary  of  the  Treasury,  may  exempt  distillers  of  brandy 
made  exclusively  from  apples,  peaches,  grapes,  pears,  pine-apples,  or- 
anges, apricots,  berries,  plums,  pawpaws,  persimmons,  prunes,  figs,  or 
cherries  from  any  provision  of  this  title  relating  to  the  manufacture  of 
spirits,  except  as  to  the  tax  thereon,  when  in  his  judgment  it  may  seem 
expedient  to  do  so :  Provided,  That  where,  in  manufacture  of  wine, 
artificial  sweetening  has  been  used  the  wine  or  the  fruit  pomace  re- 
siduum may  be  used  in  the  distillation  of  brandy,  as  such  use  shall  not 
prevent  the  Commissioner  of  Internal  Revenue,  with  the  approval  of 
the  Secretary  of  the  Treasury,  from  exempting  such  distiller  from  any 
provision  of  this  title  relating  to  the  manufacture  of  spirits,  except  as 
to  the  tax  thereon,  when  in  his  judgment  it  may  seem  expedient  to  do 
so :  And  provided  further,  That  the  distillers  mentioned  in  this  section 
may  add  to  not  less  than  five  hundred  gallons  (or  ten  barrels)  of  grape 
cheese  not  more  than  five  hundred  gallons  of  a  sugar  solution  made 
from  cane,  beet,  starch,  or  corn  sugar,  ninety-five  per  centum  pure, 
such  solution  to  have  a  saccharine  strength  of  not  to  exceed  ten  per 
centum,  and  may  ferment  the  resultant  mixture  on  a  winery  or  distillery 
premises,  and  such  fermented  product  shall  be  regarded  as  distilling 
material." 

Gin  for  Export. 

Sec.  405.  That  distilled  spirits  known  commercially  as  gin  of  not 
less  than  eighty  per  centum  proof  may  at  any  time  within  eight  years 
after  entry  in  bond  at  any  distillery  be  bottled  in  bond  at  such  distillery 
for  export  without  the  payment  of  tax,  under  such  rules  and  regulations 
as  the  Commissioner  of  Internal  Revenue,  with  the  approval  of  the  Sec- 
retary of  the  Treasury,  may  prescribe. 

Penalties. 

Sec.  406.  That  section  thirty-three  hundred  and  fifty-four  of  the 
Revised  Statutes  of  the  United  States  as  amended  by  the  Act  approved 
June  eighteenth,  eighteen  hundred  and  ninety,  be,  and  is  hereby, 
amended  to  read  as  follows : 

"Sec.  3354.  Every  person  who  withdraws  any  fermented  liquor 
from  any  hogshead,  barrel,  keg  or  other  vessel,  upon  which  the  proper 
stamp  has  not  been  affixed  for  the  purpose  of  bottling  the  same,  or  who 
carries  on  or  attempts  to  carry  on  the  business  of  bottling  fermented 
liquor  in  any  brewery  or  other  place  in  which  fermented  liquor  is  made. 


360  Important  Federal  Laws 

or  upon  any  premises  having  communication  with  such  brewery,  or  any 
warehouse,  shall  be  liable  to  a  fine  of  $500,  and  the  property  used  in 
such  bottling  or  business  shall  be  liable  to  forfeiture:  Provided,  how- 
ever, That  this  section  shall  not  be  construed  to  prevent  the  withdrawal 
and  transfer  of  unfermented,  partially  fermented,  or  fermented  liquors 
from  any  of  the  vats  in  any  brewery  by  way  of  a  pipe  line  or  other 
conduit  to  another  building  or  place  for  the  sole  purpose  of  bottling  the 
same,  such  pipe  line  or  conduit  to  be  constructed  and  operated  in  such 
manner  and  with  such  cisterns,  vats,  tanks,  valves,  cocks,  faucets,  and 
gauges,  or  other  utensils  or  apparatus,  either  on  the  premises  of  the 
brewery  or  the  bottling  house,  and  with  such  changes  of  or  additions 
thereto,  and  such  locks,  seals,  or  other  fastenings,  and  under  such  rules 
and  regulations  as  shall  be  from  time  to  time  prescribed  by  the  Commis- 
sioner of  Internal  Revenue,  subject  to  the  approval  of  the  Secretary  of 
the  Treasury,  and  all  locks  and  seals  prescribed  shall  be  provided  by  the 
Commissioner  of  Internal  Revenue  at  the  expense  of  the  United  States : 
Provided  further.  That  the  tax  imposed  in  section  thirty-three  hundred 
and  thirty-nine  of  the  Revised  Statutes  of  the  United  States  shall  be 
paid  on  all  fermented  liquor  removed  from  a  brewery  to  a  bottling  house 
bv  means  of  a  pipe  or  conduit,  at  the  time  of  such  removal,  by  the  can- 
cellation and  defacement,  by  the  collector  of  the  district  or  his  deputy, 
in  the  presence  of  the  brewer,  of  the  number  of  stamps  denoting  the  tax 
on  the  fermented  liquor  thus  removed.  The  stamps  thus  canceled  and 
defaced  shall  be  disposed  of  and  accounted  for  in  the  manner  directed 
bv  the  Commissioner  of  Internal  Revenue,  with  the  approval  of  the  Sec- 
retary of  the  Treasury.  And  any  violation  of  the  rules  and  regulations 
hereafter  prescribed  by  the  Commissioner  of  Internal  Revenue,  with  the 
approval  of  the  Secretary  of  the  Treasury,  in  pursuance  of  these  pro- 
visions, shall  be  subject  to  the  penalties  above  provided  by  this  section. 
Every  owner,  agent,  or  superintendent  of  any  brewery  or  bottling  house 
who  removes,  or  connives  at  the  removal  of,  any  fermented  liquor 
through  a  pipe  line  or  conduit,  without  payment  of  the  tax  thereon,  or 
who  attempts  in  any  manner  to  defraud  the  revenue  as  above,  shall  for- 
feit all  the  liquors  made  by  and  for  him,  and  all  the  vessels,  utensils,  and 
apparatus  used  in  making  the  same." 

Special  Taxes. 

Sec.  407.  That  on  and  after  January  first,  nineteen  hundred  and 
seventeen,  special  taxes  shall  be,  and  hereby  are,  imposed  annually,  as 
follows,  that  is  to  say : 

Every  corporation,  joint-stock  company  or  association,  now  or 
hereafter  organized  in  the  United  States  for  profit  and  having  a  capital 
stock  represented  by  shares,  and  every  insurance  company,  now  or 
hereafter  organized  under  the  laws  of  the  United  States,  or  any  State 
or  Territory  of  the  United  States,  shall  pay  annually  a  special  excise 
tax  with  respect  to  the  carrying  on  or  doing  business  by  such  corporation, 


AIlSCELLANEOUS    TaXES  361 

joint-Stock  company  or  association,  or  insurance  company,  equivalent 
to  50  cents  for  each  $1,000  of  the  fair-  value  of  its  capital  stock  and  in 
estimating  the  value  of  capital  stock  the  surplus  and  undivided  profits 
shall  be  included:  Provided,  That  in  the  case  of  insurance  companies 
such  deposits  and  reserve  funds  as  they  are  required  by  law  or  contract 
to  maintain  or  hold  for  the  protection  of  or  payment  to  or  apportion- 
ment among  policyholders  shall  not  be  included.  The  amount  of  such 
annual  tax  shall  in  all  cases  be  computed  on  the  basis  of  the  fair  average 
value  of  the  capital  stock  for  the  preceding  year:  Provided,  That  for  the 
purpose  of  this  tax  an  exemption  of  $99,000  shall  be  allowed  from  the 
capital  stock  as  defined  in  this  paragraph  of  each  corporation,  joint- 
stock  company  or  association,  or  insurance  company :  Provided  further, 
That  a  corporation,  joint-stock  company  or  association,  or  insurance 
company,  actually  paying  the  tax  imposed  by  section  three  hundred  and 
one  of  Title  III  of  this  Act  shall  be  entitled  to  a  credit  as  against  the 
tax  imposed  by  this  paragraph  equal  to  the  amount  of  the  tax  so  actually 
paid :  And  provided  further.  That  this  tax  shall  not  be  imposed  upon  any 
corporation,  joint-stock  company  or  association,  or  insurance  company 
not  engaged  in  business  during  the  preceding  taxable  year,^  or  which  is 
exempt  under  the  provisions  of  section  eleven.  Title  I,  of  this  Act. 

Every  corporation,  joint-stock  company  or  association,  or  insur- 
ance company,  now  or  hereafter  organized  for  profit  under  the  laws 
of  any  foreign  country  and  engaged  in  business  in  the  United  States 
shall  pay  annually  a  special  excise  tax  with  respect  to  the  carrying  on  or 
doing  business  in  the  United  States  by  such  corporation,  joint-stock 
company  or  association,  or  insurance  company,  equivalent  to  50  cents 
for  each  $1,000  of  the  capital  actually  invested  in  the  transaction  of  its 
business  in  the  United  States:  Provided,  That  in  the  case  of  insurance 
companies  such  deposits  or  reserve  funds  as  they  are  required  by  law  or 
contract  to  maintain  or  hold  in  the  United  States  for  the  protection  of 
or  payment  to  or  apportionment  among  policyholders,  shall  not  be  in- 
cluded. The  amount  of  such  annual  tax  shall  in  all  cases  be  computed 
on  the  basis  of  the  average  amount  of  capital  so  invested  during  the 
preceding  year:  Provided,  That  for  the  purpose  of  this  tax  an  exemption 
from  the  amount  of  capital  so  invested  shall  be  allowed  equal  to  such 
proportion  of  $99,000  as  the  amount  so  invested  bears  to  the  total 
amount  invested  in  the  transaction  of  business  in  the  United  States  or 
elsewhere :  Provided,  further,  That  this  exemption  shall  be  allowed  only 
if  such  corporation,  joint-stock  company  or  association,  or  msurance 
companv  makes  return  to  the  Commissioner  of  Internal  Revenue,  under 
regulations  prescribed  by  him,  with  the  approval  of  the  Secretary  of  the 
Treasury,  of  the  amount  of  capital  invested  in  the  transaction  of  busi- 
ness outside  the  United  States:  And  provided  further,  That  a  corpora- 
tion, joint-stock  company  or  association,  or  insurance  company  actually 
paying  the  tax  imposed  by  section  three  hundred  and  one  of  Title  III 
of  thfs  act,  shall  be  entitled  to  a  credit  as  against  the  tax  imposed  by 


362  Important  Federal  Laws 

this  paragraph  equal  to  the  amount  of  the  tax  so  actually  paid :  And 
provided  further,  That  this  tax  shall  not  be  imposed  upon  any  corpora- 
tion, joint-stock  company  or  association,  or  insurance  company  not  en- 
gaged in  business  during  the  preceding  taxable  year,  or  which  is  exempt 
under  the  provisions  of  section  eleven.  Title  I,  of  this  x\ct. 

Second.  Brokers  shall  pay  $30.  Every  person,  firm,  or  company, 
whose  business  it  is  to  negotiate  purchases  or  sales  of  stocks,  bonds, 
exchange,  bullion,  coined  money,  bank  notes,  promissory  notes,  or  other 
securities,  for  others,  shall  be  regarded  as  a  broker. 

Third.  Pawnbrokers  shall  pay  $50.  Every  person,  firm,  or  com- 
pany whose  business  or  occupation  it  is  to  take  or  receive,  by  way  of 
pledge,  pawn,  or  exchange,  any  goods,  wares,  or  merchandise,  or  any 
kind  of  personal  property  whatever,  as  security  for  the  repayment  of 
money  loaned  thereon,  shall  be  deemed  a  pawnbroker. 

Fourth.  Ship  brokers  shall  pay  S20.  Every  person,  firm,  or  com- 
pany whose  business  it  is  as  a  broker  to  negotiate  freights  and  other 
business  for  the  owners  of  vessels,  or  for  the  shippers  or  consignors 
or  consignees  of  freight  carried  by  vessels,  shall  be  regarded  as  a  ship 
broker  under  this  section. 

Fifth.  Customhouse  brokers  shall  pay  $10.  Every  person,  firm, 
or  company  whose  occupation  it  is,  as  the  agent  of  others,  to  arrange 
entries  and  other  customhouse  papers,  or  transact  business  at  any  port 
of  entry  relating  to  the  importation  or  exportation  of  goods,  wares,  or 
merchandise,  shall  be  regarded  as  a  customhouse  broker. 

Sixth.  Proprietors  of  theaters,  museums,  and  concert  halls,  where 
a  charge  for  admission  is  made,  having  a  seating  capacity  of  not  more 
than  two  hundred  and  fifty,  shall  pay  $25 ;  having  a  seating 
capacity  of  more  than  two  hundred  and  fifty  and  not  exceeding  five 
hundred,  shall  pay  $50 ;  having  a  seating  capacity  exceeding  five  hundred 
and  not  exceeding  eight  hundred,  shall  pay  $75 ;  having  a  seating  capac- 
ity of  more  than  eight  hundred,  shall  pay  $100.  Every  edifice  used  for 
the  purpose  of  dramatic  or  operatic  or  other  representations,  plays,  or 
performances,  for  admission  to  which  entrance  money  is  received,  not 
including  halls  or  armories  rented  or  used  occasionally  for  concerts  or 
theatrical  representations,  shall  be  regarded  as  a  theater :  Provided,  That 
in  cities,  towns,  or  villages  of  five  thousand  inhabitants  or  less  the 
amount  of  such  payment  shall  be  one-half  of  that  above  stated :  Provided 
further,  That  whenever  any  such  edifice  is  under  lease  at  the  passage  of 
this  Act,  the  tax  shall  be  paid  by  the  lessee,  unless  otherwise  stipulated 
between  the  parties  to  said  lease. 

Seventh.  The  proprietor  or  proprietors  of  circuses  shall  pay  $100. 
Every  building,  space,  tent,  or  area  where  feats  of  horsemanship  or 
acrobatic  sports  or  theatrical  performances  not  otherwise  provided  for 
in  this  section  are  exhibited  shall  be  regarded  as  a  circus :  Provided, 
That  no  special  tax  paid  in  one  State,  Territory,  or  the  District  of 
Columbia    shall    exempt    exhibitions    from    the    tax    in    another    State, 


Miscellaneous  Taxes  363 

Territory,  or  the  District  of  Columbia,  and  but  one  special  tax  shall  be 
imposed  for  exhibitions  within  any  one  State,  Territory,  or  District. 

Eighth.  Proprietors  or  agents  of  all  other  public  exhibitions  or 
shows  for  money  not  enumerated  in  this  section  shall  pay  $10;  Pro- 
vided, That  a  special  tax  paid  in  one  State,  Territory,  or  the  District 
of  Columbia  shall  not  exempt  exhibitions  from  the  tax  in  another  State, 
Territory,  or  the  District  of  Columbia,  and  but  one  special  tax  shall 
be  required  for  exhibitions  within  any  one  State,  Territory  of  the  Dis- 
trict of  Columbia:  Provided  further.  That  this  paragraph  shall  not 
apply  to  Chautauquas,  lecture  lyceums,  agricultural  or  industrial  fairs, 
or  exhibitions  held  under  the  auspices  of  religious  or  charitable  asso- 
ciations: Provided  further,  That  an  aggregation  of  entertainments, 
known  as  a  street  fair,  shall  not  pay  a  larger  tax  than  $100  in  any  State, 
Territory,  or  in  the  District  of  Columbia. 

Ninth.  Proprietors  of  bowling  alleys  and  billiard  rooms  shall  pay 
$5  for  each  alley  or  table.  Every  building  or  place  where  bowls  are 
thrown  or  where  games  of  billiards  or  pool  are  played,  except  in  private 
homes,  shall  be  regarded  as  a  bowling  alley  or  a  billiard  room,  respec- 
tively. 

Tobacco  Taxes. 

Sec.  408.  That  on  and  after  January  first,  nineteen  hundred  and 
seventeen,  special  taxes  on  tobacco,  cigar,  and  cigarette  manufacturers 
shall  be,  and  hereby  are,  imposed  annually  as  follows,  the  amount  of 
such  annual  taxes  to  be  computed  in  all  cases  on  the  basis  of  the  annual 
sales  for  the  preceding  fiscal  year: 

Manufacturers  of  tobacco  whose  annual  sales  do  not  exceed  fifty 
thousand  pounds  shall  each  pay  $3  ; 

Manufacturers  of  tobacco  whose  annual  sales  exceed  fifty  thousand 
and  do  not  exceed  one  hundred  thousand  pounds  shall  each  pay  $6; 

Manufacturers  of  tobacco  whose  annual  sales  exceed  one  hundred 
thousand  and  do  not  exceed  two  hundred  thousand  pounds  shall   each 

pay  $12; 

Manufacturers  of  tobacco  whose  annual  sales  exceed  two  hundred 
thousand  pounds  shall  each  pay  at  the  rate  of  8  cents  per  thousand 
pounds,  or  fraction  thereof ; 

Manufacturers  of  cigars  whose  annual  sales  do  not  exceed  fifty 
thousand  cigars  shall  each  pay  $2 ; 

Manufacturers  of  cigars  whose  annual  sales  exceed  fifty  thousand 
and  do  not  exceed  one  hundred  thousand  cigars  shall  each  pay  $3  ; 

Manufacturers  of  cigars  whose  annual  sales  exceed  one  hundred 
thousand   and  do  not  exceed  two   hundred  thousand   cigars   shall   each 

pay  $6; 

Manufacturers  of  cigars  whose  annual  sales  exceed  two  hundred 
thousand  and  do  not  exceed  four  hundred  thousand  cigars  shall  each 
pay  $12 ; 


364  Important  Federal  Laws 

Manufacturers  of  cigars  whose  annual  sales  exceed  four  hundred 
thousand  cigars  shall  each  pay  at  the  rate  of  5  cents  per  thousand 
cigars,  or  fraction  thereof  ; 

Manufacturers  of  cigarettes,  including  small  cigars  weighing  not 
more  than  three  pounds  per  thousand,  shall  each  pay  at  the  rate  of  3 
cents  for  every  ten  thousand  cigarettes,  or  fraction  thereof. 

In  arriving  at  the  amount  of  special  tax  to  be  paid  under  this  sec- 
tion, and  in  the  levy  and  collection  of  such  tax,  each  person,  firm,  or 
corporation  engaged  in  the  manufacture  of  more  than  one  of  the  classes 
of  articles  speciiied  in  this  section  shall  be  considered  and  deemed  a 
manufacturer  of  each  class  separately. 

Every  person  who  carries  on  any  business  or  occupation  for  which 
special  taxes  are  imposed  by  this  title,  without  having  paid  the  special  tax 
therein  provided,  shall,  besides  being  liable  to  the  payment  of  such 
special  tax,  be  deemed  guilty  of  a  misdemeanor,  and  upon  conviction 
thereof  shall  pay  a  fine  of  not  more  than  $500,  or  be  imprisoned  not 
more  than  six  months,  or  both,  in  the  discretion  of  the  court. 

Old  Laws  in  Force. 

Sec.  409.  That  all  administrative  or  special  provisions  of  law, 
including  the  law  relating  to  the  assessment  of  taxes,  so  far  as  appli- 
cable, are  hereby  extended  to  and  made  a  part  of  this  title,  and  every 
person,  firm,  company,  corporation,  or  association  liable  to  any  tax 
imposed  by  this  title,  shall  keep  such  records  and  render,  under  oath, 
such  statements  and  returns,  and  shall  comply  with  such  regulations  as 
the  Commissioner  of  Internal  Revenue,  with  the  approval  of  the  Secre- 
tary of  the  Treasury,  may  from  time  to  time  prescribe. 

Repeal. 

Sec.  410.  That  the  Act  approved  October  twenty-second,  nineteen 
hundred  and  fourteen,  entitled  "An  Act  to  increase  the  internal  revenue, 
and  for  other  purposes,"  and  the  joint  resolution  approved  December 
seventeenth,  nineteen  hundred  and  fifteen,  entitled  "Joint  resolution 
extending  the  provisions  of  the  Act  entitled  'An  Act  to  increase  the 
internal  revenue,  and  for  other  purposes,'  approved  October  twenty- 
second,  nineteen  hundred  and  fourteen,  to  December  thirty-first,  nine- 
teen hundred  and  sixteen,"  are  hereby  repealed,  except  sections  three 
and  four  of  such  Act  as  so  extended  which  sections  shall  remain  in  force 
till  January  first,  nineteen  hundred  and  seventeen,  and  except  that  the 
provisions  of  the  said  Act  shall  remain  in  force  for  the  assessment  and 
collection  of  all  special  taxes  imposed  by  sections  three  and  four  thereof, 
or  by  such  sections  as  extended  by  said  joint  resolution,  for  any  year  or 
part' thereof  ending  prior  to  January  first,  nineteen  hundred  and  seven- 
teen, and  of  all  other  taxes  imposed  by  such  Act,  or  by  such  Act  as 
so  extended,  accrued  prior  to  the  taking  effect  of  this  title,  and  for  the 
imposition  and  collection  of  all  penalties  or  forfeitures  which  have 
accrued  or  may  accrue  in  relation  to  any  of  such  taxes. 


Tariff  Act,  Dutiable  List  365 

Sec.  411.  That  the  Commissioner  of  Internal  Revenue,  subject  to 
regulation  prescribed  by  the  Secretary  of  the  Treasury,  may  make 
allowance  for  or  redeem  stamps,  issued,  under  authority  of  the  Act  ap- 
proved October  twenty-second,  nineteen  hundred  and  fourteen,  entitled 
"An  Act  to  increase  the  internal  revenue,  and  for  other  purposes,"  and 
the  joint  resolution  approved  December  seventeenth,  nineteen  hundred 
and  fifteen,  entitled  "Joint  resolution  extending  the  provisions  of  the 
Act  entitled  'An  Act  to  increase  the  internal  revenue,  and  for  other  pur- 
poses,' approved  October  twenty-second,  nineteen  hundred  and  fourteen, 
to  December  thirty-first,  nineteen  hundred  and  sixteen,"  to  denote  the 
payment  of  internal  revenue  tax,  and  which  have  not  been  used,  if  pre- 
sented within  two  years  after  the  purchase  of  such  stamps. 

Sec.  412.  That  the  provisions  of  this  title  shall  take  efl:"ect  on  the 
day  following  the  passage  of  this  Act,  except  where  otherwise  in  this 
title  provided. 

Sec.  413.  That  all  internal  revenue  agents  and  inspectors  be 
o-ranted  leave  of  absence  with  pay,  which  shall  not  be  cumulative,  not 
to  exceed  thirty  days  in  any  calendar  year,  under  such  regulations  as 
the  Commissioner  of  Internal  Revenue,  with  the  approval  of  the  Secre- 
tary of  the  Treasury,  may  prescribe. 


THE  TARIFF  ACT. 

Act    of    October    3,    1913. 
An  Act  to  reduce  tariff  duties  and  to  provide  revenue  for  the  government,  and 
for  other  purposes. 

That  on  and  after  the  day  following  the  passage  of  this  Act,  except 
as  otherwise  specially  provided  for  in  this  Act,  there  shall  be  levied,  col- 
lected, and  paid  upon  all  articles  when  imported  from  any  foreign  country 
into  the  United  States  or  into  any  of  its  possessions  (except  the  Philip- 
pine Islands  and  the  islands  of  Guam  and  Tutuila)  the  rates  of  duty 
which  are  by  the  schedules  and  paragraphs  of  the  dutiable  list  of  this 
section  prescribed,  namely : 

DUTIABLE  LIST. 
Schedule  A — Chemicals,  Oils  and  Paints. 

1.  Acids:  Boracic  acid,  f  cent  per  pound;  citric  acid,  5  cents  per 
pound;  formic  acid,  U  cents  per  pound;  gallic  acid,  6  cents  per  pound; 
lactic  acid.  U  cents  per  pound  ;  oxalic  acid,  U  cents  per  pound  ;  pyrogallic 
acid,  12  cent's  per  pound ;  salicylic  acid,  2^  cents  per  pound ;  tannic  acid 
and  tannin,  5  cents  per  pound ;  tartaric  acid,  3^  cents  per  pound ;  all  other 
acids  and  acid  anhydrides  not  specially  provided  for  in  this  section,  15 
per  centum  ad  valorem. 

2.  Acetic  anhydrid,  2^  cents  per  pound. 

3.  Acetone,  1  cent  per  pound. 

4.  Dried  Qgg  albumen,  3  cents  per  pound. 

5.  Alkalies,  alkaloids,  and  all  chemical  and  medicinal  compounds, 


366  Important  Federal  Laws 

preparations,  mixtures  and  salts,  and  combinations  thereof  not  specially 
provided  for  in  this  section,  15  per  centum  ad  valorem. 

6.  Alumina,  hydrate  of,  or  refined  bauxite ;  alum,  alum  cake,  patent 
alum,  sulphate  of  alumina,  and  aluminous  cake,  and  all  other  manufac- 
tured compounds  of  alumina,  not  specially  provided  for  in  this  section, 
15  per  centum  ad  valorem. 

7.  Ammonia,  carbonate  of,  and  muriate  of,  5  of  1  cent  per  pound; 
phosphate  of,  1  cent  per  pound;  liquid  anhydrous,  2|  cents  per  pound; 
ammoniacal  gas  liquor,  10  per  centum  ad  valorem. 

8.  Argols  or  crude  tartar  or  wine  lees  crude  or  partly  refined,  con- 
taining not  more  than  90  per  centum  of  potassium  bitartrate,  5  per  centum 
ad  valorem ;  containing  more  than  90  per  centum  of  potassium  bitartrate, 
cream  of  tartar,  and  Rochelle  salts  or  tartrate  of  soda  and  potassa,  2| 
cents  per  pound ;  calcium  tartrate  crude,  5  per  centum  ad  valorem. 

9.  Balsams :  Copaiba,  fir  or  Canada,  Peru,  tolu,  and  all  other 
balsams,  which  are  natural  and  uncompounded  and  not  suitable  for  the 
manufacture  of  perfumery  and  cosmetics,  if  in  a  crude  state,  not  advanced 
in  value  or  condition  by  any  process  or  treatment  whatever  beyond  that 
essential  to  the  proper  packing  of  the  balsams  and  the  prevention  of  decay 
or  deterioration  pending  manufacture,  all  the  foregoing  not  specially 
provided  for  in  this  section,  10  per  centum  ad  valorem;  if  advanced  in 
value  or  condition  by  any  process  or  treatment  whatever  beyond  that 
essential  to  the  proper  packing  of  the  balsams  and  the  prevention  of  decay 
or  deterioration  pending  manufacture,  all  the  foregoing  not  specially  pro- 
vided for  in  this  section,  15  per  centum  ad  valorem:  Provided,  That  no 
article  containing  alcohol  shall  be  classified  for  duty  under  this  paragraph. 

10.  Barium,  chloride  of,  ^  cent  per  pound;  dioxide  of,  1^  cents  per 
pound;  carbonate  of,  precipitated,  15  per  centum  ad  valorem. 

11.  Blacking  of  all  kinds,  polishing  powders,  and  all  creams  and 
preparations  for  cleaning  or  polishing,  not  specially  provided  for  in  this 
section,  15  per  centum  ad  valorem:  Provided,  That  no  preparations  con- 
taining alcohol  shall  be  classified  for  duty  under  this  paragraph. 

12.  Bleaching  powder,  or  chloride  of  lime,  one-tenth  cent  per  pound. 

13.  Caftein,  $1  per  pound;  compounds  of  cafifein,  25  per  centum  ad 
valorem;  impure  tea,  tea  waste,  tea  siftings  or  sweepings,  for  manufac- 
turing purposes  in  bond,  pursuant  to  the  provisions  of  the  Act  of  May 
sixteenth,  nineteen  hundred  and  eight,  1  cent  per  pound. 

14.  Calomel,  corrosive  sublimate,  and  other  mercurial  preparations, 
15  per  centum  ad  valorem. 

15.  Chalk,  precipitated,  suitable  for  medicinal  or  toilet  purposes; 
chalk  put  up  in  the  form  of  cubes,  blocks,  sticks,  or  disks,  or  otherwise, 
including  tailors',  billiard,  red,  and  other  manufactures  of  chalk  not 
specially  provided  for  in  this  section,  25  per  centum  ad  valorem. 

16.  Chemical  and  medicinal  compounds  and  preparations,  including 
mixtures  and  salts,  distilled  oils,  essential  oils,  expressed  oils,  rendered 
oils,  greases,  ethers,  flavoring  and  other  extracts  and  fruit  essences,  and 


Tariff  Act,  Dutiable  List  367 

all  the  foregoing  and  their  combinations  when  containing  alcohol,  and  all 
articles  consisting  of  vegetable  or  mineral  objects  immersed  or  placed  in, 
or  saturated  with,  alcohol,  except  perfumery  and  spirit  varnishes,  and  all 
alcoholic  compounds  not  specially  provided  for  in  this  section,  if  con- 
taining 20  per  centum  of  alcohol  or  less,  10  cents  per  pound  and  20  per 
centum  ad  valorem ;  containing  more  than  20  per  centum  and  not  more 
than  50  per  centum  of  alcohol,  20  cents  per  pound  and  20  per  centum 
ad  valorem ;  containing  more  than  50  per  centum  of  alcohol,  40  cents  per 
pound  and  20  per  centum  ad  valorem. 

17.  Chemical  and  medicinal  compounds,  combinations  and  all  similar 
articles  dutiable  under  this  section,  except  soap,  whether  specially  pro- 
vided for  or  not,  put  up  in  individual  packages  of  two  and  one-half 
pounds  or  less  gross  weight  (except  samples  without  commercial  value) 
shall  be  dutiable  at  a  rate  not  less  than  20  per  centum  ad  valorem :  Pro- 
vided, That  chemicals,  drugs,  medicinal  and  similar  substances,  whether 
dutiable  or  free,  imported  in  capsules,  pills,  tablets,  lozenges,  troches, 
ampoules,  cubes,  or  similar  forms,  shall  be  dutiable  at  not  less  than  25 
per  centum  ad  valorem. 

18.  Chloral  hydrate,  salol,  phenolphthalein,  urea,  terpin  hydrate, 
acetanilid,  acetphenetidin,  antipyrine,  glycerophosphoric  acid  and  salts 
and  compounds  thereof,  acetylsalicylic  acid,  aspirin,  guiacol  carbonate, 
and  thymol,  25  per  centum  ad  valorem.  ^ 

19.  Chloroform,  2  cents  per  pound ;  carbon  tetrachloride,  1  cent 
per  pound. 

20.  Coal-tar  dyes  or  colors,  not  specially  provided  for  in  this  section, 
30  per  centum  ad  valorem. 

21.  All  other  products  or  preparations  of  coal  tar,  not  colors  or 
dyes,  not  specially  provided  for  in  this  section,  15  per  centum  ad  valorem. 

22.  Coal-tar  distillates,  not  specially  provided  for  in  this  section; 
benzol,  naphtol,  resorcin,  toluol,  xylol ;  all  the  foregoing  not  medicinal 
and  not  colors  or  dyes,  5  per  centum  ad  valorem. 

23.  Coal-tar  products  known  as  anilin  oil  and  salts,  toluidine, 
xylidin,  cumidin,  binitrotoluol,  binitrobenzol,  benzidin,  tolidin,  dianisidin, 
naphtylamin,  diphenylamin,  benzaldehyde,  benzyl  chloride,  nitro-benzol 
and  nitrotoluol,  naphyltaminsulfoacids  and  their  sodium  or  potassium 
salts,  naphtolsulfoacids  and  their  sodium  or  potassium  salts,  amidonaph- 
tolsulfoacids  and  their  sodium  or  potassium  salts,  amidosalicylic  acid, 
binitrochlorbenzol,  diamidostilbendisulfoacid,  metanilic  acid,  paranitrani- 
lin,  dimethylanilin ;  all  the  foregoing  not  medicinal  and  not  colors  or  dyes, 
10  per  centum  ad  valorem. 

24.  Cobalt,  oxide  of,  10  cents  per  pound. 

25.  Collodion  and  all  other  liquid  solutions  of  pyroxylin,  or  of  other 
cellulose  esters,  or  of  cellulose,  15  per  centum  ad  valorem;  compounds 
of  pyroxylin  or  of  other  cellulose  esters,  whether  known  as  celluloid  or 
by  any  other  name,  if  in  blocks,  sheets,  rods,  tubes,  or  other  forms  not 
polished,  wholly  or  partly,  and  not  made  into  finished  or  party  finished 


368  Important  Federal  Laws 

articles,  25  per  centum  ad  valorem;  if  polished,  wholly  or  partly,  or  if 
finished  or  partly  finished  articles,  of  which  collodion  or  any  compound 
of  pyroxylin  or  other  cellulose  esters,  by  whatever  name  known,  is  the 
component  material  of  chief  value,  40  per  centum  ad  valorem. 

26.  Coloring  for  brandy,  wine,  beer,  or  other  liquors,  40  per  centum 
ad  valorem. 

27.  Drugs,  such  as  barks,  beans,  berries,  buds,  bulbs,  bulbous  roots, 
excrescences,  fruits,  flowers,  dried  fibers,  dried  insects,  grains,  gums, 
herbs,  leaves,  lichens,  mosses,  roots,  stems,  vegetables,  seeds  (aromatic, 
not  garden  seeds),  seeds  of  morbid  growth,  and  weeds;  any  of  the  fore- 
going which  are  natural  and  uncompounded  drugs  and  not  edible,  and  not 
specially  provided  for  in  this  section,  but  which  are  advanced  in  value  or 
condition  by  shredding,  grinding,  chipping,  crushing,  or  any  other  process 
or  treatment  whatever  beyond  that  essential  to  the  proper  packing  of  the 
drugs  and  the  prevention  of  decay  or  deterioration  pending  manufacture, 
10  per  centum  ad  valorem :  Provided,  That  no  article  containing  alcohol 
shall  be  classified  for  duty  under  this  paragraph. 

28.  Ergot,  10  cents  per  pound. 

29.  Ethers :  Sulphuric,  4  cents  per  pound ;  amyl  nitrite,  20  per 
centum  ad  valorem ;  amyl  acetate  and  ethyl  acetate  or  acetic  ether,  5  cents 
per  pound ;  ethyl  chloride,  20  per  centvim  ad  valorem ;  ethers  and  esters 
of  all  kinds  not  specially  provided  for  in  this  section,  20  per  centum  ad 
valorem :  Provided,  That  no  article  containing  more  than  10  per  centum 
of  alcohol  shall  be  classified  for  duty  under  this  paragraph. 

30.  Extracts  and  decoctions  of  nutgalls,  Persian  berries,  sumac, 
logwood,  and  other  dyewoods,  and  all  extracts  of  vegetable  origin  suitable 
for  dyeing,  coloring,  or  staining,  not  specially  provided  for  in  this  section ; 
all  the  foregoing  not  containing  alcohol  and  not  medicinal,  f  of  1  cent 
per  pound. 

31.  Extract  of  chlorophyll,  15  per  centum  ad  valorem;  saffron  and 
safflower,  and  extract  of,  and  saft'ron  cake,  10  per  centum  ad  valorem: 
Provided,  That  no  article  containing  alcohol  shall  be  classified  for  duty 
under  this  paragraph. 

32.  Formaldehyde  solution  containing  not  more  than  40  per  centum 
of  formaldehyde,  or  formaline,  1  cent  per  pound. 

23.     Fusel  oil,  or  amylic  alcohol,  |  cent  per  pound. 

34.  Gelatin,  glue,  and  glue  size,  valued  not  above  10  cents  per  pound, 
1  cent  per  pound ;  valued  above  10  cents  per  pound  and  not  above  25 
cents  per  pound.  15  per  centum  ad  valorem;  valued  above  25  cents  per 
pound,  25  per  centum  ad  valorem ;  manufactures  of  gelatin  or  manufac- 
tures of  which  gelatin  is  the  component  material  of  chief  value,  25  per 
centum  ad  valorem;  isinglass  and  prepared  fish  sounds,  25  per  centum 
ad  valorem ;  agar-agar,  20  per  centum  ad  valorem. 

35.  Glycerin,  crude,  not  purified,  1  cent  per  pound;  refined,  2  cents 
per  pound. 

36.  Gums :     Amber,  and  amberoid  unmanufactured,  or  crude  gum. 


Tariff  Act,  Dutiable  List  369 

not  specially  provided  for  in  this  section,  $1  per  pound ;  arable,  or  Senegal, 
^  cent  per  pound ;  camphor,  crude,  natural,  1  cent  per  pound ;  camphor, 
refined  and  synthetic,  5  cents  per  pound;  chicle,  crude,  15  cents  per 
pound ;  refined  or  advanced  in  value  by  drying,  straining,  or  any  other 
process  or  treatment  whatever  beyond  that  essential  to  the  proper  pack- 
ing, 20  cents  per  pound  ;  dextrine,  made  from  potato  starch  or  potato  tlour, 
Ij  cents  per  pound ;  dextrine,  not  otherwise  provided  for,  burnt  starch  or 
British  gum,  dextrine  substitutes,  and  soluble  or  chemically  treated  starch, 
I  of  1  cent  per  pound. 

'hy .     Ink  and  ink  powders,  15  per  centum  ad  valorem. 

38.  Iodoform,  and  potassium  iodide,  15  cents  per  pound. 

39.  Leaves  and  roots :  Buchu  leaves,  10  cents  per  pound ;  coca 
leaves,  10  cents  per  pound ;  gentian,  \  cent  per  pound ;  licorice  root,  \  cent 
per  pound ;  sarsaparilla  root,  1  cent  per  pound. 

40.  Licorice,  extracts  of,  in  pastes,  rolls,  or  other  forms,  1  cent  per 
pound. 

41.  Lime,  citrate  of,  1  cent  per  pound. 

42.  Magnesia :  Calcined,  3^  cents  per  pound ;  carbonate  of,  pre- 
cipitated, 1^  cents  per  pound;  sulphate  of,  or  Epsom  salts,  one-tenth  cent 
per  pound. 

43.  Menthol,  50  cents  per  pound. 

44.  Oils,  rendered :  Sod,  seal,  herring,  and  other  fish  oil,  not  spe- 
cially provided  for  in  this  section,  3  cents  per  gallon;  whale  oil,  5  cents 
per  gallon ;  sperm  oil,  8  cents  per  gallon ;  wool  grease,  including  that 
known  commercially  as  degras  or  brown  wool  grease,  crude  and  not 
refined  or  improved  in  value  or  condition,  \  cent  per  pound;  refined  or 
improved  in  value  or  condition,  and  not  specially  provided  for  in  this 
section,  \  cent  per  pound ;  lanolin,  1  cent  per  pound ;  all  other  animal  oils, 
rendered  oils  and  greases,  and  all  combinations  of  the  same  not  specially 
provided  for  in  this  section,  15  per  centum  ad  valorem. 

45.  Oils,  expressed :  Alizarin  assistant,  sulphoricinoleic  acid,  and 
ricinoleic  acid,  and  soaps  containing  castor  oil,  any  of  the  foregoing  in 
whatever  form,  and  all  other  alizarin  assistants  and  all  soluble  greases 
used  in  the  processes  of  softening,  dyeing,  or  finishing,  not  specially  pro- 
vided for  in  this  section,  25  per  centum  ad  valorem;  castor  oil,  12  cents 
per  gallon ;  flaxseed  and  linseed  oil,  raw,  boiled,  or  oxidized,  10  cents  per 
gallon  of  7\  pounds;  poppy-seed  oil,  raw,  boiled,  or  oxidized,  rapeseed  oil, 
and  peanut  oil,  6  cents  per  gallon;  hempseed  oil,  3  cents  per  gallon; 
almond  oil,  sweet,  5  cents  per  pound ;  sesame  or  sesamum  seed  or  bean 
oil,  1  cent  per  pound ;  olive  oil,  not  specially  provided  for  in  this  section, 
.20  cents  per  gallon ;  olive  oil  in  bottles,  jars,  kegs,  tins,  or  other  packages 
having  a  capacity  of  less  than  five  standard  gallons  each,  30  cents  per 
gallon ;  all  other  expressed  oils  and  all  combinations  of  the  same,  not  spe- 
cially provided  for  in  this  section,  15  per  centum  ad  valorem. 

46.  Oils,  distilled  and  essential :  Orange  and  lemon,  10  per  centum 
.ad  valorem ;  peppermint,  25  cents  per  pound ;  mace  oil,  6  cents  per  pound ; 

(24) 


370  *      Important  Federal  Laws 

almond,  bitter ;  amber ;  ambergris ;  anise  or  anise  seed ;  bergamot ;  cam- 
omile ;  caraway  ;  cassia  ;  cinnamon  ;  cedrat ;  citronella  and  lemon-grass  ; 
civet;  fennel;  jasmine  or  jasimine;  juniper;  lavender,  and  aspic  or  spike 
lavender ;  limes ;  neroli  or  orange  flower ;  origanum,  red  or  wbite ;  rose- 
mary or  anthoss ;  attar  of  roses ;  thyme ;  and  valerian ;  all  the  foregoing 
oils,  and  all  fruit  ethers,  oils,  and  essences,  and  essential  and  distilled  oils 
and  all  combinations  of  the  same,  not  specially  provided  for  in  this  section, 
20  per  centum  ad  valorem :  Provided,  That  no  article  containing  alcohol 
shall  be  classified  for  duty  under  this  paragraph. 

47.  Opium,  crude  or  unmanufactured,  and  not  adulterated,  contain- 
ing 9  per  centum  and  over  of  morphia,  $3  per  pound ;  opium  of  the  same 
composition,  dried  to  contain  15  per  centum  or  less  of  moisture,  pow- 
dered, or  otherwise  advanced  beyond  the  condition  of  crude  or  unmanu- 
factured, $4  per  pound ;  morphia  or  morphine,  sulphate  of,  and  all  alka- 
loids of  opium,  and  salts  and  esters  thereof,  $3  per  ounce ;  cocaine,  ecgon- 
ine,  and  all  salts  and  derivatives  of  the  same,  $2  per  ounce ;  aqueous  ex- 
tract of  opium,  for  medicinal  uses,  and  tincture  of,  as  laudanum,  and  other 
liquid  preparations  of  opium,  not  specially  provided  for  in  this  section,  60 
per  centum  ad  valorem ;  opium  containing  less  than  9  per  centum  of 
morphia,  $6  per  pound ;  but  preparations  of  opium  deposited  in  bonded 
warehouses  shall  not  be  removed  therefrom  without  payment  of  duties, 
and  such  duties  shall  not  be  refunded:  Provided,  That  nothing  herein 
contained  shall  be  so  construed  as  to  repeal  or  in  any  manner  impair  or 
afJect  the  provisions  of  an  Act  entitled  "An  Act  to  prohibit  the  importa- 
tion and  use  of  opium  for  other  than  medicinal  purposes,"  approved  Feb- 
ruary ninth,  nineteen  hundred  and  nine. 

48.  Perfumery,  including  cologne  and  other  toilet  waters,  articles 
of  perfumery,  whether  in  sachets  or  otherwise,  and  all  preparations  used 
as  applications  to  the  hair,  mouth,  teeth,  or  skin,  such  as  cosmetics,  den- 
tifrices, including  tooth  soaps,  pastes,  including  theatrical  grease  paints, 
and  pastes,  pomades,  powders,  and  other  toilet  preparations,  all  the  fore- 
going, if  containing  alcohol,  40  cents  per  pound  and  60  per  centum  ad 
valorem ;  if  not  containing  alcohol,  60  per  centum  ad  valorem ;  floral  or 
flower  waters  containing  no  alcohol,  not  specially  provided  for  in  this 
section,  20  per  centum  ad  valorem, 

49.  Ambergris,  enfleurage  greases  and  floral  essences  by  whatever 
method  obtained ;  flavoring  extracts,  musk,  grained  or  in  pods,  civet,  and 
all  natural  or  synthetic  odoriferous  or  aromatic  substances,  preparations, 
and  mixtures  used  in  the  manufacture  of,  but  not  marketable  as,  per- 
fumes or  cosmetics ;  all  the  foregoing  not  containing  alcohol  and  not  spe- 
cially provided  for  in  this  section,  20  per  centum  ad  valorem. 

50.  Plasters,  healing  or  curative,  of  all  kinds,  and  court-plaster,  15 
per  centum  ad  valorem. 

51.  Baryta,  sulphate  of,  or  barytes,  including  barytes  earth,  un- 
manufactured, 15  per  centum  ad  valorem;  manufactured,  20  per  centum 


Tariff  Act,  Dutiable  List  371 

ad  valorem ;  blanc-fixe,  or  artificial  sulphate  of  barytes,  and  satin  white, 
or  artificial  sulphate  of  lime,  20  per  centum  ad  valorem. 

52.  Blues,  such  as  Berlin,  Prussian,  Chinese,  and  all  others,  contain- 
ing ferrocyanide  of  iron,  in  pulp,  dry  or  ground  in  or  mixed  virith  oil  or 
water,  20  per  centum  ad  valorem ;  ultramarine  blue,  whether  dry,  in  pulp, 
or  ground  in  or  mixed  with  oil  or  water,  and  wash  blue  containing  ultra- 
marine, 15  per  centum  ad  valorem. 

53.  Black  pigments,  made  from  bone,  ivory,  or  vegetable  sub- 
stance, by  whatever  name  known ;  gas  black  and  lampblack,  dry  or  ground 
in  or  mixed  with  oil  or  water,  15  per  centum  ad  valorem. 

54.  Chrome  yellow,  chrome  green,  and  all  other  chromium  colors  in 
the  manufacture  of  which  lead  and  bichromate  of  potash  or  soda  are 
used,  in  pulp,  dry,  or  ground  in  or  mixed  with  oil  or  water,  20  per  centum 
ad  valorem. 

55.  Ocher  and  ochery  earths,  sienna  and  sienna  earths,  and  umber 
and  umber  earths,  5  per  centum  ad  valorem ;  Spanish  brown,  Venetian 
red,  Indian  red,  and  colcothar  or  oxide  of  iron,  not  specially  provided  for 
in  this  section,  10  per  centum  ad  valorem. 

56.  Lead  pigments :  Litharge,  orange  mineral,  red  lead,  white  lead, 
and  all  pigments  containing  lead,  dry  or  in  pulp,  and  ground  or  mixed 
with  oil  or  water,  not  specially  provided  for  in  this  section,  25  per 
centum  ad  valorem. 

57.  Lead,  acetate  of,  white,  and  nitrate  of,  1^  cents  per  pound; 
acetate  of,  brown,  gray,  or  yellow,  1  cent  per  pound ;  all  other  lead  com- 
pounds not  specially  provided  for  in  this  section,  20  per  centum  ad  va- 
lorem. 

58.  Varnishes,  including  so-called  gold  size  or  japan,  10  per  centum 
ad  valorem :  Provided,  That  spirit  varnishes  containing  less  than  10  per 
centum  of  methyl  alcohol  of  the  total  alcohol  contained  therein,  shall  be 
dutiable  at  $1.32  per  gallon  and  15  per  centum  ad  valorem. 

59.  Vermilion  reds,  containing  quicksilver,  dry  or  ground  in  oil  or 
water,  15  per  centum  ad  valorem;  when  not  containing  quicksilver  but 
made  of  lead  or  containing  lead,  25  per  centum  ad  valorem. 

60.  Whiting  and  Paris  white,  dry,  and  chalk,  ground  or  bolted,  1-10 
cent  per  pound ;  whiting  and  Paris  white,  ground  in  oil,  or  putty,  15  per 
centum  ad  valorem. 

61.  Zinc,  oxide  of,  and  pigments  containing  zinc  but  not  containing 
more  than  5  per  centum  of  lead,  ground  dry,  10  per  centum  ad  valorem ; 
when  ground  in  or  mixed  with  oil  or  water,  lithopone  and  white  sulphide 
of  zinc,  15  per  centum  ad  valorem. 

62.  Zinc,  chloride  of  and  sulphate  of,  |  cent  per  pound. 

63.  Enamel  paints,  and  all  paints,  colors,  pigments,  stains,  crayons, 
including  charcoal  crayons  or  fusains,  smalts,  and  frostings,  and  all  cera- 
mic and  glass  fluxes,  glazes,  enamels,  and  colors,  whether  crude,  dry, 
mixed,  or  ground  with  water  or  oil  or  with  solutions  other  than  oil,  not 
specially   provided   for  in  this  section,    15  per  centum  ad  valorem;  all 


372  Important  Federal  Laws 

paints,  colors,  and  pigments  commonly  known  as  artists'  paints  or  colors, 
whether  in  tubes,  pans,  cakes,  or  other  forms,  20  per  centum  ad  valorem ; 
all  color  lakes,  whether  dry  or  in  pulp,  not  specially  provided  for  in  this 
section,  20  per  centum  ad  valorem. 

64.  Potash:  Bicarbonate  of,  refined,  and  chlorate  of,  |  cent  per 
pound;  chromate  and  bichromate  of,  1  cent  per  pound;  nitrate  of,  or  salt- 
peter, refined,  $7  per  ton ;  permanganate  of,  1  cent  per  pound ;  prussiate 
of,  red,  2  cents  per  pound;  yellow,  1^4  cents  per  pound. 

65.  Salts  and  all  other  compounds  and  mixtures  of  which  bismuth, 
gold,  platinum,  rhodium,  silver,  or  tin  constitute  the  element  of  chief 
value,  10  per  centum  ad  valorem. 

66.  Soaps :  Perfumed  toilet  soaps,  30  per  centum  ad  valorem ;  me- 
dicinal soaps,  20  per  centum  ad  valorem;  castile  soap,  and  unperfumed 
toilet  soap,  10  per  centum  ad  valorem ;  all  other  soaps  and  soap  powder 
not  specially  provided  for  in  this  section,  5  per  centum  ad  valorem. 

67.  Soda:  Benzoate  of,  5  cents  per  pound;  chlorate  of,  and  nitrite 
of,  i  cent  per  pound ;  bicarbonate  of,  or  supercarbonate  of,  or  saleratus, 
and  other  alkalies  containing  50  per  centum  or  more  of  bicarbonate  of 
soda ;  hydrate  of,  or  caustic ;  phosphate  of ;  hyposulphite  of ;  sulphid  of, 
and  sulphite  of,  %  cent  per  pound;  chromate  and  bichromate  of,  and 
yellow  prussiate  of,  ^  cent  per  pound ;  borate  of,  or  borax  refined ;  crystal 
carbonate  of,  monohydrate,  and  sesquicarbonate  of;  sal  soda,  and  soda 
crystals,  ys  cent  per  pound ;  and  sulphate  of  soda  crystallized,  or  Glauber 
salts,  $1  per  ton.  _ 

68.  Sponges:  Trimmed  or  untrimmed  but  not  advanced  m  value 
by  chemical  processes,  10  per  centum  ad  valorem ;  bleached  sponges  and 
sponges  advanced  in  value  by  processes  involving  chemical  operations, 
manufactures  of  sponges,  or  of  which  sponge  is  the  component  material 
of  chief  value,  not  specially  provided  for  in  this  section,  15  per  centum 
ad  valorem. 

69.  Talcum,  ground  talc,  steatite,  and  French  chalk,  cut,  powdered, 
washed,  or  pulverized,  15  per  centum  ad  valorem. 

70.  Vanillin,  10  cents  per  ounce ;  vanilla  beans,  30  cents  per  pound ; 
tonka  beans,  25  cents  per  pound. 

Schedule  B — Earths,  Earthenware,  and  Glassware. 

71.  Fire  brick,  magnesite  brick,  chrome  brick,  and  brick  not  spe- 
cially provided  for  in  this  section,  not  glazed,  enameled,  painted,  vitrified, 
ornamented,  or  decorated  in  any  manner,  10  per  centum  ad  valorem;  if 
glazed,  enameled,  painted,  vitrified,  ornamented,  or  decorated  in  any  man- 
ner, and  bath  brick,  15  per  centum  ad  valorem. 

72.  Tiles,  plain  unglazed,  one  color,  exceeding  two  square  inches  in 
size,  U  cents  per  square  foot;  glazed,  ornamented,  hand-painted,  en- 
ameled, vitrified,  semivitrified,  decorated,  encaustic,  ceramic  mosaic,  flmt, 
spar,  embossed,  gold  decorated,  grooved  and  corrugated,  and  all  other 


Tariff  Act,  Dutiable  List  373 

earthenware  tiles  and  tiling,  except  pill  tiles  and  so-called  quarries  or 
quarry  tiles,  but  including  tiles  wholly  or  in  part  of  cement,  5  cents  per 
square  foot ;  so-called  quarries  or  quarry  tiles,  20  per  centum  ad  valorem ; 
mantels,  friezes,  and  articles  of  every  description  or  parts  thereof,  com- 
posed wholly  or  in  chief  value  of  earthenware  tiles  or  tiling,  except  pill 
tiles,  30  per  centum  ad  valorem. 

7Z.     Lime,  5  per  centum  ad  valorem. 

74.  Plaster  rock  or  gypsum,  crude,  ground  or  calcined,  pearl  hard- 
ening for  paper  makers'  use ;  white,  non-staining  Portland  cement,  Keene's 
cement,  or  other  cement  of  which  gypsum  is  the  component  material  of 
chief  value,  and  all  other  cements  not  specially  provided  for  in  this  sec- 
tion, 10  per  centum  ad  valorem. 

75.  Pumice  stone,  unmanufactured,  5  per  centum  ad  valorem; 
wholly  or  partially  manufactured,  J4  cent  per  pound ;  manufactures  of 
pumice  stone,  or  of  which  pumice  stone  is  the  component  material  of 
chief  value,  not  specially  provided  for  in  this  section,  25  per  centum  ad 
valorem. 

76.  Clays  or  earths,  unwrought  or  unmanufactured,  not  specially 
provided  for  in  this  section,  50  cents  per  ton ;  wrought  or  manufactured, 
not  specially  provided  for  in  this  section,  $1  per  ton  ;  china  clay  or  kaolin, 
$L25  per  ton  ;  fuller's  earth,  unwrought  and  unmanufactured,  75  cents 
per  ton;  wrought  or  manufactured,  $L50  per  ton;  flourspar,  $1.50  per 
ton :  Provided,  That  the  weight  of  the  casks  or  other  containers  shall  be 
included  in  the  dutiable  weight. 

77.  Mica,  unmanufactured,  valued  at  not  above  15  cents  per  pound, 
4  cents  per  pound;  valued  above  15  cents  per  pound.  25  per  centum  ad 
valorem  ;  cut  mica,  mica  splittings,  built-up  mica,  and  all  manufactures 
of  mica,  or  of  which  mica  is  the  component  material  of  chief  value,  30 
per  centum  ad  valorem ;  ground  mica,  15  per  centum  ad  valorem. 

78.  Common  yellow,  brown,  or  gray  earthenware  made  of  natural 
unwashed  and  unmixed  clay ;  plain  or  embossed,  common  salt-glazed 
stoneware ;  stoneware  and  earthenware  crucibles ;  all  the  foregoing,  not 
ornamented,  incised,  or  decorated  in  any  manner,  15  per  centum  ad 
valorem;  if  ornamented,  incised,  or  decorated  in  any  manner  and  manu- 
factures wholly  or  in  chief  value  of  such  ware,  not  specially  provided  for 
in  this  section,  20  per  centum  ad  valorem ;  Rockingham  earthenware, 
30  per  centum  ad  valorem. 

79.  Earthenware  and  crockery  ware  composed  of  a  nonvitrified  ab- 
sorbent body,  including  white  granite  and  semiporcelain  earthenware,  and 
cream-colored  ware,  and  stoneware,  including  clock  cases  with  or  with- 
out movements,  pill  tiles,  plaques,  ornaments,  toys,  charms,  vases,  statues, 
statuettes,  mugs,  cups,  steins,  lamps,  and  all  other  articles  composed  wholly 
or  in  chief  value  of  such  ware ;  if  plain  white,  plain  yellow,  plain  brown, 
plain  red.  or  plain  black,  not  painted,  colored,  tinted,  stained,  enameled, 
gilded,  printed,  ornamented  or  decorated  in  any  manner,  and  manufac- 
tures in  chief  value  of  such  ware  not  specially  provided  for  in  this  section, 


374  Important  Federal  Laws 

35  per  centum  ad  valorem ;  if  painted,  colored,  tinted,  stained,  enameled, 
gilded,  printed,  or  ornamented  or  decorated  in  any  manner,  and  manufac- 
tures in  chief  value  of  such  ware  not  specially  provided  for  in  this  section, 
40  per  centum  ad  valorem. 

80.  China  and  porcelain  wares  composed  of  a  vitrified  nonabsorbent 
body  which  when  broken  shows  a  vitrified  or  vitreous,  or  semivitrified 
or  semivitreous  fracture,  and  all  bisque  and  parian  wares,  including 
clockcases  with  or  without  movements,  plaques,  ornaments,  toys,  charms, 
vases,  statues,  statuettes,  mugs,  cups,  steins,  lamps,  and  all  other  articles 
composed  wholly  or  in  chief  value  of  such  ware,  if  plain  white,  or  plain 
brown,  not  painted,  colored,  tinted,  stained,  enameled,  gilded,  printed,  or 
ornamented  or  decorated  in  any  manner ;  and  manufactures  in  chief  value 
of  such  ware  not  specially  provided  for  in  this  section,  50  per  centum  ad 
valorem ;  if  painted,  colored,  tinted,  stained,  enameled,  gilded,  printed,  or 
ornamented  or  decorated  in  any  manner  and  manufactures  in  chief  value 
of  such  ware  not  specially  provided  for  in  this  section,  55  per  centum  ad 
valorem. 

81.  Earthy  or  mineral  substances  wholly  or  partially  manufactured 
and  articles  and  wares  composed  wholly  or  in  chief  value  of  earthy  or 
mineral  substances,  not  specially  provided  for  in  this  section,  whether 
susceptible  of  decoration  or  not,  if  not  decorated  in  any  manner,  20  per 
centum  ad  valorem;  if  decorated,  25  per  centum  ad  valorem;  unman- 
ufactured carbon,  not  specially  provided  for  in  this  section,  15  per  centum 
ad  valorem ;  electrodes  for  electric  furnaces,  electrolytic  and  battery  pur- 
poses, brushes,  plates,  and  disks,  all  the  foregoing  composed  wholly  or  in 
chief  value  of  carbon,  25  per  centum  ad  valorem ;  manufactures  of  carbon 
not  specially  provided  for  in  this  section,  20  per  centum  ad  valorem. 

82.  Gas  retorts,  10  per  centum  ad  valorem ;  lava  tips  for  burners, 
15  per  centum  ad  valorem;  carbons  for  electric  lighting,  wholly  or  partly 
finished,  made  entirely  from  petroleum  coke,  15  cents  per  hundred  feet;  if 
composed  chiefly  of  lampblack  or  retort  carbon,  40  cents  per  hundred 
feet;  carbons  for  flaming  arc  lamps,  not  specially  provided  for  in  this  sec- 
tion, and  filter  tubes,  30  per  centum  ad  valorem ;  porous  carbon  pots  for 
electric  batteries,  15  per  centum  ad  valorem. 

83.  Plain  green  or  colored,  molded  or  pressed,  and  flint,  lime,  or 
lead  glass  bottles,  vials,  jars,  and  covered  and  uncovered  demijohns,  and 
carboys,  any  of  the  foregoing,  filled  or  unfilled,  not  otherwise  specially 
provided  for  in  this  section,  and  whether  their  contents  be  dutiable  or 
free  (except  such  as  contain  merchandise  subject  to  an  ad  valorem  rate  of 
duty,  or  to  a  rate  of  duty  based  in  whole  or  in  part  upon  the  value  thereof 
which  shall  be  dutiable  at  the  rate  applicable  to  their  contents),  30  per 
centum  ad  valorem:  Provided,  That  the  terms  bottles,  vials,  jars,  demi- 
johns, and  carboys,  as  used  herein,  shall  be  restricted  to  such  articles 
when  suitable  for  use  as  and  of  the  character  ordinarily  employed  as  con- 
tainers for  the  holding  or  transportation  of  merchandise,  and  not  as  appli- 
ances or  implements  in  chemical  or  other  operations. 


Tariff  Act,  Dutiable  List  375 

84.  Glass  bottles,  decanters,  and  all  articles  of  every  description 
composed  wholly  or  in  chief  value  of  glass,  ornamented  or  decorated  in 
any  manner,  or  cut,  engraved,  painted,  decorated,  ornamented,  colored, 
stained,  silvered,  gilded,  etched,  sand  blasted,  frosted,  or  printed  in  any 
manner,  or  ground  (except  such  grinding  as  is  necessary  for  fitting  stop- 
pers or  for  purposes  other  than  ornamentation),  and  all  articles  of  every 
description,  including  bottles  and  bottle  glassware,  composed  wholly  or 
in  chief  value  of  glass  blown  either  in  a  mold  or  otherwise;  all  of  the 
foregoing,  not  specially  provided  for  in  this  section,  filled  or  unfilled,  and 
whether  their  contents  be  dutiable  or  free,  45  per  centum  ad  valorem; 
Provided,  That  for  the  purposes  of  this  Act,  bottles  with  cut-glass  stop- 
pers shall,  with  the  stoppers,  be  deemeid  entireties. 

85.  Unpolished,  cylinder,  crown,  and  common  window  glass,  not  ex- 
ceeding one  hundred  and  fifty  square  inches,  %  of  1  cent  per  pound; 
above  that,  and  not  exceeding  three  hundred  and  eighty-four  square 
inches,  1  cent  per  pound ;  above  that,  and  not  exceeding  seven  hundred 
and  twenty  square  inches,  lyi  cents  per  pound;  above  that,  and  not  ex- 
ceeding one  thousand  two  hundred  square  inches,  1|  cents  per  pound; 
above  that,  and  not  exceeding  two  thousand  four  hundred  square  inches, 
1%  cents  per  pound;  above  that,  2  cents  per  pound:  Provided,  That 
unpolished,  cylinder,  crown,  and  common  window  glass,  imported  in 
boxes,  shall  contain  fifty  square  feet,  as  nearly  as  sizes  will  permit,  and 
the  duty  shall  be  computed  thereon  according  to  the  actual  weight  of 
glass. 

86.  Cylinder  and  crown  glass,  polished,  not  exceeding  three  hundred 
and  eighty-four  square  inches,  3  cents  per  square  foot ;  above  that,  and 
not  exceeding  seven  hundred  and  twenty  square  inches,  4  cents  per  square 
foot ;  above  that,  and  not  exceeding  one  thousand  four  hundred  and 
forty  square  inches,  7  cents  per  square  foot ;  above  that,  10  cents  per 
square  foot. 

87.  Fluted,  rolled,  ribbed,  or  rough  plate  glass,  or  the  same  con- 
taining a  wire  netting  within  itself,  not  including  crown,  cylinder,  or 
common  window  glass,  not  exceeding  three  hundred  and  eighty-four 
square  inches,  ^  cent  per  square  foot ;  all  above  that,  1  cent  per  square 
foot ;  and  all  fluted,  rolled,  ribbed,  or  rough  plate  glass,  weighing  over 
one  hundred  pounds  per  one  hundred  square  feet,  shall  pay  an  additional 
duty  on  the  excess  at  the  same  rates  herein  imposed :  Provided,  That  all 
of  the  above  plate  glass,  when  ground,  smoothed,  or  otherwise  obscured, 
shall  be  subject  to  the  same  rate  of  duty  as  cast  polished  plate  glass  un- 
silvered. 

88.  Cast  polished  plate  glass,  finished  or  unfinished  and  unsilvered, 
or  the  same  containing  a  wire  netting  within  itself,  not  exceeding  three 
hundred  and  eighty-four  square  inches,  6  cents  per  square  foot ;  above 
that,  and  not  exceeding  seven  hundred  and  twenty  square  inches,  8  cents 
per  square  foot ;  all  above  that,  12  cents  per  square  foot. 

89.  Cast  polished  plate  glass,  silvered,  cylinder  and  crown  glass,  sil- 


376  Important  Federal  Laws 

vered,  and  looking-glass  plates  exceeding  in  size  one  hundred  and  forty- 
four  square  inches,  shall  be  subject  to  a  duty  of  1  cent  per  square  foot  in 
addition  to  the  rates  otherwise  chargeable  on  such  glass  unsilvered :  Pro- 
vided, That  no  looking-glass  plates  or  glass  silvered,  when  framed,  shall 
pay  a  less  rate  of  duty  than  that  imposed  upon  similar  glass  of  like  de- 
scription not  framed,  but  shall  pay  in  addition  thereto  upon  such  frames 
the  rate  of  duty  applicable  thereto  when  imported  separate. 

90.  Cast  polished  plate  glass,  silvered  or  unsilvered,  and  cylinder, 
crown,  or  common  window  glass,  silvered  or  unsilvered,  polished  or  un- 
polished, when  bent,  ground,  obscured,  frosted,  sanded,  enameled,  bev- 
eled, etched,  embossed,  engraved,  flashed,  stained,  colored,  painted,  orna- 
mented or  decorated,  shall  be  subject  to  a  duty  of  4  per  centum  ad 
valorem  in  addition  to  the  rates  otherwise  chargeable  thereon. 

91.  Spectacles,  eyeglasses,  and  goggles,-  and  frames  for  the  same,  or 
parts  thereof,  finished  or  unfinished,  35  per  centum  ad  valorem. 

92.  Lenses  of  glass  or  pebble,  molded  or  pressed,  or  ground  and 
polished  to  a  spherical,  cylindrical,  or  prismatic  form,  and  ground  and 
polished  piano  or  coquill  glasses,  wholly  or  partly  manufactured,  strips 
of  glass,  not  more  than  three  inches  wide,  ground  or  polished  on  one  or 
both  sides  to  a  cylindrical  or  prismatic  form,  including  those  used  in  the 
construction  of  gauges,  and  glass  slides  for  magic  lanterns,  25  per  centum 
ad  valorem. 

93.  Opera  and  field  glasses,  optical  instruments  and  frames  and 
mountings  for  the  same ;  all  the  foregoing  not  specially  provided  for  in 
this  section,  35  per  centum  ad  valorem. 

94.  Surveying  instruments,  telescopes,  microscopes,  photographic 
and  projection  lenses,  and  frames  and  mountings  for  the  same,  25  per 
centum  ad  valorem. 

95.  Stained  or  painted  glass  windows,  or  parts  thereof,  and  all  mir- 
ror's, not  exceeding  in  size  one  hundred  and  forty-four  sc[uare  inches, 
with  or  without  frames  or  cases ;  incandescent  electric-light  bulbs  and 
lamps,  with  or  without  filaments;  and  all  glass  or  manufactures  of  glass 
or  paste  or  of  which  glass  or  paste  is  the  component  material  of  chief 
value,  not  specially  provided  for  in  this  section,  30  per  centum  ad 
valorem. 

96.  Fusible  and  glass  enamel,  not  specially  provided  for  in  this  sec- 
tion, 20  per  centum  ad  valorem ;  opal  or  cylinder  glass  tiles  or  tiling,  30 
per  centum  ad  valorem. 

97.  Marble,  breccia,  and  onyx,  in  block,  rough  or  squared  only,  50 
cents  per  cubic  foot ;  marble,  breccia,  and  onyx,  sawed  or  dressed,  over 
two  inches  in  thickness,  75  cents  per  cubic  foot ;  slabs  or  paving  tiles  of 
marble  or  onyx,  containing  not  less  than  four  superficial  inches,  if  not 
more  than  one  inch  in  thickness,  6  cents  per  superficial  foot ;  if  more 
than  one  inch  and  not  more  than  one  and  one-half  inches  in  thickness,  8 
cents  per  superficial  foot;  if  more  than  one  and  one-half  inches  and  not 
more  than  two  inches  in  thickness,  10  cents  per  superficial  foot;  if  rubbed 


Tariff  Act,  Dutiable  List  ZIJ 

in  whole  or  in  part,  2  cents  per  superficial  foot  in  addition ;  mosaic  cubes 
of  marble  or  onyx,  not  exceeding  two  cubic  inches  in  size,  if  loose,  20 
per  centum  ad  valorem;  if  attached  to  paper  or  other  material,  35  per 
centum  ad  valorem. 

98.  Marble,  breccia,  onyx,  alabaster,  and  jet,  wholly  or  partly  man- 
ufactured into  monuments,  benches,  vases,  and  other  articles,  or  of  which 
these  substances  or  either  of  them  is  the  component  material  of  chief 
value,  and  all  articles  composed  wholly  or  in  chief  value  of  agate,  rock 
crystal,  or  other  semiprecious  stones,  except  such  as  are  cut  into  shapes 
and  forms  fitting  them  expressly  for  use  in  the  construction  of  jewelry, 
not  specially  provided  for  in  this  section,  45  per  centum  ad  valorem. 

99.  Freestone,  granite,  sandstone,  limestone,  lava,  and  all  other  stone 
suitable  for  use  as  monumental  or  building  stone,  except  marble,  breccia, 
and  onyx,  not  specially  provided  for  in  this  section,  hewn,  dressed,  or 
polished,  or  otherwise  manufactured,  25  per  centum  ad  valorem ;  unman- 
ufactured, or  not  dressed,  hewn,  or  polished,  3  cents  per  cubic  foot. 

100.  Grindstones,  finished  or  unfinished,  $1.50  per  ton. 

101.  Slates,  slate  chimney  pieces,  mantels,  slabs  for  tables,  roofing 
slates,  and  all  other  manufactures  of  slate,  not  specially  provided  for  in 
this  section,  10  per  centum  ad  valorem. 

Schedule  C — Metals  and  Manufactures  of. 

102.  Chrome  or  chromium  metal,  ferrochrome  or  ferrochromium, 
ferromolybdenum,  ferrophosphorus,  ferrotitanium,  ferrotungsten,  ferro- 
vanadium.  molybdenum,  titanium,  tantalum,  tungsten  or  wolfram  metal, 
and  ferrosilicon,  and  other  alloys  used  in  the  manufacture  of  steel,  not 
specially  provided  for  in  this  section,  15  per  centum  ad  valorem. 

103.  Muck  bars,  bar  iron,  square  iron,  rolled  or  hammered,  round 
iron,  in  coils  or  rods,  bars  or  shapes  of  rolled  or  hammered  iron  not 
specially  provided  for  in  this  section,  5  per  centum  ad  valorem. 

104.  Beams,  girders,  joists,  angles,  channels,  car-truck  channels, 
TT,  columns  and  posts  or  parts  or  sections  of  columns  and  posts,  deck 
and  bulb  beams,  sashes,  frames,  and  building  forms,  together  with  all 
other  structural  shapes  of  iron  or  steel,  whether  plain,  punched,  or  fitted 
for  use,  or  whether  assembled  or  manufactured,  10  per  centum  ad  va- 
lorem. 

105.  Boiler  or  other  plate  iron  or  steel,  and  strips  of  iron  or  steel, 
not  specially  provided  for  in  this  section  ;  sheets  of  iron  or  steel,  common 
or  black,  of  whatever  dimensions,  whether  plain,  corrugated  or  crimped, 
including  crucible  plate  steel  and  saw  plates,  cut  or  sheared  to  shape  or 
otherwise,  or  unsheared,  and  skelp  iron  or  steel,  whether  sheared  or  rolled 
in  grooves,  or  otherwise,  12  per  centum  ad  valorem. 

106.  Iron  or  steel  anchors  or  parts  thereof  ;  forgings  of  iron  or  steel, 
or  of  combined  iron  and  steel,  but  not  machined,  tooled,  or  otherwise 
advanced  in  condition  by  any  process  or  operation  subsequent  to  the 
forging  process,  not  specially  provided  for  in  this  section,  12  per  centum 


378  Important  Federal  Laws 

ad  valorem ;  antifriction  balls,  ball  bearings,  and  roller  bearings,  of  iron 
or  steel  or  other  metal,  finished  or  untinished,  and  parts  thereof,  35  per 
centum  ad  valorem. 

107.  Hoop,  band,  or  scroll  iron  or  steel  not  otherv^rise  provided  for 
in  this  section,  and  barrel  hoops  of  iron  or  steel,  wholly  or  partly  manu- 
factured, 10  per  centum  ad  valorem. 

108.  Railway  fishplates  or  splice  bars  made  of  iron  or  steel,  10 
per  centum  ad  valorem. 

109.  All  iron  or  steel  sheets,  plates,  or  strips,  and  all  hoop,  band, 
or  scroll  iron  or  steel,  when  galvanized  or  coated  with  zinc,  spelter,  or 
other  metals,  or  any  alloy  of  those  metals;  sheets  or  plates  composed 
of  iron,  steel,  copper,  nickel,  or  other  metal  with  layers  of  other  metal 
or  metals  imposed  thereon  by  forging,  hammering,  rolling,  or  welding; 
sheets  of  iron  or  steel,  polished,  planished,  or  glanced,  by  whatever  name 
designated,  including  such  as  have  been  pickled  or  cleaned  by  acid,  or  by 
any  other  material  or  process,  or  which  are  cold  rolled,  smoothed  only, 
not  polished,  and  such  as  are  cold  hammered,  blued,  brightened,  tem- 
pered, or  polished  by  any  process  to  such  perfected  surface  finish  or  pol- 
ish better  than  the  grade  of  cold  rolled,  smoothed  only;  and  sheets  or 
plates  of  iron  or  steel,  or  taggers  iron  or  steel,  coated  with  tin  or  lead,  or 
with  a  mixture  of  which  these  metals,  or  either  of  them  is  a  component 
part,  by  the  dipping  or  any  other  process,  and  commercially  known  as 
tin  plates,  terne  plates,  and  taggers  tin,  and  tin  plates  coated  with  metal, 
and  metal  sheets  decorated  in  colors  or  coated  with  nickel  or  other  metals 
by  dipping,  printing,  stenciling,  or  other  process,  15  per  centum  ad  va- 
lorem. 

110.  Steel  bars,  and  tapered  or  beveled  bars ;  mill  shafting;  pressed, 
sheared,  or  stamped  shapes,  not  advanced  in  value  or  condition  by  any 
process  or  operation  subsequent  to  the  process  of  stamping;  hammer 
molds  or  swaged. steel ;  gun-barrel  molds  not  in  bars;  all  descriptions  and 
shapes  of  dry  sand,  loam,  or  iron  molded  steel  castings,  sheets,  and  plates ; 
all  the  foregoing,  if  made  by  the  Bessemer,  Siemens-Martin,  open-hearth, 
or  similar  processes,  not  containing  alloys,  such  as  nickel,  cobalt,  vanad- 
ium, chromium,  tungsten  or  wolfram,  molybdenum,  titanium,  iridium, 
uranium,  tantalum,  boron,  and  similar  alloys,  8  per  centum  ad  valorem ; 
steel  ingots,  cogged  ingots,  blooms  and  slabs,  die  blocks  or  blanks ;  billets 
and  bars  and  tapered  or  beveled  bars ;  pressed,  sheared,  or  stamped  shapes 
not  advanced  in  value  or  condition  by  any  process  or  operation  subse- 
quent to  the  process  of  stamping;  hammer  molds  or  swaged  steel;  gun- 
barrel  molds  not  in  bars ;  alloys  used  as  substitutes  for  steel  in  the  man- 
ufacture of  tools ;  all  descriptions  and  shapes  of  dry  sand,  loam,  or  iron 
molded  castings,  sheets  and  plates ;  rolled  wire  rods  in  coils  or  bars  not 
smaller  than  twenty  one-hundredths  of  one  inch  in  diameter,  and  steel 
not  specially  provided  for  in  this  section,  all  the  foregoing  when  made 
by  the  crucible,  electric,  or  cementation  process,  either  with  or  without 
alloys,  and  finished  by  rolling,  hammering,  or  otherwise,  and  all  steels  by 


Tariff  Act,  Dutiable  List  379 

whatever  process  made,  containing  alloys  such  as  nickel,  cobalt,  vanadium, 
chromium,  tungsten,  wolfram,  molybdenum,  titanium,  iridium,  uranium, 
tantalum,  boron,  and  similar  alloys,  15  per  centum  ad  valorem. 

HI.     Steel  wool  or  steel  shavings,  20  per  centum  ad  valorem. 

1 12.  Grit,  shot,  and  sand  made  of  iron  or  steel,  that  can  be  used  as 
abrasives,  30  per  centum  ad  valorem. 

113.  Rivet,  screw,  fence,  nail,  and  other  iron  or  steel  wire  rods, 
whether  round,  oval,  or  square,  or  in  any  other  shape,  and_  flat  rods  up 
to  six  inches  in  width  ready  to  be  drawn  or  rolled  into  wire  or  strips, 
all  the  foregoing  in  coils  or  otherwise,  including  wire  rods  and  iron 
or  steel  bars,  cold  rolled,  cold  drawn,  cold  hammered,  or  polished  in  any 
way  in  addition  to  the  ordinary  process  of  hot  rolling  or  hammering,  not 
specially  provided  for  in  this  section,  10  per  centum  ad  valorem :  Pro- 
vided, That  all  round  iron  or  steel  rods  smaller  than  twenty  one-hun- 
dredths  of  one  inch  in  diameter  shall  be  class"ed  and  dutiable  as  wire. 

114.  Round  iron  or  steel  wire;  wire  composed  of  iron,  steel,  or 
other  metal,  except  gold  or  silver,  covered  with  cotton,  silk,  or  other  mate- 
rial; corset  clasps,  corset  steels,  dress  steels,  and  all  flat  wires  and  steel 
in  strips  not  thicker  than  number  fifteen  wire  gauge  and  not  exceeding 
five  inches  in  width,  whether  in  long  or  short  lengths,  in  coils  or  other- 
wise, and  whether  rolled  or  drawn  through  dies  or  rolls,  or  otherwise 
produced ;  telegraph,  telephone,  and  other  wires  and  cables  composed  of 
metal  and  rubber,  or  of  metal,  rubber,  and  other  materials ;  iron  and 
steel  wire  coated  by  dipping,  galvanizing,  or  similar  process  with  zinc,  tin, 
or  other  metal ;  all  other  wire  not  specially  provided  for  in  this  section 
and  articles  manufactured  wholly  or  in  chief  value  of  any  wire  or  wires 
provided  for  in  this  section;  all  the  foregoing  15  per  centum  ad  valorem; 
wire  heddles  and  healds,  25  per  centum  ad  valorem;  wire  rope,  30  per 
centum  ad  valorem. 

115.  No  article  not  specially  provided  for  in  this  section,  which  is 
wholly  or  partly  manufactured  from  tin  plate,  terne  plate,  or  the  sheet, 
plate,  hoop,  band,  or  scroll  iron  or  steel  herein  provided  for,  or  of  which 
such  tin  plate,  terne  plate,  sheet,  plate,  hoop,  band,  or  scroll  iron  or  steel 
shall  be  the  material  of  chief  value,  shall  pay  a  lower  rate  of  duty  than 
that  imposed  on  the  tin  plate,  terne  plate,  or  sheet,  plate,  hoop,  band,  or 
scroll  iron  or  steel  from  which  it  is  made,  or  of  which  it  shall  be  the 
component  thereof  of  chief  value. 

116.  No  allowance  or  reduction  of  duties  for  partial  loss  or  damage 
in  consequence  of  rust  or  of  discoloration  shall  be  made  upon  any  de- 
scription of  iron  or  steel,  or  upon  any  article  wholly  or  partly  manufac- 
tured of  iron  or  steel,  or  upon  any  manufacture  of  iron  or  steel. 

117.  All  metal  produced  from  iron  or  its  ores,  which  is  cast  and 
malleable,  of  whatever  description  or  form,  without  regard  to  the  per- 
centage of  carbon  contained  therein,  whether  produced  by  cementation, 
or  converted,  cast,  or  made  from  iron  or  its  ores,  by  the  crucible,  Besse- 
mer, Clapp-Grif^th,  pneumatic,  Thomas-Gilchrist,  basic  Siemens-Martin, 


380  Important  Federal  Laws 

or  open-hearth  process,  or  by  the  equivalent  of  either,  or  by  a  combination 
of  two  or  more  of  the  processes,  or  their  equivalents,  or  by  any  fusion  or 
other  process  which  produces  from  iron  or  its  ores  a  metal  either  granular 
or  fibrous  in  structure,  which  is  cast  and  malleable,  excepting  what  is 
known  as  malleable-iron  castings,  shall  be  classed  and  denominated  as 
steel. 

118.  Anvils  of  iron  or  steel,  or  of  iron  and  steel  combined,  by  what- 
ever process  made,  or  in  whatever  stage  of  manufacture,  15  per  centum 
ad  valorem. 

119.  Automobiles,  valued  at  $2,CXX)  or  more,  and  automobile  bodies, 
45  per  centum  ad  valorem ;  automobiles  valued  at  less  than  $2,000,  30 
per  centum  ad  valorem ;  automobile  chassis,  and  finished  parts  of  automo- 
biles, not  including  tires,  30  per  centum  ad  valorem. 

120.  Bicycles,  motor  cycles,  and  finished  parts  thereof,  not  including 
tires,  25  per  centum  ad  valor-em. 

121.  Axles,  or  parts  thereof,  axle  bars,  axle  blanks,  or  forgings  for 
axles,  whether  of  iron  or  steel,  without  reference  to  the  stage  or  state  of 
manufacture,  not  otherwise  provided  for  in  this  section,  10  per  centum 
ad  valorem :  Provided,  That  when  iron  or  steel  axles  are  imported  fitted 
in  wheels,  or  parts  of  wheels,  of  iron  or  steel,  they  shall  be  dutiable  at 
the  same  rate  as  the  wheels  in  which  they  are  fitted. 

122.  Blacksmiths'  hammers,  tongs,  and  sledges,  track  tools,  wedges, 
and  crowbars,  whether  of  iron  or  steel,  10  per  centum  ad  valorem. 

123.  Nuts  or  nut  blanks,  and  washers,  5  per  centum  ad  valorem; 
bolts  of  iron  or  steel,  with  or  without  threads  or  nuts,  or  bolt  blanks, 
finished  hinges  or  hinge  blanks,  10  per  centum  ad  valorem ;  spiral  nut 
locks  and  lock  washers,  whether  of  iron  or  steel,  30  per  centum  ad 
valorem. 

124.  Card  clothing  not  actually  and  permanently  fitted  to  and  at- 
tached to  carding  machines  or  to  parts  thereof  at  the  time  of  importa- 
tion, when  manufactured  with  round  iron  or  untempered  round  steel  wire, 
10  per  centum  ad  valorem ;  when  manufactured  with  tempered  round 
steel  wire,  or  with  plated  wire  or  other  than  round  iron  or  steel  wire,  or 
with  felt  face,  or  wool  face,  or  rubber  face  cloth  containing  wool,  35  per 
centum  ad  valorem. 

125.  Cast  iron  pipe  of  every  description,  cast-iron  andirons,  plates, 
stove  plates,  sadirons,  tailor's  irons,  hatter's  irons,  and  castings  and  ves- 
sels wholly  of  cast  iron,  including  all  castings  of  iron  or  cast-iron  plates 
which  have  been  chiseled,  drilled,  machined,  or  otherwise  advanced  in 
condition  by  processes  or  operations  subsequent  to  the  casting  process 
but  not  made  up  into  articles  or  finished  machine  parts ;  castings  of  malle- 
able iron  not  specially  provided  for  in  this  section ;  cast  hollow  ware, 
coated,  glazed,  or  tinned,  10  per  centum  ad  valorem. 

126.  Chain  or  chains  of  all  kinds,  made  of  iron  or  steel,  not  specially 
provided  for  in  this  section,  20  per  centum  ad  valorem ;  sprocket  and 
machine  chains,  25  per  centum  ad  valorem. 


Tariff  Act,  Dutiable  List  381 

127.  Lap-welded,  butt-welded,  seamed,  or  jointed  iron  or  steel  tubes, 
pipes,  flues,  or  stays;  cylindrical  or  tubular  tanks  or  vessels,  for  holding 
gas,  liquids,  or  other  material,  whether  full  or  empty ;  flexible  metal  tubing 
or  hose,  not  specially  provided  for  in  this  section,  whether  covered  with 
wire  or  other  material,  or  otherwise,  including  any  appliances  or  attach- 
ments affixed  thereto;  welded  cylindrical  furnaces,  tubes  or  flues  made 
from  plate  metal,  and  corrugated,  ribbed,  or  otherwise  reen forced  against 
collapsing  pressure,  and  all  other  iron  or  steel  tubes,  finished,  not  specially 
provided  for  in  this  section,  20  per  centum  ad  valorem. 

128.  Penknives,  pocketknives,  clasp  knives,  pruning  knives,  budding 
knives,  erasers,  manicure  knives,  and  all  knives  by  whatever  name  known, 
including  such  as  are  denominatively  mentioned  in  this  section,  which 
have  folding  or  other  than  fixed  blades  or  attachments,  and  razors,  all 
the  foregoing,  whether  assembled  but  not  fully  finished  or  finished; 
valued  at  not  more  than  $1  per  dozen,  35  per  centum  ad  valorem ;  valued 
at  more  than  $1  per  dozen,  55  per  centum  ad  valorem:  Provided,  Thai 
blades,  handles,  or  other  parts  of  any  of  the  foregoing  knives,  razors,  or 
erasers  shall  be  dutiable  at  not  less  than  the  rate  herein  imposed  upon 
the  knives,  razors,  and  erasers,  of  which  they  are  parts.  Scissors  and 
shears,  and  blades  for  the  same,  finished  or  unfinished,  30  per  centum  ad 
valorem :  Provided  further.  That  all  articles  specified  in  this  paragraph 
shall,  when  imported,  have  the  name  of  the  maker  or  purchaser  and 
beneath  the  same  the  name  of  the  country  of  origin  die-sunk  conspicu- 
ously and  indelibly  on  the  blade,  shank,  or  tang  of  at  least  one  or,  if 
practicable,  each  and  every  blade  thereof. 

129.  Sword  blades,  and  swords  and  side  arms,  irrespective  of  quality 
or  use,  in  part  of  metal,  30  per  centum  ad  valorem. 

130.  Table,  butchers',  carving,  cooks',  hunting,  kitchen,  bread,  but- 
ter, vegetable,  fruit,  cheese,  carpenters'  bench,  curriers',  drawing,  farriers', 
fleshing,  hay,  tanners',  plumbers',  painters',  palette,  artists',  and  shoe 
knives,  forks  and  steels,  finished  or  unfinished,  without  handles,  25  per 
centum  ad  valorem ;  with  handles,  30  per  centum  ad  valorem :  Provided, 
That  all  the  articles  specified  in  this  paragraph,  when  imported,  shall  have 
the  name  of  the  maker  or  purchaser,  and  beneath  the  same  the  name  of 
the  country  of  origin  indelibly  stamped  or  branded  thereon  in  a  place 
that  shall  not  be  covered  thereafter. 

131.  Files,  file  blanks,  rasps,  and  floats,  of  all  cuts  and  kinds,  25 
per  centum  ad  valorem. 

132.  Muskets,  air-rifles,  muzzle-loading  shotguns  and  rifles,  and 
parts  thereof,  15  per  centum  ad  valorem. 

133.  Breech-loading  shotguns  and  rifles,  combination  shotguns  and 
rifles,  and  parts  thereof  and  fittings  therefor,  including  barrels  further 
advanced  than  rough  bored  only;  pistols,  whether  automatic,  magazine, 
or  revolving,  or  parts  thereof  and  fittings  therefor,  35  per  centum  ad 
valorem. 

134.  Table,  kitchen,  and  hospital  utensils  or  other  similar  hollow 


382  Important  Federal  Laws 

ware  composed  of  iron  or  steel,  enameled  or  glazed  with  vitreous  glasses ; 
table,  kitchen,  and  hospital  utensils  or  other  similar  hollow  ware  composed 
wholly  or  in  chief  value  of  aluminum;  all  the  foregoing  not  especially 
provided  for  in  this  section,  25  per  centum  ad  valorem. 

135.  Needles  for  knitting  or  sewing  machines,  latch  needles,  crochet 
needles,  and  tape  needles,  knitting  and  all  other  needles  not  specially  pro- 
vided for  in  this  section,  bodkins  of  metal,  and  needle  cases  or  needle 
books  furnished  with  assortments  of  needles  or  combinations  of  needles 
and  other  articles,  20  per  centum  ad  valorem;  but  no  articles  other  than 
the  needles  which  are  specifically  named  in  this  section  shall  be  dutiable 
as  needles  unless  having  an  eye  and  fitted  and  used  for  carrying  a  thread. 

136.  Fishhooks,  fishing  rods  and  reels,  artificial  flies,  artificial  baits, 
snelled  hooks,  and  all  other  fishing  tackle  or  parts  thereof,  not  specially 
provided  for  in  this  section,  except  fishing  lines,  fishing  nets  and  seines, 
30  per  centum  ad  valorem :  Provided,  That  any  prohibition  of  the  im- 
portation of  feathers  in  this  section  shall  not  be  construed  as  applying  to 
artificial  flies  used  for  fishing. 

137.  Steel  plates  engraved,  stereotype  plates,  electrotype  plates, 
halftone  plates,  photogravure  plates,  photo-engraved  plates,  and  plates  of 
other  materials,  engraved  for  printing,  plates  of  iron  or  steel  engraved  or 
fashioned  for  use  in  the  production  of  designs,  patterns,  or  impressions  on 
glass  in  the  process  of  manufacturing  plate  or  other  glass,  15  per  centum 
ad  valorem ;  lithographic  plates  of  stone  or  other  material  engraved, 
drawn,  or  prepared,  and  wet  transfer  paper  or  paper  prepared  wholly  with 
glycerin,  or  glycerin  combined  with  other  materials,  containing  the  im- 
prints taken  from  lithographic  plates,  25  per  centum  ad  valorem. 

138.  Rivets,  studs,  and  steel  points,  lathed,  machined,  or  bright- 
ened, and  rivets  or  studs  for  nonskidding  automobile  tires,  and  rivets 
of  iron  or  steel,  not  specially  provided  for  in  this  section,  20  per  centum 
ad  valorem. 

139.  Crosscut  saws,  mill  saws,  pit  and  drag  saws,  circular  saws,  steel 
band  saws,  finished  or  further  advanced  than  tempered  and  polished, 
hand,  back,  and  all  other  saws,  not  specially  provided  for  in  this  section, 
12  per  centum  ad  valorem. 

140.  Screws,  commonly  called  wood  screws,  made  of  iron  or  steel, 
25  per  centum  ad  valorem. 

141.  Umbrella  and  parasol  ribs  and  stretchers,  composed  in  chief 
value  of  iron,  steel,  or  other  metal,  in  frames  or  otherwise,  and  tubes  for 
umbrellas,  wholly  or  partially  finished,  35  per  centum  ad  valorem. 

142.  Wheels  for  railway  purposes,  or  parts  thereof,  made  of  iron  or 
steel,  and  steel-tired  wheels  for  railway  purposes,  whether  wholly  or 
partly  finished,  and  iron  or  steel  locomotive,  car,  or  other  railway  tires  or 
parts  thereof,  wholly  or  partly  manufactured,  20  per  centum  ad  valorem: 
Provided,  That  when  wheels  for  railway  purposes,  or  parts  thereof,  of 
iron  or  steel,  are  imported  with  iron  or  steel  axles  fitted  in  them,  the 


Tariff  Act,  Dutiable  List  383 

wheels  and  axles  together  shall  be  dutiable  at  the  same  rate  as  is  provided 
for  the  wheels  when  imported  separately. 

143.  Aluminum,  aluminum  scrap,  and  alloys  of  any  kind  in  which 
aluminum  is  the  component  material  of  chief  value,  in  crude  form,  2 
cents  per  pound;  aluminum  in  plates,  sheets,  bars,  strips,  and  rods,  3| 
cents  per  pound;  barium,  calcium,  magnesium,  sodium,  and  potassium, 
and  alloys  of  which  said  metals  are  the  component  material  of  chief  value, 
25  per  centum  ad  valorem. 

144.  Antimony,  as  regulus  or  metal,  and  matte  containing  antimony 
but  not  containing  more  than  10  per  centum  of  lead,  10  per  centum  ad 
valorem;  antimony  oxide,  salts,  and  compounds  of,  25  per  centum  ad 
valorem. 

145.  Argentine,  albata,  or  German  silver,  unmanufactured,  15  per 
centum  ad  valorem. 

146.  Bronze  powder,  brocades,  flitters,  and  metallics;  bronze,  or 
Dutch-metal  or  aluminum,  in  leaf,  25  per  centum  ad  valorem. 

147.  Copper,  in  rolled  plates,  called  braziers'  copper,  sheets,  rods, 
strips,  pipes,  and  copper  bottoms,  sheathing  or  yellow  metal  of  which  cop- 
per is  the  component  material  of  chief  value,  and  not  composed  wholly  or 
in  part  of  iron  ungalvanized,  5  per  centum  ad  valorem. 

148.  Gold  leaf,  35  per  centum  ad  valorem. 

149.  Silver  leaf,  30  per  centum  ad  valorem. 

150.  Tinsel  wire,  lame  or  lahn,  made  wholly  or  in  chief  value  of 
gold,  silver,  or  other  metal,  6  per  centum  ad  valorem ;  bullions  and  metal 
threads,  made  wholly  or  in  chief  value  of  tinsel  wire,  lame  or  lahn,  25 
per  centum  ad  valorem ;  fabrics,  ribbons,  beltings,  toys,  or  other  articles, 
made  wholly  or  in  chief  value  of  tinsel  wire,  lame  or  lahn,  or  of  tinsel 
wire,  lame,  or  lahn,  and  india  rubber,  bullions,  or  metal  threads,  nor  spe- 
cially provided  for  in  this  section,  40  per  centum  ad  valorem. 

151.  Belt  buckles,  trousers  buckles,  waistcoat  buckles,  snap  fasteners 
and  clasps  by  whatever  name  known,  any  of  the  foregoing  made  wholly 
or. in  chief  value  of  iron  or  steel;  hooks  and  eyes,  metallic;  steel  trousers 
buttons,  and  metal  buttons ;  all  the  foregoing  and  parts  thereof,  not  other- 
wise specially  provided  for  in  this  section,  15  per  centum  ad  valorem. 

152.  Lead-bearing  ores  of  all  kinds  containing  more  than  3  per 
centum  of  lead,  ^  cent  per  pound  on  the  lead  contained  therein:  Pro- 
vided, That  on  all  importations  of  lead-bearing  ores  the  duties  shall  be 
estimated  at  the  port  of  entry,  and  a  bond  given  in  double  the  amount  of 
such  estimated  duties  for  the  transportation  of  the  ores  by  common 
carriers  bonded  for  the  transportation  of  appraised  or  unappraised 
merchandise  to  properly  equipped  sampling  or  smelting  establishments, 
whether  designated  as  bonded  warehouses  or  otherwise.  On  the  arrival 
of  the  ores  at  such  establishments  they  shall  be  sampled  according  to  com- 
mercial methods  under  the  supervision  of  Government  officers,  who  shall 
be  stationed  at  such  establishments,  and  who  shall  submit  the  samples  thus 
obtained  to  a  Government  assayer,  designated  by  the  Secretary  of  the 


384  Important  Federal  Laws 

Treasury,  who  shall  make  a  proper  assay  of  the  sample  and  report  the 
result  to  the  proper  customs  officers,  and  the  import  entries  shall  be  liqui- 
dated thereon,  except  in  case  of  ores  that  shall  be  removed  to  a  bonded 
warehouse  to  be  refined  for  exportation  as  provided  by  law.  And  the 
Secretary  of  the  Treasury  is  authorized  to  make  all  necessary  regulations 
to  enforce  the  provisions  of  this  paragraph. 

153.  Lead  dross,  lead  bullion  or  base  bullion,  lead  in  pigs  and  bars, 
lead  in  any  form  not  specially  provided  for  in  this  section,  old  refuse 
lead  run  into  blocks  and  bars,  and  old  scrap  lead  fit  only  to  be  remanu- 
factured ;  lead  in  sheets,  pipe,  shot,  glaziers'  lead,  and  lead  wire ;  all  the 
foregoing,  25  per  centum  ad  valorem,  on  the  lead  contained  therein. 

154.  Metallic  mineral  substances  in  a  crude  state,  and  metals  un- 
wrought,  whether  capable  of  being  wrought  or  not,  not  specially  provided 
for  in  this  section,  10  per  centum  ad  valorem ;  monazite  sand  and  thorite ; 
thorium,  oxide  of  and  salts  of ;  gas,  kerosene,  or  alcohol  mantles  treated 
with  chemicals  or  metallic  oxides,  25  per  centum  ad  valorem ;  and  gas- 
mantle  scrap  consisting  in  chief  value  of  metallic  oxides,  10  per  centum 
ad  valorem. 

155.  Nickel,  nickel  oxide,  alloy  of  any  kind  in  which  nickel  is  a 
component  material  of  chief  value,  in  pigs,  ingots,  bars,  rods,  or  plates, 
10  per  centum  ad  valorem  ;  sheets  or  strips,  20  per  centum  ad  valorem. 

156.  Pens,  metallic,  not  specially  provided  for  in  this  section,  8 
cents  per  gross ;  with  nib  and  barrel  in  one  piece,  12  cents  per  gross. 

157.  Penholder  tips,  penholders  and  parts  thereof,  gold  pens,  foun- 
tain pens,  and  stylographic  pens ;  combination  penholders,  comprising  jien- 
holder,  pencil,  rubber  eraser,  automatic  stamp,  or  other  attachm.ent,  25 
per  centum  ad  valorem :  Provided,  That  pens  and  penholders  shall  be 
assessed  for  duty  separately. 

158.  Pins  with  solid  heads,  without  ornamentation,  including  hair, 
safety,  hat,  bonnet,  and  shawl  pins  ;  any  of  the  foregoing  composed  wholly 
of  brass,  copper,  iron,  steel,  or  other  base  metal,  not  plated  with  gold  or 
silver,  and  not  commonly  known  as  jewelry,  20  ])er  centum  ad  valorem. 

159.  Quicksilver,  10  per  centum  ad  valorem.  The  flasks,  bottles,  or 
other  vessels  in  which  quicksilver  is  imported  shall  be  subject  to  the  same 
rate  of  duty  as  they  would  be  subjected  to  if  imported  empty. 

160.  Type  metal,  and  types,  15  per  centum  ad  valorem. 

161.  Watch  movements,  whether  imported  in  cases  or  not,  watch- 
cases  and  parts  of  watches,  chronoHieters,  box  or  ship,  and  parts  thereof, 
lever  clock  movements  having  jewels  in  the  escapement,  and  clocks  con- 
taining such  movements,  all  other  clocks  and  parts  thereof,  not  otherwise 
provided  for  in  this  section,  whether  separately  packed  or  otherwise,  not 
composed  wholly  or  in  chief  value  of  china,  porcelain,  parian,  bisque,  or 
earthenware,  30  per  centum  ad  valorem  ;  all  jewels  for  use  in  the  manu- 
facture of  watches,  clocks,  or  meters,  10  per  centum  ad  valorem ;  time 
detectors,  15  per  centum  ad  valorem;  enameled  dials  and  dial  plates  for 
watches  or  other  instruments,  30  per  centum  ad  valorem :   Provided,  That 


Tariff  Act,  Dutiable  List  385 

all  watch  and  clock  dials,  whether  attached  to  movements  or  not,  shall 
have  indelibly  painted  or  printed  thereon  the  name  of  the  country  of 
origin,  and  that  all  watch  movements,  and  plates,  lever  clock  movements 
with  jewels  in  the  escapement,  whether  imported  assembled  or  knocked 
down  for  reassembling,  and  cases  of  foreign  manufacture,  shall  have  the 
name  of  the  manufacturer  and  country  of  manufacture  cut,  engraved,  or 
die-sunk  conspicuously  and  indelibly  on  the  plate  of  the  movement  and 
the  inside  of  the  case,  respectively,  and  the  movements  and  plates  shall 
also  have  marked  thereon  by  one  of  the  methods  indicated  the  number 
of  jewels  and  adjustments,  said  numbers  to  be  expressed  either  in  words 
or  in  Arabic  numerals;  and  if  the  movement  is  not  adjusted,  the  word 
"unadjusted"  shall  be  marked  thereon  by  one  of  the  methods  indicated  ; 
and  none  of  the  aforesaid  articles  shall  be  delivered  to  the  importer  unless 
marked  in  exact  conformity  to  this  direction. 

162.  Zinc-bearing  ores  of  all  kinds,  including  calamine,  10  per 
centum  ad  valorem  upon  the  zinc  contained  therein :  Provided,  That  on 
all  importations  of  zinc-bearing  ores  the  duties  shall  be  estimated  at  the 
port  of  entry,  and  a  bond  given  in  double  the  amount  of  such  estimated 
duties  for  the  transportation  of  the  ores  by  common  carriers  bonded  for 
the  transportation  of  appraised  or  unappraised  merchandise  to  properly 
equipped  sampling  or  smelting  establishments,  whether  designated  as 
bonded  warehouses  or  otherwise.  On  the  arrival  of  the  ores  at  such 
establishments  they  shall  be  sampled  according  to  commercial  methods 
under  the  supervision  of  Government  officers,  who  shall  be  stationed  at 
such  establishments,  and  who  shall  submit  the  samples  thus  obtained  to  a 
Government  assayer,  designated  by  the  Secretary  of  the  Treasury,  who 
shall  make  a  proper  assay  of  the  sample  and  report  the  result  to  the  proper 
custom  officers,  and  the  import  entries  shall  be  liquidated  thereon,  except 
in  case  of  ores  that  shall  be  removed  to  a  bonded  warehouse  to  be  refined 
for  exportation  as  provided  by  law.  And  the  Secretary  of  the  Treasury  is 
authorized  to  make  all  necessary  regulations  to  enforce  the  provisions  of 
this  paragraph. 

163.  Zinc  in  blocks,  pigs,  or  sheets,  and  zinc  dust ;  and  old  and  worn- 
out  zinc  fit  only  to  be  remanufactured,  15  per  centum  ad  valorem. 

164.  Bottle  caps  of  metal,  collapsible  tubes,  and  sprinkler  tops,  if 
not  decorated,  colored,  waxed,  lacquered,  enameled,  lithographed,  elec- 
troplated, or  embossed  in  color,  30  per  centum  ad  valorem ;  if  decorated, 
colored,  waxed,  lacquered,  enameled,  lithographed,  electroplated,  or  em- 
bossed in  color,  40  per  centum  ad  valorem. 

165.  All  steam  engines,  steam  locomotives,  printing  presses,  and 
machine  tools,  15  per  centum  ad  valorem;  embroidering  machines,  and 
lace-making  machines,  including  machines  for  making  lace  curtains,  nets, 
or  nettings,  25  per  centum  ad  valorem ;  machine  tools  as  used  in  this  para- 
graph shall  be  held  to  mean  any  machine  operated  by  other  than  hand 
power  which  employs  a  tool  for  working  on  metal. 

(25) 


386  Important  Federal  Laws 

166.  Nippers  and  pliers  of  all  kinds  wholly  or  partly  manufactured, 
30  per  centum  ad  valorem. 

167.  Articles  or  wares  not  specially  provided  for  in  this  section ;  if 
composed  wholly  or  in  part  of  platinum,  gold,  or  silver,  and  articles  or 
wares  plated  with  gold  or  silver,  and  whether  partly  or  wholly  manu- 
factured, 50  per  centum  ad  valorem ;  if  composed  wholly  or  in  chief  value 
of  iron,  steel,  lead,  copper,  brass,  nickel,  pewter,  zinc,  aluminum,  or  other 
metal,  but  not  plated  with  gold  or  silver,  and  whether  partly  or  wholly 
manufactured,  20  per  centum  ad  valorem. 

Schedule  D — Wood  and  Manufactures  of. 

168.  Briar  root  or  briar  wood,  ivy  or  laurel  root,  and  similar  wood 
unmanufactured,  or  not  further  advanced  than  cut  into  blocks  suitable 
for  the  articles  into  which  they  are  intended  to  be  converted,  10  per 
centum  ad  valorem. 

169.  Cedar  commercially  known  as  Spanish  cedar,  lignum-vitae, 
lancewood,  ebony,  box,  granadilla,  mahogany,  rosewood,  and  satinwood ; 
all  the  foregoing  when  sawed  into  boards,  planks,  deals,  or  other  forms, 
and  not  specially  provided  for  in  this  section,  and  all  cabinet  woods  not 
further  manufactured  than  sawed,  10  per  centum  ad  valorem ;  veneers  of 
wood,  15  per  centum  ad  valorem. 

170.  Paving  posts,  railroad  ties,  and  telephone,  trolley,  electric- 
light,  and  telegraph  poles  of  cedar  or  other  woods,  10  per  centum  ad 
valorem. 

171.  Casks,  barrels.'and  hogsheads  (empty),  sugar-box  shocks,  and 
packing  boxes  (empty),  and  packing-box  shooks,  of  wood,  not  specially 
provided  for  in  this  section,  15  per  centum  ad  valorem. 

172.  Boxes,  barrels,  or  other  articles  containing  oranges,  lemons, 
limes,  grapefruit,  shaddocks,  or  pomelos,  15  per  centum  ad  valorem: 
Provided,  That  the  thin  wood,  so  called,  comprising  the  sides,  tops  and 
bottoms  of  fruit  boxes  of  the  growth  and  manufacture  of  the  United 
States,  exported  as  fruit  box  shooks,  may  be  reimported  in  completed 
form,  filled  with  fruit,  without  the  payment  of  duty ;  but  proof  of  the 
identity  of  such  shooks  shall  be  made  under  regulations  to  be  prescribed 
by  the  Secretary  of  the  Treasury. 

173.  Chair  cane  or  reeds  wrought  or  manufactured  from  rattans  or 
reeds,  10  per  centum  ad  valorem;  osier  or  willow,  including  chip  of  and 
split  willow,  prepared  for  basket  makers'  use,  10  per  centum  ad  valorem  ; 
manufactures  of  osier  or  willow  and  willow  furniture,  25  per  centum  ad 
valorem. 

174.  Toothpicks  of  wood  or  other  vegetable  substance,  25  per  cen- 
tum ad  valorem ;  butchers'  and  packers'  skewers  of  wood,  10  cents  per 
thousand. 


Tariff  Act_,  Dutiable  List  387 

175.  Blinds,  curtains,  shades,  or  screens  any  of  the  foregoing  in 
chief  vakie  of  bamboo,  wood,  straw,  or  compositions  of  wood,  not  spe- 
cially provided  for  in  this  section,  20  per  centum  ad  valorem;  if  stained, 
dyed,  painted,  printed,  polished,  grained,  or  creosoted,  and  baskets  in 
chief  value  of  Hke  material,  25  per  centum  ad  valorem. 

176.  House  or  cabinet  furniture  wholly  or  in  chief  value  of  wood, 
wholly  or  partly  finished,  and  manufactures  of  wood  or  bark,  or  of  which 
wood  or  bark  is  the  component  material  of  chief  value,  not  specially  pro- 
vided for  in  this  section,  15  per  centum  ad  valorem. 

Schedule  E — Sugar^  Molasses,  and  Manufactures  of. 

177.  Sugars,  tank  bottoms,  sirups  of  cane  juice,  melada,  concen- 
trated melada,  concrete  and  concentrated  molasses,  testing  by  the  polari- 
scope  not  above  seventy-five  degrees,  seventy-one  one-hundredths  of  1 
cent  per  pound,  and  for  every  additional  degree  shown  by  the  polariscopic 
test,  twenty-six  one-thousandths  of  1  cent  per  pound  additional,  and  frac- 
tions of  a  degree  in  proportion ;  molasses  testing  not  above  fortv  degrees, 
15  per  centum  ad  valorem;  testing  above  forty  degrees  and  not  above 
fifty-six  degrees,  2\  cents  per  gallon  ;  testing  above  fifty-six  degrees,  4^ 
cents  per  gallon;  sugar  drainings  and  sugar  sweepings  shall  be  subject  to 
duty  as  molasses  or  sugar,  as  the  case  may  be,  according  to  polariscopic 
test :  Provided,  That  the  duties  imposed  in  this  paragraph  shall  be  effective 
on  and  after  the  first  day  of  March,  nineteen  hundred  and  fourteen,  until 
which  date  the  rates  of  duty  provided  by  paragraph  two  hundred  and 
sixteen  of  the  tariff  Act  approved  August  fifth,  nineteen  hundred  and 
nine,  shall  remain  in  force:  Provided,  however.  That  so  much  of  para- 
graph two  hundred  and  sixteen  of  an  Act  to  provide  revenue,  equalize 
duties,  and  encourage  the  industries  of  the  United  States,  and  for  other 
purposes,  approved  August  fifth,  nineteen  hundred  and  nine,  as  relates 
to  the  color  test  denominated  as  Number  Sixteen  Dutch  standard  in  color, 
shall  be  and  is  hereby  repealed.     (As  amended  April  27,  1916.) 

178.  Maple  sugar  and  maple  sirup,  3  cents  per  pound :  glucose  or 
grape  sugar,  1  y^  cents  per  pound ;  sugar  cane  in  its  natural  state,  or 
unmanufactured,  15  per  centum  ad  valorem.  (As  amended  April  27, 
1916.) 

179.  Saccharin,  65  cents  per  pound. 

180.  Sugar  candy  and  all  confectionery  not  specially  provided  for 
in  this  section,  valued  at  15  cents  per  pound  or  less,  2  cents  per  pound; 
valued  at  more  than  15  cents  per  pound,  25  per  centum  ad  valorem. 
The  weight  and  the  value  of  the  immediate  coverings,  other  than  the 
outer  packing  case  or  other  covering,  shall  be  included  in  the  dutiable 
weight  and  the  value  of  the  merchandise. 


388  Important  Federal  Laws 

Schedule  F — Tobacco  and  Manufactures  of. 

181.  Wrapper  tobacco,  and  filler  tobacco  when  mixed  or  packed  with 
more  than  15  per  centum  of  wrapper  tobacco,  and  all  leaf  tobacco  the 
product  of  two  or  more  countries  or  dependencies  when  mixed  or  packed 
together,  if  unstemmed,  $1.85  per  pound;  if  stemmed,  $2.50  per  pound; 
filler  tobacco  not  specially  provided  for  in  this  section,  if  unstemmed,  35 
cents  per  pound ;  if  stemmed,  50  cents  per  pound. 

182.  The  term  wrapper  tobacco  as  used  in  this  section  means  that 
quality  of  leaf  tobacco  which  has  the  requisite  color,  texture,  and  burn, 
and  is  of  sufficient  size  for  cigar  wrappers,  and  the  term  filler  tobacco 
means  all  other  leaf  tobacco.  Collectors  of  customs  shall  not  permit  entry 
to  be  made,  except  under  regulations  to  be  prescribed  by  the  Secretary  of 
the  Treasury,  of  any  leaf  tobacco,  unless  the  invoices  of  the  same  shall 
specify  in  detail  the  character  of  such  tobacco,  whether  wrapper  or 
filler,  its  origin  and  quality.  In  the  examination  for  classification  of  any 
imported  leaf  tobacco,  at  least  one  bale,  box,  or  package  in  every  ten,  and 
at  least  one  in  every  invoice,  shall  be  examined  by  the  appraiser  or  person 
authorized  by  law  to  make  such  examination,  and  at  least  ten  hands  shall 
be  examined  in  each  examined  bale,  box,  or  package. 

183.  All  other  tobacco,  manufactured  or  unmanufactured,  not  spe- 
cially provided  for  in  this  section,  55  cents  per  pound ;  scrap  tobacco, 
35  cents  per  pound. 

184.  Snufi^  and  snufif  flour,  manufactured  of  tobacco,  ground  dry,  or 
damp,  and  pickled,  scented,  or  otherwise,  of  all  descriptions,  55  cents 
per  pound. 

185.  Cigars,  cigarettes,  cheroots  of  all  kinds,  $4.50  per  pound  and 
25  per  centum  ad  valorem,  and  paper  cigars  and  cigarettes,  including 
wrappers,  shall  be  subject  to  the  same  duties  as  are  herein  imposed 
upon  cigars. 

Schedule  G — Agricultural  Products  and  Provisions. 

186.  Horses  and  mules,  10  per  centum  ad  valorem. 

187.  All  live  animals  not  specially  provided  for  in  this  section,  10 
per  centum  ad  valorem. 

188.  Barley,  15  cents  per  bushel  of  forty-eight  pounds. 

189.  Barley  malt,  25  cents  per  bushel  of  thirty-four  pounds. 

190.  Barley,  pearled,  patent,  or  hulled,  1  cent  per  pound. 

191.  Macaroni,  vermicelli,  and  all  similar  preparations,  1  cent  per 
pound. 

192.  Oats,  6  cents  per  bushel  of  thirty-two  pounds ;  oatmeal  and 
rolled  oats,  30  cents  per  one  hundred  pounds ;  oat  hulls,  8  cents  per  one 
hundred  pounds. 

193.  Rice,  cleaned,  1  cent  per  pound ;  uncleaned  rice,  or  rice  free  of 
the  outer  hull  and  still  having  the  inner  cuticle  on,   ^'g   of    1   cent  per 


Tariff  Act,  Dutiable  List  389 

pound  ;  rice  flour,  and  rice  meal,  and  rice  broken  which  will  pass  through 
a  number  twelve  sieve  of  a  kind  prescribed  by  the  Secretary  of  the  Treas- 
ury, y^  cent  per  pound ;  paddy,  or  rice  having  the  outer  hull  on,  ^  of  1 
cent  per  pound. 

194.  Biscuits,  bread,  wafers,  cakes,  and  other  baked  articles,  and 
puddings,  by  whatever  name  known,  containing  chocolate,  nuts,  fruit, 
or  confectionery  of  any  kind,  and  without  regard  to  the  component  mate- 
rial of  chief  value,  25  per  centum  ad  valorem. 

195.  Butter  and  butter  substitutes,  2|  cents  per  pound. 

196.  Cheese  and  substitutes  therefor,  20  per  centum  ad  valorem. 

197.  Beans,  and  lentils,  not  specially  provided  for,  25  cents  per 
bushel  of  sixty  pounds. 

198.  Beets  of  all  kinds,  5  per  centum  ad  valorem. 

199.  Beans,  peas,  prepared  or  preserved,  or  contained  in  tins,  jars, 
bottles,  or  similar  packages,  including  the  weight  of  immediate  cover- 
ings, 1  cent  per  pound;  mushrooms  and  truffles,  including  the  weight 
of  immediate  coverings,  2\  cents  per  pound 

200.  Vegetables,  if  cut,  sliced  or  otherwise  reduced  in  size,  or  if 
parched  or  roasted,  or  if  pickled,  or  packed  in  salt,  brine,  oil,  or  prepared 
in  any  way ;  any  of  the  foregoing  not  specially  provided  for  in  this  section, 
and  bean  stick  or  bean  cake,  miso,  and  similar  products,  25  per  centum 
ad  valorem. 

201.  Pickles,  including  pickled  nuts,  sauces  of  all  kinds,  not  spe- 
cially provided  for  in  this  section,  and  fish  paste  or  sauce,  25  per  centum 
ad  valorem. 

202.  Cider,  2  cents  per  gallon. 

203.  Eggs  frozen  or  otherwise  prepared  or  preserved  in  tins  or 
other  packages,  not  specially  provided  for  in  this  section,  including  the 
weight  of  the  immediate  coverings  or  containers,  2  cents  per  pound; 
frozen  or  liquid  &gg  albumen,  1  cent  per  pound. 

204.  Eggs,  dried,  10  cents  per  pound ;  eggs,  yolk  of,  10  per  centum 
ad  valorem. 

205.  Hay,  $2  per  ton. 

206.  Honey,  10  cents  per  gallon. 

207.  Hops,  16  cents  per  pound ;  hop  extract  and  lupulin,  50  per 
centum  ad  valorem. 

208.  Garlic,  1  cent  per  pound ;  onions,  20  cents  per  bushel  of  57 
pounds. 

209.  Peas,  green  or  dried,  in  bulk  or  in  barrels,  sacks,  or  similar 
packages,  10  cents  per  bushel  of  sixty  pounds ;  split  peas,  20  cents  per 
bushel  of  sixty  pounds ;  peas  in  cartons,  papers,  or  other  similar  packages, 
including  the  weight  of  the  immediate  covering,  Yt,  cent  per  pound. 

210.  Orchids,  palms,  azalea  indica,  and  cut  flowers,  preserved  or 
fresh,  25  per  centum  ad  valorem ;  lily  of  the  valley  pips,  tulips,  narcissus, 
begonia,  and  gloxinia  bulbs,  $1  per  thousand ;  hyacinth  bulbs,  astilbe, 
dielytra,  and  lily  of  the  valley  clumps,  $2.50  per  thousand ;  lily  bulbs  and 


390  Important  Federal  Laws 

calla  bulbs  or  corms,  $5  per  thousand ;  herbaceous  peony,  Iris  Kaempferri 
or  Germanica,  canna,  dahHa,  and  amaryllis  bulbs,  $10  per  thousand ;  all 
other  bulbs,  roots,  root  stocks,  corms,  and  tubers,  which  are  cultivated  for 
their  flowers  or  foliage,  50  cents  per  thousand :  Provided,  That  all 
mature  mother  flowering  bulbs  imported  exclusively  for  propagating  pur- 
poses shall  be  admitted  free  of  duty. 

211.  Stocks,  cuttings,  or  seedlings  of  Myrobolan  plum,  Mahaleb  or 
Mazzard  cherry,  Manetti  multiflora  and  briar  rose,  Rosa  Rugosa,  three 
years  old  or  less,  $1  per  thousand  plants  ;  stocks,  cuttings,  or  seedlings 
of  pear,  apple,  quince,  and  the  Saint  Julien  plum,  three  years  old  or  less, 
$1  per  thousand  plants;  rose  plants,  budded,  grafted,  or  grown  on  their 
own  roots,  4  cents  each ;  stocks,  cuttings,  and  seedlings,  of  all  fruit  and 
ornamental  trees,  deciduous  and  evergreen  shrubs  and  vines,  and  all  trees, 
shrubs,  plants,  and  vines  commonly  known  as  nursery  or  greenhouse 
stock,  not  specially  provided  for  in  this  section,  15  per  centum  ad  valorem. 

212.  Seeds:  Castor  beans  or  seeds,  15  cents  per  bushel  of  fifty 
pounds ;  flaxseed  or  linseed  and  other  oil  seeds  not  specially  provided  for 
in  this  section,  20  cents  per  bushel  of  fifty-six  pounds;  poppy  seed,  15 
cents  per  bushel  of  forty-seven  pounds ;  mushroom  spawn,  and  spinach 
seed,  1  cent  per  pound ;  canary  seed,  -i  cent  per  pound ;  caraway  seed,  1 
cent  per  pound;  anise  seed,  2  cents  per  pound;  beet  (except  sugar  beet), 
carrot,  corn  salad,  parsley,  parsnip,  radish,  turnip,  and  rutabaga  seed,  3 
cents  per  pound;  cabbage,  collard,  kale,  and  kohl-rabi  seed,  6  cents  per 
pound;  egg  plant  and  pepper  seed,  10  cents  per  pound;  seeds  of  all  kinds 
not  specially  provided  for  in  this  section,  5  cents  per  pound :  Provided, 
That  no  allowance  shall  be  made  for  dirt  or  other  impurities  in  seeds 
provided  for  in  this  paragraph. 

213.  Straw,  50  cents  per  ton. 

I,        214.     Teazels,  15  per  centum  ad  valorem. 

215.  Vegetables  in  their  natural  state,  not  specially  provided  for 
in  this  section,  15  per  centum  ad  valorem. 

216.  Fish,  except  shellfish,  by  whatever  name  known,  packed  in  oil 
or  in  oil  and  other  substances,  in  bottles,  jars,  kegs,  tin  boxes,  or  cans, 
25  per  centum  al  valorem  ;  all  other  fish,  except  shellfish,  in  tin  packages, 
not  specially  provided  for  in  this  section,  15  per  centum  ad  valorem; 
caviar  and  other  preserved  roe  of  fish,  30  per  centum  ad  valorem ;  fish, 
skinned  or  boned,  ^  of  1  cent  per  pound. 

217.  Apples,  peaches,  quinces,  cherries,  plums,  and  pears,  green  or 
ripe,  10  cents  per  bushel  of  fifty  pounds ;  berries,  edible  in  their  natural 
condition,  ^  cent  per  quart ;  cranberries,  10  per  centum  ad  valorem ;  all 
edible  fruits,  including  berries,  when  dried,  desiccated,  evaporated,  or  pre- 
pared in  any  manner,  not  specially  provided  for  in  this  section,  1  cent  per 
pound ;  comfits,  sweetmeats,  and  fruits  of  all  kinds  preserved  or  packed 
in  sugar,  or  having  sugar  added  thereto  or  preserved  or  packed  in  mo- 
lasses, spirits,  or  their  own  juices,  if  containing  no  alcohol,  or  containing 
not  over  10  per  centum  of  alcohol,  20  per  centum  ad  valorem ;  if  con- 


Tariff  Act,  Dutiable  List  391 

taining  over  10  per  centum  of  alcohol  and  not  specially  provided  for  in 
this  section,  20  per  centum  ad  valorem,  and  in  addition  $2.50  per  proof 
gallon  on  the  alcohol  contained  therein  in  excess  of  10  per  centum;  jellies 
of  all  kinds,  20  per  centum  ad  valorem ;  pineapples  preserved  in  their  own 
juice,  20  per  centum  ad  valorem. 

218.  Figs,  2  cents  per  pound ;  plums,  prunes,  and  prunelles,  1  cent 
per  pound;  raisins  and  other  dried  grapes,  2  cents  per  pound;  dates,  1 
cent  per  pound;  currants.  Zante  or  other,  1^  cents  per  pound;  olives,  15 
cents  per  gallon. 

219.  Grapes  in  barrels  or  other  packages,  25  cents  per  cubic  foot  of 
the  capacity  of  the  barrels  or  packages. 

220.  Lemons,  limes,  oranges,  grapefruit,  shaddocks,  and  pomelos 
in  packages  of  a  capacity  of  one  and  one-fourth  cubic  feet  or  less,  18 
cents  per  package ;  in  packages  of  capacity  exceeding  one  and  one-fourth 
cubic  feet  and  not  exceeding  two  and  one-half  cubic  feet,  35  cents  per 
package ;  in  packages  exceeding  two  and  one-half  and  not  exceeding  five 
cubic  feet,  70  cents  per  package ;  in  packages  exceeding  five  cubic  feet  or 
in  bulk,  i  of  1  cent  per  pound. 

221.  Orange  peel  or  lemon  peel,  preserved,  candied,  or  dried,  1  cent 
per  pound ;  coconut  meat  or  copra  desiccated,  shredded,  cut  or  similarly 
prepared,  and  citron  or  citron  peel,  preserved,  candied,  or  dried,  2  cents 
per  pound. 

222.  Pineapples,  in  barrels  or  other  packages,  6  cents  per  cubic  foot 
of  the  capacity  of  the  barrels  or  packages;  in  bulk,  $5  per  thousand. 

223.  Almonds,  not  shelled,  3  cents  per  pound;  almonds,  shelled,  4 
cents  per  pound ;  apricot  and  peach  kernels,  3  cents  per  pound. 

224.  Filberts  and  walnuts  of  all  kinds,  not  shelled,  2  cents  per 
pound ;  shelled,  4  cents  per  pound. 

225.  Peanuts  or  ground  beans,  unshelled,  ^  of  1  cent  per  pound; 
shelled.  ^  of  1  cent  per  pound. 

226.  Nuts  of  all  kinds,  shelled  or  unshelled,  not  specially  provided 
for  in  this  section.  1  cent  per  pound;  but  no  allowance  shall  be  made 
for  dirt  or  other  impurities  in  nuts  of  any  kind,  shelled  or  unshelled. 

227.  Venison,  and  other  game,  li  cents  per  pound;  game  birds, 
dressed,  30  per  centum  ad  valorem. 

228.  Extract  of  meat,  not  specially  provided  for  in  this  section,  10 
cents  per  pound;  fluid  extract  of  meat,  5  cents  per  pound,  but  the  dutiable 
weight  of  the  extract  of  meat  and  of  the  fluid  extract  of  meat  shall  not 
include  the  weight  of  the  packages  in  which  the  same  is  imported. 

229.  Poultry,  live,  1  cent  per  pound ;  dead,  or  prepared  in  any 
manner,  including  the  weight  of  the  immediate  coverings  or  containers, 
2  cents  per  pound. 

230.  Chicory  root,  raw,  dried,  or  undried.  but  unground,  1  cent  per 
pound  ;  chicory  root,  burnt  or  roasted,  ground  or  granulated,  or  in  rolls, 
or  otherwise  prepared,  and  not  specially  provided  for  in  this  section,  2 
cents  per  pound. 


392  Important  Federal  Laws 

231.  Unsweetened  chocolate  and  cocoa,  prepared  or  manufactured, 
not  specially  provided  for  in  this  section,  8  per  centum  ad  valorem. 
Sweetened  chocolate  and  cocoa,  prepared  or  manufactured,  not  specially 
provided  for  in  this  section,  valued  at  20  cents  per  pound  or  less,  2  cents 
per  pound ;  valued  at  more  than  20  cents  per  pound,  25  per  centum  ad 
valorem.  The  weight  and  the  value  of  the  immediate  coverings,  other  than 
the  outer  packing  case  or  other  covering,  shall  be  included  in  the  dutiable 
weight  and  the  value  of  the  merchandise. 

232.  Cocoa  butter  or  cocoa  butterine,  refined  deodorized  coconut 
oil,  and  all  substitute  for  cocoa  butter,  3^  cents  per  pound. 

233.  Dandelion  root,  and  acorns  prepared,  and  articles  used  as 
coffee,  or  as  substitute  for  coffee  not  specially  provided  for  in  this  section, 
2  cents  per  pound. 

234.  Starch,  made  from  potatoes,  1  cent  per  pound ;  all  other  starch, 
including  all  preparations,  from  whatever  substance  produced,  fit  for 
use  as  starch,  ^  cent  per  pound.  _ 

235.  Spices,  unground :  Cassia  buds,  cassia,  and  cassia  vera ;  cinna- 
mon and  cinnamon  chips ;  ginger  root,  unground  and  not  preserved  or 
candied ;  nutmegs ;  pepper,  black  or  white ;  capsicum  or  red  pepper,  or 
cayenne  pepper ;  and  clove  stems,  1  cent  per  pound ;  cloves,  2  cents  per 
pound ;  pimento,  f  of  1  cent  per  pound ;  sage,  ^  cent  per  pound ;  mace, 
8  cents  per  pound ;  Bombay  or  wild  mace,  18  cents  per  pound ;  ground 
spices,  in  each  case,  the  specific  duty  per  pound  enumerated  in  the  fore- 
going part  of  this  paragraph  for  unground  spices,  and  in  addition  thereto 
a  duty  of  20  per  centum  ad  valorem;  mustard,  ground  or  prepared,  in 
bottles  or  otherwise,  6  cents  per  pound ;  all  other  spices  not  specially  pro- 
vided for  in  this  section,  including  all  herbs  or  herb  leaves  in  glass  or 
other  small  packages  for  cuHnary  use,  20  per  centum  ad  valorem. 

236.  Vinegar,  4  cents  per  proof  gallon.  The  standard  proof  for 
vinegar  shall  be  taken  to  be  that  strength  which  requires  thirty-five 
grains  of  bicarbonate  of  potash  to  neutralize  one  ounce  troy  of  vinegar. 

Schedule  H — Spirits,  Wines,  and  Other  Beverages. 

237.  Brandy  and  other  spirits  manufactured  or  distilled  from  grain 
or  other  materials,  and  not  specially  provided  for  in  this  section,  $2.60 
per  proof  gallon. 

238.  Each  and  every  gauge  or  wine  gallon  of  measurement  shall  be 
counted  as  at  least  one  proof  gallon  ;  and  the  standard  for  determining 
the  proof  of  brandy  and  other  spirits  or  licjuors  of  any  kind  imported 
shall  be  the  same  as  that  which  is  defined  in  the  laws  relating  to  internal 
revenue:  Provided.  That  it  shall  be  lawful  for  the  Secretary  of  the  Treas- 
ury, in  his  discretion,  to  authorize  the  ascertainment  of  the  proof  of  wines, 
cordials,  or  other  liquors,  by  distillation  or  otherwise,  in  cases  where  it  is 
impracticable  to  ascertain  such  proof  by  the  means  prescribed  by  existing 
law  or  regulations :     And  provided  further.  That  any  brandy  or  other 


Tariff  Act,  Dutiable  List  393 

spirituous  or  distilled  liquors  imported  in  any  sized  cask,  bottle,  jug,  or 
other  packages,  of  or  from  any  country,  dependency,  or  province  under 
whose  laws  similar  sized  casks,  bottles,  jugs,  or  other  packages  of  distilled 
spirits,  wine,  or  other  beverage  put  up  or  filled  in  the  United  States  are 
denied  entrance  into  such  country,  dependency,  or  province,  shall  be  for- 
feited to  the  United  States ;  and  any  brandy  or  other  spirituous  or  distilled 
liquor  imported  in  a  cask  of  less  capacity  than  ten  gallons  from  any 
country  shall  be  forfeited  to  the  United  States. 

239.  On  all  compounds  or  preparations  of  which  distilled  spirits 
are  a  component  part  of  chief  value  there  shall  be  levied  a  duty  not  less 
than  that  imposed  upon  distilled  spirits. 

240.  Cordials,  liquers,  arrack,  absinthe,  kirschwasser,  ratafia,  and 
other  spirituous  beverages  or  bitters  of  all  kinds,  containing  spirits,  and 
not  specially  provided  for  in  this  section,  $2.60  per  proof  gallon. 

241.  No  lower  rate  or  amount  of  duty  shall  be  levied,  collected,  and 
paid  on  brandy,  spirits,  and  other  spirituous  beverages  than  that  fixed  by 
law  for  the  description  of  first  proof ;  but  it  shall  be  increased  in  propor- 
tion for  any  greater  strength  than  the  strength  of  first  proof,  and  all 
imitations  of  brandy  or  spirits  or  wines  imported  by  any  names  whatever 
shall  be  subject  to  the  highest  rate  of  duty  provided  for  the  genuine 
articles  respectively  intended  to  be  represented,  and  in  no  case  less  than 
$1.75  per  gallon. 

242.  Bay  rum  or  bay  water,  whether  distilled  or  compounded,  of 
first  proof,  and  in  proportion  for  any  greater  strength  than  first  proof, 
$1.75  per  gallon. 

243.  Champagne  and  all  other  sparkling  wines,  in  bottles  containing 
each  not  more  than  one  quart  and  more  than  one  pint,  $9.60  per  dozen  ; 
containing  not  more  than  one  pint  each  and  more  than  one-half  pint,  $4.80 
per  dozen ;  containing  one-half  pint  each  or  less,  $2.40  per  dozen ;  in  bot- 
tles or  other  vessels  containing  more  than  one  quart  each,  in  addition  to 
$9.60  per  dozen  bottles,  on  the  quantity  in  excess  of  one  quart,  at  the 
rate  of  $3  per  gallon ;  but  no  separate  or  additional  duty  shall  be  levied 
on  the  bottles. 

244.  Still  wines,  including  ginger  wine  or  ginger  cordial,  vermuth, 
and  rice  wine  or  sake,  and  similar  beverages  not  specially  provided  for 
in  this  section,  in  casks  or  packages  other  than  bottles  or  jugs,  if  contain- 
ing 14  per  centum  or  less  of  absolute  alcohol,  45  cents  per  gallon ;  if  con- 
taining more  than  14  per  centum  of  absolute  alcohol,  60  cents  per  gallon. 
In  bottles  or  jugs,  per  case  of  one  dozen  bottles  or  jugs,  containing  each 
not  more  than  one  quart  and  more  than  one  pint,  or  twenty-four  bottles 
or  jugs  containing  each  not  more  than  one  pint,  $1.85  per  case;  and  any 
excess  beyond  these  quantities  found  in  such  bottles  or  jugs  shall  be  sub- 
ject to  a  duty  of  6  cents  per  pint  or  fractional  part  thereof,  but  no  sep- 
arate or  additional  duty  shall  be  assessed  on  the  bottles  or  jugs :  Pro- 
vided, That  any  wines,  ginger  cordial,  or  vermuth  imported  containing 
more  than  24  per  centum  of  alcohol  shall  be  classed  as  spirits  and  pay 


394  Important  Federal  Laws 

duty  accordingly:  And  provided  further,  That  there  shall  be  no  con- 
structive or  other  allowance  for  breakage,  leakage,  or  damage  on  wines, 
hquors,  cordials,  or  distilled  spirits,  except  that  when  it  shall  appear  to  the 
collector  of  customs  from  the  ganger's  return,  verified  by  an  affidavit  by 
the  importer  to  be  filed  within  five  days  after  the  delivery  of  the  mer- 
chandise, that  a  cask  or  package  has  been  broken  or  otherwise  injured  in 
transit  from  a  foreign  port  and  as  a  result  thereof  a  part  of  its  contents 
amounting  to  10  per  centum  or  more  of  the  total  value  of  the  contents  of 
the  said  cask  or  package  in  its  condition  as  exported,  has  been  lost,  allow- 
ance therefor  may  be  made  in  the  liquidation  of  the  duties.  Wines,  cor- 
dials, brandy,  and  other  spirituous  liquors,  including  bitters  of  all  kinds, 
and  bay  rum  or  bay  water,  imported  in  bottles  or  jugs,  shall  be  packed  in 
packages  containing  not  less  than  one  dozen  bottles  or  jugs  in  each  pack- 
age, or  duty  shall  be  paid  as  if  such  package  contained  at  least  one  dozen 
bottles  or  jugs,  and  in  addition  thereto,  duty  shall  be  collected  on  the 
bottles  or  jugs  at  the  rates  which  would  be  chargeable  thereon  if  imported 
empty.  The  percentage  of  alcohol  in  wines  and  fruit  juices  shall  be 
determined  in  such  manner  as  the  Secretary  of  the  Treasury  shall  by 
regulation  prescribe. 

245.  Ale,  porter,  stout,  and  beer,  in  bottles  or  jugs,  45  cents  per 
gallon,  but  no  separate  or  additional  duty  shall  be  assessed  on  the  bottles 
or  jugs  ;  otherwise  than  in  bottles  or  jugs,  23  cents  per  gallon. 

246.  Malt  extract,  fluid,  in  casks,  23  cents  per  gallon ;  in  bottles  or 
jugs,  45  cents  per  gallon;  solid  or  condensed,  45  per  centum  ad  valorem. 

247.  Cherry  juice  and  prune  juice,  or  prune  wine,  and  other  fruit 
juices,  and  fruit  sirup,  not  specially  provided  for  in  this  section,  contain- 
mg  no  alcohol  or  not  more  than  18  per  centum  of  alcohol,  70  cents  per 
gallon ;  if  containing  more  than  18  per  centum  of  alcohol,  70  cents  per 
gallon  and  in  addition  thereto  $2.07  per  proof  gallon  on  the  alcohol  con- 
tained therein. 

24$.  Ginger  ale,  ginger  beer,  lemonade,  soda  water,  and  other  sim- 
ilar beverages  containing  no  alcohol,  in  plain  green  or  colored,  molded 
or  pressed,  glass  bottles,  containing  each  not  more  than  one-half  pint, 
12  cents  per  dozen ;  containing  each  more  than  one-half  pint  and  not 
more  than  three-fourths  of  a  pint,  18  cents  per  dozen ;  containing  more 
than  three-fourths  of  a  pint  each  and  not  more  than  one  and  one-half 
pints,  28  cents  per  dozen ;  but  no  separate  or  additional  duty  shall  be 
assessed  on  the  bottles ;  if  imported  otherwise  than  in  plain  green  or 
colored,  molded  or  pressed,  glass  bottles,  or  in  such  bottles  containing 
more  than  one  and  one-half  pints  each,  50  cents  per  gallon,  and  in  addi- 
tion thereto  duty  shall  be  collected  on  the  bottles,  or  other  coverings,  at 
the  rates  which  would  be  chargeable  thereon  if  imported  empty.  Bever- 
ages not  specially  provided  for  containing  not  more  than  2  per  centum  of 
alcohol  shall  be  assessed  for  duty  under  this  paragraph. 

249.  All  mineral  waters  and  all  imitations  of  natural  mineral  waters, 
and  all  artificial  mineral  waters  not  specially  provided  for  in  this  section, 


Tariff  Act,  Dutiable  List  395 

in  bottles  or  jug's  containing  not  more  than  one-half  pint,  10  cents  per 
dozen  bottles;  if  containing  more  than  one-half  pint  and  not  more  than 
one  pint,  15  cents  per  dozen  bottles  ;  if  containing  more  than  one  pint 
and  not  more  than  one  quart,  20  cents  per  dozen  bottles ;  if  imported  in 
bottles  or  in  jugs  containing  more  than  one  Cjuart,  18  cents  per  gallon; 
if  imported  otherwise  than  in  bottles  or  jugs,  8  cents  per  gallon  ;  and  in 
addition  thereto,  on  all  of  the  foregoing,  duty  shall  be  collected  upon  the 
bottles  or  other  containers  at  one-third  of  the  rates  that  would  be  charged 
thereon  if  imported  empty  or  separately. 

Schedule  I — Cotton  Manufactures. 

250.  Cotton  thread  and  carded  yarn,  warps,  or  warp  yarn,  whether 
on  beams  or  in  bundles,  skeins,  or  cops,  or  in  any  other  form,  not  combed, 
bleached,  dyed,  mercerized,  or  colored,  except  spool  thread  of  cotton, 
crochet,  darning  and  embroidery  cottons,  hereinafter  provided  for,  shall 
be  subject  to  the  following  rates  of  duty: 

Numbers  up  to  and  including  number  nine,  5  per  centum  ad  valo- 
rem ;  exceeding  number  nine  and  not  exceeding  number  nineteen,  7^  per 
centum  ad  valorem ;  exceeding  number  nineteen  and  not  exceeding  num- 
ber thirty-nine,  10  per  centum  ad  valorem;  exceeding  number  thirty-nine 
and  not  exceeding  number  forty-nine,  15  per  centum  ad  valorem;  exceed- 
ing number  forty-nine  and  not  exceeding  number  fifty-nine,  17^  per 
centum  ad  valorem  ;  exceeding  number  fifty-nine  and  not  exceeding  num- 
ber seventy-nine,  20  per  centum  ad  valorem ;  exceeding  number  seventy- 
nine  and  not  exceeding  number  ninety-nine,  22^  per  centum  ad  valorem ; 
exceeding  number  ninety-nine,  25  per  centum  ad  valorem.  When  combed, 
bleached,  dyed,  mercerized,  or  colored,  they  shall  be  subject  to  the  follow- 
ing rates  of  duty:  Numbers  up  to  and  including  number  nine,  7\  per 
centum  ad  valorem  ;  exceeding  number  nine  and  not  exceeding  number 
nineteen,  10  per  centum  ad  valorem ;  exceeding  number  nineteen  and  not 
exceeding  number  thirty-nine,  12^  per  centum  ad  valorem;  exceeding 
number  thirty-nine  and  not  exceeding  number  forty-nine,  17^  per  centum 
ad  valorem :  exceeding  number  forty-nine  and  not  exceeding  number 
fifty-nine,  20  per  centum  ad  valorem;  exceeding  number  fifty-nine  and 
not^  exceeding  number  seventy-nine,  22^  per  centum  ad  valorem  ;  exceed- 
ing number  seventy-nine  and  not  exceeding  number  ninety-nine,  25  per 
centum  ad  valorem;  exceeding  number  ninety-nine,  27-^  per  centum  ad 
valorem.  Cotton  waste  and  flocks,  manufactured  or  otherwise  advanced 
in  value,  cotton  card  laps,  roping,  sliver,  or  roving,  5  per  centum  ad 
valorem. 

251.  Spool  thread  of  cotton,  crochet,  darning,  and  embroidery  cot- 
tons, on  spools,  reels,  or  balls,  or  in  skeins,  cones,  or  tubes,  or  in  any 
other  form,  15  per  centum  ad  valorem. 

252.  Cotton  cloth,  not  bleached,  dyed,  colored,  stained,  painted, 
printed,  woven  figured,  or  mercerized,  containing  yarns  the  average  num- 
ber of  which  does  not  exceed  number  nine,  7h  per  centum  ad  valorem ; 


396  Important  Federal  Laws 

exceeding  number  nine  and  not  exceeding  number  nineteen,  10  per 
centum  ad  valorem ;  exceeding  number  nineteen  and  not  exceeding  num- 
ber thirty-nine,  12|  per  centum  ad  valorem ;  exceeding  number  thirty-nine 
and  not  exceeding  number  forty-nine,  17^  per  centum  ad  valorem;  exceed- 
ing number  forty-nine  and  not  exceeding  number  fifty-nine,  20  per 
centum  ad  valorem ;  exceeding  number  fifty-nine  and  not  exceeding  num- 
ber seventy-nine,  22^  per  centum  ad  valorem ;  exceeding  number  seventy- 
nine  and  not  exceeding  number  ninety-nine,  25  per  centum  ad  valorem; 
exceeding  number  ninety-nine,  27^  per  centum  ad  valorem.  Cotton  cloth 
when  bleached,  dyed,  colored,  stained,  painted,  printed,  woven  figured, 
or  mercerized,  containing  yarn  the  average  number  of  which  does  not 
exceed  number  nine,  10  per  centum  ad  valorem ;  exceeding  number  nine 
and  not  exceeding  number  nineteen,  12^  per  centum  ad  valorem ;  exceed- 
ing number  nineteen  and  not  exceeding  number  thirty-nine,  15  per  centum 
ad  valorem;  exceeding  number  thirty-nine  and  not  exceeding  number 
forty-nine,  20  per  centum  ad  valorem ;  exceeding  number  forty-nine  and 
not  exceeding  number  fifty -nine,  22|  per  centum  ad  valorem;  exceeding 
number  fifty-nine  and  not  exceeding  number  seventy-nine,  25  per  centum 
ad  valorem;  exceeding  number  seventy-nine  and  not  exceeding  number 
ninety-nine,  27^  per  centum  ad  valorem;  exceeding  number  ninety-nine, 
30  per  centum' ad  valorem;  plain  gauze  or  leno  woven  cotton  nets  or 
nettings  shall  be  classified  for  duty  as  cotton  cloth. 

253.  The  term  cotton  cloth,  or  cloth,  wherever  used  in  the  para- 
graphs of  this  schedule,  unless  otherwise  specially  provided  for,  shall  be 
held  to  include  all  woven  fabrics  of  cotton,  in  the  piece,  whether  figured, 
fancy,  or  plain,  and  shall  not  include  any  article,  finished  or  unfinished, 
made  from  cotton  cloth.  In  the  ascertainment  of  the  condition  of  the 
cloth  or  yarn  upon  which  the  duties  imposed  upon  cotton  cloth  are  made 
to  depend,  the  entire  fabric  and  all  parts  thereof  shall  be  included.  The 
average  number  of  the  yarn  in  cotton  cloth  herein  provided  for  shall  be 
obtained  bv  taking  the  length  of  the  thread  or  yarn  to  be  equal  to  the 
distance  covered  by  it  in  the  cloth  in  the  condition  as  imported,  except 
that  all  clipped  threads  shall  be  measured  as  if  continuous;  in  counting 
the  threads  all  plv  yarns  shall  be  separated  into  singles  and  the  count 
taken  of  the  total' singles ;  the  weight  shall  be  taken  after  any  excessive 
sizing  is  removed  by  boiling  or  other  suitable  process. 

254.  Cloth  composed  of  cotton  or  other  vegetable  fiber  and  silk, 
whether  known  as  silk-striped  sleeve  linings,  silk  stripes,  or  otherwise, 
of  which  cotton  or  other  vegetable  fiber  is  the  component  material  of 
chief  value,  and  tracing  cloth,  30  per  centum  ad  valorem;  cotton  cloth 
filled  or  coated,  all  oilcloths  (except  silk  oilcloths  and  oilcloths  for  floors), 
and  cotton  window  hollands,  25  per  centum  ad  valorem;  waterproof  cloth 
composed  of  cotton  or  other  vegetable  fiber,  or  of  which  cotton  or  other 
vegetable  fiber  is  the  component  material  of  chief  value  or  of  cotton  or 
other  vegetable  fiber  and  india  rubber,  25  per  centum  ad  valorem. 

255      Handkerchiefs  or  mufflers  composed  of  cotton,  not  specially 


Tariff  Act,  Dutiable  List  397 

provided  for  in  this  section,  whether  finished  or  unfinished,  not  hemmed, 
25  per  centum  ad  valorem;  hemmed,  or  hemstitched,  30  per  centum  ad 
valorem. 

256.  Clothing,  ready-made,  and  articles  of  wearing  apparel  of  every 
description,  composed  of  cotton  or  other  vegetable  fiber,  or  of  which 
cotton  or  other  vegetable  fiber  is  the  component  material  of  chief  value, 
or  of  cotton  or  other  vegetable  fiber  and  India  rubber,  made  up  or  manu- 
factured, wholly  or  in  part,  by  the  tailor,  seamstress,  or  manufacturer,  and 
not  otherwise  specially  provided  for  in  this  section,  30  per  centum  ad 
valorem;  shirt  collars  and  cuffs  of  cotton,  not  specially  provided  for  in 
this  section,  30  per  centum  ad  valorem. 

257.  Plushes,  velvets,  plush  or  velvet  ribbons,  velveteens,  corduroys, 
and  all  pile  fabrics,  cut  or  uncut,  whether  or  not  the  pile  covers  the  entire 
surface ;  any  of  the  foregoing  composed  wholly  or  in  chief  value  of  cotton 
or  other  vegetable  fiber,  except  flax,  hemp,  or  ramie;  and  manufactures 
or  articles  in  any  form,  including  such  as  are  commonly  known  as  bias 
dress  facings  or  skirt  bindings,  made  or  cut  from  plushes,  velvets,  vel- 
veteens, corduroys,  or  other  pile  fabrics  composed  of  cotton  or  other 
vegetable  fiber,  except  flax,  hemp,  or  ramie,  40  per  centum  ad  valorem. 

258.  Curtains,  table  covers,  and  all  articles  manufactured  of  cotton 
chenille,  or  of  which  cotton  chenille  is  the  component  material  of  chief 
value,  tapestries,  and  other  Jacquard  figured  upholstery  goods,  composed 
wholly  or  in  chief  value  of  cotton  or  other  vegetable  fiber;  any  of  the 
foregoing,  in  the  piece  or  otherwise,  35  per  centum  ad  valorem ;  all  other 
Jacquered  figured  manufactures  of  cotton  or  of  which  cotton  is  the  com- 
ponent material  of  chief  value,  30  per  centum  ad  valorem. 

259."  Stockings,  hose  and  half  hose,  made  on  knitting  machines  or 
frames,  composed  of  cotton  or  other  vegetable  fiber,  and  not  otherwise 
specially  provided  for  in  this  section,  20  per  centum  ad  valorem. 

260.  Stockings,  hose  and  half  hose,  selvedged,  fashioned,  narrowed, 
or  shaped  wholly  or  in  part  by  knitting  machines  or  frames,  or  knit  by 
hand,  including  such  as  are  commercially  known  as  seamless  stockings, 
hose  and  half  hose,  and  clocked  stockings,  hose  and  half  hose,  all  of  the 
above  composed  of  cotton  or  other  vegetable  fiber,  finished  or  unfinished ; 
if  valued  at  not  more  than  70  cents  per  dozen  pairs,  30  per  centum  ad 
valorem;  if  valued  at  more  than  70  cents,  and  not  more  than  $1.20  per 
dozen  pairs,  40  per  centum  ad  valorem;  if  valued  at  more  than  $1.20  per 
dozen  pairs,  50  per  centum  ad  valorem.  Gloves  by  whatever  process 
made,  composed  wholly  or  in  chief  value  of  cotton,  35  per  centum  ad 
valorem. 

261.  Shirts  and  drawers,  pants,  vests,  union  suits,  combination 
suits,  tights,  sweaters,  corset  covers,  and  all  underwear  and  wearing 
apparel  of  every  description,  not  specially  provided  for  in  this  section, 
made  wholly  or  in  part  on  knitting  machines  or  frames,  or  knit  by  hand, 
finished  or  unfinished,  not  including  such  as  are  trimmed  with  lace,  imi- 
tation lace  or  crochet  or  as  are  embroidered  and  not  including  stockings. 


398  Important  Federal  Laws 

hose  and  half  hose,  composed  of  cotton  or  other  vegetable  fiber,  30  per 
centum  ad  valorem. 

262.  Bandings,  belts,  beltings,  bindings,  bone  casings,  cords,  tassels, 
cords  and  tassels,  garters,  tire  fabric  or  fabric  suitable  for  use  in  pneu- 
matic tires,'  suspenders  and  braces,  and  fabrics  with  fast  edges  not  exceed- 
ing twelve  inches  in  width,  all  of  the  foregoing  made  of  cotton  or  other 
vegetable  fiber,  or  of  which  cotton  or  other  vegetable  fiber  is  the  com- 
ponent material  of  chief  value,  or  of  cotton  or  other  vegetable  fiber  and 
india  rubber,  and  not  embroidered  by  hand  or  machinery ;  spindle  band- 
ing, woven,  braided,  or  twisted  lamp,  stove,  or  candle  wicking  made  of 
cotton  or  other  vegetable  fiber ;  loom  harness,  healds,  or  collets  made  of 
cotton  or  other  vegetable  fiber,  or  of  which  cotton  or  other  vegetable  fiber 
is  the  component  material  of  chief  value;  boot,  shoe,  and  corset  lacings 
made  of  cotton  or  other  vegetable  fiber;  and  labels  for  garments  or 
other  articles,  composed  of  cotton  or  other  vegetable  fiber,  25  per  centum 
ad  valorem;  belting  for  machinery  made  of  cotton  or  other  vegetable 
fiber  and  india  rubber,  or  of  which  cotton  or  other  vegetable  fiber  is  the 
component  material  of  chief  value,  15  per  centum  ad  valorem. 

263.  Cotton  table  damask,  and  manufactures  of  cotton  table  damask, 
or  of  which  cotton  table  damask  is  the  component  material  of  chief  value, 
not  specially  provided  for  in  this  section,  25  per  centum  ad  valorem. 

264.  Towels,  bath  mats,  quilts,  blankets,  polishing  cloths,  mop 
cloths,  wash  rags  or  cloths,  sheets,  pillowcases,  and  batting,  any  of  the 
foregoing  made  of  cotton,  or  of  which  cotton  is  the  component  material 
of  chief  value,  not  embroidered  nor  in  part  of  lace  and  not  otherwise 
provided  for,  25  per  centum  ad  valorem. 

265.  Lace  window  curtains,  pillow  shams,  and  bed  sets,  finished  or 
unfinished,  made  on  the  Nottingham  lace-curtain  machine,  and  composed 
of  cotton  or  other  vegetable  fiber,  when  counting  not  more  than  six  points 
or  spaces  between  the  warp  threads  to  the  inch,  35  per  centum  ad 
valorem ;  when  counting  more  than  six  and  not  more  than  eight  points 
or  spaces  to  the  inch,  40  per  centum  ad  valorem;  when  counting  nine  or 
more  points  or  spaces  to  the  inch,  45  per  centum  ad  valorem. 

266.  All  articles  made  from  cotton  cloth,  whether  finished  or  un- 
finished, and  all  manufactures  of  cotton  or  of  which  cotton  is  the  com- 
ponent material  of  chief  value,  not  specially  provided  for  in  this  section, 
30  per  centum  ad  valorem. 

Schedule  J — Flax,  Hemp  and  Jute,  and  Manufactures  Of. 

267.  Single  yarns  made  of  jute,  not  finer  than  five  lea  or  number,  15 
per  centum  ad  valorem ;  if  finer  than  five  lea  or  number  and  yarns  made 
of  jute  not  otherwise  specially  provided  for  in  this  section,  20  per  centum 
ad  valorem. 

268.  Cables  and  cordage,  composed  of  istle,  Tampico  fiber,  manila, 
sisal  grass  or  sunn,  or  a  mixture  of  these  or  any  of  them,  ^  cent  per 


Tariff  Act,  Dutiable  List  399 

pound;  cables  and  cordage  made  of  hemp,  tarred  or  untarred,    1   cent 

per  pound. 

269.  Threads,  twines,  or  cords,  made  from  yarn  not  finer  than  five 
lea  or  number,  composed  of  flax,  hemp,  or  ramie,  or  of  which  these 
substances  or  any  of  them  is  the  component  material  of  chief  value,  20 
per  centum  ad  valorem ;  if  made  from  yarn  finer  than  five  lea  or  number, 
25  per  centum  ad  valorem. 

270.  Single  varus,  made  of  flax,  hemp,  or  ramie,  or  a  mixture  of 
any  of  them,  not'  finer  than  eight  lea  or  number,  12  per  centum  ad 
valorem;  finer  than  eight  lea  or  number  and  not  finer  than  eighty  lea 
or  number,  20  per  centum  ad  valorem ;  finer  than  eighty  lea  or  number, 
10  per  centum  ad  valorem;  ramie  sliver  or  roving,  15  per  centum  ad 
valorem. 

271.  Gill  nettings,  nets,  webs,  and  seines  made  of  flax,  hemp,  or 
ramie,  or  a  mixture  of  any  of  them,  or  of  which  any  of  them  is  the 
component  material  of  chief  value,  25  per  centum  ad  valorem. 

272.  Floor  mattings,  plain,  fancy,  or  figured,  including  mats  and 
rugs,  manufactured  from  straw,  round  or  split,  or  other  vegetable  sub- 
stances, not  otherwise  provided  for  in  this  section,  and  having  a  warp  of 
cotton,  hemp,  or  other  vegetable  substances,  including  what  are  com- 
monly known  as  China,  Japan,  and  India  straw  matting,  2\  cents  per 
square  yard.  -^  _ 

273.  Carpets,  carpeting,  mats  and  rugs  made  of  flax,  hemp,  jute,, 
or  other  vegetable  fibe  (except  cotton),  30  per  centum  ad  valorem. 

274.  Hydraulic  or  flume  hose,  made  in  whole  or  in  part  of  cotton, 
flax,  hemp,  ramie,  or  jute,  7  cents  per  pound. 

275.  Tapes  composed  wholly  or  in  part  of  flax,  woven  with  or  with- 
out metal  threads,  on  reels,  spools,  or  otherwise,  and  designed  expressly 
for  use  in  the  manufacture  of  measuring  tapes,  20  per  centum  ad  valorem. 

276.  Linoleum,  plain,  stamped,  painted,  or  printed,  including  cor- 
ticine  and  cork  carpet,  figured  or  plain,  also  linoleum  known  as  granite 
and  oak  plank,  30  per  centum  ad  valorem ;  inlaid  linoleum,  35  per  centum 
ad  valorem ;  oilcloth  for  floors,  plain,  stamped,  painted,  or  printed,  20  per 
centum  ad  valorem;  mats  or  rugs  made  of  oilcloth,  linoleum,  corticine, 
or  cork  carpet  shall  be  subject  to  the  same  rate  of  duty  as  herein  pro- 
vided for  oilcloth,  linoleum,  corticine,  or  cork  carpet. 

277.  Shirt  collars  and  cuffs,  composed  in  whole  or  in  part  of  linen, 
30  per  centum  ad  valorem. 

278.  Bands,  bandings,  belts,  beltings,  bindings,  cords,  ribbons,  tapes, 
webs  and  webbings,  all  the  foregoing  composed  wholly  of  flax,  hemp,  or 
ramie,  or  of  flax,  hemp,  or  ramie  and  india  rubber,  and  not  otherwise 
specially  provided  for  in  this  section,  30  per  centum  ad  valorem  ;  wearing 
apparel  composed  wholly  of  flax,  hemp,  or  ramie,  or  of  flax,  hemp,  or 
ramie  and  india  rubber,  40  per  centum  ad  valorem. 

279.  Plain  woven  fabrics  of  single  jute  yarns,  by  whatever  name 


400  Important  Federal  Laws 

known,  bleached,   dyed,  colored,   stained,   painted,   printed,   or   rendered 
noninflammable  by  any  process,  10  per  centum  ad  valorem. 

280.  All  pile  fabrics,  whether  or  not  the  pile  covers  the  entire  sur- 
face, composed  of  flax,  hemp,  or  ramie,  or  of  which  flax,  hemp,  or  ramie 
is  the  component  material  of  chief  value,  and  all  articles  and  manufac- 
tures made  from  such  fabrics,  not  specially  provided  for  in  this  section, 
40  per  centum  ad  valorem. 

281.  Bags  or  sacks  made  from  plain  woven  fabrics,  or  single  jute 
yarns,  not  dyed,  colored,  stained,  painted,  printed,  or  bleached,  10  per 
centum  ad  valorem. 

282.  Handkerchiefs  composed  of  flax,  hemp,  or  ramie,  or  of  which 
these  substances,  or  any  of  them,  is  the  component  material  of  chief 
value,  whether  in  the  piece  or  otherwise,  and  whether  finished  or  un- 
finished, not  hemmed  or  hemmed  only,  35  per  centum  ad  valorem;  if 
hemstitched,  or  imitation  hemstitched,  or  revered,  or  with  drawn  threads, 
but  not  embroidered,  initialed,  or  in  part  of  lace,  40  per  centum  ad 
valorem. 

283.  Plain  woven  fabrics,  not  including  articles,  finished  or  un- 
finished, of  flax,  hemp,  or  ramie,  or  of  which  these  substances  or  any 
of  them  is  the  component  material  of  chief  value,  including  such  as  is 
known  as  shirting  cloth,  30  per  centum  ad  valorem. 

284.  All  woven  articles,  finished  or  unfinished,  and  all  manufac- 
tures of  flax,  hemp,  ramie,  or  other  vegetable  fiber,  or  of  which  these 
substances,  or  any  of  them,  is  the  component  material  of  chief  value, 
not  specially  provided  for  in  this  section,  35  per  centum  ad  valorem. 

285.  Istle  or  tampico,  when  dressed,  dyed,  or  combed,  20  per 
centum  ad  valorem. 

Schedule  K — Wool  and  Manufactures  Of. 

286.  Combed  wool  or  tops  and  roving  or  roping  made  wholly  or  in 
part  of  wool  or  camel's  hair,  and  on  other  wool  and  hair  which  have 
been  advanced  in  any  manner  or  by  any  process  of  manufacture  beyond 
the  washed  or  scoured  condition,  not  specially  provided  for  in  this  sec- 
tion, 8  per  centum  ad  valorem. 

287.  Yarns  made  wholly  or  in  chief  value  of  wool,  18  per  centum 
ad  valorem. 

288.  Cloths,  knit  fabrics,  felts  not  woven,  and  all  manufactures  of 
every  description  made,  by  any  process,  wholly  or  in  chief  value  of  wool, 
not  specially  provided  for  in  this  section,  35  per  centum  ad  valorem ; 
cloths  if  made  in  chief  value  of  cattle  hair  or  horse  hair,  not  specially 
provided  for  in  this  section,  25  per  centum  ad  valorem ;  plushes,  velvets, 
and  all  other  pile  fabrics,  cut  or  uncut,  woven  or  knit,  whether  or  not 
the  pile  covers  the  entire  surface,  made  wholly  or  in  chief  value  of  wool, 
and  articles  made  wholly  or  in  chief  value  of  such  plushes,  velvets,  or 
pile  fabrics,  40  per  centum  ad  valorem ;  stockings,  hose  and  half  hose, 
made  on  knitting  machines  or  frames,  composed  wholly  or  in  chief  value 


Tariff  Act,  Dutiable  List  401 

of  wool,  not  specially  provided  for  in  this  section,  20  per  centum  ad 
valorem;  stockings,  hose  and  half  hose,  selvedged,  fashioned,  narrowed, 
or  shaped  wholly  or  in  part  by  knitting  machines  or  frames,  or  knit  by 
hand,  including  such  as  are  commercially  known  as  seamless  stockings, 
hose  and  half  hose,  and  clocked  stockings,  hose  and  half  hose,  gloves  and 
mittens,  all  of  the  above,  composed  wholly  or  in  chief  value  of  wool,  if 
valued  at  not  more  than  $1.20  per  dozen  pairs,  30  per  centum  ad  valorem; 
if  valued  at  more  than  $1.20  per  dozen  pairs,  40  per  centum  ad  valorem; 
press  cloth  composed  of  camel's  hair,  not  specially  provided  for  in  this 
section,  10  per  centum  ad  valorem. 

289.  Blankets  and  flannels,  composed  wholly  or  in  chief  value  of 
wool,  25  per  centum  ad  valorem ;  flannels  composed  wholly  or  in  chief 
value  of  wool,  valued  at  above  50  cents  per  pound,  30  per  centum  ad 
valorem. 

290.  Women's  and  children's  dress  goods,  coat  linings,  Italian  cloths, 
bunting,  and  goods  of  similar  description  and  character,  composed  wholly 
or  in  chief  value  of  wool,  and  not  specially  provided  for  in  this  section, 
35  per  centum  ad  valorem. 

291.  Clothing,  ready-made,  and  articles  of  wearing  apparel  of  every 
description,  including  shawls  whether  knitted  or  woven,  and  knitted 
articles  of  every  description  made  up  or  manufactured  wholly  or  in  part, 
and  not  specially  provided  for  in  this  section,  composed  wholly  or  in  chief 
value  of  wool,  35  per  centum  ad  valorem. 

292.  Webbings,  suspenders,  braces,  bandings,  belts,  beltings,  bind- 
ings, cords,  cords  and  tassels,  and  ribbons ;  any  of  the  foregoing  made 
of  wool  or  of  which  wool  or  wool  and  india  rubber  are  the  component 
materials  of  chief  value,  and  not  specially  provided  for  in  this  section, 
35  per  centum  ad  valorem. 

293.  Aubusson,  Axminster,  moquette,  and  chenille  carpets,  figured 
or  plain,  and  all  carpets  or  carpeting  of  like  character  or  description, 
35  per  centum  ad  valorem. 

294.  Saxony,  Wilton,  and  Tournay  velvet  carpets,  figured  or  plain, 
and  all  carpets  or  carpeting  of  like  character  or  description,  30  per 
centum  ad  valorem. 

295.  Brussels  carpets,  figured  or  plain,  and  all  carpets  or  carpeting 
of  like  character  or  description,  25  per  centum  ad  valorem. 

296.  Velvet  and  tapestry  velvet  carpets,  figured  or  plain,  printed  on 
the  warp  or  otherwise,  and  all  carpets  or  carpeting  of  like  character  or 
description.  30  per  centum  ad  valorem. 

297.  Tapestry  Brussels  carpets,  figured  or  plain,  and  all  carpets  or 
carpeting  of  like  character  or  description,  printed  on  the  warp  or  other- 
wise, 20  per  centum  ad  valorem. 

298.  Treble  ingrain,  three-ply,  and  all-chain  Venetian  carpets,  20 
per  centum  ad  valorem. 

299.  Wool  Dutch  and  two-ply  ingrain  carpets,  20  per  centum  ad 
valorem. 

(26) 


402  Important  Federal  Laws 

300.  Carpets  of  every  description,  woven  whole  for  rooms,  and 
Oriental,  Berlin,  Aubusson,  Axminster,  and  similar  rugs,  50  per  centum 
ad  valorem. 

301.  Druggets  and  bockings,  printed,  colored,  or  otherwise,  20  per 
centum  ad  valorem. 

302.  Carpets  and  carpeting  of  wool  or  cotton,  or  composed  in  part 
of  either  of  them,  not  specially  provided  for  in  this  section,  and  on  mats, 
matting,  and  rugs  of  cotton,  20  per  centum  ad  valorem. 

303.  Mats,  rugs,  for  floors,  screens,  covers,  hassocks,  bed  sides,  art 
squares,  and  other  portions  of  carpets  or  carpeting,  composed  wholly  or 
in  part  of  wool,  and  not  specially  provided  for  in  this  section,  shall  be 
subjected  to  the  rate  of  duty  herein  imposed  on  carpets  or  carpeting  of 
like  character  or  description. 

304.  Whenever  in  this  section  the  word  "wool"  is  used  in  connection 
with  a  manufactured  article  of  v/hich  it  is  a  component  material,  it  shall 
be  held  to  include  wool  or  hair  of  the  sheep,  camel,  or  other  like  animals, 
whether  manufactured  by  the  woolen,  worsted,  felt,  or  any  other  process. 

305.  Hair  of  the  Angora  goat,  alpaca,  and  other  like  animals,  and 
all  hair  on  the  skin  of  such  animals.  15  per  centum  ad  valorem. 

306.  Tops  made  from  the  hair  of  the  Angora  goat,  alpaca,  and  other 
like  animals,  20  per  centum  ad  valorem. 

307.  Yarns  made  of  the  hair  of  the  Angora  goat,  alpaca,  and  other 
like  animals,  25  per  centum  ad  valorem. 

308.  Cloth  and  all  manufactures  of  every  description  made  by  any 
process,  wholly  or  in  chief  value  of  the  hair  of  the  Angora  goat,  alpaca, 
and  other  like  animals,  not  specially  provided  for  in  this  section,  40  per 
centum  ad  valorem. 

309.  Plushes,  velvets,  and  all  other  pile  fabrics,  cut  or  uncut,  woven 
or  knit,  whether  or  not  the  pile  covers  the  entire  surface,  made  wholly 
or  partly  of  the  hair  of  the  Angora  goat,  alpaca,  or  other  like  animals, 
and  articles  made  wholly  or  in  chief  value  of  such  plushes,  velvets,  or 
pile  fabrics,  45  per  centum  ad  valorem. 

310.  The  provisions  of  this  schedule  (K)  shall  be  effective  on  and 
after  the  first  day  of  January,  nineteen  hundred  and  fourteen,  until  which 
date  the  rates  of  duty  now  provided  by  Schedule  K  of  the  existing  law 
shall  remain  in  full  force  and  effect 

Schedule  L — Silks  and  Sjlk  Goods. 

311.  Silk  partially  manufactured  from  cocoons  or  from  waste  silk 
and  not  further  advanced  or  manufactured  than  carded  or  combed  silk, 
and  silk  noils  exceeding  two  inches  in  length,  20  cents  per  pound. 

312.  Spun  silk  or  schappe  silk  yarn,  35  per  centum  ad  valorem. 

313.  Thrown  silk  not  more  advanced  than  singles,  tram,  or  organ- 
zine,  sewing  silk,  twist,  floss,  and  silk  threads  or  yarns  of  every  descrip- 
tion made  from  raw  silk,  15  per  centum  ad  valorem. 


Tariff  Act^  Dutiable  List  403 

314.  Velvets,  plushes,  chenilles,  velvet  or  plush  ribbons,  or  other 
pile  fabrics,  composed  of  silk  or  of  which  silk  is  the  component  material 
of  chief  value,  50  per  centum  ad  valorem. 

315.  Handkerchiefs  or  mufflers  composed  wholly  or  in  chief  value 
of  silk,  finished  or  unfinished;  if  cut,  not  hemmed  or  hemmed  only,  40 
per  centum  ad  valorem;  if  hemstitched  or  imitation  hemstitched,  or 
revered,  or  having  drawn  threads,  but  not  embroidered  in  any  manner 
with  an  initial  letter,  monogram,  or  otherwise,  50  per  centum  ad  valorem. 

316.  Ribbons,  bandings,  including  hatbands,  belts,  beltings,  bind- 
ings, all  of  the  foregoing  not  exceeding  twelve  inches  in  width  and  if 
with  fast  edges,  bone  casings,  braces,  cords,  cords  and  tassels,  garters, 
suspenders,  tubings,  and  webs  and  webbings ;  all  the  foregoing  made  of 
silk  or  of  which  silk  or  silk  and  india  rubber  arc  the  component  materials 
of  chief  value,  if  not  embroidered  in  any  manner,  and  not  specially  pro- 
vided for  in  this  section,  45  per  centum  ad  valorem. 

317.  Clothing,  ready-made,  and  articles  of  wearing  apparel  of  every 
description,  including  knit  goods,  made  up  or  manufactured  in  whole  or 
in  part  by  the  tailor,  seamstress,  or  manufacturer;  all  the  foregoing  com- 
posed of  silk  or  of  which  silk  or  silk  and  india  rubber  are  the  component 
materials  of  chief  value,  not  specially  provided  for  in  this  section,  50  per 
centum  ad  valorem. 

318.  Woven  fabrics,  in  the  piece  or  otherwise,  of  which  silk  is  the 
component  material  of  chief  value,  and  all  manufactures  of  silk,  or  of 
which  silk  or  silk  and  india  rubber  are  the  component  materials  of  chief 
value,  not  specially  provided  for  in  this  section,  45  per  centum  ad  valorem. 

319.  Yarns,  threads,  filaments  of  artificial  or  imitation  silk,  or  of 
artificial  or  imitation  horsehair,  by  whatever  name  known,  and  by  what- 
ever process  made,  35  per^  centum  ad  valorem ;  beltings,  cords,  tassels, 
ribbons,  or  other  articles  or  fabrics  composed  wholly  or  in  chief  value  of 
yarns,  threads,  filaments,  or  fibers  of  artificial  or  imitation  silk  or  of 
artificial  or  imitation  horsehair;  or  of  yarns,  threads,  filaments  or  fibers 
of  artificial  or  imitation  silk,  or  of  artificial  or  imitation  horsehair  and 
india  rubber,  by  whatever  name  known,  and  by  whatever  process  made, 
60  per  centum  ad  valorem. 

Schedule  M — Papers  and  Books. 

320.  Sheathing  paper,  pulpboard  in  rolls,  not  laminated,  roofing  felt, 
common  paper-box  board,  not  coated,  lined,  embossed,  printed  or  deco- 
rated in  any  manner,  nor  cut  into  shapes  for  boxes  or  other  articles, 
5  per  centum  ad  valorem. 

321.  Filter  masse  or  filter  stock,  composed  wholly  or  in  part  of 
wood  pulp,  wood  flour,  cotton  or  other  vegetable  fiber,  20  per  centum- 
ad  valorem. 

322.  Printing  paper  (other  than  paper  commercially  known  as 
handmade  or  machine  handmade  paper,  japan  paper,  and  imitation  japan 


404  Important  Federal  Laws 

paper  by  whatever  name  known),  unsized,  sized,  or  glued,  suitable  for 
the  printing  of  books  and  newspapers,  but  not  for  covers  or  bindings, 
not  specially  provided  for  in  this  section,  valued  above  5  cents  per  pound, 
twelve  per  centum  ad  valorem:  Provided,  however.  That  if  any  country, 
dependency,  province,  or  other  subdivision  of  government  shall  impose 
any  export  duty,  export  license  fee,  or  other  charge  of  any  kind  what- 
soever (whether  in  the  form  of  additional  charge  or  license  fee  or  other- 
wise) upon  printing  paper,  wood  pulp,  or  wood  for  use  in  the  manufac- 
ture of  wood  pulp,  there  shall  be  imposed  upon  printing  paper,  valued 
above  5  cents  per  pound,  when  imported  either  directly  or  indirectly 
from  such  country,  dependency,  province,  or  other  subdivision  of  gov- 
ernment, an  additional  duty  equal  to  the  amount  of  the  highest  export 
duty  or  other  export  charge  imposed  by  such  country,  dependency,  prov- 
ince, or  other  subdivision  of  government,  upon  either  printing  paper  or 
upon  an  amount  of  wood  pulp,  or  wood  for  use  in  the  manufacture  of 
wood  pulp  necessary  to  manufacture  such  printing  paper.  (As  amended 
September  8,  1916.) 

323.  Papers  commonly  known  as  copying  paper,  stereotype  paper, 
bibulous  paper,  tissue  paper,  pottery  paper,  letter-copying  books,  wholly 
or  partly  manufactured,  crepe  paper  and  filtering  paper,  and  articles  man- 
ufactured from  any  of  the  foregoing  papers  or  of  which  such  paper  is 
the  component  material  of  chief  value,  30  per  centum  ad  valorem. 

324.  Papers  wholly  or  partly  covered  with  metal  leaf  or  with  gela- 
tin or  flock,  papers  with  white  coated  surface  or  surfaces,  calendar  plate 
finished,   hand   dipped   marbleized   paper,    parchment   paper,    and    litho- 
graphic transfer  paper  not  printed,  25  per  centum  ad  valorem;  papers 
with  coated  surface  or  surfaces  suitable  for  covering  boxes,  not  specially 
provided  for,  whether  or  not  embossed  or  printed  except  by  lithographic 
process,  40  per  centum  ad  valorem ;  all  other  paper  with  coated  surface 
or  surfaces  not  specially  provided  for  in  this  section ;  uncoated  papers, 
gummed,  or  with  the  surface  or  surfaces  wholly  or  partly  decorated  or 
covered  with  a  design,  fancy  effect,  pattern,  or  character,  whether  pro- 
'duced   in  the  pulp   or  otherwise  except  by   lithographic   process,   cloth- 
lined  or   reinforced  papers,   and  grease-proof   and   imitation   parchment 
papers  which   have  been   supercalendered   and  rendered   transparent  or 
partially  so,  by  whatever  name  known,  all  other  grease-proof  and  imitation 
parchment  papers,  not  specially  provided  for  in  this  section,  by  whatever 
name  known,  bags,  envelopes,  and  all  other  articles  composed  wholly  or 
in  chief  value  of  any  of  the  foregoing  papers,  not  specially  provided  for 
in  this  section,  and  all  boxes  of  paper  or  papier  mache  or  wood  covered 
with  any  of  the  foregoing  papers  or  covered  or  lined  with  cotton  or  other 
vegetable  fiber,   35   per  centum  ad  valorem;   albuminized   or   sensitized 
paper  or  paper  otherwise  surface-coated  for  photographic  purposes,  25 
per  centum  ad  valorem ;  plain  basic  papers  for  albuminizing,  sensitizing, 
baryta  coating,  or  for  photographic  or  solar  printing  processes,   15  per 
centum  ad  valorem. 


Tariff  Act,  Dutiable  List  405 

325.  Pictures,  calendars,  cards,  booklets,  labels,  flaps,  cigar  bands, 
placards,  and  other  articles  composed  wholly  or  in  chief  value  of  paper 
lithographically  printed  in  whole  or  in  part  from  stone,  gelatin,  metal, 
or  other  material  (except  boxes,  views  of  American  scenery  or  objects, 
and  music,  and  illustrations  when  forming  a  part  of  a  periodical  or  news- 
paper or  of  bound  or  unbound  books,  accompanying  the  same,  not  spe- 
cially provided  for  in  this  section)  shall  pay  duty  at  the  following  rates: 
Labels  and  flaps  printed  in  less  than  eight  colors  (bronze  printing  to  be 
counted  as  two  colors),  but  not  printed  in  whole  or  in  part  of  metal  leaf, 
15  cents  per  pound;  cigar  bands  of  the  same  number  of  colors  and  print- 
ings, 20  cents  per  pound  ;  labels  and  flaps  printed  in  eight  or  more  colors 
(bronze  printing  to  be  counted  as  two  colors),  but  not  printed  in  whole 
or  in  part  of  metal  leaf,  20  cents  per  pound ;  cigar  bands  of  the  same 
number  of  colors  and  printings,  25  cents  per  pound;  labels  and  flaps 
printed  in  whole  or  in  part  of  metal  leaf,  35  cents  per  pound ;  cigar  bands 
printed  in  whole  or  in  part  of  metal  leaf,  40  cents  per  pound;  booklets, 
7  cents  per  pound ;  all  other  articles  not  exceeding  eight  one-thousandths 
of  an  inch  in  thickness,  15  cents  per  pound;  exceeding  eight  one-thou- 
sandths of  an  inch  and  not  exceeding  twenty  one-thousandths  of  an  inch 
in  thickness  and  less  than  thirty-five  square  inches  cutting  size  in  dimen- 
sion, 5  cents  per  pound ;  exceeding  eight  and  not  exceeding  twenty  one- 
thousandths  of  an  inch  in  thickness  and  thirty-five  square  inches  and  over 
cutting  size  in  dimension,  7  cents  per  pound ;  exceeding  twenty  ©ne- 
thousandths  of  an  inch  in  thickness,  5  cents  per  pound,  providing  that 
in  the  case  of  articles  hereinbefore  specified  the  thickness  which  shall 
determine  the  rate  of  duty  to  be  imposed  shall  be  that  of  the  thinnest  litho- 
graphed material  found  in  the  article,  but  for  the  purpose  of  this  para- 
graph the  thickness  of  lithographs  mounted  or  pasted  upon  paper,  card- 
board, or  other  material  shall  be  the  combined  thickness  of  the  lithograph 
and  the  foundation  upon  which  it  is  mounted  or  pasted ;  books  of  paper 
or  other  material  for  children's  use,  lithographically  printed  in  whole  or 
in  part,  not  exceeding  in  weight  twenty- four  ounces  each,  4  cents  per 
pound  ;  fashion  magazines  or  periodicals  printed  in  whole  or  in  part  by 
lithographic  process  or  decorated  by  hand,  6  cents  per  pound ;  booklets, 
wholly  or  in  chief  value  of  paper,  decorated  in  whole  or  in  part  by  hand 
or  by  spraying,  whether  or  not  lithographed,  10  cents  per  pound  ;  decal- 
comanias  in  ceramic  colors,  weighing  not  over  one  hundred  pounds  per 
thousand  sheets,  on  a  basis  of  twenty  by  thirty  inches  in  dimensions, 
60  cents  per  pound ;  all  other  decalcomanias,  except  toy  decalcomanias, 
15  cents  per  pound. 

326.  Writing,  letter,  note,  drawing,  handmade  paper  and  paper  com- 
mercially known  as  handmade  paper  and  machine  handmade  paper,  japan 
paper  and  imitation  japan  paper  by  whatever  name  known,  and  ledger, 
bond,  record,  tablet,  typewriter,  and  onionskin  and  imitation  onionskin 
papers  calendered  or  uncalendered,   whether  or  not  any  such  paper  is 


406  Important  Federal  Laws 

ruled,  bordered,  embossed,  printed,  lined,  or  decorated  in  any  manner, 
25  per  centum  ad  valorem. 

Z27 .  Paper  envelopes,  folded  or  flat,  not  specially  provided  for  in 
this  section,  15  per  centum  ad  valorem. 

328.  Jacquard  designs  on  ruled  paper,  or  cut  on  Jacquard  cards, 
and  parts  of  such  designs,  cardboard  and  bristol  board,  press  boards  or 
press  paper,  paper  hangings  with  paper  back  or  composed  wholly  or  in 
chief  value  of  paper,  and  wrapping  paper  not  specially  provided  for  in 
this  section,  25  per  centum  ad  valorem. 

329.  Books  of  all  kinds,  bound  or  unbound,  including  blank  books, 
slate  books  and  pamphlets,  engravings,  photographs,  etchings,  maps, 
charts,  music  in  books  or  sheets,  and  printed  matter,  all  the  foregoing, 
and  not  specially  provided  for  in  this  section,  15  per  centum  ad  valorem. 
Views  of  any  landscape,  scene,  building,  place  or  locality  in  the  United 
States,  on  cardboard  or  paper,  not  thinner  than  eight  one-thousandths  of 
of  one  inch,  by  whatever  process  printed  or  produced,  including  those 
wholly  or  in  part  produced  by  either  lithographic  or  photogelatin  process 
(except  show  cards),  bound  or  unbound,  or  in  any  other  form,  20  cents 
per  pound ;  thinner  than  eight  one-thousandths  of  one  inch,  $2  per  thou- 
sand. 

330.  Photograph,  autograph,  scrap,  post-card,  and  postage-stamp 
albums,  wholly  or  partly  manufactured,  25  per  centum  ad  valorem. 

331.  Playing  cards.  60  per  centum  ad  valorem. 

332.  Papers  or  cardboard,  cut,  die  cut,  or  stamped  into  designs  or 
shapes,  such  as  initials,  monograms,  lace,  borders,  or  other  forms,  and 
all  post  cards,  not  including  American  views,  plain,  decorated,  embossed, 
or  printed,  except  by  lithographic  process,  and  all  papers  and  manufac- 
tures of  paper  or  of  which  paper  is  the  component  material  of  chief 
value,  not  specially  provided  for  in  this  section,  25  per  centum  ad  valorem. 

Schedule  N — Sundries. 

ZZZ.  Beads  and  spangles  of  all  kinds,  including  imitation  pearl 
beads,  not  threaded  or  strung,  or  strung  loosely  on  thread  for  facility 
in  transportation  only,  35  per  centum  ad  valorem ;  curtains,  and  other 
articles  not  embroidered  nor  appliqued  and  not  specially  provided  for  in 
this  section,  composed  wholly  or  in  chief  value  of  beads  or  spangles  made 
of  glass  or  paste,  gelatin,  metal,  or  other  material,  50  per  centum  ad 
valorem. 

334.  Ramie  hat  braids,  40  per  centum  ad  valorem ;  manufactures 
of  ramie  hat  braids,  50  per  centum  ad  valorem. 

335.  Braids,  plaits,  laces,  and  willow  sheets  or  squares,  composed 
wholly  or  in  chief  value  of  straw,  chip,  grass,  palm  leaf,  willow,  osier, 
rattan,  real  horsehair,  cuba  bark,  or  manila  hemp,  suitable  for  making 
or  ornamenting  hats,  bonnets,  or  hoods,  not  bleached,  dyed,  colored,  or 
stained,  15  per  centum  ad  valorem;  if  bleached,  dyed,  colored,  or  stained. 
20  per  centum  ad  valorem;  hats,  bonnets,  and  hoods  composed  wholly 


Tariff  Act,  Dutiable  List  407 

or  in  chief  value  of  straw,  chip,  grass,  pahii  leaf,  willow,  osier,  rattan, 
Cuba  bark,  or  manila  hemp,  whether  wholly  or  partly  manufactured,  but 
not  blocked  or  trimmed,  25  per  centum  ad  valorem  ;  if  blocked  or  trimmed, 
and  in  chief  value  of  such  materials,  40  per  centum  ad  valorem.  But  the 
terms  "grass"  and  "straw"  shall  be  understood  to  mean  these  substances 
in  their  natural  form  and  structure,  and  not  the  separated  fiber  thereof. 

336.  Brooms,  made  of  broom  corn,  straw,  wooden  fibre,  or  twigs, 
15  per  centum  ad  valorem;  brushes  and  feather  dusters  of  all  kinds,  and 
hair  pencils  in  quills  or  otherwise,  35  per  centum  ad  valorem. 

537.     Bristles,  sorted,  bunched,  or  prepared,  7  cents  per  pound. 

33S.  Button  forms  of  lastings,  mohair  or  silk  cloth,  or  other  manu- 
factures of  cloth,  woven  or  made  in  patterns  of  such  size,  shape,  or  form 
as  to  be  fit  for  buttons  exclusively,  and  not  exceeding  eight  inches  in  any 
one  dimension,  10  per  centum  ad  valorem. 

339.  Buttons  of  vegetable  ivory  in  sizes  thirty-six  lines  and  larger, 
35  per  centum  ad  valorem ;  below  thirty-six  lines,  45  per  centum  ad 
valorem;  buttons  of  shell  and  pearl  in  sizes  twenty-six  lines  and  larger, 
25  per  centum  ad  valorem;  below  twenty-six  lines,  45  per  centum  ad 
valorem;  agate  buttons  and  shoe  buttons,  15  per  centum  ad  valorem; 
parts  of  buttons  and  button  molds  or  blanks,  finished  or  unfinished,  and 
all  collar  and  cufif  buttons  and  studs  composed  wholly  of  bone,  mother- 
of  pearl,  ivory,  or  agate,  all  the  foregoing  and  buttons  not  specially 
provided  for  in  this  section,  40  per  centum  ad  valorem. 

340.  Cork  bark,  cut  into  squares,  cubes,  or  quarters,  4  cents  per 
pound ;  manufactured  cork  stoppers,  over  three- fourths  of  an  inch  in 
diameter,  measured  at  the  larger  end,  and  manufactured  cork  disks, 
wafers,  or  washers,  over  three-sixteenths  of  an  inch  in  thickness,  12 
cents  per  pound;  manufactured  cork  stoppers,  three-fourths  of  an  inch 
or  less  in  diameter,  measured  at  the  larger  end,  and  manufactured  cork 
disks,  wafers,  or  washers,  three-sixteenths  of  an  inch  or  less  in  thickness, 
15  cents  per  pound;  cork,  artificial,  or  cork  substitutes  manufactured 
from  cork  waste,  or  granulated  corks,  and  not  otherwise  provided  for 
in  this  section,  3  cents  per  pound;  cork  insulation,  wholly  or  in  chief 
value  of  granulated  cork,  in  slabs,  boards,  planks,  or  molded  forms, 
^  cent  per  pound;  cork  paper,  35  per  centum  ad  valorem;  manufactures 
wholly  or  in  chief  value  of  cork  or  of  cork  bark,  or  of  artificial  cork  or 
bark  substitutes,  granulated  or  ground  cork,  not  specially  provided  for 
in  this  section,  30  per  centum  ad  valorem. 

341.  Dice,  dominoes,  draughts,  chessmen,  chess  balls,  and  billiard, 
pool,  bagatelle  balls,  and  poker  chips,  of  ivory,  bone,  or  other  materials, 
50  per  centum  ad  valorem. 

342.  Dolls,  and  parts  of  dolls,  doll  heads,  toy  marbles  of  whatever 
materials  composed,  and  all  other  toys,  and  parts  of  toys,  not  composed 
of  china,  porcelain,  parian,  bisque,  earthen  or  stone  ware,  and  not  specially 
provided  for  in  this  section,  35  per  centum  ad  valorem. 

343.  Emery  grains  and  emery,  manufactured,  ground,  pulverized. 


408  Important  Federal  Laws 

or  refined,  1  cent  per  pound ;  emery  wheels,  emery  files,  emery  paper, 
and  manufactures  of  which  emery  or  corundum  is  the  component  material 
of  chief  value,  20  per  centum  ad  valorem. 

344.  Firecrackers  of  all  kinds,  6  cents  per  pound ;  bombs,  rockets, 
Roman  candles,  and  fireworks  of  all  descriptions,  not  specially  provided 
for  in  this  section,  10  cents  per  pound  ;  the  weight  on  all  the  foregoing 
to  include  all  coverings,  wrappings,  and  packing  material. 

345.  Matches,  friction  or  lucifer,  of  all  descriptions,  per  gross  of 
one  hundred  and  forty-four  boxes,  containing  not  more  than  one  hundred 
matches  per  box,  3  cents  per  gross ;  when  imported  otherwise  than  in 
boxes  containing  not  more  than  one  hundred  matches  each,  f  of  1  cent 
per  one  thousand  matches ;  wax  matches,  fusees,  wind  matches,  and  all 
matches  in  books  or  folders  or  having  a  stained,  dyed,  or  colored  stick 
or  stem,  and  tapers  consisting  of  a  wick  coated  with  an  inflammable  sub- 
stance, and  night  lights,  25  per  centum  ad  valorem:  Provided,  That  in 
accordance  with  section  ten  of  ''An  Act  to  provide  for  a  tax  upon  white 
phosphorus  matches,  and  for  other  purposes,"  approved  April  ninth,  nine- 
teen hundred  and  twelve,  white  phosphorus  matches  manufactured  wholly 
or  in  part  in  any  foreign  country  shall  not  be  entitled  to  enter  at  any  of 
the  ports  of  the  United  States,  and  the  importation  thereof  is  hereby 
prohibited :  Provided  further.  That  nothing  in  this  Act  contained  shall 
be  held  to  repeal  or  modify  said  xA-Ct  to  provide  for  a  tax  upon  white 
phosphorus  matches,  and  for  other  purposes,  approved  April  ninth,  nine- 
teen hundred  and  twelve. 

346.  Percussion  caps,  cartridges,  and  cartridge  shells  empty,  15  per 
centum  ad  valorem ;  blasting  caps,  $1  per  thousand ;  mining,  blasting,  or 
safety  fuses  of  all  kinds,  15  per  centum  ad  valorem. 

347.  Feathers  and  downs,  on  the  skin  or  otherwise,  crude  or  not 
dressed,  colored,  or  otherwise  advanced  or  manufactured  in  any  manner, 
not  specially  provided  for  in  this  section,  20  per  centum  ad  valorem; 
when  dressed,  colored,  or  otherwise  advanced  or  manufactured  in  any 
manner,  and  not  suitable  for  use  as  millinery  ornaments,  including  quilts 
of  down  and  manufactures  of  down,  40  per  centum  ad  valorem ;  artificial 
or  ornamental  feathers  suitable  for  use  as  millinery  ornaments,  artificial 
and  ornamental  fruits,  grains,  leaves,  flowers,  and  stems  or  parts  thereof, 
of  whatever  material  composed,  not  specially  provided  for  in  this  section, 
60  per  centum  ad  valorem ;  boas,  boutonnieres,  wreaths,  and  all  articles 
not  specially  provided  for  in  this  section,  composed  wholly  or  in  chief 
value  of  any  of  the  feathers,  flowers,  leaves,  or  other  material  herein 
mentioned.  60  per  centum  ad  valorem :  Provided,  That  the  importation 
of  aigrettes,  egret  plumes  or  so-called  osprey  plumes,  and  the  feathers, 
quills,  heads,  wings,  tails,  skins,  or  parts  of  skins,  of  wild  birds,  either 
raw  or  manufactured,  and  not  for  scientific  or  educational  purposes,  is 
hereby  prohibited;  but  this  provision  shall  not  apply  to  the  feathers  or 
plumes  of  ostriches,  or  to  the  feathers  or  plumes  of  domestic  fowls  of  any 
kind. 


Tariff  Act,  Dutiable  List  409 

348.  Furs  dressed  on  the  skin,  not  advanced  further  than  dyeing, 
30  per  centum  ad  valorem;  plates  and  mats  of  dog  and  goat  skins,  10  per 
centum  ad  valorem ;  manufactures  of  furs,  further  advanced  than  dress- 
ing and  dyeing,  when  prepared  for  use  as  material,  joined  or  sewed 
together,  including  plates,  linings,  and  crosses,  except  plates  and  mats  of 
dog  and  goat  skins,  and  articles  manufactured  from  fur  not  specially 
provided  for  in  this  section,  40  per  centum  ad  valorem ;  articles  of  wear- 
ing apparel  of  every  description  partly  or  wholly  manufactured,  composed 
of  or  of  which  hides  or  skins  of  cattle  of  the  bovine  species,  or  of  the 
dog  or  goat  are  the  component  material  of  chief  value,  15  per  centum 
ad  valorem;  articles  of  wearing  apparel  of  every  description  partly  or 
wholly  manufactured,  composed  of  or  of  which  fur  is  the  component 
material  of  chief  value,  not  specially  provided  for  in  this  section,  50 
per  centum  ad  valorem  ;  furs  not  on  the  skin,  prepared  for  hatters'  use, 
including  fur  skins  carroted,  15  per  centum  ad  valorem. 

349.  Fans  of  all  kinds,  except  common  palm-leaf  fans,  50  per 
centum  ad  valorem. 

350.  Gun  wads  of  all  descriptions,  10  per  centum  ad  valorem. 

351.  Human  hair,  raw%  10  per  centum  ad  valorem;  if  cleaned  or 
commercially  known  as  drawn,  but  not  manufactured,  20  per  centum  ad 
valorem  ;  manufactures  of  human  hair,  including  nets  and  nettings,  or  of 
which  human  hair  is  the  component  material  of  chief  value,  not  specially 
provided  for  in  this  section,  35  per  centum  ad  valorem. 

352.  Hair,  curled,  suitable  for  beds  or  mattresses,  10  per  centum 
ad  valorem. 

353.  Haircloth,  known  as  "crinoline"  cloth,  6  cents  per  square  yard ; 
haircloth,  known  as  "hair  seating,"  and  hair  press  cloth,  15  cents  per 
square  yard. 

354.  Hats,  bonnets,  or  hoods,  for  men's,  women's,  boys',  or  chil- 
dren's wear,  trimmed  or  untrimmed,  including  bodies,  hoods,  plateaux, 
forms  or  shapes,  for  hats  or  bonnets,  composed  wholly  or  in  chief  value  of 
fur  of  the  rabbit,  beaver,  or  other  animals,  45  per  centum  ad  valorem. 

355.  Indurated  fiber  ware  and  manufactures  of  pulp,  not  specially 
provided  for  in  this  section,  25  per  centum  ad  valorem. 

356.  Jewelry,  commonly  or  commercially  so  known,  valued  above 
20  cents  per  dozen  pieces,  60  per  centum  ad  valorem  ;  rope,  curb,  cable, 
and  fancy  patterns  of  chain  not  exceeding  one-half  inch  in  diameter, 
width,  or  thickness,  valued  above  30  cents  per  yard ;  and  articles  valued 
above  20  cents  per  dozen  pieces  designed  to  be  worn  on  apparel  or  carried 
on  or  about  or  attached  to  the  person,  such  as  and  including  buckles,  card 
cases,  chains,  cigar  cases,  cigar  cutters,  cigar  holders,  cigarette  cases, 
cigarette  holders,  coin  holders,  collar,  cufi:',  and  dress  buttons,  combs, 
match  boxes,  mesh  bags  and  purses,  millinery,  military,  and  hair  orna- 
ments, pins,  powder  cases,  stamp  cases,  vanity  cases,  and  like  articles  ; 
all  the  foregoing  and  parts  thereof,  finished  or  party  finished  composed 
of  metal,  whether  or  not  enameled,  w^ashed,  covered,  or  plated,  including 


410  Important  Federal  Laws 

rolled  goldplate,  and  whether  or  not  set  with  precious  or  semiprecious 
stones,  pearls,  cameos,  coral,  or  amber,  or  with  imitation  precious  stones 
or  imitation  pearls,  60  per  centum  ad  valorem.  Stampings,  galleries,  mesh 
and  other  materials  of  metal,  whether  or  not  set  with  glass  or  paste, 
finished  or  partly  finished,  separate  or  in  strips  or  sheets,  suitable  for 
use  in  the  manufacture  of  any  of  the  foregoing  articles  in  this  paragraph, 
50  per  centum  ad  valorem. 

.  357.  Diamonds  and  other  precious  stones,  rough  or  uncut,  and  not 
advanced  in  condition  or  value  from  their  natural  state  by  cleaving,  split- 
ting, cutting,  or  other  process,  whether  in  their  natural  form  or  broken, 
and  bort ;  any  of  the  foregoing  not  set,  and  diamond  dust,  10  per  centum 
ad  valorem ;  pearls  and  parts  thereof,  drilled  or  undrilled,  but  not  set  or 
strung ;  diamonds,  coral,  rubies,  cameos,  and  other  precious  stones  and 
semiprecious  stones,  cut  but  not  set.  and  suitable  for  use  in  the  manu- 
facture of  jewelry,  20  per  centum  ad  valorem  ;  imitation  precious  stones, 
including  pearls  and  parts  thereof,  for  use  in  the  manufacture  of  jewelry, 
doublets,  artificial,  or  so-called  synthetic  or  reconstructed  pearls  and  parts 
thereof,  rubies,  or  other  precious  stones,  20  per  centum  ad  valorem. 

358.  Laces,  lace  window  curtains  not  specially  provided  for  in  this 
section,  coach,  carriage,  and  automobile  laces,  and  all  lace  articles  of 
whatever  yarns,  threads,  or  filaments  composed ;  handkerchiefs,  napkins, 
w^earing  apparel,  and  all  other  articles  or  fabrics  made  wholly  or  in  part 
of  lace  or  of  imitation  lace  of  any  kind;  embroideries,  wearing  apparel, 
handkerchiefs,  and  all  articles  or  fabrics  embroidered  in  any  manner  by 
hand  or  machinery,  whether  with  a  plain  or  fancy  initial,  monogram,  or 
otherwise,  or  tamboured,  appliqued,  or  scalloped  by  hand  or  machinery, 
any  of  the  foregoing  by  whatever  name  known  ;  edgings,  insertings,  gal- 
loons, nets,  nettings,  veils,  veilings,  neck  rufflings,  ruchings,  tuckings, 
flouncings,  flutings,  quillings,  ornaments ;  braids,  loom  woven  and  orna- 
mented in  the  process  of  weaving,  or  made  by  hand,  or  on  any  braid 
machine,  knitting  machine,  or  lace  machine,  and  not  specially  provided 
for ;  trimmings  not  specially  provided  for ;  woven  fabrics  or  articles  from 
which  threads  have  been  omitted,  drawn,  punched,  or  cut,  and  with 
threads  introduced  after  weaving,  forming  figures  or  designs,  not  includ- 
ing straight  hemstitching;  and  articles  made  in  whole  or  in  part  of 
any  of  the  foregoing  fabrics  or  articles  ;  all  of  the  foregoing  of  whatever 
yarns,  threads,  or  filaments  composed,  60  per  centum  ad  valorem. 

359.  Chamois  skins,  15  per  centum  ad  valorem;  pianoforte,  piano- 
forte action,  enameled  upholstery  leather,  and  glove  leathers,  10  per 
centum  ad  valorem. 

360.  Bags,  baskets,  belts,  satchels,  card  cases,  pocketbooks,  jewel 
boxes,  portfolios,  and  other  boxes  and  cases,  made  wholly  of  or  in  chief 
value  of  leather  or  parchment,  not  jewelry,  and  manufactures  of  leather 
or  parchment,  or  of  which  leather  or  parchment  is  the  component  material 
of  chief  value,  not  specially  provided  for  in  this  section,  30  per  centum 
ad  valorem;  any  of  the  foregoing  permanently  fitted  and  furnished  with 


Tariff  Act,  Dutiable  List  411 

traveling,    bottle,    drinking,    dining,    luncheon    and    similar    sets,    35    per 
centum  ad  valorem. 

361.  Gloves,  not  specially  provided  for  in  this  section,  made  wholly 
or  in  chief  value  of  leather,  whether  wholly  or  partly  manufactured,  shall 
pay  duty  at  the  following  rates,  the  lengths  stated  in  each  case  being  the 
extreme  length  when  stretched  to  their  full  extent,  namely : 

362.  Men's,  women's,  or  children's  "glace"  finish,  Schmaschen  (of 
sheep  origin),  not  over  fourteen  inches  in  length,  $1  per  dozen  pairs; 
over  fourteen  inches  in  length,  25  cents  additional  per  dozen  pairs  for 
each  inch  in  excess  of  fourteen  inches. 

363.  All  other  women's  or  children's  gloves  wholly  or  in  chief  value 
of  leather,  not  over  fourteen  inches  in  length,  $2  per  dozen  pairs;  over 
fourteen  inches  in  length,  25  cents  additional  per  dozen  pairs  for  each 
inch  in  excess  of  fourteen  inches ;  all  men's  leather  gloves  not  specially 
provided  for  in  this  section,  $2.50  per  dozen  pairs. 

364.  In  addition  to  the  foregoing  rates  there  shall  be  paid  the  fol- 
lowing cumulative  duties :  On  all  leather  gloves  when  lined  with  cotton 
or  other  vegetable  fiber,  25  cents  per  dozen  pairs  ;  when  lined  with  a 
knitted  glove  or  when  lined  with  silk,  leather,  or  wool,  50  cents  per  dozen 
pairs  ;  when  lined  with  fur,  $2  per  dozen  pairs ;  on  all  pique  and  prixseam 
gloves,  25  cents  per  dozen  pairs. 

365.  Glove  tranks,  with  or  without  the  usual  accompanying  pieces, 
shall  pay  75  per  centum  of  the  duty  provided  for  the  gloves  in  the  fabrica- 
tion of  which  they  are  suitable. 

366.  Manufactures  of  catgut,  or  whip  gut,  or  worm  gut,  including 
strings  for  musical  instruments ;  any  of  the  foregoing  or  of  which  these 
substances  or  any  of  them  is  the  component  material  of  chief  value,  not 
specially  provided  for  in  this  section,  20  per  centum  ad  valorem. 

367.  Manufactures  of  amber,  asbestos,  bladders,  or  wax,  or  of 
which  these  substances  or  any  of  them  is  the  component  material  of  chief 
value,  not  specially  provided  for  in  this  section,  10  per  centum  ad 
valorem;  yarn  and  woven  fabrics  composed  wholly  or  in  chief  value  of 
asbestos,  20  per  centum  ad  valorem. 

368.  Manufactures  of  bone,  chip,  grass,  horn,  india  rubber  or  gutta- 
percha, palm  leaf,  quills,  straw,  weeds,  or  whalebone,  or  of  which  any 
of  them  is  the  component  material  of  chief  value  not  otherwise  specially 
provided  for  in  this  section,  shall  be  subject  to  the  following  rates:  Man- 
ufactures of  india  rubber  or  gutta-percha,  commonly  known  as  druggists' 
sundries,  15  per  centum  ad  valorem;  manufactures  of  india  rubber  or 
gutta-percha,  not  specially  provided  for  in  this  section,  10  per  centum  ad 
valorem;  palm  leaf,  15  per  centum  ad  valorem;  bone,  chip,  horn,  quills, 
and  whalebone,  20  per  centum  ad  valorem ;  grass,  straw,  and  weeds,  25 
per  centum  ad  valorem  ;  combs  composed  wholly  of  horn  or  of  horn  and 
metal,  25  per  centum  ad  valorem.  The  terms  "grass"  and  "straw"  shall 
be  understood  to  mean  these  substances  in  their  natural  state,  and  not  the 
separated  fibers  therof. 


412  Important  Federal  Laws 

369.  Ivory  tusks  in  their  natural  state,  or  cut  vertically  across  the 
grain,  only  with  the  bark  left  intact,  20  per  centum  ad  valorem ;  manufac- 
tures of  ivory  or  vegetable  ivory,  or  of  which  either  of  these  substances  is 
the  component  material  of  chief  value,  not  specially  provided  for  in  this 
section,  35  per  centum  ad  valorem;  manufactures  of  mother-of-pearl  and 
shell,  plaster  of  Paris,  papier-mache,  and  vulcanized  india  rubber  known 
as  "hard  rubber,"  or  of  which  these  substances  or  any  of  them  is  the 
component  material  of  chief  value,  not  specially  provided  for  in  this  sec- 
tion, 25  per  centum  ad  valorem;  shells  engraved,  cut,  ornamented,  or 
otherwise  manufactured,  25  per  centum  ad  valorem. 

370.  Masks,  of  wdiatever  material  composed,  25  per  centum  ad 
valorem. 

371.  Matting  made  of  cocoa  fiber  or  rattan,  5  cents  per  square  yard; 
mats  made  of  cocoa  fiber  or  rattan,  3  cents  per  square  foot. 

372.  Moss  and  sea  grass,  eelgrass,  and  seaweeds,  if  manufactured 
or  dyed,  10  per  centum  ad  valorem. 

Z7^.  Musical  instruments  or  parts  thereof,  pianoforte  actions  and 
parts  thereof,  cases  for  musical  instruments,  pitch  pipes,  tuning  forks, 
tuning  hammers,  and  metronomes ;  strings  for  musical  instruments,  com- 
posed wholly  or  in  part  of  steel  or  other  metal,  all  the  foregoing,  35  per 
centum  ad  valorem. 

374.  Phonographs,  gramophones,  graphophones,  and  similar  articles, 
or  parts  thereof,  25  per  centum  ad  valorem. 

375.  Violin  rosin,  in  boxes  or  cases  or  otherwise,  10  per  centum 
ad  valorem. 

376.  Works  of  art,  including  paintings  in  oil  or  water-colors,  pas- 
tels, pen  and  ink  drawings,  or  copies,  replicas  or  reproductions  of  any 
of  the  same,  statuary,  sculptures,  or  copies,  replicas  or  reproductions 
thereof,  and  etchings  and  engravings,  not  specially  provided  for  in  this 
section,  15  per  centum  ad  valorem. 

Z77.     Peat  moss,  50  cents  per  ton. 

378.  Pencils  of  paper  or  wood,  or  other  material  not  metal,  filled 
with  lead  or  other  material,  pencils  of  lead,  36  cents  per  gross,  but  in 
no  case  shall  any  of  the  foregoing  pay  less  than  25  per  centum  ad 
valorem ;  slate  pencils,  25  per  centum  ad  valorem. 

379.  Pencil  leads  not  in  wood  or  other  material,  10  per  centum  ad 
valorem. 

380.  Photographic  cameras,  and  parts  thereof,  not  specially  pro- 
vided for  in  this  section,  photographic  dry  plates,  not  specially  provided 
for  in  this  section,  15  per  centum  ad  valorem;  photographic-film  nega- 
tives, imported  in  any  form,  for  use  in  any  way  in  connection  \\\\h  mov- 
ing-picture exhibits,  or  for  making  or  reproducing  pictures  for  such 
exhibits,  exposed  but  not  developed,  2  cents  per  linear  or  running  foot ; 
if  exposed  and  developed,  3  cents  per  linear  or  running  foot ;  photo- 
graphic-film positives,  imported  in  any  form,  for  use  in  any  way  in  con- 
nection with  moving-picture  exhibits,  including  herein  all  moving,  motion, 


Tariff  Act,  Dutiable  List  413 

motophotography  or  cinematography  film  pictures,  prints,  positives  or 
duplicates  of  every  kind  and  nature,  and  of  whatever  substance  made, 
1  cent  per  linear  or  running  foot :  Provided,  however,  That  all  photo- 
graphic-films imported  under  this  section  shall  be  subject  to  such  censor- 
ship as  may  be  imposed  by  the  Secretary  of  the  Treasury. 

381.  Pipes  and  smokers'  articles:  Common  tobacco  pipes  and  pipe 
bowls  made  wholly  of  clay,  25  per  centum  ad  valorem;  other  pipes  and 
pipe  bowls  of  whatever  material  composed,  and  all  smokers'  articles 
whatsoever,  not  specially  provided  for  in  this  section,  including  cigarette 
books,  cigarette-book  covers,  pouches  for  smoking  or  chewing  tobacco, 
and  cigarette  paper  in  all  forms,  except  cork  paper,  50  per  centum  ad 
valorem;  meerschaum,  crude  or  unmanufactured,  20  per  centum  ad 
valorem. 

382.  Plush,  black,  known  commercially  as  hatters'  plush,  composed 
of  silk,  or  of  silk  and  cotton,  such  as  is  used  for  making  men's  hats,  10 
per  centum  ad  valorem. 

383.  Umbrellas,  parasols,  and  sunshades  covered  with  material 
other  than  paper  or  lace,  not  embroidered  or  appliqued,  35  per  centum  ad 
valorem.  Sticks  for  umbrellas,  parasols,  or  sunshades,  and  walking  canes, 
finished  or  unfinished,  30  per  centum  ad  valorem. 

384.  Waste,  not  specially  provided  for  in  this  section,  10  per  centum 
ad  valorem. 

385.  That  there  shall  be  levied,  collected,  and  paid  on  the  importa- 
tion of  all  raw  or  unmanufactured  articles  not  enumerated  or  provided 
for  in  this  section,  a  duty  of  10  per  centum  ad  valorem,  and  on  all  articles 
manufactured,  in  whole  or  in  part,  not  provided  for  in  this  section,  a  duty 
of  15  per  centum  ad  valorem. 

386.  That  each  and  every  imported  article,  not  enumerated  in  this 
section,  which  is  similar,  either  in  material,  quality,  texture,  or  the  use 
to  which  it  may  be  applied,  to  any  article  enumerated  in  this  section  as 
chargeable  with  duty,  shall  pay  the  same  rate  of  duty  which  is  levied 
on  the  enumerated  article  which  it  most  resembles  in  any  of  the  particu- 
lars before  mentioned;  and  if  any  nonenumerated  article  equally  resem- 
bles two  or  more  enumerated  articles  on  which  different  rates  of  duty 
are  chargeable,  there  shall  be  levied  on  such  nonenumerated  article  the 
same  rate  of  duty  as  is  chargeable  on  the  article  which  it  resembles  pay- 
ing the  highest  rate  of  duty ;  and  on  articles  not  enumerated,  manufac- 
tured of  two  or  more  materials,  the  duty  shall  be  assessed  at  the  highest 
rate  at  which  the  same  would  be  chargeable  if  composed  wholly  of  the 
component  material  thereof  of  chief  value;  and  the  words  "component 
material  of  chief  value,"  wherever  used  in  this  section,  shall  be  held  to 
mean  that  component  material  which  shall  exceed  in  value  any  other  single 
component  material  of  the  article ;  and  the  value  of  each  component  mate- 
rial shall  be  determined  by  the  ascertained  value  of  such  material  in  its 
condition  as  found  in  the  article.  If  two  or  more  rates  of  duty  shall  be 
applicable  to  any  imported  article,  it  shall  pay  duty  at  the  highest  of 
such  rates. 


414  Important  Federal  Laws 

FREE  LIST. 

That  on  and  after  the  day  following  the  passage  of  this  Act,  except 
as  otherwise  specially  provided  for  in  this  Act,  the  articles  mentioned  in 
the  following  paragraphs  shall,  when  imported  into  the  United  States 
or  into  any  of  its  possessions  (except  the  Philippine  Islands  and  the 
islands  of  Guam  and  Tutuila),  be  exempt  from  duty: 

387.  Acids :  Acetic  or  pyroligneous,  arsenic  or  arsenious,  carbolic, 
chromic,  fluoric,  hydrofluoric,  hydrochloric  or  muriatic,  nitric,  phos- 
phoric, phthalic,  prussic,  silicic,  sulphuric  or  oil  of  vitriol,  and  valerianic. 

388.  Aconite. 

389.  Acorns,  raw,  dried  or  undried,  but  unground. 

390.  Agates,  unmanufactured. 

391.  Agricultural  implements:  Plows,  tooth  and  disk  harrows, 
headers,  harvesters,  reapers,  agricultural  drills  and  planters,  mowers, 
horserakes,  cultivators,  threshing  machines,  cotton  gins,  machinery  for 
use  in  the  manufacture  of  sugar,  wagons  and  carts,  and  all  other  agricul- 
tural implements  of  any  kind  and  description,  whether  specificallv  men- 
tioned herein  or  not,  whether  in  whole  or  in  parts,  including  repair  parts. 

392.  Albumen,  not  specially  provided  for  in  this  section. 

393.  Alcohol,  methyl  or  wood. 

394.  Alizarin,  natural  or  synthetic,  and  dyes  obtained  from  alizarin, 
anthracene,  and  carbazol. 

395.  Ammonia,  sulphate  of,  perchlorate  of,  and  nitrate  of. 

396.  Antimony  ore  and  stibnite  containing  antimony,  but  only  as 
to  the  antimony  content. 

397.  Any  animal  imported  by  a  citizen  of  the  United  States,  spe- 
cially for  breeding  purposes,  shall  be  admitted  free,  whether  intended 
to  be  used  by  the  importer  himself  or  for  sale  for  such  purposes:  Pro- 
vided, That  no  such  animal  shall  be  admitted  free  unless  pure  bred  of  a 
recognized  breed,  and  duly  registered  in  a  book  of  record  recognized  by 
the  Secretary  of  Agriculture  for  that  breed :  And  provided  further.  That 
the  certificate  of  such  record  and  pedigree  of  such  animal  shall  be  pro- 
duced and  submitted  to  the  Department  of  Agriculture,  duly  authen-Licatcd 
by  the  proper  custodian  of  such  book  of  record,  together  with  an  affidavit 
of  the  owner,  agent,  or  importer  that  the  animal  imported  is  the  identical 
animal  described  in  said  certificate  of  record  and  pedigree.  The  Secre- 
tary of  Agriculture  may  prescribe  such  regulations  as  may  be  required 
for  determining  the  purity  of  breeding  and  the  identity  of  such  animal: 
And  provided  further.  That  the  collectors  of  customs  shall  require  a 
certificate  from  the  Department  of  Agriculture  stating  that  such  animal 
is  pure  bred  of  a  recognized  breed  and  duly  registered  in  a  book  of  record 
recognized  by  the  Secretary  of  Agriculture  for  that  breed. 

The  Secretary  of  the  Treasury  may  prescribe  such  additional  regu- 
lations as  may  be  recjuired  for  the  .strict  enforcement  of  this  provision. 

Florses,  mules,  and  asses  straying  across  the  boundary  line  into  any 
foreign  country,  or  driven  across  such  boundary  line  by  the  ov/ner  for 


Tariff  Act,  Free  List  415 

temporary  pasturage  purposes  only,  together  with  their  offspring,  shall 
be  dutiable  unless  brought  back  to  the  United  States  within  six  months, 
in  which  case  they  shall  be  free  of  duty,  under  regulations  to  be  pre- 
scribed by  the  Secretary  of  the  Treasury:  And  provided  further.  That 
the  provisions  of  this  Act  shall  apply  to  all  such  animals  as  have  been 
imported  and  are  in  quarantine  or  otherwise  in  the  custody  of  customs 
or  other  officers  of  the  United  States  at  the  date  of  the  taking  effect  of 
this  Act. 

398.  Animals  brought  into  the  United  States  temporarily  for  a 
period  not  exceeding  six  months,  for  the  purpose  of  breeding,  exhibition 
or  competition  for  prizes  offered  by  any  agricultural,  polo,  or  racing 
association  ;  but  a  bond  shall  be  given  in  accordance  with  regulations 
prescribed  by  the  Secretary  of  the  Treasury;  also  teams  of  animals, 
including  their  harness  and  tackle,  and  the  wagons  or  other  vehicles 
actually  owned  by  persons  emigrating  from  foreign  countries  to  the 
United  States  with  their  families,  and  in  actual  use  for  the  purpose  of 
such  regulations  as  the  Secretary  of  the  Treasury  may  prescribe;  and  wild 
animals  intended  for  exhibition  in  zoological  collections  for  scientific  and 
educational  purposes,  and  not  for  sale  or  profit. 

399.  Annatto,  roucou,  rocoa,  or  Orleans,  and  all  extracts  of. 

400.  Antitoxins,  vaccine  virus,  and  all  other  serums  derived  from 
animals  and  used  for  therapeutic  purposes. 

401.  Apatite. 

402.  Arrowroot  in  its  natural  state  and  not  manufactured. 

403.  Arsenic  and  sulphide  of  arsenic,  or  orpiment. 

404.  Articles  the  growth,  produce,  or  manufacture  of  the  United 
States,  when  returned  after  having  been  exported,  without  having  been 
advanced  in  value  or  improved  in  condition  by  any  process  of  manufac- 
ture or  other  means  ;  steel  boxes,  casks,  barrels,  carboys,  bags,  and  other 
containers  or  coverings  of  American  manufacture  exported  filled  with 
American  products,  or  exported  empty  and  returned  filled  with  foreign 
products,  including  shooks  and  staves  when  returned  as  barrels  or  boxes; 
also  quicksilver  llasks  or  bottles,  iron  or  steel  drums  of  either  domestic 
or  foreign  manufacture,  used  for  the  shipment  of  acids,  or  other  chem- 
icals, which  shall  have  been  actually  exported  from  the  United  States ; 
but  proof  of  the  identitv  of  such  articles  shall  be  made,  under  general 
regulations  to  be  prescribed  by  the  Secretary  of  the  Treasury,  but  the 
exemption  of  bags  from  duty  shall  apply  only  to  such  domestic  bags  as 
may  be  imported  by  the  exporter  thereof,  and  if  any  such  articles  are 
subject  to  internal  revenue  tax  at  the  time  of  exportation,  such  tax  shall 
be  prove<l  to  have  been  paid  before  exportation  and  not  refunded; 
photographic  dry  plates  or  films  of  American  manufacture  (except  mov- 
ing-picture films),  exposed  abroad,  whether  developed  or  not,  and  films 
from  moving-picture  machines,  light  struck  or  otherwise  damaged,  or 
worn  out,  so  as  to  be  unsuitable  for  any  other  purpose  than  the  recovery 
of  the  constituent  materials,  provided  the  basic  films  are  of  American 


416  Important  Federal  Laws 

manufacture,  but  proof  of  the  identity  of  such  articles  shall  be  made 
under  general  regulations  to  be  prescribed  by  the  Secretary  of  the  Treas- 
ury ;  articles  exported  from  the  United  States  for  repairs  may  be 
returned  upon  payment  of  a  duty  upon  the  value  of  the  repairs  at  the 
rate  at  which  the  article  itself  would  be  subject  if  imported  under  con- 
ditions and  regulations  to  be  prescribed  by  the  Secretary  of  the  Treasury : 
Provided,  That  this  paragraph  shall  not  apply  to  any  article  upon  which 
an  allowance  of  drawback  has  been  made,  the  reimportation  of  which 
is  hereby  prohibited  except  upon  payment  of  duties  equal  to  the  draw- 
backs allowed;  or  to  any  article  manufactured  in  bonded  warehouse  and 
exported  under  any  provision  of  law:  And  provided  further.  That  when 
manufactured  tobacco  which  has  been  exported  without  payment  of  in- 
ternal-revenue tax  shall  be  reimported  it  shall  be  retained  in  the  custody 
of  the  collector  of  customs  until  internal-revenue  stamps  in  payment  of 
the  legal  duties  shall  be  placed  thereon :  And  provided  further.  That  the 
provisions  of  this  paragraph  shall  not  apply  to  animals  made  dutiable 
under  the  provisions  of  paragraph  397. 

405.  Asafetida. 

406.  Asbestos,  unmanufactured. 

407.  Ashes,  wood  and  lye  of,  and  beet-root  ashes. 

408.  Bagging  for  cotton,  gunny  cloth,  and  similar  fabrics,  suitable 
for  covering  cotton,  composed  of  single  yarns  made  of  jute,  jute  butts, 
seg,  Russian  seg.  New  Zealand  tow,  Norwegian  tow,  aloe,  mill  waste, 
cotton  tares,  or  other  material  not  bleached,  dyed,  colored,  stained, 
painted,  or  printed,  not  exceeding  sixteen  threads  to  the  square  inch, 
counting  the  warp  and  filling,  and  weighing  not  less  than  fifteen  ounces 
per  square  yard;  plain  woven  fabrics  of  single  jute  yarns  by  whatever 
name  known,  not  bleached,  dyed,  colored,  stained,  printed,  or  rendered 
noninflammable  by  any  process ;  and  waste  of  any  of  the  above  articles 
suitable  for  the  manufacture  of  paper. 

409.  Balm  of  Gilead. 

410.  Barks,  cinchona  or  other,  from  which  quinine  may  be  ex- 
tracted. 

411.  Bauxite  or  beauxite,  crude,  not  refined  or  otherwise  advanced 
in  condition  from  its  natural  state. 

412.  Beeswax. 

413.  Bells,  broken,  and  bell  metal,  broken  and  fit  only  to  be  re- 
manufactured. 

414.  Bibles,  comprising  the  books  of  the  Old  or  New  Testament, 
or  both,  bound  or  unbound. 

415.  All  binding  twine  manufactured  from  New  Zealand  hemp, 
manila,  istle  or  Tampico  fiber,  sisal  grass,  or  sunn,  or  a  mixture  of  any 
two  or  more  of  them,  of  single  ply  and  measuring  not  exceeding  seven 
hundred  and  fifty  feet  to  the  pound. 

416.  Birds  and  land  and  water  fowls,  not  specially  provided  for  in 
this  section. 


Tariff  Act,  Free  List  417 

417.  Biscuits,  bread,  and  wafers,  not  specially  provided  for  in  this 
section. 

418.  Bismuth. 

419.  Bladders,  and  all  integuments,  tendons  and  intestines  of  ani- 
mals and  fish  sounds,  crude,  dried  or  salted  for  preservation  only,  and 
unmanufactured,  not  specially  provided  for  in  this  section. 

420.  Blood,  dried,  not  specially  provided  for  in  this  section. 

421.  Blue  vitriol,  or  sulphate  of  copper;  acetate  and  subacetate  of 
copper,  or  verdigris. 

422.  Bolting  cloths  composed  of  silk,  imported  expressly  for  milling 
purposes,  and  so  permanently  marked  as  not  to  be  available  for  any 
other  use.  Press  cloths  composed  of  camel's  hair,  imported  expressly 
for  oil  milling  purposes,  and  marked  so  as  to  indicate  that  it  is  for 
such  purposes,  and  cut  into  lengths  not  to  exceed  seventy-two  inches 
and  woven  in  widths  not  under  ten  inches  nor  to  exceed  fifteen  inches 
and  weighing  not  less  than  one-half  pound  per  square  foot. 

423.  Bones,  crude,  burned,  calcined,  ground,  steamed,  but  not  other- 
wise manufactured,  and  bone  dust  or  animal  carbon,  bone  meal,  and 
bone  ash. 

424.  Books,  engravings,  photographs,  etchings,  bound  or  unbound, 
maps  and  charts  imported  by  authority  or  for  the  use  of  the  United 
States  or  for  the  use  of  the  Library  of  Congress. 

425.  Books,  maps,  music,  engravings,  photographs,  etchings,  litho- 
graphic prints,  bound  or  unbound,  and  charts,  which  shall  have  been 
printed  more  than  twenty  years  at  the  date  of  importation,  and  all  hydro- 
graphic  charts,  and  publications  issued  for  their  subscribers  or  exchanges 
by  scientific  and  literary  associations  or  academies,  or  publications  of 
individuals  for  gratuitous  private  circulation,  not  advertising  matter,  and 
public  documents  issued  by  foreign  governments. 

426.  Books  and  pamphlets  printed  wholly  or  chiefly  in  languages 
other  than  English ;  also  books  and  music,  in  raised  print,  used  exclu- 
sively bv  the  blind,  and  all  textbooks  used  in  schools  and  other  educa- 
tional institutions ;  Braille  tablets,  cubarithmes,  special  apparatus  and 
objects  serving  to  teach  the  blind,  including  printing  apparatus,  machines, 
presses,  and  types  for  the  use  and  benefit  of  the  blind  exclusively. 

427.  Books,  maps,  music,  engravings,  photographs,  etchings,  litho- 
graphic prints,  and  charts,  specially  imported,  not  more  than  two  copies 
in  any  one  invoice,  in  good  faith,  for  the  use  and  by  order  of  any  society 
or  institution  incorporated  or  established  solely  for  religious,  philosoph- 
ical, educational,  scientific,  or  literary  purposes,  or  for  the  encouragement 
of  the  fine  arts,  or  for  the  use  and  by  order  of  any  college,  academy, 
school,  or  seminary  of  learning  in  the  United  States,  or  any  State  or 
public  library,  and  not  for  sale,  subject  to  such  regulations  as  the  Secre- 
tary of  the  Treasury  shall  prescribe. 

428.  Books,  libraries,  usual  and  reasonable  furniture,  and  similar 
household  eft'ects  of  persons  or  families  from  foreign  countries,  all  the 

(27) 


418  Important  Federal  Laws 

foregoing  if  actually  used  abroad  by  them  not  less  than  one  year,  and 
not  intended  for  any  other  person  or  persons,  nor  for  sale. 

429.  Borax,  crude  and  unmanufactured,  and  borate  of  lime,  soda, 
and  other  borate  material,  crude  and  unmanufactured,  not  otherwise 
provided  for  in  this  section. 

430.  Brass,  old  brass,  clippings  from  brass  or  Dutch  metal,  all  the 
foregoing,  fit  only  for  remanufacture. 

431.  Brazilian  pebble,  unwrought  or  unmanufactured. 

432.  Bristles,  crude,  not  sorted,  bunched,  or  prepared. 

433.  Bromin. 

434.  Broom  corn. 

435.  Buckwheat  and  buckwheat  flour. 

436.  Bullion,  gold  or  silver. 

437.  Burgundy  pitch. 

438.  Burrstones,  manufactured  or  bound  up  into  millstones. 

439.  Cadmium. 

440.  Calcium,  acetate  of,  brown  and  gray,  and  chloride  of,  crude ; 
calcium  carbide  and  calcium  nitrate. 

441.  Cash  registers,  linotype  and  all  typesetting  machines,  sewing 
machines,  typewriters,  shoe  machinery,  cream  separators  valued  at  not 
exceeding  $75,  sand-blast  machines,  sludge  machines,  and  tar  and  oil 
spreading  machines  used  in  the  construction  and  maintenance  of  roads 
and  in  improving  them  by  the  use  of  road  preservatives,  all  the  foregoing 
whether  imported  in  whole  or  in  parts,  including  repair  parts. 

442.  Castor  or  castoreum. 

443.  Catgut,  whip  gut.  or  worm  gut,  unmanufactured. 

444.  Cement,  Roman,  Portland,  and  other  hydraulic. 

445.  Cerium,  cerite,  or  cerium  ore. 

446.  Chalk,  crude,  not  ground,  bolted,  precipitated,  or  otherwise 
manufactured. 

447.  Charcoal,  blood  char,  bone  char,  or  bone  black,  not  suitable 
for  use  as  a  pigment. 

448.  Chromate  of  iron  or  chromic  ore. 

449.  Chromium,  hydroxide  of,  crude. 

450.  Common  blue  clay  and  Gross-Almerode  glass-pot  clay,  in  cases 
or  casks,  suitable  for  the  manufacture  of  crucibles  and  glass  melting  pots 
or  tank  blocks. 

451.  Coal,  anthracite,  bituminous,  culm,  slack,  and  shale;  coke; 
compositions  used  for  fuel  in  which  coal  or  coal  dust  is  the  component 
material  of  chief  value,  whether  in  briquets  or  other  form. 

452.  Coal  tar.  crude,  pitch  of  coal  tar,  wood  or  other  tar,  dead  or 
creosote  oil,  and  products  of  coal  tar  known  as  anthracene  and  anthra- 
cene oil.  naphthalin.  phenol,  and  cresol. 

453.  Cobalt  and  cobalt  ore. 

454.  Cocculus  indicus. 

455.  Cochineal. 


Tariff  Act,  Free  List  419 

456.  Cocoa,  or  cacao,  crude  and  fiber,  leaves,  and  shells  of. 

457.  Cofit'ee.  ' 

458.  Coins  of  gold,  silver,  copper,  or  other  metal. 

459.  Coir,  and  coir  yarn. 

460.  Composition  metal  of  which  copper  is  the  component  material 
of  chief  value,  not  specially  provided  for  in  this  section. 

461.  Copper  ore;  regulus  of,  and  black  or  coarse  copper,  and  cop- 
per cement;  old  copper,  fit  only  for  remanufacture,  copper  scale,  clip- 
pings from  new  copper,  and  copper  in  plates,  bars,  ingots,  or  pigs,  not 
manufactured  or  specially  provided  for  in  this  section. 

462.  Copperas,  or  sulphate  of  iron. 

463.  Coral,  marine,  uncut,  and  unmanufactured. 

464.  Cork  wood,  or  cork  bark,  unmanufactured,  and  cork  waste, 
shavings,  and  cork  refuse  of  all  kinds. 

465.  Corn  or  maize. 

466.  Corn  meal. 

467.  Cotton,  and  cotton  w^aste  or  flocks. 

468.  Cryolite,  or  kryolith. 

469.  Cudbear. 

470.  Curling  stones,  or  quoits,  and  curling-stone  handles. 

471.  Curry,  and  curry  powder. 

472.  Cuttlefish  bone. 

473.  Dandelion  roots,  raw,  dried  or  undried,  but  unground. 

474.  Glaziers'  and  engravers'  diamonds,  unset,  miners'  diamonds. 

475.  Divi-divi. 

476.  Dragon's  blood. 

477.  Drugs,  such  as  barks,  beans,  berries,  buds,  bulbs,  bulbous 
roots,  excrescences,  fruits,  flowers,  dried  fibers,  dried  insects,  grains, 
gums,  gum  resin,  herbs,  leaves,  lichens,  mosses,  logs,  roots,  stems,  vege- 
tables, seeds  (aromatic,  not  garden  seeds),  seeds  of  morbid  growth, 
weeds ;  any  of  the  foregoing  which  are  natural  and  uncompounded  drugs 
and  not  edible  and  not  specially  provided  for  in  this  section,  and  are  in  a 
crude  state,  not  advanced  in  value  or  condition  by  shredding,  grinding, 
chipping,  crushing,  or  any  other  process  or  treatment  whatever  beyond 
that  essential  to  the  proper  packing  of  the  drugs  and  the  prevention  of 
decay  or  deterioration  pending  manufacture :  Provided,  That  no  article 
containing  alcohol  shall  be  admitted  free  of  duty  under  this  paragraph. 

478.  Eggs  of  poultry,  birds,  fish,  and  insects  (except  fish  rope  pre- 
served for  food  purposes)  :  Provided,  however.  That  the  importation  of 
eggs  of  game  birds  or  eggs  of  birds  not  used  for  food,  except  specimens 
for  scientific  collections,  is  prohibited  :  Provided  further.  That  the  impor- 
tation of  eggs  of  game  birds  for  purposes  of  propagation  is  hereby 
authorized,  under  rules  and  regulations  to  be  prescribed  by  the  Secretary 
of  the  Treasury. 

479.  Emery  ore  and  corundum,  and  crude  artificial  abrasives,  not 
specially  provided  for. 


420  Important  Federal  Laws 

480.  Fans,  common  palm-leaf,  plain  and  not  ornamented  or  deco- 
rated in  any  manner,  and  palm-leaf  in  its  natural  state,  not  colored,  dyed, 
or  otherwise  advanced  or  manufactured. 

481.  Felt,  adhesive,  for  sheathing  vessels. 

482.  Fibrin,  in  all  forms. 

483.  Fresh-water  fish,  and  all  other  fish  not  otherwise  specially 
provided  for  in  this  section. 

484.  Fish  skins. 

485.  Flax  straw,  flax,  not  hackled  or  dressed ;  flax  hackled,  known 
as  "dressed  line,"  tow  of  flax  and  flax  noils;  hemp,  and  tow  of  hemp; 
hemp  hackled,  known  as  "line  of  hemp." 

486.  Flint,  flints,  and  flint  stones,  unground. 

487.  Fossils. 

488.  Fruits  or  berries,  green,  ripe,  or  dried,  and  fruits  in  brine,  not 
specially  provided  for  in  this  section. 

489.  Fruit  plants,  tropical  and  semitropical,  for  the  purpose  of 
propagation  or  cultivation. 

490.  Fulminates,  fulminating  powder,  and  other  like  articles  not 
specially  provided  for  in  this  section. 

491.  Furs  and  fur  skins,  undressed. 

492.  Gambler. 

493.  Glass  enamel,  white,  for  watch  and  clock  dials. 

494.  Glass  plates  or  disks,  rough-cut  or  unwrought,  for  use  in  the 
manufacture  of  optical  instruments,  spectacles,  and  eyeglasses,  and  suit- 
able only  for  such  use:  Provided,  however,  That  such  disks  exceeding 
eight  inches  in  diameter  may  be  polished  sufficiently  to  enable  the  charac- 
ter of  the  glass  to  be  determined. 

495.  Gloves,  made  wholly  or  in  chief  value  of  leather  made  from 
horsehides,  pigskins,  and  cattle  hides  of  cattle  of  the  bovine  species, 
excepting  calfskins,  whether  wholly  or  partly  manufactured. 

496.  Goldbeaters'  molds  and  goldbeaters'  skins. 

497.  Grasses  and  fibers :  Istle  or  Tampico  fiber,  jute,  jute  butts, 
manila,  sisal  grass,  sunn,  and  all  other  textile  grasses  or  fibrous  vege- 
table substances,  not  dressed  or  manufactured  in  any  manner,  and  not 
specially  provided  for  in  this  section. 

498.  Grease,  fats,  vegetable  tallow,  and  oils  (excepting  fish  oils), 
not  chemically  compounded,  such  as  are  commonly  used  in  soap  making 
or  in  wire  drawing,  or  for  stuffing  or  dressing  leather,  not  specially  pro- 
vided for  in  this  section. 

499.  Guano,  manures,  and  all  substances  used  only  for  manure, 
including  basic  slag,  ground  or  unground,  and  calcium  cyanamid  or  lime 
nitrogen. 

500.  Gum :  Amber  in  chips  valued  at  not  more  than  50  cents  per 
pound,  copal,  damar,  and  kauri. 

501.  Gunpowder,  and  all  explosive  substances,  not  specially  pro- 
vided for  in  this  section,  used  for  mining,  blasting,  and  artillery  purposes. 


,  Tariff  Act,  Free  List  421 

502.  Gutta-percha,  crude. 

503.  Hair  of  horse,  cattle,  and  other  animals,  cleaned  or  uncleaned, 
drawn  or  undrawn,  but  unmanufactured,  not  specially  provided  for  in 
this  section. 

504.  Hide  cuttings,  raw,  with  or  without  hair,  and  all  other  glue 
stock. 

505.  Hide  rope. 

506.  Hides  of  cattle,  raw  or  uncured,  or  dry,  salted,  or  pickled. 

507.  Hones  and  whetstones. 

508.  Hoofs,  unmanufactured. 

509.  Hoop  or  band  iron,  or  hoop  or  band  steel,  cut  to  lengths,  or 
wholly  or  partly  manufactured  into  hoops  or  ties,  coated  or  not  coated 
with  paint  or  any  other  preparation,  with  or  without  buckles  or  fastenings, 
for  baling  cotton  or  any  other  commodity. 

510.  Hop  roots  for  cultivation. 

511.  Horns  and  parts  of,  including  horn  strips  and  tips,  unmanu- 
factured. 

512.  Ice. 

513.  India  rubber,  crude,  and  milk  of,  and  scrap  or  refuse  india 
rubber,  fit  only  for  remanufacture. 

514.  Indigo,  natural  or  synthetic,  dry  or  suspended  in  water,  and 
dyes  obtained  from  indigo. 

515.  Iodine,  crude,  or  resublimed.  ■ 

516.  Ipecac. 

517.  Iridium,  osmium,  palladium,  rhodium,  and  ruthenium  and 
native  combinations  thereof  with  one  another  or  with  platinum. 

518.  Iron  ore,  including  manganiferous  iron  ore,  and  the  dross  or 
residuum  from  burnt  pyrites ;  iron  in  pigs,  iron  kentledge,  spiegeleisen, 
wrought  iron  and  scrap  and  scrap  steel ;  but  nothing  shall  be  deemed 
scrap  iron  or  scrap  steel  except  second-hand  or  waste  or  refuse  iron  or 
steel  fit  only  to  be  remanufactured  ;  ferromanganese  ;  iron  in  slabs,  blooms, 
loops  or  other  forms  less  finished  than  iron  bars,  and  more  advanced  than 
pig  iron,  except  castings,  not  specially  provided  for  in  this  section. 

519.  Jalap. 

520.  Jet,  unmanufactured. 

521.  Joss  stick  or  joss  light. 

522.  Junk,  old. 

523.  Kelp. 

524.  Kieserite. 

525.  Kyanite,  or  cyanite,  and  kainite. 

526.  Lac  dye,  crude,  seed,  button,  stick,  and  shell. 

527.  Lactarene  or  casein. 

528.  Lard,  lard  compounds,  and  lard  substitutes. 

529.  Lava,  unmanufactured. 

530.  All  leather  not  specially  provided  for  in  this  section  and 
leather  board  or  compressed  leather;   leather   cut   into   shoe   uppers   or 


422  Important  Federal  Laws 

vamps  or  other  forms  suitable  for  conversion  into  boots  or  shoes ;  boots 
and  shoes  made  wholly  or  in  chief  value  of  leather ;  leather  shoe  laces, 
finished  or  unfinished ;  harness,  saddles,  and  saddlery,  in  sets  or  in  parts, 
finished  or  unfinished. 

531.  Leeches. 

532.  Lemon  juice,  lime  juice,  and  sour  orange  juice,  all  the  fore- 
going containing  not  more  than  2  per  centum  of  alcohol. 

533.  Lifeboats  and  life-saving  apparatus  specially  imported  by  soci- 
eties and  institutions  incorporated  or  established  to  encourage  the  saving 
of  human  life. 

534.  Limestone-rock  asphalt;  asphaltum,  and  bitumen. 

535.  Lithographic  stones,  not  engraved. 

536.  Litmus,  prepared  or  not  prepared. 

537.  Loadstones. 

538.  Madder  and  munjeet,  or  Indian  madder,  ground  or  prepared, 
and  all  extracts  of. 

539.  Magnesite,  crude  or  calcined,  not  purified. 

540.  Manganese,  oxide  and  ore  of. 
54L     Manna. 

542.  Manuscripts. 

543.  Marrow,  crude. 

544.  Marshmallow  or  althea  root,  leaves  or  flowers,  natural  or  un- 
manufactured. 

545.  Meats :  Fresh  beef,  veal,  mutton,  lamb,  and  pork ;  bacon  and 
hams ;  meats  of  all  kinds,  prepared  or  preserved,  not  specially  provided 
for  in  this  section :  Provided,  however.  That  none  of  the  foregoing 
meats  shall  be  admitted  into  the  United  States  unless  the  same  is  health- 
ful, wholesome  and  fit  for  human  food  and  contains  no  dye,  chemical, 
preservative,  or  ingredient  which  renders  the  same  unhealthful,  unwhole- 
some or  unfit  for  human  food,  and  unless  the  same  also  complies  with 
the  rules  and  regulations  made  by  the  Secretary  of  Agriculture,  and  that, 
after  entry  into  the  United  States  in  compliance  with  said  rules  and 
regulations,  said  imported  meats  shall  be  deemed  and  treated  as  domestic 
meats  within  the  meaning  of  and  shall  be  subject  to  the  provisions  of 
the  Act  of  June  thirtieth,  nineteen  hundred  and  six  (Thirty-fourth 
Statutes  at  Large,  page  six  hundred  and  seventy-four),  commonly  called 
the  Meat  Inspection  Amendment,  and  the  Act  of  June  thirtieth,  nineteen 
hundred  and  six  (Thirty-fourth  Statutes  at  Large,  page  seven  hundred 
and  sixty-eight),  commonly  called  the  Food  and  Drugs  Act,  and  that 
the  Secretary  of  Agriculture  be  and  hereby  is  authorized  to  make  rules 
and  regulations  to  carry  out  the  purposes  of  this  paragraph,  and  that  in 
such  rules  and  regulations  the  Secretary  of  Agriculture  may  prescribe 
the  terms  and  conditions  for  the  destruction  for  food  purposes  of  all  such 
meats  offered  for  entry  and  refused  admission  into  the  United  States 
unless  the  same  be  exported  by  the  consignee  within  the  time  fixed  there- 
for in  such  rules  and  regulations. 


Tariff  Act,  Free  List  423 

546.  Medals  of  gold,  silver,  or  copper,  and  other  articles  actually- 
bestowed  as  trophies  or  prizes,  and  received  and  accepted  as  honorary 
distinctions. 

547.  Milk  and  cream,  including  milk  or  cream  preserved  or  con- 
densed, or  sterilized  by  heating  or  other  processes,  and  sugar  of  milk. 

548.  Mineral  salts  obtained  by  evaporation  from  mineral  waters, 
when  accompanied  by  a  duly  authenticated  certificate  and  satisfactory 
proof  showing  that  they  are  in  no  way  artificially  prepared  and  are  only 
the  product  of  a  designated  mineral  spring. 

549.  Minerals,  crude,  or  not  advanced  in  value  or  condition  by 
refining  or  grinding,  or  by  other  process  of  manufacture,  not  specially 
provided  for  in  this  section. 

550.  Miners'  rescue  appliances,  designed  for  emergency  use  in  mines 
where  artificial  breathing  is  necessary  in  the  presence  of  poisonous  gases, 
to  aid  in  the  saving  of  human  life,  and  miners'  safety  lamps,  and  parts, 
accessories,  and  appliances  for  cleaning,  repairing,  and  operating  all  the 
foregoing. 

551.  Models  of  inventions  and  of  other  improvements  in  the  arts, 
to  be  used  exclusively  as  models  and  incapable  of  any  other  use. 

552.  Moss,  seaweeds,  and  vegetable  substances,  crude  or  unmanu- 
factured, not  otherwise  specially  provided  for  in  this  section. 

553.  Myrobolans  fruit. 

554.  Cut  nails  and  cut  spikes  of  iron  or  steel,  horseshoe  nails,  horse- 
shoe nail  rods,  hobnails,  and  all  other  wrought-iron  or  steel  nails  not 
specially  provided  for  in  this  section ;  wire  staples,  wire  nails  made  of 
wrought  iron  or  steel  spikes,  and  horse,  mule,  or  ox  shoes,  of  iron  or 
steel,  and  cut  tacks,  brads,  or  sprigs. 

555.  Needles,  hand  sewing  and  darning,  and  needles  for  shoe 
machines. 

556.  Newspapers  and  periodicals ;  but  the  term  "periodicals"  as 
herein  used  shall  be  understood  to  embrace  only  unbound  or  paper- 
covered  publications  issued  within  six  months  of  the  time  of  entry, 
devoted  to  current  literature  of  the  day,  or  containing  current  literature 
as  a  predominant  feature,  and  issued  regularly  at  stated  periods,  as 
weekly,  monthly,  or  quarterly,  and  bearing  the  date  of  issue. 

557.  Nuts :  Marrons,  crude  ;  coconuts  in  the  shell  and  broken  coco- 
nut meat  or  copra,  not  shredded,  desiccated,  or  prepared  in  any  manner; 
palm  nuts  and  palm-nut  kernels. 

558.  Nux  vomica. 

559.  Oakum. 

560.  Oil  cake. 

561.  Oils:  Birch  tar,  cajeput,  coconut,  cod,  cod  liver,  cottonseed, 
croton,  ichthyol,  juglandium,  palm,  palm-kernel,  perilla,  soya-bean,  and 
olive  oil  rendered  unfit  for  use  as  food  or  for  any  but  mechanical  or 
manufacturing  purposes,  by  such  means  as  shall  be  satisfactory  to  the 
Secretary  of  the  Treasury  and  under  regulations  to  be  prescribed  by  him; 


424  Important  Federal  Laws 

Chinese  nut  oil,  nut  oil  or  oil  of  nuts  not  specially  provided  for  in  this 
section ;  petroleum,  crude  or  refined,  and  all  products  obtained  from 
petroleum,  including  kerosene,  benzine,  naphtha,  gasoline,  paraffin,  and 
paraffin  oil ;  and  also  spermaceti,  whale,  and  other  fish  oils  of  American 
fisheries,  and  all  fish  and  other  products  of  such  fisheries. 

562.  Oleo  stearin. 

563.  Orange  and  lemon  peel,  not  preserved,  candied,  or  dried. 

564.  Orchil,  or  orchil  liquid. 

565.  Ores  of  gold,  silver,  or  nickel,  and  nickel  matte;  ores  of  the 
platinum  metals ;  sweepings  of  gold  and  silver. 

566.  Paper  stock,  crude,  of  every  description,  including  all  grasses, 
fibers,  rags,  waste,  including  jute,  hemp  and  flax  waste,  shavings,  clip- 
pings, old  paper,  rope  ends,  waste  rope,  and  waste  bagging,  and  all  other 
waste  not  specially  provided  for  in  this  section,  including  old  gunny  cloth 
and  old  gunny  bags,  used  chiefly  for  paper  making. 

567.  Printing  paper  (other  than  paper  commercially  known  as 
handmade  or  machine  handmade  paper,  japan  paper,  and  imitation  japan 
paper  by  whatever  name  known),  unsized,  sized,  or  glued,  suitable  for 
the  printing  of  books  and  newspapers,  but  not  for  covers  or  bindings,  not 
specially  provided  for  in  this  section,  valued  at  not  above  5  cents  per 
pound,  decalcomania  paper  not  printed.  (As  amended  September  8, 
1916.) 

568.  Parchment  and  vellum. 

569.  Paris  green  and  London  purple. 

570.  Pearl,  mother  of,  and  shells,  not  sawed,  cut,  flaked,  polished, 
or  otherwise  manufactured,  or  advanced  in  value  from  the  natural  state. 

571.  Personal  effects,  not  merchandise,  of  citizens  of  the  United 
States  dying  in  foreign  countries. 

572.  Pewter  and  britannia  metal,  old,  and  fit  only  to  be  remanu- 
factured. 

573.  Philosophical  and  scientific  apparatus,  utensils,  instruments, 
and  preparations,  including  bottles  and  boxes  containing  the  same,  spe- 
cially imported  in  good  faith  for  the  use  and  by  order  of  any  society  or 
institution  incorporated  or  established  solely  for  religious,  philosophical, 
educational,  scientific,  or  literary  purposes,  or  for  the  encouragement  of 
the  fine  arts,  or  for  the  use  and  by  order  of  any  college,  academy,  school, 
or  seminary  of  learning  in  the  United  States,  or  any  State  or  public 
library,  and  not  for  sale,  and  articles  solely  for  experimental  purposes, 
when  imported  by  any  society  or  institution  of  the  character  herein  de- 
scribed, subject  to  such  regulations  as  the  Secretary  of  the  Treasury  shall 
prescribe. 

574.  Phosphates,  crude. 

575.  Phosphorus. 

576.  Photographic  and  moving-picture  films,  sensitized  but  not 
exposed  or  developed. 


Tariff  Act,  Free  List  425 

577.  Plants,  trees,  shrubs,  roots,  seed  cane,  and  seeds,  imported  by 
the  Department  of  Agriculture  or  the  United  States  Botanic  Garden. 

578.  Platinum,  unmanufactured  or  in  ingots,  bars,  plates,  sheets, 
wire,  sponge,  or  scrap,  and  vases,  retorts,  and  other  apparatus,  vessels, 
and  parts  thereof,  composed  of  platinum,  for  chemical  uses. 

579.  Plumbago. 

580.  Pota«h:  Crude,  or  "black  salts";  carbonate  of;  cyanide  of; 
sulphate  of;  hydrate  of,  when  not  containing  more  than  15  per  centum 
of  caustic  soda;  nitrate  of,  or  saltpeter,  crude ;  and  muriate  of. 

581.  Potatoes,  and  potatoes  dried,  desiccated,  or  otherwise  prepared, 
not  specially  provided  for  in  this  section :  Provided,  That  any  of  the 
foregoing  specified  articles  shall  be  subject  to  a  duty  of  10  per  centum 
ad  valorem  when  imported  directly  or  indirectly  from  a  country,  depend- 
ency, or  other  subdivision  of  government  which  imposes  a  duty  on  such 
articles  imported  from  the  United  States. 

582.  Professional  books,  implements,  instruments,  and  tools  of 
trade,  occupation,  or  employment  in  the  actual  possession  of  persons 
emigrating  to  the  United  States  owned  and  used  by  them  abroad ;  but 
this  exemption  shall  not  be  construed  to  include  machinery  or  other 
articles  imported  for  use  in  any  manufacturing  establishment,  or  for  any 
other  person  or  persons,  or  for  sale,  nor  shall  it  be  construed  to  include 
theatrical  scenery,  properties,  and  apparel ;  but  such  articles  brought  by 
proprietors  or  managers  of  theatrical  exhibitions  arriving  from  abroad, 
for  temporary  use  by  them  in  such  exhibitions,  and  not  for  any  other 
person,  and  not  for  sale,  and  which  have  been  used  by  them  abroad, 
shall  be  admitted  free  of  duty  under  such  regulations  as  the  Secretary 
of  the  Treasury  may  prescribe ;  but  bonds  shall  be  given  for  the  pay- 
ment to  the  United  States  of  such  duties  as  may  be  imposed  by  law  upon 
any  and  all  such  articles  as  shall  not  be  exported  within  six  months  after 
such  importation :  Provided,  That  the  Secretary  of  the  Treasury  may, 
in  his  discretion,  extend  such  period  for  a  further  term  of  six  months  in 
case  application  shall  be  made  therefor. 

583.  Pulu. 

584.  Quinia,  sulphate  of,  and  all  alkaloids  or  salts  of  cinchona  bark. 

585.  Radium  and  salts  of,  radioactive  substitutes,  selenium  and 
salts  of. 

586.  Rags,  not  otherwise  specially  provided  for  in  this  section. 

587.  Railway  bars,  made  of  iron  or  steel,  and  railway  bars  made 
in  part  of  steel,  T  rails,  and  punched  iron  or  steel  flat  rails. 

588.  Rennets,  raw  or  prepared. 

589.  Rye  and  rye  flour. 

590.  Sago,  crude,  and  sago  flour. 

591.  Salicin. 

592.  Salep,  or  salop. 

593.  Salt. 


426  .  Important  Federal  Laws 

594.  Santonin,  and  its  combinations  with  acids  not  subject  to  duty 
under  this  section. 

595.  Seeds:  Cardamom,  cauhflower,  celery,  coriander,  cotton, 
cummin,  fennel,  fenugreek,  hemp,  hoarhound,  mangelwurzel,  mustard, 
rape,  Saint  John's  bread  or  bean,  sorghum,  sugar  beet,  and  sugar  cane 
for  seed ;  bulbs  and  bulbous  roots,  not  edible  and  not  otherwise  provided 
for  in  this  section;  all  flower  and  grass  seeds;  coniferous  evergreen  seed- 
lings ;  all  the  foregoing  not  specially  provided  for  in  this  section. 

596.  Sheep  dip. 

597.  Shotgun  barrels,  in  single  tubes,  forged,  rough  bored. 

598.  Shrimps,  lobsters,  and  other  shellfish. 

599.  Silk  cocoons  and  silk  waste. 

600.  Silk,  raw,  in  skeins  reeled  from  the  cocoon,  or  rereeled,  but 
not  wound,  doubled,  twisted,  or  advanced  in  manufacture  in  any  way. 

601.  Silkworm  eggs. 

602.  Skeletons  and  other  preparations  of  anatomy. 

603.  Skins  of  hares,  rabbits,  dogs,  goats,  and  sheep,  undressed. 

604.  Skins  of  all  kinds,  raw,  and  hides  not  specially  provided  for 
in  this  section. 

605.  Soda,  arseniate  of,  cyanide  of,  sulphate  of,  crude,  or  salt  cake 
and  niter  cake,  soda  ash,  silicate  of,  nitrate  of,  or  cubic  nitrate. 

606.  Soya  beans. 

607.  Specimens  of  natural  history,  botany,  and  mineralogy,  when 
imported  for  scientific  public  collections,  and  not  for  sale. 

608.  Spunk. 

609.  Spurs  and  stilts  used  in  the  manufacture  of  earthen,  porcelain, 
and  stone  ware. 

610.  Stamps :  Foreign  postage  or  revenue  stamps,  canceled  or  un- 
canceled, and  foreign  government  stamped  post  cards  bearing  no  other 
printing  than  the  official  imprint  thereon. 

611.  Statuary  and  casts  of  sculpture  for  use  as  models  or  for  art 
educational  purposes  only ;  regalia  and  gems,  where  specially  imported 
in  good  faith  for  the  use  and  by  order  of  any  society  incorporated  or 
established  solely  for  religious,  philosophical,  educational,  scientific,  or 
literary  purposes,  or  for  the  encouragement  of  the  fine  arts,  or  for  the 
use  and  by  order  of  any  college,  academy,  school,  seminary  of  learning, 
orphan  asylum,  or  public  hospital  in  the  United  States,  or  any  State  or 
public  library,  and  not  for  sale,  subject  to  such  regulations  as  the  Secre- 
tary of  the  Treasury  shall  prescribe ;  but  the  term  "regalia"  as  herein 
used  shall  be  held  to  embrace  only  such  insignia  of  rank  or  office  or 
emblems  as  may  be  worn  upon  the  person  or  borne  in  the  hand  during 
public  exercises  of  the  society  or  institution,  and  shall  not  include  articles 
of  furniture  or  fixtures,  or  of  regular  wearing  apparel,  nor  personal 
property  of  individuals. 

612.  Steel  engraved  forms  for  bonds,  debentures,  stock  certificates, 
negotiable  receipts,  notes  and  other  securities ;  and  engraved  steel  plates, 


Tariff  Act,  Free  List  427 

dies  and   rolls,  suitable   for  use  in   engraving  or  printing  bonds,    stock 
certificates  or  other  securities. 

613.  Steel  ingots,  cogged  ingots,  blooms  and  slabs,  die  blocks  or 
blanks,  and  billets,  if  made  by  the  Bessemer,  Siemens-Martin,  open-hearth 
or  similar  processes,  not  containing  alloy,  such  as  nickel,  cobalt,  vana- 
dium, chromium,  tungsten,  or  wolfram,  molybdenum,  titanium,  iridium, 
uranium,  tantalum,  boron,  and  similar  alloys. 

614.  Stone  and  sand :  Burrstone  in  blocks,  rough  or  unmanufac- 
tured; rotten  stone,  tripoli,  and  sand,  crude  or  manufactured;  clifif  stone, 
freestone,  granite,  sandstone,  and  limestone,  unmanufactured,  and  not 
suitable  for  use  as  monumental  or  building  stone ;  all  of  the  foregoing 
not  specially  provided  for  in  this  section. 

615.  Strontia,  oxide  of  protoxide  of  strontian,  and  strontianite  or 
mineral  carbonate  of  strontia. 

616.  Strychnia  or  strychnine,  and  its  combinations  with  acids  not 
subject  to  duty  vmder  this  section. 

617.  Sulphur  in  any  form,  brimstone,  and  sulphur  ore  as  pyrites, 
or  sulphuret  of  iron  in  its  natural  state,  containing  in  excess  of  25  per 
centum  of  sulphur. 

618.  Sumac,  ground  or  unground. 

619.  Swine,  cattle,  sheep,  and  all  other  domestic  live  animals  suit- 
able for  human  food  not  otherwise  provided  for  in  this  section. 

620.  Tagua  nuts. 

621.  Talcum,  steatite,  and  French  chalk,  crude  and  unground. 

622.  Tallow. 

623.  Tamarinds. 

624.  Tanning  material:  Extracts  of  quebracho,  and  of  hemlock 
bark ;  extracts  of  oak  and  chestnut  and  other  barks  and  woods  other 
than  dyewoods  such  as  are  commonly  used  for  tanning  not  specially  pro- 
vided for  in  this  section ;  nuts  and  nutgalls  and  woods  used  expressly 
for  dying  or  tanning,  whether  or  not  advanced  in  value  or  condition  by 
shredding,  grinding,  chipping,  crushing,  or  any  other  process ;  and  articles 
in  a  crude  state  used  in  dyeing  or  tanning ;  all  the  foregoing  not  con- 
taining alcohol  and  not  specially  provided  for  in  this  section. 

625.  Tapioca,  tapioca  flour,  cassava  or  cassady. 

626.  Tar  and  pitch  of  wood. 

627.  Tea  not  specially  provided  for  in  this  section,  and  tea  plants : 
Provided,  That  the  cans,  boxes,  or  other  containers  of  tea  packed  in  pack- 
ages of  less  than  five  pounds  each  shall  be  dutiable  at  the  rate  chargeable 
thereon  if  imported  empty:  Provided  further.  That  nothing  herein 
contained  shall  be  construed  to  repeal  or  impair  the  provisions  of  an  i\ct 
entitled  "An  Act  to  prevent  the  importation  of  impure  and  unwholesome 
tea,"  approved  March  second,  eighteen  hundred  and  ninety-seven,  and 
any  Act  amendatory  thereof. 

628.  Teeth,  natural,  or  unmanufactured. 

629.  Terra  alba,  not  made  from  gypsum  or  plaster  rock. 


428  Important  Federal  Laws 

630.  Terra  japonica. 

631.  Tin  ore,  cassiterite  or  black  oxide  of  tin,  tin  in  bars,  blocks, 
pigs,  or  grain  or  granulated,  and  scrap  tin :  Provided,  That  there  shall 
be  imposed  and  paid  upon  cassiterite,  or  black  oxide  of  tin,  and  upon 
bar.  block  pig  tin  and  grain  or  granulated,  a  duty  of  4  cents  per  pound 
when  it  is  made  to  appear  to  the  satisfaction  of  the  President  of  the 
United  States  that  the  mines  of  the  United  States  are  producing  one 
thousand  five  hundred  tons  of  cassiterite  and  bar,  block,  and  pig  tin  per 
year.  The  President  shall  make  known  this  fact  by  proclamation,  and 
thereafter  said  duties  shall  go  into  efifect. 

632.  Tobacco  stems. 

633.  Tungsten-bearing  ores  of  all  kinds. 

634.  Tunneric. 

635.  Turpentine,  Venice,  and  spirits  of. 

636.  Turtles. 

637.  Type,  stereotype  metal,  electrotype  metal,  linotype  composition, 
all  of  the  foregoing,  old  and  fit  only  to  be  remanufactured. 

638.  Uranium,  oxide  and  salts  of. 

639.  Valonia. 

640.  Wafers,  unleavened  or  not  edible. 

641.  Wax.  vegetable  or  mineral. 

642.  Wearing  apparel,  articles  of  personal  adornment,  toilet  articles, 
and  similar  personal  efifects  of  persons  arriving  in  the  United  States ; 
but  this  exemption  shall  include  only  such  articles  as  were  actually  owned 
by  them  and  in  their  possession  abroad  at  the  time  of  or  prior  to  their 
departure  from  a  foreign  country,  and  as  are  necessary  and  appropriate 
for  the  wear  and  use  of  such  persons  and  are  intended  for  such  wear  and 
use,  and  shall  not  be  held  to  apply  to  merchandise  or  articles  intended 
for  other  persons  or  for  sale :  Provided,  That  in  case  of  residents  of  the 
United  States  returning  from  abroad  all  wearing  apparel,  personal  and 
household  efifects  taken  by  them  out  of  the  United  States  to  foreign  coun- 
tries shall  be  admitted  free  of  duty,  without  regard  to  their  value,  upon 
their  identity  being  established  under  appropriate  rules  and  regulations  to 
be  prescribed  by  the  Secretary  of  the  Treasury :  Provided  further,  That 
up  to  but  not  exceeding  $100  in  value  of  ar.ticles  acquired  abroad  by  such 
residents  of  the  United  States  for  personal  or  household  use  or  as  souve- 
nirs or  curios,  but  not  bought  on  commission  or  intended  for  sale,  shall 
be  admitted  free  of  duty. 

643.  Whalebone,  unmanufactured. 

644.  Wheat,  wheat  flour,  semolina,  and  other  wheat  products,  not 
specially  provided  for  in  this  section :  Provided,  That  wheat  shall  be 
subject  to  a  duty  of  10  cents  per  bushel,  that  wheat  flour  shall  be  subject 
to  a  duty  of  45  cents  per  barrel  of  196  pounds,  and  semolina  and  other 
products  of  wheat,  not  specially  provided  for  in  this  section,  10  per  centum 
ad  valorem,  when  imported  directly  or  indirectly  from  a  country,  depen- 


Tariff  Act,  Free  List  429 

dency,  or  other  subdivision   of   government   which   imposes   a   duty   on 
wheat  or  wheat  flour  or  semoHna  imported  from  the  United  States. 

645.  All  barbed  wire,  galvanized  wire  not  larger  than  twenty  one- 
hundredths  of  one  inch  in  diameter  and  not  smaller  than  eight  one-hun- 
dredths  of  one  inch  in  diameter  of  the  kind  commonly  used  for  fencing 
purposes,  galvanized  wire  fencing  composed  of  wires  not  larger  than 
twenty  one-hundredths  of  one  inch  in  diameter  nor  smaller  than  eight  one- 
hundredths  of  one  inch  in  diameter,  and  wire  commonly  used  for  baling 
hay  or  other  commodities. 

646.  Witherite. 

647.  Wood :  Logs,  timber,  round,  unmanufactured,  hewn  or  sawed, 
sided  or  squared ;  pulp  woods,  kindling  wood,  firewood,  hop  poles,  hoop 
poles,  fence  posts,  handle  bolts,  shingle  bolts,  gun  blocks  for  gunstocks 
rough  hewn  or  sawed,  or  planed  on  one  side ;  hubs  for  wheels,  posts, 
heading  bolts,  stave  bolts,  last  blocks,  wagon  blocks,  oar  blocks,  heading 
blocks,  and  all  like  blocks  or  sticks,  rough  hewn,  sawed,  or  bored ;  sawed 
boards,  planks,  deals,  and  other  lumber,  not  further  manufactured  than 
sawed,  planed,  and  tongued  and  grooved ;  clapboards,  laths,  pickets, 
palings,  staves,  shingles,  ship  timber,  ship  planking,  broom  handles,  saw- 
dust, and  wood  flour;  all  the  foregoing  not  specially  provided  for  in  this 
section. 

648.  Woods :  Cedar,  including  Spanish  cedar,  lignum-vitae.  lance- 
wood,  ebony,  box,  granadilla.  mahogany,  rosewood,  satinwood,  and  all 
forms  of  cabinet  woods,  in  the  log,  rough,  or  hewn  only,  and  red  cedar 
(Juniperus  virginiana)  timber,  hewn,  sided,  squared,  or  round;  sticks 
of  partridge,  hair  wood,  pimento,  orange,  myrtle,  bamboo,  rattan,  reeds 
unmanufactured,  india  malacca  joints,  and  other  woods  not  specially  pro- 
vided for  in  this  section,  in  the  rough,  or  not  further  advanced  than 
cut  into  lengths  suitable  for  sticks  for  umbrellas,  parasols,  sunshades, 
whips,  fishing  rods,  or  walking  canes. 

649.  Mechanically  ground  wood  pulp,  chemical  wood  pulp,  un- 
bleached or  bleached,  and  rag  pulp. 

650.  Wool  of  the  sheep,  hair  of  the  camel,  and  other  like  animals, 
and  all  wools  and  hair  on  the  skin  of  such  animals,  and  paper  twine  for 
binding  any  of  the  foregoing.  This  paragraph  shall  be  efifective  on  and 
after  the  first  day  of  December,  nineteen  hundred  and  thirteen,  until 
which  time  the  rates  of  duty  now  provided  by  schedule  K  of  the  existing 
law  shall  remain  in  full  force, and  eft'ect. 

651.  Wool  wastes  :  All  noils,  top  waste,  card  waste,  slubbing  waste, 
roving  waste,  ring  waste,  yarn  waste,  bur  waste,  thread  waste,  garnetted 
waste,  shoddies,  mungo,  flocks,  wool  extract,  carbonized  wool,  carbonized 
noils,  and  all  other  wastes  not  specially  provided  for  in  this  section.  This 
paragraph  shall  be  eft'ective  on  and  after  the  first  day  of  December,  nine- 
teen hundred  and  thirteen,  until  which  time  the  rates  of  duty  now  pro- 
vided by  schedule  K  of  the  existing  law  shall  remain  in  full  force  and 
eft'ect. 


430  Important  Federal  Laws 

652.  Original  paintings  in  oil,  mineral,  water,  or  other  colors, 
pastels,  original  drawings  and  sketches  in  pen  and  ink  or  pencil  and 
water  colors,  artists'  proof  etchings  unbound,  and  engravings  and  wood- 
cuts unbound,  original  sculptures  or  statuary,  including  not  more  than 
two  replicas  or  reproductions  of  the  same;  but  the  terms  "sculpture" 
and  "statuary"  as  used  in  this  paragraph  shall  be  understood  to  include 
professional  productions  of  sculptors  only,  whether  in  round  or  in  relief, 
in  bronze,  marble,  stone,  terra  cotta,  ivory,  wood,  or  metal,  or  whether 
cut,  carved,  or  otherwise  wrought  by  hand  from  the  solid  block  or  mass 
of  marble,  stone  or  alabaster  or  from  metal  or  cast  in  bronze  or  other 
metal  or  substance,  or  from  wax  or  plaster,  made  as  the  professional 
productions  of  sculptors  only ;  and  the  words  "painting"  and  "sculpture" 
and  "statuary"  as  used  in  this  paragraph  shall  not  be  understood  to  in- 
clude any  articles  of  utility,  nor  such  as  are  made  wholly  or  in  part  by 
stenciling  or  any  other  mechanical  process ;  and  the  words  "etchings," 
"engravings,"  and  "woodcuts"  as  used  in  this  paragraph  shall  be  under- 
stood to  include  only  such  as  are  printed  by  hand  from  plates  or  blocks 
etched  or  engraved  with  hand  tools  and  not  such  as  are  printed  from 
plates  or  blocks  etched  or  engraved  by  photochemical  or  other  mechanical 
processes. 

653.  Works  of  art,  drawings,  engravings,  photographic  pictures, 
and  philosophical  and  scientific  apparatus  brought  l3y  professional  artists, 
lecturers,  or  scientists  arriving  from  abroad  for  use  by  them  temporarily 
for  exhibition  and  in  illustration,  promotion,  and  encouragement  of  art, 
science,  or  industry  in  the  United  States,  and  not  for  sale,  shall  be  ad- 
mitted free  of  duty,  under  such  regulations  as  the  Secretary  of  the  Treas- 
ury shall  prescribe ;  but  bonds  shall  be  given  for  the  payment  to  the 
United  States  of  such  duties  as  may  be  imposed  by  law  upon  any  and  all 
such  articles  as  shall  not  be  exported  within  six  months  after  such  impor- 
tation: Provided,  That  the  Secretary  of  the  Treasury  may,  in  his  dis- 
cretion, extend  such  period  for  a  further  term  of  six  months  in  cases 
where  application  therefor  shall  be  made. 

654.  Works  of  art,  collections  in  illustration  of  the  progress  of  the 
arts,  sciences,  agriculture,  or  manufactures,  photographs,  works  in  terra 
cotta,  parian,  pottery,  or  porcelain,  antiquities  and  artistic  copies  thereof 
in  metal  or  other  material,  imported  in  good  faith  for  exhibition  at  a 
fixed  place  by  any  State  or  by  any  society  or  institution  established  for 
the  encouragement  of  the  arts,  science,  agriculture,  or  education,  or  for 
a  municipal  corporation,  and  all  like  articles  imported  in  good  faith  by 
any  society  or  association,  or  for  a  municipal  corporation,  for  the  pur- 
pose of  erecting  a  public  monument,  and  not  intended  for  sale  nor  for 
any  other  purpose  than  herein  expressed ;  but  bond  shall  be  given  under 
such  rules  and  regulations  as  the  Secretary  of  the  Treasury  may  pre- 
scribe, for  the  payment  of  lawful  duties,  which  may  accrue  should  any 
of  the  articles  aforesaid  be  sold,  transferred,  or  used  contrary  to  this 
provision,  and  such  articles  shall  be  subject,  at  any  time,  to  examination 


Tariff  Act,  Free  List  431 

and  inspection  by  the  proper  officers  of  the  customs :  Provided,  That 
the  privileges  of  this  and  the  preceding  paragraph  shall  not  be  allowed  to 
associations  or  corporations  engaged  in  or  connected  with  business  of  a 
private  or  commercial  character. 

655.  Works  of  art,  productions  of  American  artists  residing  tem- 
porarily abroad,  or  other  works  of  art  including  pictorial  paintings  on 
glass,  imported  expressly  for  presentation  to  a  national  institution  or  to 
any  State  or  municipal  corporation  or  incorporated  religious  society, 
college,  or  other  public  institution,  including  stained  or  painted  window 
glass  or  stained  or  painted  glass  windows  imported  to  be  used  in  houses 
of  worship,  and  excluding  any  article,  in  whole  or  in  part,  molded,  cast, 
or  mechanically  wrought  from  metal  within  twenty  years  prior  to  impor- 
tation;  but  such  exemption  shall  be  subject  to  such  regulations  as  the 
Secretary  of  the  Treasury  may  prescribe. 

656.  Works  of  art  (except  rugs  and  carpets),  collections  in  illus- 
tration of  the  progress  of  the  arts,  works  in  bronze,  marble,  terra  cotta, 
parian,  pottery,  or  porcelain,  artistic  antiquities,  and  objects  of  art  of 
ornamental  character  or  educational  value  which  shall  have  been  pro- 
duced more  than  one  hundred  years  prior  to  the  date  of  importation,  but 
the  free  importation  of  such  objects  shall  be  subject  to  such  regulations 
as  to  proof  of  antiquity  as  the  Secretary  of  the  Treasury  may  prescribe. 

657.  Zaffer. 

TITLE  v.— DYESTUFFS. 

Act  of  September  8,  1916. 
Tariff  on  DyestufTs. 

Sec.  500.  That  on  and  after  the  day  following  the  passage  of  this 
Act,  except  as  otherwise  specially  provided  for  in  this  title;  there  shall 
be  levied,  collected,  and  paid  upon  the  articles  named  in  this  section 
when  imported  from  any  foreign  country  into  the  United  States  or  into 
any  of  its  possessions,  except  the  Philippine  Islands  and  the  islands  of 
Guam  and  Tutuila,  the  rates  of  duties  which  are  prescribed  in  this  title, 
namely : 

Free  List. 

Group  I.  Acenaphthene,  anthracene  having  a  purity  of  less  than 
twenty-five  per  centum,  benzol,  carbazol  having  a  purity  of  less  than 
twenty-five  per  centum,  cresol,  cumol,  fiuorene,  metacresol  having  a 
purity  of  less  than  ninety  per  centum,  methylanthracene,  methylnaph- 
thalene,  naphthalene  having  a  solidifying  point  less  than  seventy-nine 
degrees  centigrade,  orthocresol  having  a  purity  of  less  than  ninety  per 
centum,  paracresol  having  a  purity  of  less  than  ninety  per  centum, 
pyridin,  quinolin,  toluol,  xylol,  crude  coal  tar,  pitch  of  coal  tar,  dead 
or  creosote  oil,  anthracene  oil,  all  other  distillates  which  on  being  sub- 
jected to  distillation  yield  in  the  portion  distilling  below  two  hundred 
degrees  centigrade  a  quantity  of  tar  acids  less  than  five  per  centum  of 
the  original  distillate,  and  all  other  products  that  are  found  naturally  in 


432  Important  Federal  Laws 

coal  tar,  whether  produced  or  obtained  from  coal  tar  or  other  source, 
and  not  otherwise  specially  provided  for  in  this  title,  shall  be  exempt 
from  duty. 

Dutiable  List. 

Group  IL  Amidonaphthol,  amidophenol,  amidosalicylic  acid,  anilin 
oil,  anilin  salts,  anthracene  having  a  purity  of  twenty-five  per  centum 
or  more,  anthraquinone,  benzoic  acid,  banzaldehyde,  benzylchloride, 
benzidin,  binitrobenzol,  binitrochlorobenzol,  binitronaphthalene,  binitro- 
toluol,  carbazol  having  a  purity  of  twenty-five  per  centum  or  more,  chlor- 
ophthalic  acid,  cumidin,  dimethylanilin,  dianisidin,  dioxynaphthalene, 
diphenylaimin,  metacresol  having  a  purity  of  ninety  per  centum  or  more, 
methylanthraquinone,  metanilic  acid,  naphthalene  having  a  solidifying 
point'  of  seventy-nine  degrees  centigrade  or  above,  naphthylamin,  naph- 
thol,  naphthylenediamin,  nitrobenzol,  nitrotoluol,  nitronaphthalene,  nit- 
ranilin,  nitrophenylenediamin,  nitrotoluylenediamin,  orthocresol  having 
a  purity  of  ninety  per  centum  or  more,  paracresol  having  a  purity  of 
ninety  per  centum  or  more,  phenol,  phthalic  acid,  phthalic  anhydride,  . 
phenylenediamin,  phenylnaphthylamin,  resorcin,  salicylic  acid,  sulphan- 
ilic  acid,  toluidin,  tolidin,  toluylenediamin,  xylidin,  or  any  sulphoacid  or 
sulphoacid  salt  of  any  of  the  foregoing,  all  similar  products  obtained, 
derived,  or  manufactured  in  whole  or  in  part  from  the  products  pro- 
vided for  in  Group  I,  and  all  distillates  which  on  being  subjected  to  dis- 
tillation yield  in  the  portion  distilling  below  two  hundred  degrees  centi- 
grade a  quantity  of  tar  acids  equal  to  or  more  than  five  per  centum  of 
the  original  distillate,  all  the  foregoing  not  colors,  dyes,  or  stains,  photo- 
graphic chemicals,  medicinals,  flavors,  or  explosives,  and  not  otherwise 
provided  for  in  this  title,  and  provided  for  in  the  paragraphs  of  the  Act 
of  October  third,  nineteen  hundred  and  thirteen,  which  are  hereinafter 
specifically  repealed  by  section  five  hundred  and  two.  fifteen  per  centum 
ad  valorem. 

Group  in.  All  colors,  dyes,  or  stains,  whether  soluble  or  not  in 
water,  color  acids,  color  bases,  color  lakes,  photographic  chemicals,  medic- 
inals. flavors,  synthetic  phenolic  resin,  or  explosives,  not  otherwise 
specially  provided  for  in  this  title,  when  obtained,  derived,  or  manufac- 
tured in  whole  or  in  part  from  any  of  the  products  provided  for  in 
Groups  I  and  II.  natural  alizarin  and  indigo,  and  colors,  dyes,  or  color 
lakes  obtained,  derived,  or  manufactured  therefrom,  thirty  per  centum 
ad  valorem. 

Sec.  501.  That  on  and  after  the  day  following  the  passage  of  this 
Act.  in  addition  to  the  duties  provided  in  section  five  hundred,  there 
shall  be  levied,  collected,  and  paid  upon  all  articles  contained  in  Group  II 
a  special  duty  of  2^.  cents  per  pound,  and  upon  all  articles  contained 
in  Group  III  (except  natural  and  synthetic  alizarin,  and  dyes  obtained 
from  alizarin,  anthracene,  and  carbazol ;  natural  and  synthetic  indigo  and 
all  indigoids,  whether  or  not  obtained  from  indigo;  and  medicinals  and 
flavors),  a  special  duty  of  5  cents  per  pound. 


Tariff  Administration  433 

During  the  period  of  five  5'ear=;  beginning  five  years  after  the  pass- 
age of  this  Act  such  special  duties  shall  be  annually  reduced  by  twenty 
per  centum  of  the  rate  imposed  by  this  section,  so  that  at  the  end  of  such 
period  such  special  duties  shall  no  longer  be  assessed,  levied,  or  collected ; 
iDUt  if,  at  the  expiration  of  five  years  from  the  date  of  the  passage  of 
this  Act,  the  President  finds  that  there  is  not  being  manufactured  or 
produced  within  the  United  States  as  much  as  sixty  per  centum  in  value 
of  the  domestic  consumption  of  the  articles  mentioned  in  Groups  II  and 
III  of  section  five  hundred,  he  shall  by  proclamation  so  declare,  where- 
upon the  special  duties  imposed  by  this  section  on  such  articles  shall  no 
longer  be  assessed,  levied,  or  collected. 

Sec.  502.  That  paragraphs  twenty,  twenty-one,  twenty-two,  and 
twenty-three  and  the  words  ''salicylic  acid"  in  paragraph  one  of  Sched- 
ule A  of  section  one  of  an  Act  entitled  "An  Act  to  reduce  tarifl^  duties 
and  to  provide  revenue  for  the  Government,  and  for  other  purposes," 
approved  October  third,  nineteen  hundred  and  thirteen,  and  paragraphs 
three  hundred  and  ninety-four,  four  hundred  and  fifty-two,  and  five 
hundred  and  fourteen,  and  the  words  "carbolic"  and  "phthalic,"  in  para- 
graph three  hundred  and  eighty-seven  of  the  "free  list"  of  section  one  of 
said  Act.  and  so  much  of  said  Act  or  any  existing  law  or  parts  of  law 
as  may  be  inconsistent  with  this  title  are  hereby  repealed. 

Section  III. 

A.  That  the  Act  entitled,  "An  Act  to  simplify  the  laws  in  relation  to 
the  collection  of  the  revenues,"  approved  June  tenth,  eighteen  hundred 
and  ninety,  as  amended,  be  further  amended  to  read  as  follows : 

"B.  That  all  merchandise  imported  into  the  United  States  shall, 
for  the  purpose  of  this  Act,  be  deemed  and  held  to  be  the  property  of 
the  person  to  whom  the  same  is  consigned;  and  the  holder  of  a  bill  of 
lading  duly  indorsed  by  the  consignee  therein  named,  or,  if  consigned  to 
order,  by  the  consignor,  shall  be  deemed  the  consignee  thereof;  and  in 
case  of  the  abandonment  of  any  merchandise  to  the  underwriters  the 
latter  may  be  recognized  as  the  consignee. 

"C.  That  all  invoices  of  imported  merchandise  shall  be  made  out 
in  the  currency  of  the  place  or  country  from  whence  the  importations 
shall  be  made,  or,  if  purchased,  or  agreed  to  be  purchased,  in  the  cur- 
rency actually  paid,  agreed  upon,  or  to  be  paid  therefor,  shall  contain  a 
correct,  complete,  and  detailed  description  of  such  merchandise  and  of 
the  packages,  wrappings,  or  other  coverings  containing  it,  and  shall  be 
made  in  triplicate  or  in  quadruplicate  in  case  of  merchandise  intended 
for  immediate  transportation  without  appraisement,  and  signed  by  the 
person  owning  or  shipping  the  same,  if  the  merchandise  has  been  actually 
purchased,  or  price  agreed  upon,  fixed,  or  determined,  or  by  the  manu- 
facturer or  owner  thereof,  if  the  same  has  been  procured  otherwise  than 
by  purchase,  or  agreement  of  purchase,  or  by  the  duly  authorized  agent  of 
such  purchaser,  seller,  manufacturer,  or  owner. 

(28) 


434  Important  Federal  Laws 

"D.  That  all  such  invoices  shall,  at  or  before  the  shipment  of  the 
merchandise,  be  produced  to  the  consular  officer  of  the  United  States  of 
the  consular  district  in  which  the  merchandise  was  manufactured,  or 
purchased,  or  contracted  to  be  delivered  from,  or  when  purchases  or 
agreements  for  purchase  are  made  in  several  places,  in  the  consular 
district  where  the  merchandise  is  assembled  for  shipment,  as  the  case 
may  be,  for  export  to  the  United  States,  and  shall  have  indorsed  thereon, 
when  so  produced,  a  declaration  signed  by  the  purchaser,  seller,  manu- 
facturer, owner,  or  agent,  setting  forth  that  the  invoice  is  in  all  respects 
correct  and  true  and  was  made  at  the  place  from  which  the  merchandise 
is  to  be  exported  to  the  United  States  ;  that  it  contains,  if  the  merchandise 
was  obtained  by  purchase,  or  agreement  for  purchase,  a  true  and  full 
statement  of  the  time  when,  the  place  where,  the  person  from  whom 
the  same  was  purchased,  or  agreed  to  be  purchased,  and  the  actual  cost 
thereof,  or  price  agreed  upon,  fixed,  or  determined,  and  of  all  charges 
thereon,  as  provided  by  this  Act ;  and  that  no  discounts,  rebates,  or  com- 
missions are  contained  in  the  invoice  but  such  as  have  been  actually  allowed 
thereon,  and  that  all  drawbacks  or  bounties  received  or  to  be  received 
are  shown  therein ;  and  when  obtained  in  any  other  manner  than  by  pur- 
chase, or  agreement  of  purchase,  the  actual  market  value  or  wholesale 
price  thereof  at  the  time  of  exportation  to  the  United  States,  in  the  prin- 
cipal markets  of  the  country  from  whence  exported ;  that  such  actual 
market  value  is  the  price  at  which  the  merchandise  described  in  the  in- 
voice is  freely  offered  for  sale  to  all  purchasers  in  said  markets,  and 
that  it  is  the  price  which  the  manufacturer  or  owner  making  the  declara- 
tion would  have  received,  and  was  willing  to  receive,  for  such  merchan- 
dise sold  in  the  ordinary  course  of  trade  in  the  usual  wholesale  quanti- 
ties, and  that  it  includes  all  charges  thereon  as  provided  by  this  Act, 
and  the  actual  quantity  thereof ;  and  that  no  dift'erent  invoice  of  the 
merchandise  mentioned  in  the  invoice  so  produced  has  been  or  will  be 
furnished  to  anyone.  If  the  merchandise  was  actually  purchased,  or 
agreed  to  be  purchased,  the  declaration  shall  also  contain  a  statement  that 
the  currency  in  which  such  invoice  is  made  out  is  that  which  was  actually 
paid  for  the  merchandise  by  the  purchaser,  or  agreed  to  be  paid,  fixed,  or 
determined. 

"E.  That,  except  in  case  of  personal  effects  accompanying  the  pas- 
senger, no  importation  of  any  merchandise  exceeding  $100  in  value  shall 
be  admitted  to  entry  without  the  production  of  a  duly  certified  invoice 
thereof  as  required  by  law,  or  of  an  affidavit  made  by  the  owner,  importer, 
or  consignee,  before  the  collector  or  his  deputy,  showing  why  it  is 
impracticable  to  produce  such  invoice ;  and  no  entry  shall  be  made  in  the 
absence  of  a  certified  invoice,  upon  affidavit  as  aforesaid,  unless  such 
affidavit  be  accompanied  by  a  statement  in  the  form  of  an  invoice,  or 
otherwise,  showing  the  actual  cost  of  such  merchandise,  if  purchased,  or 
if  obtained  otherwise  than  by  purchase,  the  actual  market  value  or  v/hole- 
sale  price  thereof  at  the  time  of  exportation  to  the  United  States  in  the 


Tariff  Administr.\tion  435 

principal  markets  of  the  country  from  which  the  same  has  been  im- 
ported, which  statement  shall  be  verified  by  the  oath  of  the  owner,  im- 
porter, consignee,  or  agent  desiring  to  make  entry  of  the  merchandise, 
to  be  administered  by  the  collector  or  his  deputy,  and  it  shall  be  lawful 
for  the  collector  or  his  deputy  to  examine  the  deponent  under  oath,, 
touching  the  sources  of  his  knowledge,  information,  or  belief  in  the 
premises,  and  to  require  him  to  produce  any  letter,  paper,  or  statement  of 
account  in  his  possession,  or  under  his  control,  which  may  assist  the 
officers  of  customs  in  ascertaining  the  actual  value  of  the  importation  or 
any  part  thereof,  and  in  default  of  such  production,  when  so  requested, 
such  owner,  importer,  consignee,  or  agent  shall  be  thereafter  debarred 
from  producing  any  such  letter,  paper,  or  statement  for  the  purpose  of 
avoiding  any  additional  duty,  penalty,  or  forfeiture  incurred  under  this 
Act,  unless  he  shall  show  to  the  satisfaction  of  the  court  or  the  officers 
of  the  customs,  as  the  case  may  be,  that  it  was  not  in  his  power 
to  produce  the  same  when  so  demanded ;  and  no  merchandise  shall  be 
admitted  to  entry  under  the  provisions  of  this  section  unless  the  collector 
shall  be  satisfied  that  the  failure  to  produce  a  duly  certified  invoice  is 
due  to  causes  beyond  the  control  of  the  owner,  consignee,  or  agent  there- 
of :  Provided,  That  the  Secretary  of  the  Treasury  may  make  regulations 
by  which  books,  magazines,  and  other  periodicals  published  and  imported 
in  successive  parts,  numbers,  or  volumes,  and  entitled  to  be  imported  free 
of  duty,  shall  require  but  one  declaration  for  the  entire  series.  And  when: 
entry  of  merchandise  exceeding  $100  in  value  is  made  by  a  statement  iru 
the  form  of  an  invoice,  the  collector  shall  require  a  bond  for  the  pro- 
duction of  a  duly  certified  invoice. 

"F.  That  whenever  merchandise  imported  into  the  United  States 
is  entered  by  invoice,  a  declaration  upon  a  form  to  be  prescribed  by  the 
Secretary  of  the  Treasury,  according  to  the  nature  of  the  case,  shall  be 
filed  with  the  collector  of  the  port  at  the  time  of  entry  by  the  owner, 
importer,  consignee,  or  agent,  which  declaration  so  filed  shall  be  duly 
signed  by  the  owner,  importer,  consignee,  or  agent  before  the  collector, 
or  before  a  notary  public  or  other  officer  duly  authorized  by  law  to  admin- 
ister oaths  and  take  acknowledgments,  under  regulations  to  be  prescribed 
by  the  Secretary  of  the  Treasury:  Provided,  That  if  any  of  the  invoices 
or  bills  of  lading  of  any  merchandise  imported  in  any  one  vessel  which 
should  otherwise  be  embraced  in  said  entry  have  not  been  received  at 
the  date  of  the  entry  the  declaration  may  state  the  fact,  and  thereupon 
such  merchandise,  of  which  the  invoices  or  bills  of  lading  are  not  pro- 
duced, shall  not  be  included  in  such  entry,  but  may  be  entered  subsequent- 
ly. That  the  Secretary  of  the  Treasury  and  the  Secretary  of  Commerce 
are  hereby  authorized  and  directed  to  establish  from  time  to  time  for 
statistical  purposes  a  list  or  enumeration  of  articles  in  such  detail  as  in 
their  judgment  may  be  necessary  comprehending  all  goods,  wares,  and 
merchandise  imported  into  the  United  States,  and  that  as  a  part  of  the 
declaration  herein  provided   there  shall   be  either  attached   thereto   or 


436  Important  Federal  Laws 

included  therein  an  accurate  statement  specifying,  in  the  terms  of  the  said 
detailed  list  or  enumeration,  the  kinds  and  quantities  of  all  merchandise 
imported,  and  the  value  of  the  total  quantity  of  each  kind  of  article,  and 
it  shall  be  the  duty  of  the  consular  officer,  to  whom  the  invoice  shall  be 
produced,  to  require  such  information  to  be  given. 

"G.  That  if  any  consignor,  seller,  owner,  importer,  consignee,  agent, 
or  other  person  or  persons,  shall  enter  or  introduce,  or  attempt  to  enter 
or  introduce,  into  the  commerce  of  the  United  States  any  imported  mer- 
chandise by  means  of  any  fraudulent  or  false  invoice,  declaration,  affi- 
davit, letter,  paper,  or  by  means  of  any  false  statement,  written  or  verbal, 
or  by  means  of  any  false  or  fraudulent  practice  or  appliance  whatsoever, 
or  shall  make  anv  false  statement  in  the  declarations  provided  for  in 
paragraph  F  without  reasonable  cause  to  believe  the  truth  of  such  state- 
ment, or  shall  aid  or  procure  the  making  of  any  such  false  statement 
as  to  any  matter  material  thereto  without  reasonable  cause  to  believe 
the  truth  of  such  statement,  or  shall  be  guilty  of  any  willful  act  or  omis- 
sion by  means  whereof  the  United  States  shall  or  may  be  deprived  of 
the  lawful  duties,  or  any  portion  thereof,  accruing  upon  the  merchandise, 
or  any  portion  thereof,  embraced  or  referred  to  in  such  invoice,  declara- 
tion, affidavit,  letter,  paper,  or  statement,  or  affected  by  such  act  or  omis- 
sion, such  person  or  persons  shall  upon  conviction  be  fined  for  each 
offense  a  sum  not  exceeding  $5,000,  or  be  imprisoned  for  a  time  not 
exceeding  two  years,  or  both,  in  the  discretion  of  the  court:  Provided. 
That  nothing  in  this  section  shall  be  construed  to  relieve  imported  mer- 
chandise from  forfeiture  by  reason  of  such  false  statement  or  for  any 
cause  elsewhere  provided  by  law. 

"H.  That  if  any  consignor,  seller,  owner,  importer,  consignee,  agent, 
or  other  person  or  persons  shall  enter  or  introduce,  or  attempt  to  enter 
or  introduce,  into  the  commerce  of  the  United  States  any  imported  mer- 
chandise by  means  of  any  fraudulent  or  false  invoice,  declaration,  affi- 
davit, letter,  paper,  or  by  means  of  any  false  statement,  written  or  verbal, 
or  by  means  of  any  false  or  fraudulent  practice  or  appliance  whatsoever, 
or  shall  make  any  false  statement  in  the  declarations  provided  for  in 
paragraph  F  without  reasonable  cause  to  believe  the  truth  of  such  state- 
ment, or  shall  aid  or  procure  the  making  of  any  such  false  statement  as 
to  any  matter  material  thereto  without  reasonable  cause  to  believe  the 
truth  of  such  statement,  or  shall  be  guilty  of  any  willful  act  or  omission 
by  means  whereof  the  United  States  shall  or  may  be  deprived  of  the 
lawful  duties  or  any  portion  thereof,  accruing  upon  the  merchandise  or 
anv  portion  thereof,  embraced  or  referred  to  in  such  invoice,  declaration, 
affidavit,  letter,  paper,  or  statement,  or  affected  by  such  act  or  omis- 
sion, such  merchandise,  or  the  value  thereof,  to  be  recovered  from 
such  person  or  persons,  shall  be  forfeited,  which  forfeiture  shall  only 
apply  to  the  whole  of  the  merchandise  or  the  value  thereof  in  the  case 
or  package  containing  the  particular  article  or  articles  of  merchandise  to 
which  such  fraud  or  false  paper  or  statement  relates.     That  the  arrival 


Tariff  Administration  437 

within  the  territorial  Hmits  of  the  United  States  of  any  merchandise 
consigned  for  sale  and  remaining  the  property  of  the  shipper  or  con- 
signor, and  the  acceptance  of  a  false  or  fraudulent  invoice  thereof  by  the 
consignee  or  the  agent  of  the  consignor,  or  the  existence  of  any  other 
facts  constituting  an  attempted  fraud,  shall  be  deemed,  for  the  purposes 
of  this  paragraph,  to  be  an  attempt  to  enter  such  merchandise  notwith- 
standing no  actual  entry  has  been  made  or  ofifered. 

"I.  That  the  owner,  consignee,  or  agent  of  any  imported  merchandise 
may,  at  the  time  when  he  shall  make  entry  of  such  merchandise,  but  not 
after  either  the  invoice  or  the  merchandise  has  come  under  the  ol)serva- 
tion  of  the  appraiser,  make  such  addition  in  the  entry  to  or  such  deduc- 
tion from  the  cost  or  value  given  in  the  invoice  or  pro  forma  invoice  or 
statement  in  form  of  an  invoice,  which  he  shall  produce  with  his  entry, 
as  in  his  opinion  may  raise  or  lower  the  same  to  the  actual  market  value 
or  wholesale  price  of  such  merchandise  at  the  time  of  exportation  to  the 
United  States,  in  the  principal  markets  of  the  country  from  which  the 
same  has  been  imported ;  and  the  collector  within  whose  district  any  mer- 
chandise may  be  imported  or' entered,  whether  the  same  has  been  actually 
purchased  or  procured  otherwise  than  by  purchase,  shall  cause  the  actual 
market  value  or  wholesale  price  of  such  merchandise  to  be  appraised ;  and 
if  the  appraised  value  of  any  article  of  imported  merchandise  subject  to 
an  ad  valorem  duty  or  to  a  duty  based  upon  or  regulated  in  any  man- 
ner by  the  value  thereof  shall  exceed  the  value  declared  in  the  entry, 
there  shall  be  levied,  collected,  and  paid,  in  addition  to  the  duties  imposed 
by  law  on  such  merchandise,  an  additional  duty  of  1  per  centum  of  the 
total  appraised  value  thereof  for  each  1  per  centum  that  such  appraised 
value  exceeds  the  value  declared  in  the  entry :    Provided,  That  the  addi- 
tional duties  shall  only  apply  to  the  particular  article  or  articles  in  each 
invoice  that  are  so  undervalued  and  shall  not  be  imposed  upon  any  article 
upon  which  the  amount  of  duty  imposed  by  law  on  account  of  the  ap- 
praised value  does  not  exceed  the  amount  of  duty  that  would  be  imposed 
if  the  appraised  value  did  not  exceed  the  entered  value,  and  shall  be  lim- 
ited to  75  per  centum  of  the  appraised  value  of  such  article  or  articles. 
Such  additional  duties  shall  not  be  construed  to  be  penal,  and  shall  not  be 
remitted  nor  payment  thereof  in  any  way  avoided  except  in  cases  arising 
from  a  manifest  clerical  error,  nor  shall  they  be  refunded  in  case  of  expor- 
tation of  the  merchandise,  or  on  any  other  account,  nor  shall  they  be 
subject  to  the  benefit  of  the  drawback :    Provided,  That  if  the  appraised 
value  of  any  merchandise  shall  exceed  the  value  declared  in  the  entry  by 
more  than  75  per  centum,  except  when  arising  from  a  manifest  clerical 
error,  such  entry  shall  be  held  to  be  presumptively  fraudulent,  and  the 
collector  of  customs  shall  seize  such  merchandise  and  proceed  as  in  case 
of  forfeiture  for  violation  of  the  customs  laws,  and  in  any  legal  proceed- 
ing other  than  a  criminal  prosecution  that  may  result  from  such  seizure, 
the  undervaluation  as  shown  by  the  appraisal  shall  be  presumptive  evi- 
dence of  fraud,  and  the  burden  of  proof  shall  be  on  the  claimant  to  rebut 


438  Important  Federal  Laws 

the  same,  and  forfeiture  shall  be  adjudged  unless  he  shall  rebut  such  pre- 
sumption of  fraudulent  intent  by  sufficient  evidence.  The  forfeiture  pro- 
vided for  in  this  section  shall  apply  to  the  whole  of  the  merchandise  or 
the  value  thereof  in  the  case  or  package  containing  the  particular  article 
or  articles  in  each  invoice  which  are  undervalued :  Provided  further,  That 
all  additional  duties,  penalties,  or  forfeitures  applicable  to  merchandise 
entered  by  a  duly  certified  invoice  shall  be  alike  applicable  to  merchandise 
entered  by  a  pro  forma  invoice  or  statement  in  the  form  of  an  invoice, 
and  no  forfeiture  or  disability  of  any  kind  incurred  under  the  provisions 
of  this  section  shall  be  remitted  or  mitigated  by  the  Secretary  of  the 
Treasury.  The  duty  shall  not,  however,  be  assessed  in  any  case  upon 
an  amount  less  than  the  entered  value,  unless  by  direction  of  the  Secre- 
tary of  the  Treasury  in  cases  in  which  the  importer  certifies  at  the  time 
of  entry  that  the  entered  value  is  higher  than  the  foreign  market  value 
and  that  the  goods  are  so  entered  in  order  to  meet  advances  by  the  ap- 
praiser in  similar  cases  then  pending  on  appeal  for  reappraisement,  and 
the  importer's  contention  shall  subsequently  be  sustained  by  a  final  decis- 
ion on  reappraisement,  and  it  shall  appear  that  the  action  of  the  importer 
on  entry  was  taken  in  good  faith,  after  due  diligence  and  inquiry  on  his 
part,  and  the  Secretary  of  the  Treasury  shall  accompany  his  directions 
with  a  statement  of  his  conclusions  and  his  reasons  therefor. 

"J.  That  when  merchandise  entered  for  customs  duty  has  been  con- 
signed for  sale  by  or  on  account  of  the  manufacturer  thereof,  to  a  per- 
son, agent,  partner,  or  consignee  in  the  United  States,  such  person,  agent, 
partner,  or  consignee  shall,  at  the  time  of  the  entry  of  such  merchandise, 
present  to  the  collector  of  customs  at  the  port  where  such  entry  is  made, 
as  a  part  of  such  entry,  and  in  addition  to  the  certified  invoice  or  state- 
ment in  the  form  of  an  invoice  required  by  law,  a  statement  signed  by 
such  manufacturer,  declaring  the  cost  of  production  of  such  merchandise, 
such  cost  to  include  all  the  elements  of  cost  as  stated  in  paragraph  L  of 
this  Act.  When  merchandise  entered  for  customs  duty  has  been  con- 
signed for  sale  by  or  on  account  of  a  person  other  than  the  manufacturer 
of  such  merchandise,  to  a  person,  agent,  partner,  or  consignee  in  the 
United  States,  such  person,  agent,  partner,  or  consignee  shall  at  the  time 
of  the  entry  of  such  merchandise  present  to  the  collector  of  customs  at 
the  port  where  such  entry  is  made,  as  a  part  of  such  entry,  a  statement 
signed  by  the  consignor  thereof,  declaring  that  the  merchandise  was 
actually  purchased  by  him  or  for  his  account,  and  showing  the  time  when, 
the  place  where,  and  from  whom  he  purchased  the  merchandise,  and  in 
detail  the  price  he  paid  for  the  same :  Provided,  That  the  statements  re- 
quired by  this  section  shall  be  made  in  triplicate,  and  shall  bear  the 
attestation  of  the  consular  officer  of  the  United  States  resident  within 
the  consular  district  wherein  the  merchandise  was  manufactured,  if 
consigned  by  the  manufacturer  or  for  his  account,  or  from  whence  it 
was  imported  when  consigned  by  a  person  other  than  the  manufacturer, 
one  copy  thereof  to  be  delivered  to  the  person  making  the  statement. 


Tariff  Administration  439 

one  copy  to  be  transmitted  with  the  triplicate  invoice  of  the  merchandise 
to  the  collector  of  the  port  in  the  United  Stales  to  which  the  merchandise 
is  consigned,  and  the  remaining  copy  to  be  filed  in  the  consulate. 

"K.  That  it  shall  be  the  duty  of  the  appraisers  of  the  United  States, 
and  every  of  them,  and  every  person  who  shall  act  as  such  appraiser, 
or  of  the  collector,  as  the  case  may  be,  by  all  reasonable  ways  and  means 
in  his  or  their  power  to  ascertain,  estimate,  and  appraise  (any  invoice  or 
affidavit  thereto  or  statement  of  cost,  or  of  cost  of  production  to  the  con- 
trary notwithstanding)  the  actual  market  value  and  wholesale  price  of 
the  merchandise  at  the  time  of  exportation  to  the  United  States,  in  the 
principal  markets  of  the  country  whence  the  same  has  been  imported, 
and  the  number  of  yards,  parcels,  or  quantities,  and  actual  market  value 
or  wholesale  price  of  every  of  them,  as  the  case  may  require. 

"L.  That  when  the  actual  market  value,  as  defined  by  law,  of  any 
article  of  imported  merchandise,  wholly  or  partly  manufactured  and  sub- 
ject to  an  ad  valorem  duty,  or  to  a  duty  based  in  whole  or  in  part  on 
value,  can  not  be  ascertained  to  the  satisfaction  of  the  appraising  officer, 
such  officer  shall  use  all  available  means  in  his  power  to  ascertain  the 
cost  of  production  of  such  merchandise  at  the  time  of  exportation  to  the 
United  States,  and  at  the  place  of  manufacture,  such  cost  of  production 
to  include  the  cost  of  materials  and  of  fabrication,  and  all  general  ex- 
penses to  be  estimated  at  not  less  than  10  per  centum,  covering  each  and 
every  outlay  of  whatsoever  nature  incident  to  such  production,  together 
with  the  expense  of  preparing  and  putting  up  such  merchandise  ready  for 
shipment,  and  an  addition  of  not  less  than  8  nor  more  than  50  per  centum 
upon  the  total  cost  as  thus  ascertained ;  and  in  no  case  shall  such  mer- 
chandise be  appraised  upon  original  appraisal  or  reappraisement  at  less 
than  the  total  cost  of  production  as  thus  ascertained.  The  actual  market 
value  or  wholesale  price,  as  defined  by  law,  of  any  imported  merchandise 
which  is  consigned  for  sale  in  the  United  States,  or  which  is  sold  for 
exportation  to  the  United  States,  and  which  is  not  actually  sold  or  freely 
oft'ered  for  sale  in  usual  wholesale  quantities  in  the  open  market  of  the 
country  of  exportation  to  all  purchasers,  shall  not  in  any  case  be  appraised 
at  less  than  the  wholesale  price  at  which  such  or  similar  imported  mer- 
chandise is  actually  sold  or  freely  offered  for  sale  in  usual  wholesale 
■quantities  in  the  United  States  in  the  open  market,  due  allowance  by 
deduction  being  made  for  estimated  duties  thereon,  cost  of  transporta- 
tion, insurance  and  other  necessary  expenses  from  the  place  of  shipment 
to  the  place  of  delivery,  and  a  commission  not  exceeding  6  per  centum, 
if  any  has  been  paid  or  contracted  to  be  paid  on  consigned  goods,  or 
profits  not  to  exceed  8  per  centum  and  a  reasonable  allowance  for  gen- 
eral expenses  (not  to  exceed  8  per  centum)  on  purchased  goods. 

"M.  That  the  appraiser  shall  revise  and  correct  the  reports  of  the 
assistant  appraisers  as  he  may  judge  proper,  and  the  appraiser,  or,  at 
ports  where  there  is  no  appraiser,  the  person  acting  as  such,  shall  report 
to  the  collector  his  decision  as  to  the  value  of  the  merchandise  appraised. 


440  Important  Federal  Laws 

At  ports  where  there  is  no  appraiser  the  certificate  of  the  customs  officer 
to  whom  is  committed  the  estimating  and  collection  of  duties,  of  the 
dutiable  value  of  any  merchandise  required  to  be  appraised,  shall  be 
deemed  and  taken  to  be  the  appraisement  of  such  merchandise.  If  the 
collector  shall  deem  the  appraisement  of  any  imported  merchandise  too 
low,  he  may,  within  sixty  days  thereafter,  appeal  to  reappraisement,  which 
shall  be  made  by  one  of  the  general  appraisers,  or  if  the  importer,  owner, 
agent,  or  consignee  of  such  merchandise  shall  deem  the  appraisement 
thereof  too  high,  and  shall  have  complied  with  the  requirements  of  law 
with  respect  to  the  entry  and  appraisement  of  merchandise,  he  may 
within  ten  days  thereafter  appeal  for  reappraisement  by  giving  notice 
thereof  to  the  collector  in  writing.  Such  appeal  shall  be  deemed  to  be 
finally  abandoned  and  waived  unless  within  two  days  from  the  date  of 
filing  thereof  the  person  who  filed  such  notice  shall  deposit  with  the  col- 
lector of  customs  a  fee  of  $1  for  each  entry.  Such  fee  shall  be  deposited 
and  accounted  for  as  miscellaneous  receipts,  and  in  case  the  appeal  in 
connection  with  which  such  fee  was  deposited  shall  be  finally  sustained, 
in  whole  or  in  part,  such  fee  shall  be  refunded  to  the  importer,  with  the 
duties  found  to  be  collected  in  excess,  from  the  appropriation  for  the 
refund  to  importers  of  excess  of  deposits.  The  decision  of  the  general 
appraiser  in  cases  of  reappraisement  shall  be  final  and  conclusive  as  to 
the  dutiable  value  of  such  merchandise  against  all  parties  interested  there- 
in, unless  the  importer,  owner,  consignee,  or  agent  of  the  merchandise 
shall  deem  the  reappraisement  of  the  merchandise  too  high,  and  shall, 
within  five  days  thereafter,  give  notice  to  the  collector,  in  writing,  of  an 
appeal,  or  unless  the  collector  shall  deem  the  reappraisement  of  the  mer- 
chandise too  low,  and  shall  within  ten  days  thereafter  appeal  for  re- 
appraisement ;  in  either  case  the  collector  shall  transmit  the  invoice  and 
all  the  papers  appertaining  thereto  to  the  board  of  nine  general  apprais- 
ers, to  be  by  rule  thereof  duly  assigned  for  determination.  In  such  cases 
the  general  appraiser  and  boards  of  general  appraisers  shall  proceed  by 
all  reasonable  ways  and  means  in  their  power  to  ascertain,  estimate,  and 
determine  the  dutiable  value  of  the  imported  merchandise,  and  in  so  doing 
may  exercise  both  judicial  and  inquisitorial  f mictions.  In  such  cases  the 
general  appraisers  and  the  Boards  of  General  Appraisers  shall  give  rea- 
sonable notice  to  the  importer  and  the  proper  representative  of  the  Gov- 
ernment of  the  time  and  place  of  each  and  every  hearing  at  which  the 
parties  or  their  attorneys  shall  have  opportunity  to  introduce  evidence 
and  to  hear  and  cross-examine  the  witnesses  for  the  other  party,  and  to 
inspect  all  samples  and  all  documentary  evidence  or  other  papers  ofifered. 
Afifidavits  of  persons  whose  attendance  can  not  be  procured  may  be  admit- 
ted in  the  discretion  of  the  general  appraiser  or  Board  of  General  Ap- 
praisers. The  decision  of  the  appraiser,  or  the  person  acting  as  such  (in 
case  where  no  objection  is  made  thereto,  either  by  the  collector  or  by  the 
importer,  owner,  consignee,  or  agent),  or  the  single  general  appraiser  in 
case  of  no  appeal,  or  of  the  board  of  three  general  appraisers,  in  all 


Tariff  Administration  441 

reappraisement  cases,  shall  be  final  and  conclusive  against  all  parties  and 
shall  not  be  subject  to  review  in  any  manner  for  any  cause  in  any  tribunal 
or  court,  and  the  collector  or  the  person  acting  as  such  shall  ascertain, 
fix,  and  liquidate  the  rate  and  amount  of  the  duties  to  be  paid  on  such 
merchandise,  and  the  rutiable  costs  and  charges  thereon,  according  to 
law^ ;  and  no  reappraisement  or  re-reappraisement  shall  be  considered  in- 
valid because  of  the  absence  of  the  merchandise  or^samples  thereof  before 
the  officer  or  officers  making  the  same,  where  no  party  in  interest  had 
demanded  the  inspection  of  such  merchandise  or  samples,  and  where  the 
merchandise  or  samples  were  reasonably  accessible  for  inspection. 

"N.     That  the  decision  of  the  collector  as  to  the  rate  and  amount 
of  duties  chargeable  upon  imported  merchandise,  or  upon  merchandise  on 
which   duty   shall  have   been  assessed,   including  all   dutiable   costs   and 
charges,  and  as  to  all  fees  and  exactions  of  whatever  character  (except 
duties  on  tonnage),  shall  be  final  and  conclusive  against  all  persons  inter- 
ested therein,  unless  the  owner,  importer,  consignee,  or  agent  of   such 
merchandise,   or   the   person   paying   such    fees,   charges,   and   exactions 
other  than  duties,  shall,  within  thirty  days  after  but  not  before  such  ascer- 
tainment and  liquidation  of  duties,  as  well  in  cases  of  merchandise  en- 
tered in  bond  as  for  consumption,  or  within  fifteen  days  after  the  pay- 
ment of  such  fees,  charges,  and  exactions,  if  dissatisfied  with  such  decis- 
ion imposing  a  higher  rate  of  duty,  or  a  greater  charge,  fee,  or  exaction, 
than  he  shall  claim  to  be  legally  payable,  file  a  protest  or  protests  in 
writing  with  the  collector,  setting  forth  therein  distinctly  and  specifically, 
and  in  respect  to  each  entry  or  payment,  the  reasons  for  his  objections 
thereto,  and  if  the  merchandise  is  entered  for  consumption  shall  pay  the 
full  amount  of  the  duties  and  charges  ascertained  to  be  due  thereon.    Such 
protest  shall  be  deemed  to  be  finally  abandoned  and  waived  unless  within 
thirty  days  from  the  date  of  filing  thereof  the  person  who  filed  such  notice 
or  protest  shall  have  deposited  with  the  collector  of  customs  a  fee  of  $1 
with  respect  to  each  protest.     Such  fee  shall  be  deposited  and  accounted 
for  as  miscellaneous  receipts,  and  in  case  the  protest  in  connection  with 
which  such  fee  was  deposited  shall  be  finally  sustained  in  whole  or  in 
part,  such  fee  shall  be  refunded  to  the  importer,  with  the  duties  found  to 
be  collected  in  excess,  from  the  appropriation  for  the  refund  to  importers 
of  excess  of  deposits.     No  agreement  for  a  contingent  fee  in  respect  to 
recovery  or  refund  under  protest  shall  be  lawful.     Compliance  with  this 
provision  shall  be  a  condition  precedent  to  the   validity  of  the   protest 
and  to  any  refund  thereunder,  and  a  violation  of  this  provision  shall  be 
punishable  by  a  fine  not  exceeding  $500,  or  imprisonment  for  not  more 
than  one  year,  or  both. 

"Upon  such  payment  of  duties,  protest,  and  deposit  of  protest  fee, 
the  collector  shall  transmit  the  invoice  and  all  the  papers  and  exhibits 
connected  therewith  to  the  board  of  nine  general  appraisers,  for  due 
assignment  and  determination  as  provided  by  law  ;  such  determination 
shall  be  final  and  conclusive  upon  all  persons  interested  therein,  and  the 


442  Important  Federal  Laws 

record  shall  be  transmitted  to  the  proper  collector  or  person  acting  as 
such,  who  shall  liquidate  the  entry  accordingly,  except  in  cases  where  an 
appeal  shall  be  filed  in  the  United  States  Court  of  Customs  Appeals 
within  the  time  and  in  the  manner  provided  for  by  law. 

"O.  That  the  general  appraisers,  or  any  of  them,  are  hereby  author- 
ized to  administer  oaths,  and  said  general  appraisers,  the  boards  of 
general  appraisers,  the  local  appraisers,  or  the  collectors,  as  the  case 
may  be,  may  cite  to  appear  before  them,  and  examine  upon  oath  any 
owner,  importer,  agent,  consignee,  or  other  person  touching  any  mat- 
ter or  thing  which  they,  or  either  of  them,  may  deem  material  respecting 
any  imported  merchandise  then  under  consideration  or  previously  im- 
ported within  one  year,  in  ascertaining  the  classification  or  dutiable  value 
thereof  or  the  rate  or  amount  of  duty  ;  and  they,  or  either  of  them,  may 
require  the  production  of  any  letters,  accounts,  contracts,  or  invoices 
relating  to  said  merchandise,  and  may  require  such  testimony  to  be  re- 
duced to  writing,  and  when  so  taken  it  shall  be  filed  and  preserved  for 
use  or  reference  until  the  final  decision  of  the  collector,  appraiser,  or 
said  board  of  appraisers  shall  be  made  respecting  the  valuation  or  classi- 
fication of  said  merchandise,  as  the  case  may  be ;  and  such  evidence  shall 
be  given  consideration  in  all  subsequent  proceedings  relating  to  such 
merchandise. 

"P.  That  if  any  person  so  cited  to  appear  shall  neglect  or  refuse 
to  attend,  or  shall  decline  to  answer,  or  shall  refuse  to  answer  in  writing 
any  interrogatories,  and  subscribe  his  name  to  his  deposition,  or  to  pro- 
duce such  papers  when  so  required  by  a  general  appraiser,  or  a  board  of 
general  appraisers,  or  a  local  appraiser,  or  a  collector,  he  shall  be  liable 
to  a  penalty  of  not  less  than  $20  nor  more  than  $500 ;  and  if  such  persop 
be  the  owner,  importer,  or  consignee,  the  appraisement  which  the  Board 
of  General  Appraisers  or  local  appraiser,  or  collector  where  there  is  no 
appraiser,  may  make  of  the  merchandise  shall  be  final  and  conclusive ; 
and  any  person  who  shall  willfully  and  corruptly  swear  falsely  on  an  ex- 
amination before  any  general  appraiser,  or  Board  of  General  Appraisers, 
or  local  appraiser  or  collector,  shall  be  deemed  guilty  of  perjury;  and  if 
he  is  the  owner,  importer,  or  consignee,  the  merchandise  shall  be  for- 
feited, or  the  value  thereof  may  be  recovered  from  him. 

"Q.  That  all  decisions  of  the  general  appraisers  and  of  the  boards 
of  general  appraisers,  respecting  values  and  rates  of  duty,  shall  be  pre- 
served and  filed,  and  shall  be  open  to  inspection  under  proper  regulations 
to  be  prescribed  by  the  Secretary  of  the  Treasury.  All  decisions  of  the 
general  appraisers  shall  be  reported  forthwith  to  the  Secretary  of  the 
Treasury  and  to  the  Board  of  General  Appraisers  on  duty  at  the  port  of 
New  York,  and  the  report  to  the  board  shall  be  accompanied,  whenever 
practicable,  by  samples  of  the  merchandise  in  question,  and  it  shall  be 
the  duty  of  the  said  board,  under  the  direction  of  the  Secretary  of  the 
Treasury,  to  cause  an  abstract  to  be  made  and  published  of  such  decisions 
of  the  appraisers  as  they  or  he  may  deem  important,  to  be  published  either 


Tariff  Administration  443 

in  full,  or  if  full  publication  shall  not  be  requested  by  the  Secretary  or 
by  the  board,  then  by  an  abstract  containing  a  general  description  of  the 
rtierchandise  in  question,  a  statement  of  the  facts  upon  which  the  decision 
is  based,  and  of  the  value  and  rate  of  duty  fixed  in  each  case,  with  ref- 
erence, whenever  practicable,  by  number  or  other  designation,  to  samples 
deposited  in  the  place  of  samples  at  New  York,  and  such  abstracts  shall 
be  issued  from  time  to  time,  at  least  once  in  each  week,  for  the  informa- 
tion of  customs  officers  and  the  public. 

"R.  That  whenever  imported  merchandise  is  subject  to  an  ad 
valorem  rate  of  duty,  or  to  a  duty  based  upon  or  regulated  in  any  man- 
ner by  the  value  thereof,  the  duty  shall  be  assessed  upon  the  actual  mar- 
ket value  or  wholesale  price  thereof,  at  the  time  of  exportation  to  the 
United  States,  in  the  principal  markets  of  the  country  from  whence  ex- 
ported;  that  such  actual  market  value  shall  be  held  to  be  the  price  at 
which  such  merchandise  is  freely  ofifered  for  sale  to  all  purchasers  in 
said  markets,  in  the  usual  wholesale  quantities,  and  the  price  which  the 
seller,  shipper,  or  owner  would  have  received,  and  was  willing  to  receive, 
for  such  merchandise  when  sold  in  the  ordinary  course  of  trade  in  the 
usual  wholesale  quantities,  including  the  value  of  all  cartons,  cases,  crates, 
boxes,  sacks,  casks,  barrels,  hogsheads,  bottles,  jars,  demijohns,  carboys, 
and  other  containers  or  coverings,  whether  holding  liquids  or  solids,  and 
all  other  costs,  charges,  and  expenses  incident  to  placing  the  merchandise 
in  condition,  packed  ready  for  shipment  to  the  United  States,  and  if  there 
be  used  for  covering  or  holding  imported  merchandise,  whether  dutiable 
or  free,  any  unusual  article  or  form  designed  for  use  otherwise  than  in 
the  bona  fide  transportation  of  such  merchandise  to  the  United  States, 
additional  duty  shall  be  levied  and  collected  upon  such  material  or  article 
at  the  rate  to  which  the  same  would  be  subjected  if  separately  imported. 
That  the  words  "value,"  or  "actual  market  value,"  or  "wholesale  price," 
whenever  used  in  this  Act,  or  in  any  law  relating  to  the  appraisement  of 
imported  merchandise,  shall  be  construed  to  be  the  actual  market  value 
or  wholesale  price  of  such,  or  similar  merchandise  comparable  in  value 
therewith,  as  defined  in  this  Act. 

"S.  Any  merchandise  deposited  in  any  public  or  private  bonded 
warehouse  may  be  withdrawn  for  consumption  within  three  years  from 
the  date  of  original  importation,  on  payment  of  the  duties  and  charges 
to  which  it  mav  be  subject  by  law  at  the  time  of  such  withdrawal:  Pro- 
vided. That  nothing  herein  shall  afifect  or  impair  existing  provisions  of 
law  in  regard  to  the  disposal  of  perishable  or  explosive  articles. 

"T.  That  in  all  suits  or  informations  brought,  where  any  seizure 
has  been  made  pursuant  to  any  Act  providing  for  or  regulating  the  col- 
lection of  duties  on  imports  or  tonnage,  if  the  property  is  claimed  by  any 
person,  the  burden  of  proof  shall  lie  upon  such  claimant,  and  in  all  actions 
or  proceedings  for  the  recovery  of  the  value  of  merchandise  imported 
contrary  to  any  Act  providing  for  or  regulating  the  collection  of  duties 
on  imports  or  tonnage,  the  burden  of  proof  shall  be  upon  the  defendant: 


444  Important  Federal  Laws 

Provided,   That   probable   cause   is   shown    for   such   prosecution,   to   be 
judged  of  by  the  court. 

"U.  That  if  any  person,  persons,  corporations,  or  other  bodies, 
selHng,  shipping,  consigning,  or  manufacturing  merchandise  exported  to 
the  United  States,  shall  fail  or  refuse  to  submit  to  the  inspection  of  a 
duly  accredited  investigating  officer  of  the  United  States,  when  so  re- 
quested to  do.  any  or  all  of  his  books,  records,  or  accounts  pertaining  to 
the  value  or  classification  of  such  merchandise,  then  the  Secretary  of  the 
Treasury,  in  his  discretion,  is  authorized  while  such  failure  or  refusal  con- 
tinues to  levy  an  additional  duty  of  15  per  centum  ad  valorem  on  all  such 
merchandise  when  imported  into  the  United  States :  Provided,  however, 
That  such  additional  duties  shall  not  be  imposed  in  case  the  laws  of  the 
country  of  exportation  provide  for  the  administration,  by  its  duly  author- 
ized officers,  of  oaths  to  invoices,  or  statements  of  cost,  before  certifica- 
tion by  consuls,  and  for  punishment  for  false  swearing  under  said  oaths, 
whenever  consuls  are  directed  by  the  Secretary  of  State,  under  section 
twenty-eight  hundred  and  sixty-two  of  the  Revised  Statutes,  to  require 
such  oats  before  certification  of  the  invoices. 

"V.  That  if  any  person,  persons,  corporations,  or  other  bodies, 
engaged  in  the  importation  of  merchandise  into  the  United  States  or 
engaged  in  dealing  with  such  imported  merchandise,  shall  fail  or  refuse 
to  submit  to  the  inspection  of  a  duly  accredited  investigating  officer  of 
the  United  States,  upon  request  so  to  do  from  the  chief  officer  of  cus- 
toms at  the  port  where  such  merchandise  is  entered,  any  or  all  of  his 
books,  records,  or  accounts  pertaining  to  the  value  or  classification  of  any 
such  imported  merchandise,  then  the  Secretary  of  the  Treasury,  in  his 
discretion,  is  authorized  while  such  failure  or  refusal  continues,  to  assess 
additional  duty  of  15  per  centum  on  all  merchandise  consigned  to  or 
imported  by,  or  shipped,  or  intended  for  delivery,  to  such  person,  persons, 
corporations,  or  other  bodies  so  failing  or  refusing. 

"W.  That  where  merchandise  purchased  or  manufactured  in  dififer- 
ent  consular  districts  in  the  same  country  is  assembled  for  shipment  and 
embraced  in  a  single  invoice  and  consulated  at  the  shipping  point,  such 
invoice  shall  have  attached  thereto  the  original  bills  or  invoices  or  state- 
ments in  the  nature  of  such,  showing  the  prices- actually  paid,  contracted 
to  be  paid,  fixed,  or  determined,  and  in  connection  with  each  such  pur- 
chase or  consignment  the  invoice  shall  state  all  charges  and  expenses  as 
provided  in  paragraph  R  of  this  section. 

"X.  No  allowance  shall  be  made  in  the  estimation  and  liquidation 
of  duties  for  shortage  or  nonimportation  caused  by  decay,  destruction, 
or  injury  to  fruit  or  other  perishable  articles  imported  into  the  United 
States  whereby  their  commercial  value  has  been  destroyed,  unless  under 
regulations  prescribed  by  the  Secretary  of  the  Treasury.  Proof  to  ascer- 
tain such  destruction  or  nonimportation  shall  be  lodged  with  the  col- 
lector of  customs  of  the  port  where  such  merchandise  has  been  landed, 
or  the  person  acting  as  such,  within  ten  days  after  the  landing  of  such 


Tariff  Administration  445 

merchandise.  The  provisions  hereof  shall  apply  whether  or  not  the  mer- 
chandise has  been  entered,  and  whether  or  not  the  duties  have  been  paid 
or  secured  to  be  paid,  and  whether  or  not  a  permit  of  delivery  has  been 
granted  to  the  owner  or  consignee.  Nor  shall  any  allowance  be  made 
for  damage,  but  the  importers  may  within  ten  days  after  entry  abandon 
to  the  United  States  all  or  any  portion  of  goods,  wares,  or  merchandise 
of  every  description  included  in  any  invoice  and  be  relieved  from  the  pay- 
ment of  duties  on  the  portion  so  abandoned :  Provided,  That  the  portion 
so  abandoned  shall  amount  to  10  per  centum  or  more  of  the  total  value 
or  quantity  of  the  invoice.  The  right  of  abandonment  herein  provided  for 
may  be  exercised  whether  the  goods,  wares,  or  merchandise  have  been 
damaged  or  not,  or  whether  or  not  the  same  have  any  commercial  value : 
Provided,  further.  That  section  twenty-eight  hundred  and  ninety-nine  of 
the  Revised  Statutes,  relating  to  the  return  of  packages  unopened  for 
appraisement,  shall  in  no  wise  prohibit  the  right  of  importers  to  make  all 
needful  examinations  to  determine  whether  the  right  to  abandon  accrues, 
or  whether  by  reason  of  total  destruction  there  is  a  nonimportation  in 
whole  or  in  part.  All  merchandise  abandoned  to  the  Government  by  the 
importers  shall  be  delivered  by  the  importers  thereof  at  such  place  within 
the  port  of  arrival  as  the  chief  officer  of  customs  may  direct,  and  on  the 
failure  of  the  importers  to  comply  with  the  direction  of  the  collector  or 
the  chief  officer  of  customs,  as  the  case  may  be,  the  abandoned  mer- 
chandise shall  be  disposed  of  by  the  customs  authorities  under  such  reg- 
ulations as  the  Secretary  of  the  Treasury  may  prescribe,  at  the  expense 
of  such  importers.  Where  imported  fruit  or  perishable  goods  have  been 
condemned  at  the  port  of  original  entry  within  ten  days  after  landing, 
by  health  officers  or  other  legally  constituted  authorities,  the  importers 
or  their  agents  shall,  within  twenty-four  hours  after  such  condemnation, 
lodge  with  the  collector,  or  the  person  acting  as  collector,  of  said  port, 
notice  thereof  in  writing,  together  with  an  invoice  description  and  the 
quantity  of  the  articles  condemned,  their  location,  and  the  name  of  the 
vessel  in  which  imported.  Upon  receipt  of  said  notice  the  collector,  or 
person  acting  as  collector,  shall  at  once  cause  an  investigation  and  a  re- 
port to  be  made  in  writing  by  at  least  two  customs  officers  touching  the 
identity  and  quantity  of  fruit  or  perishable  goods  condemned,  and  unless 
proof  to  ascertain  the  shortage  or  nonimportation  of  fruit  or  perishable 
goods  shall  have  been  lodged  as  herein  required,  or  if  the  importer  or  his 
agent  fails  to  notify  the  collector  of  such  condemnation  proceedings  as 
herein  provided,  proof  of  such  shortage  or  nonimportation  shall  not  be 
deemed  established  and  no  allowance  shall  be  made  in  the  liquidation  of 
duties  chargeable  thereon. 

"Y.  That  whenever  it  shall  be  shown  to  the  satisfaction  of  the  Sec- 
retary of  the  Treasury  that,  in  any  case  of  unascertained  or  estimated 
duties,  or  payments  made  upon  appeal,  more  money  has  been  paid  to  or 
deposited  with  a  collector  of  customs  than,  as  has  been  ascertained  by 
final  liquidation  thereof,  the  law  required  to  be  paid  or  deposited,  the 


446  Important  Federal  Laws 

Secretary  of  the  Treasury  shall  direct  the  Treasurer  to  refund  and  pay 
the  same  out  of  any  money  in  the  Treasury  not  otherwise  appropriated. 
The  necessary  moneys  therefor  are  hereby  appropriated,  and  this  appro- 
priation shall  be  deemed  a  permanent  indefinite  appropriation ;  and  the 
Secretary  of  the  Treasury  is  hereby  authorized  to  correct  manifest  cler- 
ical errors  in  any  entry  or  liquidation  for  or  against  the  United  States, 
at  any  time  within  one  year  of  the  date  of  such  entry,  but  not  afterwards: 
Provided,  That  the  Secretary  of  the  Treasury  shall,  in  his  annual  report 
to  Congress,  give  a  detailed  statement  of  the  various  sums  of  money 
refunded  under  the  provisions  of  this  Act  or  of  any  other  Act  of  Con- 
gress relating  to  the  revenue,  together  with  copies  of  the  rulings  under 
which  repayments  were  made. 

"Z.  That  from  and  after  the  taking  effect  of  this  Act,  no  collector 
or  other  officer  of  the  customs  shall  be  in  any  way  liable  to  any  owner, 
importer,  consignee,  or  agent  of  any  merchandise,  or  any  other  person, 
for  or  on  account  of  any  rulings  or  decisions  as  to  the  classification  of 
said  merchandise  or  the  duties  charged  therein,  or  the  collection  of  any 
dues,  charges,  or  duties  on  or  on  account  of  said  merchandise,  or  any  other 
matter  or  thing  as  to  which  said  owner,  importer,  consignee,  or  agent  of 
such  merchandise  might,  under  this  Act,  be  entitled  to  appeal  from  the 
decision  of  said  collector  or  other  officer,  or  from  any  board  of  appraisers. 

"AA.  That  any  person  who  shall  give,  or  offer  to  give,  or  promise 
to  give,  any  money  or  thing  of  value,  directly  or  indirectly,  to  any  officer 
or  employee  of  the  United  States  in  consideration  of  or  for  any  act  or 
omission  contrary  to  law  in  connection  with  or  pertaining  to  the  importa- 
tion, appraisement,  entry,  examination,  or  inspection  of  goods,  wares,  or 
merchandise,  including  herein  any  baggage  or  of  the  liquidation  of  the 
entry  thereof,  or  shall  by  threats  or  demands  or  promises  of  any  char- 
acter attempt  to  improperly  influence  or  control  any  such  officer  or  em- 
ployee of  the  United  States  as  to  the  performance  of  his  official  duties 
shall,  on  conviction  thereof,  be  fined  not  exceeding  $2,000,  or  be  impris- 
oned at  hard  labor  not  more  than  one  year,  or  both,  in  the  discretion  of 
the  court ;  and  evidence  of  such  giving,  or  offering,  or  promising  to  give, 
satisfactory  to  the  court  in  which  such  trial  is  had,  shall  be  regarded  as 
prima  facie  evidence  that  such  giving  or  oft'ering  or  promising  was  con- 
trary to  law,  and  shall  put  upon  the  accused  the  burden  of  proving  that 
such  act  was  innocent  and  not  done  with  an  unlawful  intention. 

"BB.  That  any  officer  or  employee  of  the  United  States  who  shall, 
excepting  for  lawful  duties  or  fees,  solicit,  demand,  exact,  or  receive 
from  any  person,  directly  or  indirectly,  any  money  or  thing  of  value 
in  connection  with  or  pertaining  to  the  importation,  appraisement,  entry, 
examination,  or  inspection  of  goods,  wares,  or  merchandise,  including 
herein  any  baggage  or  liquidation  of  the  entry  thereof,  on  conviction 
thereof  shall  be  fined  not  exceeding  $5,000,  or  be  imprisoned  at  hard 
labor  not  more  than  two  years,  or  both,  in  the  discretion  of  the  court ; 
and  evidence  of  such  soliciting,  demanding,  exacting,  or  receiving,  satis- 


Tariff  Administration  447 

factory  to  the  court  in  which  such  trial  is  had,  shall  be  regarded  as  prima 
facie  evidence  that  such  soliciting,  demanding,  exacting,  or  receiving 
was  contrary  to  law,  and  shall  put  upon  the  accused  the  burden  of  proving 
that  such  act  was  innocent  and  not  with  an  unlawful  intention. 

"CC.  That  any  baggage  or  personal  etfects  arriving  in  the  United 
States  in  transit  to  any  foreign  country  may  be  delivered  by  the  parties 
having  it  in  charge  to  the  collector  of  the  proper  district,  to  be  by  him 
retained,  w^ithout  the  payment  or  exaction  of  any  import  duty,  or  to  be 
forwarded  by  such  collector  to  the  collector  of  the  port  of  departure  and 
to  be  delivered  to  such  parties  on  their  departure  for  their  foreign  des- 
tination, under  such  rules  and  regulations  as  the  Secretary  of  the  Treas- 
ury may  prescribe." 

Section  IV. 

A.  That  for  the  purpose  of  readjusting  the  present  duties  on  im- 
portations into  the  United  States  and  at  the  same  time  to  encourage  the 
export  trade  of  this  country,  the  President  of  the  United  Sates  is  author- 
ized and  empowered  to  negotiate  trade  agreements  with  foreign  nations 
wherein  mutual  concessions  are  made  looking  toward  freer  trade  rela- 
tions and  further  reciprocal  expansion  of  trade  and  commerce :  Provided, 
however,  That  said  trade  agreements  before  becoming  operative  shall  be 
submitted  to  the  Congress  of  the  United  States  for  ratification  or  rejec- 
tion. 

B.  That  nothing  in  this  Act  contained  shall  be  so  construed  as*to 
abrogate  or  in  any  manner  impair  or  affect  the  provisions  of  the  treaty 
of  commercial  reciprocity  concluded  between  the  United  States  and  the 
Republic  of  Cuba  on  the  eleventh  day  of  December,  nineteen  hundred 
and  two,  or  the  provisions  of  the  Act  of  Congress  heretofore  passed  for 
the  execution  of  the  same  except  as  to  the  proviso  of  article  eight  of  said 
treaty,  which  proviso  is  hereby  abrogated  and  repealed. 

C.  That  there  shall  be  levied,  collected,  and  paid  upon  all  articles 
coming  into  the  United  States  from  the  Philippine  Islands  the  rates  of 
duty  which  are  required  to  be  levied,  collected,  and  paid  upon  like  articles 
imported  from  foreign  countries :  Provided,  That  all  articles,  the  growth 
or  product  of  or  manufactured  in  the  Philippine  Islands  from  materials 
the  growth  or  product  of  the  Philippine  Islands  or  of  the  United  States, 
or  of  both,  or  which  do  not  contain  foreign  materials  to  the  value  of 
more  than  20  per  centum  of  their  total  value,  upon  which  no  drawback 
of  customs  duties  has  been  allowed  therein,  coming  into  the  United  States 
from  the  Philippine  Islands  shall  hereafter  be  admitted  free  of  duty: 
Provided,  however.  That  in  consideration  of  the  exemptions  aforesaid, 
all  articles,  the  growth,  product,  or  manufacture  of  the  United  States, 
upon  which  no  drawback  of  customs  duties  has  been  allowed  therein, 
shall  be  admitted  to  the  Philippine  Islands  from  the  United  States  free 
of  duty :  And  provided  further,  That  the  free  admission,  herein  pro- 
vided, of  such  articles,  the  growth,  product,  or  manufacture  of  the  United 
States,  into  the  Philippine  Islands,  or  of  the  growth,  product,  or  manu- 


448  Important  Federal  Laws 

facture,  as  hereinbefore  defined,  of  the  Philippine  Islands  into  the  United 
States,  shall  be  conditioned  upon  the  direct  shipment  thereof,  under  a 
through  bill   of   lading,   from  the   country  of   origin   to   the   country   of 
destination :    Provided,  That  direct  shipment  shall  include  shipments  in 
bond  through   foreign  territory  contiguous  to  the  United   States :    Pro- 
vided, however.  That  if  such  articles  become  unpacked  while  en  route  by 
accident,  wreck,  or  other  casualty,  or  so  damaged  as  to  necessitate  their 
repacking,  the   same   shall  be  admitted   free   of   duty   upon   satisfactory' 
proof  that  the  unpacking  occurred  through  accident  or  necessity  and  that 
the  merchandise  involved  is  the  identical  merchandise  originally  shipped 
from  the  United  States  or  the  Philippine  Islands,  as  the  case  may  be^ 
and  that  its  condition  has  not  been  changed  except  for  such  damage  as 
may  have  been  sustained :    And  provided.  That  there  shall  be  levied,  col- 
lected, and  paid,  in  the  United  States,  upon  articles,  goods,  wares,  or 
merchandise  coming  into  the  United  States  from  the  Philippine  Islands, 
a  tax  equal  to  the  internal-revenue  tax  imposed  in  the  United   States 
upon  the  like  articles,  goods,  wares,  or  merchandise  of  domestic  manu- 
facture :  such  tax  to  be  paid  by  internal-revenue  stamp  or  stamps,  to  be 
provided  by  the  Commissioner  of  Internal   Revenue,  and  to  be  affixed 
in  such  manner  and  under  such  regulations  as  he.  with  the  approval  of 
the  Secretary  of  the  Treasury,  shall  prescribe ;  and  such  articles,  goods, 
wares,  or  merchandise,  shipped  from  said  islands  to  the  United  States, 
shall  be  exempt  from  the  payment  of  any  tax  imposed  by  the  internal- 
revenue  laws  of  the   Philippine   Islands :    And   provided    further.    That 
there  shall  be  levied,  collected,  and  paid  in  the  Philippine  Islands,  upon 
articles,  goods,  wares,  or  merchandise  going  into  the  Philippine  Islands 
from  the  United  States,  a  tax  equal  to  the  internal-revenue  tax  imposed 
in  the  Philippine  Islands  upon  the  like  articles,  goods,  wares,  or  merchan- 
dise of  Philippine  Islands  manufacture;  such  tax  to  be  paid  by  internal- 
revenue  stamps  or  otherwise,  as  provided  by  the  laws  in  the  Philippine 
Islands ;  and  such  articles,  goods,  wares,  or  merchandise  going  into  the 
Philippine  Islands  from  the  United  States  shall  be  exempt  from  the  pay- 
ment of  any  tax   imposed  by  the  internal-revenue  laws  of  the  United 
States :     And  provided  further,  That  in  addition  to  the  customs  taxes 
imposed  in  the  Philippine  Islands,  there  shall  be  levied,  collected,  and  paid 
therein  upon  articles,  goods,   wares,  or  merchandise  imported  into  the 
Philippine  Islands  from  countries  other  than  the  United  States,  the  in- 
ternal-revenue tax  imposed  by  the  Philippine  Government  on  like  articles 
manufactured  and  consumed  in  the  Philippine  Islands  or  shipped  thereto 
for  consumption  therein,  from  the  United  States :    And  provided  further, 
That  from  and  after  the  passage  of  this  Act  all  internal  revenues  col- 
lected in  or  for  account  of  the  Philippine  Islands  shall  accrue  intact  to 
the  general  government  thereof  and  be  paid  into  the  insular  treasury : 
And  provided  further.  That  section  thirteen  of  "An  Act  to  raise  revenue 
for  the   Philippine  Islands,  and  for  other  purposes,"  approved  August 
fifth,  nineteen  hundred  and  nine,  is  hereby  repealed. 


Tariff  Administration  449 

D.  That  articles,  goods,  wares,  or  merchandise  going  into  Porto 
Rico  from  the  United  States  shall  be  exempted  from  the  payment  of  any 
tax  imposed  by  the  internal-revenue  laws  of  the  United  States. 

E.  That  whenever  any  country,  dependency,  colony,  province,  or 
other  political  subdivision  of  government  shall  pay  or  bestow,  directly  or 
indirectly,  any  bounty  or  grant  upon  the  exportation  of  any  article  or 
merchandise  from  such  country,  dependency,  colony,  province,  or  other 
political  subdivision  of  government,  and  such  article  or  merchandise  is 
dutiable  under  the  provisions  of  this  Act,  then  upon  the  importation  of 
any  such  article  or  merchandise  into  the  United  States,  whether  the  same 
shall  be  imported  directly  from  the  country  of  production  or  otherwise, 
and  whether  such  article  or  merchandise  is  imported  in  the  same  condi- 
tion as  when  exported  from  the  country  of  production  or  has  been 
changed  in  condition  by  remanufacture  or  otherwise,  there  shall  be 
levied  and  paid,  in  all  such  cases,  in  addition  to  the  duties  otherwise  im- 
posed by  this  Act,  an  additional  duty  equal  to  the  net  amount  of  such 
bounty  or  grant,  however  the  same  be  paid  or  bestowed.  The  net  amount 
of  all  such  bounties  or  grants  shall  be  from  time  to  time  ascertained, 
determined,  and  declared  by  the  Secretary  of  the  Treasury,  who  shall 
make  all  needful  regulations  for  the  identification  of  such  articles  and 
merchandise  and  for  the  assessment  and  collection  of  such  additional 
duties. 

F.  Subsection  1.  That  all  articles  of  foreign  manufacture  or  pro- 
duction, which  are  capable  of  being  marked,  stamped,  branded,  or 
labeled,  without  injury,  shall  be  marked,  stamped,  branded,  or  labeled  in 
legible  English  words,  in  a  conspicuous  place  that  shall  not  be  covered  or 
obscured  by  any  subsequent  attachments  or  arrangements,  so  as  to  indi- 
cate the  country  of  origin.  Said  marking,  stamping,  branding,  or  labeling 
shall  be  as  nearly  indelible  and  permanent  as  the  nature  of  the  article 
will  permit. 

All  packages  containing  imported  articles  shall  be  marked,  stamped, 
branded,  or  labeled  so  as  to  indicate  legibly  and  plainly,  in  English  words, 
the  country  of  origin  and  the  quantity  of  their  contents,  and  until  marked 
in  accordance  with  the  directions  prescribed  in  this  section  no  articles  or 
packages  shall  be  delivered  to  the  importer. 

Should  any  article  or  package  of  imported  merchandise  be  marked, 
■stamped,  branded,  or  labeled  so  as  not  accurately  to  indicate  the  quantity, 
number,  or  measurement  actually  contained  in  such  article  or  package, 
no  delivery  of  the  same  shall  be  made  to  the  importer  until  the  mark, 
stamp,  brand,  or  label,  as  the  case  may  be,  shall  be  changed  so  as  to  con- 
form to  the  facts  of  the  case. 

The  Secretary  of  the  Treasury  shall  prescribe  the  necessary  rules 
and  regulations  to  carry  out  the  foregoing  provision. 

F.     Subsection  2.     If  any  person  shall   fraudulently  violate  any  of 

the  provisions  of  this  Act  relating  to  the  marking,  stamping,  branding, 

or  labeUng  of  anv  imported  articles  or  packages:  or  shall  fraudulently 
(29) 


450  Important  Federal  Laws 

deface,  destroy,  remove,  alter,  or  obliterate  any  such  marks,  stamps, 
brands,  or  labels  with  intent  to  conceal  the  information  given  by  or  con- 
tained in  such  marks,  stamps,  brands,  or  labels,  he  shall  upon  conviction 
be  fined  in  any  sum  not  exceeding  $5,000,  or  be  imprisoned  for  any  time 
not  exceeding  one  year,  or  both. 

G.  Subsection  1.  That  all  persons  are  prohibited  from  importing 
into  the  United  States  from  any  foreign  country  any_  obscene  book, 
pamphlet,  paper,  writing,  advertisement,  circular,  print,  picture,  drawing, 
or  other  representation,  figure,  or  image  on  or  of  paper  or  other  mate- 
rial, or  any  cast,  instrument,  or  other  article  of  an  immoral  nature,  or 
any'  drug  or  medicine,  or  any  article  whatever  for  the  prevention  of 
conception  or  for  causing  unlawful  abortion,  or  any  lottery  ticket,  or  any 
advertisement  of  any  lottery.  No  such  articles,  whether  imported  sep- 
arately or  contained  in  packages  with  other  goods  entitled  to  entry,  shall 
be  admitted  to  entry;  and  all  such  articles  shall  be  proceeded  agahist, 
seized,  and  forfeited  by  due  course  of  law.  All  such  prohibited  articles 
and  the  package  in  which  they  are  contained  in  the  course  of  importation 
shall  be  detained  by  the  officer  of  customs,  and  proceedings  taken  agamst 
the  same  as  hereinafter  prescribed,  unless  it  appears  to  the  satisfaction  of 
the  collector  of  customs  that  the  obscene  articles  contained  in  the  package 
were  inclosed  therein  without  the  knowledge  or  consent  of  .  the  im- 
porter, owner,  agent,  or  consignee:  Provided,  That  the  drugs  herein- 
before mentioned,  when  imported  in  bulk  and  not  put  up  for  any  of  the 
purposes  hereinbefore  specified,  are  excepted  from  the  operation  of  this 

subsection. 

G.  Subsection  2.  That  whoever,  being  an  officer,  agent,  or  em- 
ployee of  the  Government  of  the  United  States,  shall  knowingly  aid  or 
abet  any  person  engaged  in  any  violation  of  any  of  the  provisions  of  law 
prohibiting  importing,  advertising,  dealing  in,  exhibiting,  or  sending  or 
receiving  by  mail  obscene  or  indecent  publications  or  representations,  or 
means  for  preventing  conception  or  procuring  abortion,  or  other  articles 
of  indecent  or  immoral  use  or  tendency,  shall  be  deemed  guilty  of  a 
misdemeanor,  and  shall  for  every  offense  be  punishable  by  a  fine  of  not 
more  than  $5,000,  or  by  imprisonment  at  hard  labor  for  not  more  than 
ten  years,  or  both. 

G.  Subsection  3.  That  any  circuit  or  district  judge  of  the  United 
States,  wathin  the  proper  district,  before  whom  complaint  in  writing  of 
any  violation  of  the  two  preceding  sections  is  made,  to  the  satisfacton  of 
such  judge,  and  founded  on  knowledge  or  belief,  and  if  upon  belief, 
setting  forth  the  grounds  of  such  belief,  and  supported  by  oath  or  affirma- 
tion of  the  complainant,  may  issue,  conformably  to  the  Constitution,  a 
warrant  directed  to  the  marshal  or  any  deputy  marshal  in  the  proper  dis- 
trict, directing  him  to  search  for,  seize,  and  take  possession  of  any  such 
article  or  thing  mentioned  in  the  two  preceding  sections,  and  to  make  due 
and  immediate  return  thereof,  to  the  end  that  the  same  may  be  con- 
demned and  destroyed  by  proceedings,  which  shall  be  conducted  in  the 


Tariff  Administration  451 

same  manner  as  other  proceedings  in  the  case  of  municipal  seizure,  and 
with  the  same  right  of  appeal  or  writ  of  error. 

H.  Subsection  1.  That  the  importation  of  neat  cattle  and  the  hides 
of  neat  cattle  from  any  foreign  country  into  the  United  States  is  pro- 
hibited: Provided,  That  the  operation  of  this  section  shall  be  suspended 
as  to  any  foreign  country  or  countries,  or  any  parts  of  such  country  or 
countries,  whenever  the  Secretary  of  the  Treasury  shall  ofificially  deter- 
mine, and  give  public  notice  thereof,  that  such  importation  will  not  tencj 
to  the  introduction  or  spread  of  contagious  or  infectious  diseases  among 
the  cattle  of  the  United  States;  and  the  Secretary  of  the  Treasury  is 
hereby  authorized  and  empowered,  and  it  shall  be  his  duty,  to  make 
all  necessary  orders  and  regulations  to  carry  this  section  into  effect,  or 
to  suspend  the  same  as  herein  provided,  and  to  send  copies  thereof  to  the 
proper  officers  in  the  United  States  and  to  such  officers  or  agents  of  the 
United  States  in  foreign  countries  as  he  shall  judge  necessary. 

H.  Subsection  2.  That  any  person  convicted  of  a  willful  violation 
of  any  of  the  provisions  of  the  preceding  subsection  shall  be  fined  not 
exceeding  $500,  or  imprisoned  not  exceeding  one  year,  or  both,  in  the 
discretion  of  the  court. 

L  That  all  goods,  wares,  articles,  and  merchandise  manufactured 
wholly  or  in  part  in  any  foreign  country  by  convict  labor  shall  not  be 
entitled  to  entry  at  any  of  the  ports  of  the  United  States,  and  the  im- 
portation thereof  is  hereby  prohibited,  and  the  Secretary  of  the  Treas- 
ury is  authorized  and  directed  to  prescribe  such  regulations  as  may  be 
necessary  for  the  enforcement  of  this  provision. 

J.  Subsection  1.  That  a  discriminating  duty  of  10  per  centum  ad 
valorem,  in  addition  to  the  duties  imposed  by  law,  shall  be  levied,  col- 
lected, and  paid  on  all  goods,  wares,  or  merchandise  which  shall  be  im- 
ported in  vessels  not  of  the  United  States,"  or  which  being  the  production 
or  manufacture  of  any  foreign  country  not  contiguous  to  the  United 
States,  shall  come  into  the  United  States  from  such  contiguous  country  ; 
but  this  discriminating  duty  shall  not  apply  to  goods,  wares,  or  mer- 
chandise which  shall  be  imported  in  vessels  not  of  the  United  States 
entitled  at  the  time  of  such  importation  by  treaty  or  convention  or  Act 
of  Congress  to  be  entered  in  the  ports  of  the  United  States  on  payment 
of  the  same  duties  as  shall  then  be  payable  on  goods,  wares,  and'  mer- 
chandise imported  in  vessels  of  the  United  States,  nor  to  such  foreign 
products  or  manufactures  as  shall  be  imported  from  such  contiguous 
countries  in  the  usual  course  of  strictly  retail  trade. 

J.  Subsection  2.  That  no  goods,  wares,  or  merchandise,  unless  in 
cases  provided  for  by  treaty,  shall  be  imported  into  the  United  States 
from  any  foreign  port  or  place,  except  in  vessels  of  the  United  States, 
or  in  such  foreign  vessels  as  truly  and  wholly  belong  to  the  citizens  or 
subjects  of  that  country  of  which  the  goods  are  the  growth,  production, 
or  manufacture,  or  from  which  such  goods,  wares,  or  merchandise  can 
only  be,  or  most  usually  are,  first  shipped  for  transportation.    All  goods, 


452  Important  Federal  Laws 

wares,  or  merchandise  imported  contrary  to  this  section,  and  the  vessel 
v/herein  the  same  shall  be  imported,  together  with  her  cargo,  tackle,  ap- 
parel, and  furniture,  shall  be  forfeited  to  the  United  States ;  and  such 
goods,  wares,  or  merchandise,  ship,  or  vessel,  and  cargo  shall  be  liable 
to  be  seized,  prosecuted,  and  condemned  in  like  manner,  and  under  the 
same  regulations,  restrictions,  and  provisions  as  have  been  heretofore 
established  for  the  recovery,  collection,  distribution,  and  remission  of 
forfeitures  to  the  United  States  by  the  several  revenue  laws. 

J.  Subsection  3.  That  the  preceding  subsection  shall  not  apply  to 
vessels  or  goods,  wares,  or  merchandise  imported  in  vessels  of  a  foreign 
nation  which  does  not  maintain  a  similar  regulation  against  vessels  of 
the  United  States. 

J.  Subsection  4.  That  machinery  or  other  articles  to  be  altered  or 
repaired,  molders'  patterns  for  use  in  the  manufacture  of  castings  in- 
tended to  be  and  actually  exported  within  six  months  from  the  date  of 
importation  thereof,  models  of  women's  wearing  apparel  imported  by 
manufacturers  for  use  as  models  in  their  own  establishments,  and  not 
for  sale,  samples  solely  for  use  in  taking  orders  for  merchandise,  articles 
intended  solely  for  experimental  purposes,  and  automobiles,  motor  cycles, 
bicycles,  aeroplanes,  airships,  balloons,  motor  boats,  racing  shells,  teams, 
and  saddle  horses,  and  similar  vehicles  and  craft  brought  temporarily 
into  the  United  States  by  nonresidents  for  touring  purposes  or  for  the 
purpose  of  taking  part  in  races  or  other  specific  contests,  may  be  admitted 
without  the  payment  of  duty  under  bond  for  their  exportation  within  six 
months  from  the  date  of  importation  and  under  such  regulations  and 
subject  to  such  conditions  as  the  Secretary  of  the  Treasury  may  pre- 
scribe :  Provided,  That,  no  article  shall  be  entitled  to  entry  under  this 
section  that  is  intended  for  sale  or  which  is  imported  for  sale  on  approval. 

J.  Subsection  5.  That  all  materials  of  foreign  production  which 
may  be  necessary  for  the  construction  of  naval  vessels  or  other  vessels  of 
the  United  States,  vessels  built  in  the  United  States  for  foreign  account 
and  ownership,  or  for  the  purpose  of  being  employed  in  the  foreign  or 
domestic  trade,  and  all  such  materials  necessary  for  the  building  of  their 
machinery,  and  all  articles  necessary  for  their  outfit  and  equipment,  may 
be  imported  in  bond  under  such  regulations  as  the  Secretary  of  the  Treas- 
ury may  prescribe ;  and  upon  proof  that  such  materials  have  been  used 
for  such  purposes  no  duties  shall  be  paid  thereon. 

J.  Subsection  6.  That  all  articles  of  foreign  production  needed  for 
the  repair  of  naval  vessels  of,  or  other  vessels  owned  or  used  by,  the 
United  States  and  vessels  now  or  hereafter  registered  under  the  laws 
of  the  United  States  may  be  withdrawn  from  bonded  warehouses  free  of 
duty,  under  such  regulations  as  the  Secretary  of  the  Treasury  may  pre- 
scribe. 

J.  Subsection  7.  That  a  discount  of  5  per  centum  on  all  duties 
imposed  by  this  Act  shall  be  allowed  on  such  goods,  wares,  and  mer- 
chandise as  shall  be  imported  in  vessels  admitted  to  registration  under 


Tariff  Administration  453 

the  laws  of  the  United  States:  Provided,  That  nothing  in  this  subsec- 
tion shall  be  so  construed  as  to  abrogate  or  in  any  manner  impair  or 
affect  the  provisions  of  any  treaty  concluded  between  the  United  States 
and  any  foreign  nation. 

K.  The  privilege  of  purchasing  supplies  from  public  warehouses, 
free  of  duty,  and  from  bonded  manufacturing  warehouses,  free  of  duty 
or  of  internal-revenue  tax,  as  the  case  may  be,  shall  be  extended,  under 
such  regulations  as  the  Secretary  of  the  Treasury  shall  prescribe,  to  the 
vessels  of  war  of  any  nation  in  ports  of  the  United  States  which  may 
reciprocate  such  privileges  toward  the  vessels  of  war  of  the  United  States 
in  its  ports. 

L.  That  whenever  any  vessel  laden  with  merchandise,  in  whole 
or  in  part  subject  to  duty,  has  been  sunk  in  any  river,  harbor,  bay,  or 
waters  subject  to  the  jurisdiction  of  the  United  States,  and  within  its 
limits,  for  the  period  of  two  years,  and  is  abandoned  by  the  owner 
thereof,  any  person  who  may  raise  such  vessel  shall  be  permitted  to  bring 
any  merchandise  recovered  therefrom  into  the  port  nearest  to  the  place 
where  such  vessel  was  so  raised  free  from  the  payment  of  any  duty  there- 
upon, but  under  such  regulations  as  the  Secretary  of  the  Treasury  may 
prescribe. 

M.  That  all  articles  manufactured  in  whole  or  in  part  of  imported 
materials,  or  of  materials  subject  to  internal-revenue  tax,  and  intended 
for  exportation  without  being  charged  with  duty,  and  without  having 
an  internal-revenue  stamp  affixed  thereto,  shall,  under  such  regulations 
as  the  Secretary  of  the  Treasury  may  prescribe,  in  order  to  be  so  man- 
ufactured and  exported,  be  made  and  manufactured  in  bonded  ware- 
houses similar  to  those  known  and  designated  in  Treasury  Regulations 
as  bonded  warehouses,  class  six:  Provided,  That  the  manufacturer  of 
such  articles  shall  first  give  satisfactory  bonds  for  the  faithful  observance 
of  all  the  provisions  of  law  and  of  such  regulations  as  shall  be  prescribed 
by  the  Secretary  of  the  Treasury :  Provided  further.  That  the  man- 
ufacture of  distilled  spirits  from  grain,  starch,  molasses,  or  sugar,  in- 
cluding all  dilutions  or  mixtures  of  them  or  either  of  them,  shall  not  be 
permitted  in  such  manufacturing  warehouses. 

Whenever  goods  manufactured  in  any  bonded  warehouse  established 
under  the  provisions  of  the  preceding  paragraph  shall  be  exported  directly 
therefrom  or  shall  be  duly  laden  for  transportation  and  immediate  expor- 
tation under  the  supervision  of  the  proper  officer  who  shall  be  duly  des- 
ignated for  that  purpose,  such  goods  shall  be  exempt  from  duty  and  from 
the  requirements  relating  to  revenue  stamps. 

Any  materials  used  in  the  manufacture  of  such  goods,  and  any  pack- 
ages, coverings,  vessels,  brands,  and  labels  used  in  putting  up  the  same 
may,  under  the  regulations  of  the  Secretary  of  the  Treasury,  be  con- 
veyed without  the  payment  of  revenue  tax  or  duty  into  any  bonded  man- 
ufacturing warehouse,  and  imported  goods  may,  under  the  aforesaid  reg- 
ulations, be  transferred  without  the  exaction  of  duty  from  any  bonded 


454  Important  Federal  Laws 

warehouse  into  any  bonded  manufacturing  warehouse;  but  this  privilege 
shall  not  be  held  to  apply  to  implements,  machinery,  or  apparatus  to  be 
used  in  the  construction  or  repair  of  any  bonded  manufacturing  ware- 
house or  for  the  prosecution  of  the  business  carried  on  therein. 

No  articles  or  materials  received  into  such  bonded  manufacturing 
warehouse  shall  be  withdrawn  or  removed  therefrom  except  for  direct 
shipment  and  exportation  or  for  transportation  and  immediate  exporta- 
tion in  bond  to  foreign  countries  or  to  the  Philippine  Islands  under  the 
supervision  of  the  officer  duly  designated  therefor  by  the  collector  of  the 
port,  who  shall  certify  to  such  shipment  and  exportation,  or  ladening  for 
transportation,  as  the  case  may  be,  describing  the  articles  by  their  mark  or 
otherwise,  the  quantity,  the  date  of  exportation,  and  the  name  of  the 
vessel :  Provided,  That  the  waste  material  or  by-products  incident  to 
the  processes  of  manufacture,  including  waste  derived  from  cleaning  rice 
in  bonded  warehouses  under  Act  of  March  twenty-fourth,  eighteen  hun- 
dred and  seventy-four,  in  said  bonded  warehouses  may  be  withdrawn  for 
domestic  consumption  on  the  payment  of  duty  equal  to  the  duty  which 
would  be  assessed  and  collected,  by  law,  if  such  waste  or  by-products 
were  imported  from  a  foreign  country.  All  labor  performed  and  serv- 
ices rendered  under  these  provisions  shall  be  under  the  supervision  of  a 
duly  designated  officer  of  the  customs  and  at  the  expense  of  the  manu- 
facturer. 

A  careful  account  shall  be  kept  by  the  collector  of  all  merchandise 
delivered  by  him  to  any  bonded  manufacturing  warehouse,  and  a  sworn 
monthly  return,  verified  by  the  customs  officers  in  charge,  shall  be  made 
by  the  manufacturers  containing  a  detailed  statement  of  all  imported 
merchandise  used  by  him  in  the  manufacture  of  exported  articles. 

Before  commencing  business  the  proprietor  of  any  manufacturing 
warehouse  shall  file  with  the  Secretary  of  the  Treasury  a  list  of  all  the 
articles  intended  to  be  manufactured  in  such  warehouse,  and  state  the 
formula  of  manufacture  and  the  names  and  quantities  of  the  ingredients 
to  be  used  therein. 

Articles  manufactured  under  these  provisions  may  be  withdrawn 
tinder  such  regulations  as  the  Secretary  of  the  Treasury  may  prescribe 
for  transportation  and  delivery  into  any  bonded  warehouse  at  an  exterior 
port  for  the  sole  purpose  of  immediate  export  therefrom:  Provided, 
That  cigars  manufactured  in  whole  of  tobacco  imported  from  any  one 
country,  made  and  manufactured  in  such  bonded  manufacturing  ware- 
liouses,  may  be  withdrawn  for  home  consumption  upon  the  payment  of 
the  duties  on  such  tobacco  in  its  condition  as  imported  under  such  regu- 
lations as  the  Secretary  of  the  Treasury  may  prescribe,  and  the  payment 
of  the  internal-revenue  tax  accruing  on  such  cigars  in  their  condition  as 
withdrawn,  and  the  boxes  or  packages  containing  such  cigars  shall  be 
stamped  to  indicate  their  character,  origin  of  tobacco  from  which  made, 
and  place  of  manufacture. 

The  provisions  of  Revised  Statutes  thirty-four  hundred  and  thirty- 


Tariff  Administration  455 

three  shall,  so  far  as  may  be  practicable,  apply  to  any  bonded  manufac- 
turing warehouse  established  under  this  Act  and  to  the  merchandise  con- 
veyed therein. 

N.  Subsection  1.  That  the  works  of  manufacturers  engaged  in 
smelting  or  refining,  or  both,  of  ores  and  crude  metals,  may  upon  the 
giving  of  satisfactory  bonds  be  designated  as  bonded  smelting  warehouses. 
Cres  or  crude  metals  may  be  removed  from  the  vessel  or  other  vehicle 
in  which  imported,  or  from  a  bonded  warehouse,  into  a  bonded  smelting 
warehouse  without  the  payment  of  duties  thereon  and  there  smelted  or 
refined,  or  both,  together  with  ores  or  crude  metals  of  home  or  foreign 
production :  Provided,  That  the  bonds  shall  be  charged  with  the  amount 
of  duties  payable  upon  such  ores  and  crude  metals  at  the  time  of  their 
importation,  and  the  several  charges  against  such  bonds  may  be  canceled 
upon  the  exportation  or  delivery  to  a  bonded  manufacturing  warehouse 
established  under  paragraph  M  of  this  section  of  an  amount  of  the  same 
kind  of  metal  equal  to  the  actual  amount  of  dutiable  metal  producible 
from  the  smelting  or  refining,  or  both,  of  such  ores  or  crude  metals  as 
determined  from  time  to  time  by  the  Secretary  of  the  Treasury:  And 
provided  further,  That  the  said  metals  so  producible,  or  any  portion 
thereof,  may  be  withdrawn  for  domestic  consumption,  or  transferred  to 
a  bonded  customs  warehouse,  and  withdrawn  therefrom,  and  the  several 
charges  against  the  bonds  canceled  upon  the  payment  of  the  duties 
chargeable  against  an  equivalent  amount  of  ores  or  crude  metals  from 
which  said  metal  would  be  producible  in  their  condition  as  imported: 
And  provided  further.  That  on  the  arrival  of  the  ores  and  crude  metals 
at  such  establishments  they  shall  be  sampled  and  assayed  according  to 
commercial  methods  under  the  supervision  of  Government  officers,  to  be 
appointed  by  the  Secretary  of  the  Treasury  and  at  the  expense  of  the 
manufacturer:  Provided  further.  That  antimonial  lead  produced  in 
said  establishments  may  be  withdrawn  for  consumption  upon  the  pay- 
ment of  the  duties  chargeable  against  it  as  type  metal  under  existing  law 
and  the  charges  against  the  bonds  canceled  in  a  similar  sum :  Pro- 
vided further,  That  all  labor  performed  and  services  rendered  pursuant 
to  this  section  shall  be  under  the  supervision  of  an  officer  of  the  customs, 
to  be  appointed  by  the  Secretary  of  the  Treasury,  and  at  the  expense  of 
the  manufacturer:  Provided  further.  That  all  regulations  for  the  carry- 
ing out  of  this  section  shall  be  prescribed  by  the  Secretary  of  the  Treas- 
ury. 

N.  Subsection  2.  That  from  and  after  the  first  day  of  January,  nine- 
teen hundred  and  fourteen,  under  such  regulations  as  the  Commissioner 
of  Internal  Revenue,  with  the  approval  of  the  Secretary  of  the  Treasury 
may  prescribe,  any  farmer  or  association  of  farmers,  any  fruit  grower  or 
association  of  fruit  growers,  or  other  person  or  persons  may  manufacture 
alcohol  free  of  tax  for  denaturization  only ;  out  of  any  of  the  products 
of  farms,  fruit  orchards,  or  any  substance  whatever,  on  condition  that 
such  alcohol  shall  be  directly  conveyed  from  the  still  by  continuous  closed 


456  Important  Federal  Laws 

pipes  to  locked  and  sealed  receptacles  in  which  the  same  may  be  rendered 
unfit  for  use  as  an  intoxicating  beverage  by  an  admixture  of  such  de- 
naturing materials  as  the  Commissioner  of  Internal  Revenue,  with  the 
approval  of  the  Secretary  of  the  Treasury,  may  prescribe,  or  where  such 
alcohol  is  of  insufficient  proof  to  be  denatured,  the  same  may  be  trans- 
ferred in  bond  from  such  locked  and  sealed  receptacles  to  a  central  dis- 
tilling and  denaturing  plant  as  hereinafter  provided. 

That  the  Commissioner  of  Internal  Revenue,  with  the  approval  of 
the  Secretary  of  the  Treasury,  may  authorize  the  establishment  of  central 
distilling  and  denaturing  plants  to  which  alcohol  produced  under  the 
provisions  of  this  Act,  free  of  tax,  may  be  transferred,  redistilled  and 
denatured  under  such  regulations,  and  upon  the  execution  of  such  notices 
and  bonds  as  the  Commissioner  of  Internal  Revenue,  with  the  approval 
of  the  Secretary  of  the  Treasury,  may  prescribe. 

That  any  central  distilling  and  denaturing  plant  provided  for  in 
section  two  of  this  Act  may,  in  addition  to  the  spirits  produced  under 
section  one  of  this  Act,  use  any  of  the  products  of  farms,  fruit  orchards, 
or  any  substance  whatever,  for  the  manufacture  of  alcohol  for  denatur- 
ization  only:  Provided,  That  at  such  distilleries  the  use  of  cisterns  or 
tanks  of  such  size  and  construction  as  may  be  deemed  expedient  shall 
be  permitted  in  lieu  of  distiller}'  bonded  warehouses  under  such  rules 
and  regulations  as  the  Commissioner  of  Internal  Revenue,  with  the 
approval  of  the  Secretary  of  the  Treasury,  may  prescribe. 

That  any  person  who  under  the  provisions  of  this  Act  shall  fail  to 
register,  or  shall  falsely  register,  any  still  or  distilling  apparatus  used 
by  him,  or  who  shall  fraudulently  remove  or  conceal  any  distilled  spirits 
produced  by  him,  or  who  shall  fail  to  comply  with  all  the  requirements 
of  this  Act,  or  any  regulations  issued  pursuant  thereto,  respecting  the 
production  and  denaturization  of  distilled  spirits ;  and  any  person  who 
shall  recover  or  attempt  to  recover  by  redistillization  or  by  any  other 
process  or  means,  any  distilled  spirits  after  the  same  has  been  denatured, 
shall,  on  conviction,  for  each  oftense,  be  fined  not  more  than  $5,000  or  be 
imprisoned  for  not  more  than  five  years,  or  both,  and  shall  in  addition 
thereto  forfeit  to  the  United  States  all  real  and  personal  property  used 
in  connection  therewith. 

That  subsection  two  of  section  thirty-two  hundred  and  forty-four 
of  the  Revised  Statutes  of  the  United  States  shall  not  apply  to  stills 
and  worms  manufactured  for  use  in  distilling,  provided  for  in  section 
one  of  this  Act,  but  the  manufacturer  or  owner  of  such  distilling  ap- 
paratus shall  give  notice  to  the  collector  of  internal  revenue  of  the  dis- 
trict in  which  the  said  apparatus  is  made  or  to  which  it  is  removed,  of 
each  still,  or  worm,  manufactured,  sold,  used,  or  exchanged  under  such 
regulations  as  the  Commissioner  of  Internal  Revenue,  with  the  approval 
of  the  Secretary  of  the  Treasury,  may  prescribe. 

Section  four  of  the  Act  of  March  second,  nineteen  lunidred  and 
seven,  amendatory  of  the  Act  of  June   seventh,  nineteen  hundred  and 


Tariff  Administration  457 

six,  is  hereby  repealed,  and  the  Commissioner  of  Internal  Revenue,  with 
the  approval  of  the  Secretary  of  the  Treasury,  shall  exempt  distillers 
operating  under  this  Act  from  the  provisions  of  sections  thirty-two  hun- 
dred and  eighty-three  and  thirty-three  hundred  and  nine  of  the  Revised 
Statutes  of  the  United  States,  and  from  such  other  provisions  of  existing 
laws  relating  to  distilleries,  including  the  giving  of  bonds,  as  may  be 
deemed  expedient  by  said  ofificials :  Provided,  however,  That  the  Com- 
missioner of  Internal  Revenue  shall  assess  and  collect  the  tax  on  any 
spirits  unlawfully  produced  or  produced  and  not  accounted  for  by  any 
such  distiller. 

O.  That  upon  the  exportation  of  articles  manufactured  or  produced 
in  the  United  States  by  the  use  of  imported  merchandise  or  materials 
upon  which  customs  duties  have  been  paid,  the  full  amount  of  such  duties 
paid  upon  the  quantity  of  materials  used  in  the  manufacture  or  produc- 
tion of  the  exported  product  shall  be  refunded  as  drawback,  less  1  per 
centum  of  such  duties :  Provided,  That  where  a  principal  product  and  a 
by-product  result  from  the  manipulation  of  imported  material  and  only 
the  by-product  is  exported,  the  proportion  of  the  drawback  distributed 
to  such  by-product  shall  not  exceed  the  duty  assessable  under  this  Act  on 
a  similar  by-product  of  foreign  origin  if  imported  into  the  United  States. 
Where  no  duty  is  assessable  upon  the  importation  of  a  corresponding  by- 
product, no  drawback  shall  be  payable  on  such  by-product  produced  from 
the  imported  material ;  if,  however,  the  principal  product  is  exported, 
then  on  the  exportation  thereof  there  shall  be  refunded  as  drawback  the 
whole  of  the  duty  paid  on  the  imported  material  used  in  the  production 
of  both  the  principal  and  the  by-product,  less  1  per  cent,  as  hereinbefore 
provided :  Provided  further.  That  when  the  articles  exported  are  manu- 
factured in  part  from  domestic  materials,  the  imported  materials  or  the 
parts  of  the  articles  manufactured  from  such  materials,  shall  so  appear  in 
the  completed  articles  that  the  quantity  or  measure  thereof  may  be  ascer- 
tained :  And  provided  further,  That  the  drawback  on  any  article  allowed 
under  existing  law  shall  be  continued  at  the  rate  herein  provided.  That 
the  imported  materials  used  in  the  manufacture  or  production  of  articles 
entitled  to  drawback  of  customs  duties  when  exported  shall,  in  all  cases 
where  drawback  of  duties  paid  on  such  materials  is  claimed,  be  identified, 
the  quantity  of  such  materials  used  and  the  amount  of  duties  paid  thereon 
shall  be  ascertained,  the  facts  of  the  manufacture  or  production  of  such 
articles  in  the  United  States  and  their  exportation  therefrom  shall  be 
determined,  and  the  drawback  due  thereon  shall  be  paid  to  the  manufac- 
turer, producer,  or  exporter,  to  the  agent  of  either  or  to  the  person  to 
whom  such  manufacturer,  producer,  exporter,  or  agent  shall  in  writing 
order  such  drawback  paid,  under  such  regulations  as  the  Secretary  of  the 
Treasury  shall  prescribe. 

That  on  the  exportation  of  flavoring  extracts,  medicinal  or  toilet 
preparations  (including  perfumery)  hereafter  manufactured  or  produced 
in  the  United  States  in  part  from  domestic  alcohol  on  which  an  internal- 


458  Important  Federal  Laws 

revenue  tax  has  been  paid,  there  shall  be  allowed  a  drawback  equal  in 
amount  to  the  tax  found  to  have  been  paid  on  the  alcohol  so  used :  Pro- 
vided, That  no  other  than  domestic  tax-paid  alcohol  shall  have  been 
used  in  the  manufacture  or  production  of  such  preparations.  Such 
drawback  shall  be  determined  and  paid  under  such  rules  and  regulations, 
and  upon  the  filing  of  such  notices,  bonds,  bills  of  lading,  and  other  evi- 
dence of  payment  of  tax  and  exportation,  as  the  Secretary  of  the  Treas- 
ury shall  prescribe. 

That  the  provisions  of  this  section  shall  apply  to  materials  used  in 
the  construction  and  equipment  of  vessels  built  for  foreign  account  and 
ownership,  or  for  the  government  of  any  foreign  country,  notwithstand- 
ing that  such  vessels  may  not  within  the  strict  meaning  of  the  term  be 
articles  exported. 

P.  That  upon  the  reimportation  of  articles  once  exported,  of  the 
growth,  product,  or  manufacture  of  the  United  States,  upon  which  no 
internal  tax  has  been  assessed  or  paid,  or  upon  which  such  tax  has  been 
paid  and  refunded  by  allowance  or  drawback,  there  shall  be  levied,  col- 
lected, and  paid  a  duty  equal  to  the  tax  imposed  by  the  internal-revenue 
laws  upon  such  articles,  except  articles  manufactured  in  bonded  ware- 
houses and  exported  pursuant  to  law,  which  shall  be  subject  to  the  same 
rate  of  duty  as  if  originally  imported,  but  proof  of  the  identity  of  such 
articles  shall  be  made  under  general  regulations  to  be  prescribed  by  the 
Secretary  of  the  Treasury. 

Q.  That  on  and  after  the  day  when  this  Act  shall  go  into  efifect  all 
goods,  wares,  and  merchandise  previously  imported,  for  which  no  entry 
has  been  made,  and  all  goods,  wares,  and  merchandise  previously  entered 
without  payment  of  duty  and  under  bond  for  warehousing,  transporta- 
tion, or  any  other  purpose,  for  which  no  permit  of  delivery  to  the  im- 
porter or  iiis  agent  has  been  issued,  shall  be  subjected  to  the  duties 
imposed  by  this  Act  and  to  no  other  duty,  upon  the  entry  or  the  with- 
drawal thereof :  Provided,  That  when  duties  are  based  upon  the  weight 
of  merchandise  deposited  in  any  public  or  private  bonded  warehouse, 
said  duties  shall  be  levied  and  collected  upon  the  weight  of  such  mer- 
chandise at  the  time  of  its  entry.  ^ 

R.  That  the  President  shall  cause  to  be  ascertained  each  year,  the 
amount  of  imports  and  exports  of  the  articles  enumerated  in  the  various 
paragraphs  in  section  one  of  this  Act  and  cause  an  estimate  to  be  made 
of  the  amount  of  the  domestic  production  and  consumption  of  said 
articles,  and  where  it  is  ascertained  that  the  imports  under  any  para- 
graph amount  to  less  than  5  per  centum  of  the  domestic  consumption 
of  the  articles  enumerated  he  shall  advise  the  Congress  as  to  the  facts 
and  his  conclusions  by  special  message,  if  deemed  important  in  the  public 
interest. 

S.  That,  except  as  hereinafter  provided,  sections  one  to  forty-two 
both  inclusive,  of  an  Act  entitled  "An  Act  to  provide  revenue,  equalize 
duties,  and  encourage  the  industries  of  the  United  States,  and  for  other 


Tariff.  Administration  459 

purposes,"  approved  August  fifth,  nineteen  hundred  and  nine,  and  all 
Acts  and  parts  of  Acts  inconsistent  with  the  provisions  of  this  Act,  are 
hereby  repealed :  Provided,  That  nothing  in  this  Act  shall  be  construed 
to  permit  any  oaths  to  be  demanded  or  fees  to  be  charged  except  as 
provided  in  this  Act  or  in  section  twenty-eight  hundred  and  sixty-two 
of  the  Revised  Statutes  of  the  United  States,  nor  to  repeal  or  in  any 
manner  affect  the  following  numbered  sections  of  the  aforesaid  Act 
approved  August  fifth,  nineteen  hundred  and  nine,  viz. :  Subsection 
twenty-nine  of  section  twenty-eight  and  subsequent  laws  and  amendments 
relating  to  the  establishment  and  continuance  of  a  Customs  Court,  sub- 
section thirty  of  section  twenty-eight,  providing  for  additional  attorneys, 
subsection  twelve  of  section  twenty-eight  and  subsequent  provisions 
establishing  a  Board  of  General  Appraisers  of  merchandise,  sections 
thirty,  thirty-one,  thirty-two,  thirty-three,  and  thirty-five,  imposing  an 
internal  revenue  tax  upon  tobacco,  section  thirty-six,  providing  for  a 
tonnage  duty,  section  thirty-nine,  authorizing  the  Secretary  of  the  Treas- 
ury to  borrow  on  the  credit  of  the  United  States  to  defray  expenditures 
on  account  of  the  Panama  Canal,  section  forty,  authorizing  the  Secretary 
of  the  Treasury  to  borrow  to  meet  public  expenditures :  Provided, 
further.  That  all  excise  taxes  upon  corporations  imposed  by  section 
thirty-eight,  that  have  accrued  or  have  been  imposed  for  the  year  ending 
December  thirty-first,  nineteen  hundred  and  twelve,  shall  be  returned, 
assessed,  and  collected  in  the  same  manner,  and  under  the  same  provi- 
sions, liens,  and  penalties  as  if  section  thirty-eight  continued  in  full 
force  and  effect:  And  provided  further,  That  a  special  excise  tax  with 
respect  to  the  carrying  on  or  doing  of  business,  equivalent  to  1  per 
centum  upon  their  entire  net  income,  shall  be  levied,  assessed,  and  col- 
lected upon  corporations,  joint  stock  companies  or  associations,  and 
insurance  companies,  of  the  character  described  in  section  thirty-eight 
of  the  Act  of  August  fifth,  nineteen  hundred  and  nine,  for  the  period 
from  January  first  to  February  twenty-eighth,  nineteen  hundred  and  thir- 
teen, both  dates  inclusive,  which  said  tax  shall  be  computed  upon  one- 
sixth  of  the  entire  net  income  of  said  corporations,  joint  stock  com- 
panies or  associations,  and  insurance  companies,  for  said  year,  said  net 
income  to  be  ascertained  in  accordance  with  the  provisions  of  subsection 
G  of  section  two  of  this  Act:  Provided  further.  That  the  provisions  of 
said  section  thirty-eight  of  the  Act  of  August  fifth,  nineteen  hundred  and 
nine,  relative  to  the  collection  of  the  tax  therein  imposed  shall  remain 
in  force  for  the  collection  of  the  excise  tax  herein  provided,  but  for  the 
year  nineteen  hundred  and  thirteen  it  shall  not  be  necessary  to  make 
more  than  one  return  and  assessment  for  all  the  taxes  imposed  herein 
upon  said  corporations,  joint  stock  companies  or  associations,  and  insur- 
ance companies,  either  by  way  of  income  or  excise,  which  return  and 
assessment  shall  be  made  at  the  times  and  in  the  manner  provided  in 
this  Act ;  but  the  repeal  of  existing  laws  or  modifications  thereof  em- 
braced in  this  Act  shall  not  affect  any  act  done,  or  any  right  accruing  or 


460  Important  Federal  Laws 

accrued,  or  any  suit  or  proceeding  had  or  commenced  in  any  civil  case 
before  the  said  repeal  or  modification ;  but  all  rights  and  liabilities 
under  said  laws  shall  continue  and  may  be  enforced  in  the  same  manner 
as  if  said  repeal  or  modifications  had  not  been  made.  Any  offenses  com- 
mitted and  all  penalties  or  forfeitures  or  liabilities  incurred  prior  to  the 
passage  of  this  Act  under  any  statute  embraced  in  or  changed,  modified, 
or  repealed  by  this  Act  may  be  prosecuted  or  punished  in  the  same  man- 
ner and  with  the  same  effect  as  if  this  Act  had  not  been  passed.  No 
Acts  of  limitation  now  in  force,  whether  applicable  to  civil  causes  and 
proceedings  or  to  the  prosecution  of  offenses  or  for  the  recovery  of 
penalties  or  forfeitures  embraced  in  or  modified,  changed,  or  repealed 
by  this  Act  shall  be  affected  thereby  so  far  as  they  affect  any  suits, 
proceedings,  or  prosecutions,  whether  civil  or  criminal,  for  causes  arising 
or  acts  done  or  committed  prior  to  the  passage  of  this  Act.  which  may 
be  commenced  and  prosecuted  within  the  same  time  and  with  the  same 
effect  as  if  this  Act  had  not  been  passed. 

T.  If  any  clause,  sentence,  paragraph,  or  part  of  this  Act  shall  for 
any  reason  be  adjudged  by  any  court  of  competent  jurisdiction  to  be 
invalid,  such  judgment  shall  not  affect,  impair,  or  invalidate  the  remain- 
der of  said  Act,  but  shall  be  confined  in  its  operation  to  the  clause,  sen- 
tence, paragraph,  or  part  thereof  directly  involved  in  the  controversy 
in  which  such  judgment  shall  have  been  rendered. 

U.  That  unless  otherwise  herein  specially  provided,  this  Act  shall 
take  effect  on  the  day  following  its  passage. 

TITLE  VII— TARIFF  COMMISSION. 
Act  of  September  8,  1916. 
Commission  Created. 

Sec.  700.  That  a  commission  is  hereby  created  and  established,  to 
be  known  as  the  United  States  Tariff"  Commission  (hereinafter  in  this 
title  referred  to  as  the  commission),  which  shall  be  composed  of  six 
members,  who  shall  be  appointed  by  the  President,  by  and  with  the 
advice  and  consent  of  the  Senate,  not  more  than  three  of  whom  shall  be 
members  of  the  same  political  party.  In  making  said  appointments 
members  of  dift'erent  political  parties  shall  alternate  as  nearly  as  may  be 
practicable.  The  first  members  appointed  shall  continue  in  office  for 
terms  of  two,  four,  six,  eight,  ten,  and  twelve  years,  respectively,  from 
the  date  of  the  passage  of  this  Act,  the  term  of  each  to  be  designated  by 
the  President,  but  their  successors  shall  be  appointed  for  terms  of  twelve 
years,  except  that  any  person  chosen  to  fill  a  vacancy  shall  be  appointed 
only  for  the  unexpired  term  of  the  member  whom  he  shall  succeed.  The 
President  shall  designate  annually  the  chairman  and  vice  chairman  of 
the  commission.  No  member  shall  engage  actively  in  any  other  business, 
function,  or  employment.  Any  member  may  be  removed  by  the  Presi- 
dent for  inefficiency,  neglect  of  duty,  or  malfeasance  in  office.    A  vacancy 


Tariff  Commission  461 

shall  not  impair  the  right  of  the  remaining  members  to  exercise  all  the 
powers  of  the  commission,  but  no  vacancy  shall  extend  beyond  any  ses- 
sion of  Congress. 

Salaries. 

Sec.  701.  That  each  commissioner  shall  receive  a  salary  of  $7,500 
per  year,  payable  monthly.  The  commission  shall  appoint  a  secretary, 
v^ho  shall  receive  a  salary  of  $5,000  per  year,  payable  in  like  manner, 
and  it  shall  have  authority  to  employ  and  fix  the  compensations  of  such 
special  experts,  examiners,  clerks,  and  other  employees  as  the  commis- 
sion may  from  time  to  time  find  necessary  for  the  proper  performance 
of  its  duties. 

With  the  exception  of  the  secretary,  a  clerk  to  each  commissioner, 
and  such  special  experts  as  the  commission  may  from  time  to  time  find 
necessary  for  the  conduct  of  its  work,  all  employees  of  the  commission 
shall  be  appointed  from  lists  of  eligibles  to  be  supplied  by  the  Civil  Ser- 
vice Commission  and  in  accordance  with  the  civil-service  law. 

All  of  the  expenses  of  the  commission,  including  all  necessary  ex- 
penses for  transportation  incurred  by  the  commissioners  or  by  their 
employees  under  their  orders  in  making  any  investigation  or  upon  offi- 
cial business  in  any  other  places  than  at  their  respective  headquarters, 
shall  be  allowed  and  paid  on  the  presentation  of  itemized  vouchers  there- 
for approved  by  the  commission. 

Unless  otherwise  provided  by  law,  the  commission  may  rent  suit- 
able offices  for  its  use,  and  purchase  such  furniture,  equipment,  and  sup- 
plies as  may  be  necessary. 

The  principal  office  of  the  commission  shall  be  in  the  city  of  Wash- 
ington, but  it  may  meet  and  exercise  all  its  powers  at  any  other  place. 
The  commission  may,  by  one  or  more  of  its  members,  or  by  such  agents 
as  it  may  designate,  prosecute  any  inquiry  necessary  to  its  duties  in  any 
part  of  the  United  States  or  in  any  foreign  country. 

Duties. 

Sp:c.  702.  That  it  shall  be  the  duty  of  said  commission  to  investi- 
gate the  administration  and  fiscal  and  industrial  efifects  of  the  customs 
laws  of  this  country  now  in  force  or  which  may  be  hereafter  enacted,  the 
relations  between  the  rates  of  duty  on  raw  materials  and  finished  or 
partly  finished  products,  the  effects  of  ad  valorem  and  specific  duties  and 
of  compound  specific  and  ad  valorem  duties,  all  questions  relative  to  the 
arransrement  of  schedules  and  classification  of  articles  in  the  several 
schedules  of  the  customs  and,  in  general,  to  investigate  the  opera- 
tion of  customs  laws,  including  their  relation  to  the  Federal  rev- 
enues, their  effect  upon  the  industries  and  labor  of  the  country,  and 
to  submit  reports  of  its  investigations  as  hereafter  provided. 

Information  for  President  and  Congress. 

Sec.  703.  That  the  commission  shall  put  at  the  disposal  of  the 
President  of  the  United  States,  the  Committee  on  Ways  and  Means  of 


462  Important  Federal  Laws 

the  House  of  Representatives,  and  the  Committee  on  Finance  of  the 
Senate,  whenever  requested,  all  information  at  its  command,  and  shall 
make  such  investigations  and  reports  as  may  be  requested  by  the  Presi- 
dent or  by  either  of  said  committees  or  by  either  branch  of  the  Congress, 
and  shall  report  to  Congress  on  the  first  Monday  of  December  of  each 
year  hereafter  a  statement  of  the  methods  adopted  and  all  expenses 
incurred,  and  a  summary  of  all  reports  made  during  the  year. 

Powers. 

Sec.  704.  That  the  commission  shall  have  power  to  investigate  the 
tariff  relations  between  the  United  States  and  foreign  countries,  com- 
mercial treaties,  preferential  provisions,  economic  alliances,  the  effect 
of  export  bounties  and  preferential  transportation  rates,  the  volume  of 
importations  compared  with  domestic  production  and  consumption,  and 
conditions,  causes,  and  effects  relating  to  competition  of  foreign  indus- 
tries with  those  of  the  United  States,  including  dumping  and  cost  of 
production. 

Offices  Transferred  to  Commission. 

Sec.  705.  That  upon  the  organization  of  the  commission,  the  Cost 
of  Production  Division  in  the  Bureau  of  Foreign  and  Domestic  Com- 
merce in  the  Department  of  Commerce  shall  be  transferred  to  said  com- 
mission, and  the  clerks  and  employees  of  said  division  shall  be  trans- 
ferred to  and  become  clerks  and  employees  of  the  commission,  and  all 
records,  papers,  and  property  of  the  said  division  and  of  the  former 
tariff  boards  shall  be  transferred  to  and  become  the  records,  papers  and 
property  of  the  commission. 

Power  to  Examine  Papers,  Etc. 

Sec.  706.  That  for  the  purposes  of  carrying  this  title  into  effect  the 
commission  or  its  duly  authorized  agent  or  agents  shall  have  access  to 
and  the  right  to  copy  any  document,  paper,  or  record,  pertinent  to  the 
subject  matter  under  investigation,  in  the  possession  of  any  person,  firm, 
copartnership,  corporation,  or  association  engaged  in  the  production, 
importation,  or  distribution  of  any  article  under  investigation,  and  shall 
have  power  to  summon  witnesses,  take  testimony,  administer  oaths,  and 
to  require  any  person,  firm,  copartnership,  corporation,  or  association  to 
produce  books  or  papers  relating  to  any  matter  pertaining  to  such  investi- 
gation. Any  member  of  the  commission  may  sign  subpoenas,  and  mem- 
bers and  agents  of  the  commission,  when  authorized  by  the  commission, 
may  administer  oaths  and  affirmations,  examine  witnesses,  take  testi- 
mony, and  receive  evidence. 

.Such  attendance  of  witnesses  and  the  production  of  such  docu- 
mentary evidence  may  be  required  from  any  place  in  the  United  States 
at  any  designated  place  of  hearing.  And  in  case  of  disobedience  to  a 
subpoena  the  commission  may  invoke  the  aid  of  any  district  court  of  the 
United  States  in  requiring  the  attendance  and  testimony  of  witnesses 
and  the  production  of  documentary  evidence,  and  such  court  within  the 


Tariff  Commission  463 

jurisdiction  of  which  such  inquiry  is  carried  on  may,  in  case  of  con- 
tumacy or  refusal  to  obey  a  subpoena  issued  to  any  corporation  or  other 
person,  issue  an  order  requiring  such  corporation  or  other  person  to 
appear  before  the  commission,  or  to  produce  documentary  evidence  if  so 
ordered,  or  to  give  evidence  touching  the  matter  in  question  ;  and  any 
failure  to  obey  such  order  of  the  court  may  be  punished  by  such  court  as 
a  contempt  thereof. 

Upon  the  application  of  the  Attorney  General  of  the  United  States, 
at  the  request  of  the  commission,  any  such  court  shall  have  jurisdiction 
to  issue  writs  of  mandamus  commanding  compliance  with  the  provisions 
of  this  title  or  any  order  of  the  commission  made  in  pursuance  thereof. 

The  commission  may  order  testimony  to  be  taken  by  deposition  in 
any  proceeding  or  investigation  pending  under  this  title  at  any  stage 
of  such  proceeding  or  investigation.  Such  depositions  may  be  taken  be- 
fore any  person  designated  by  the  commission  and  having  power  to 
administer  oaths.  Such  testimony  shall  be  reduced  to  writing  by  the 
person  taking  the  deposition,  or  under  his  direction,  and  shall  then  be 
subscribed  by  the  deponent.  Any  person,  firm,  copartnership,  corpora- 
tion, or  association,  may  be  compelled  to  appear  and  depose  and  to  pro- 
duce documentary  evidence  in  the  same  manner  as  witnesses  may  be 
compelled  to  appear  and  testify  and  produce  documentary  evidence  be- 
fore the  commission,  as  hereinbefore  provided. 

Witnesses  summoned  before  the  commission  shall  be  paid  the  same 
fees  and  mileage  that  are  paid  witnesses  in  the  courts  of  the  United 
States,  and  witnesses  whose  depositions  are  taken  and  the  persons  taking 
the  same,  except  employees  of  the  commission,  shall  severally  be  en- 
titled to  the  same  fees  and  mileage  as  are  paid  for  like  services  in  the 
courts  of  the  United  States :  Provided,  That  no  person  shall  be  excused, 
on  the  ground  that  it  may  tend  to  incriminate  him  or  subject  him  to  a 
penalty  or  forfeiture,  from  attending  and  testifying,  or  producing  books, 
papers,  documents,  and  other  evidence,  in  obedience  to  the  subpoena  of 
the  commission;  but  no  natural  person  shall  be  prosecuted  or  subjected 
to  any  penaltv  or  forfeiture  for  or  on  account  of  any  transaction,  matter, 
or  thing  as  to  which,  in  obedience  to  a  subpoena  and  under  oath,  he  may 
so  testify  or  produce  evidence,  except  that  no  person  shall  be  exempt 
from  prosecution  and  punishment  for  perjury  committed  in  so  testifying. 

Cooperation  With  Other  Departments. 

Sec.  707.  That  the  said  commission  shall  in  appropriate  matters 
act  in  conjunction  and  cooperation  with  the  Treasury  Department,  the 
Department  of  Commerce,  the  Federal  Trade  Commission,  or  any  other 
departments,  or  independent  establishments  of  the  Government,  and  such 
departments  and  independent  establishments  of  the  Government  shall 
cooperate  fully  with  the  commission  for  the  purposes  of  aiding  and  assist- 
ing in  its  work,  and,  when  directed  by  the  President,  shall  furnish  to  the 
commission,  on  its  request,  all  records,  papers,  and  information  in  their 


464  Important  Federal  Laws 

possession  relating  to  any  of  the  subjects  of  investigation  by  said  com- 
mission and  shall  detail,  from  time  to  time,  such  officials  and  employees 
to  said  commission  as  he  may  direct. 

Trade  Secrets,  Etc.,  Not  to  be  Divulged. 

Sec.  708.  It  shall  be  unlawful  for  any  member  of  the  United  States 
Tariff  Commission,  or  for  any  employee,  agent,  or  clerk  of  said  com- 
mission, or  any  other  officer  or  employee  of  the  United  States,  to  divulge, 
or  to  make  known  in  any  manner  whatever  not  provided  for  by  law,  to 
any  person,  the  trade  secrets  or  processes  of  any  person,  firm,  copartner- 
ship, corporation,  or  association  embraced  in  any  examination  or  investi- 
gation conducted  by  said  commission,  or  by  order  of  said  commission, 
or  by  order  of  any  member  thereof.  Any  oiTense  against  the  provisions 
of  this  section  shall  be  a  misdemeanor  and  be  punished  by  a  fine  not 
exceeding  $1,000,  or  by  imprisonment  not  exceeding  one  year,  or  both, 
in  the  discretion  of  the  court,  and  such  offender  shall  also  be  dismissed 
from  office  or  discharged  from- employment.  The  commission  shall  have 
power  to  investigate  the  Paris  Economy  Pact  and  similar  organizations 
and  arrangements  in  Europe. 

Sec.  709.  That  there  is  hereby  appropriated,  for  the  purpose  of 
defraying  the  expense  of  the  establishment  and  maintenance  of  the 
commission,  including  the  payment  of  salaries  herein  authorized,  out 
of  any  money  in  the  Treasury  of  the  United  States  not  otherwise  appro- 
priated, the  sum  of  $300,000  for  the  fiscal  year  ending  June  thirtieth, 
nineteen  hundred  and  seventeen,  and  for  each  fiscal  year  thereafter  a  like 
sum  is  authorized  to  be  appropriated. 

TITLE  VIII— UNFAIR  COMPETITION. 
Act  of  September  8,  1916. 
Definitions. 

Sec.  800.  That  when  used  in  this  title  the  term  "person"  includes 
partnerships,  corporations,  and  associations. 

Dumping  Prohibited. 

Sec.  801.  That  it  shall  be  unlawful  for  any  person  importing  or 
assisting  in  importing  any  articles  from  any  foreign  country  into  the 
United  States,  commonly  and  systematically  to  import,  sell  or  cause  to 
be  imported  or  sold  such  articles  within  the  United  States  at  a  price 
substantially  less  than  the  actual  market  value  or  wholesale  price  of  such 
articles,  at  the  time  of  exportation  to  the  United  States,  in  the  principal 
markets  of  the  country  of  their  production,  or  of  other  foreign  countries 
to  which  they  are  commonly  exported,  after  adding  to  such  market  value 
or  wholesale  price,  freight,  duty,  and  other  charges  and  expenses  neces- 
sarily incident  to  the  importation  and  sale  thereof  in  the  United  States : 
Provided,  That  such  act  or  acts  be  done  with  the  intent  of  destroying 
or  injuring  an  industry  in  the  United  States,  or  of  preventing  the  estab- 
lishment of  an  industry  in  the  United  States,  or  of  restraining  or  monop- 


Unfair  Competition  465 

olizing  any  part  of  trade  and  commerce  in  such  articles  in  the  United 
States. 

Any  person  who  violates  or  combines  or  conspires  with  any  other 
person  to  violate  this  section  is  guilty  of  a  inisdemeanor,  and,  on  con- 
viction thereof,  shall  be  punished  by  a  fine  not  exceeding  $5,000,  or  im- 
prisonment not  exceeding  one  year,  or  both,  in  the  discretion  of  the  court. 

Any  person  injured  in  his  business  or  property  by  reason  of  any 
violation  of,  or  combination  or  conspiracy  to  violate,  this  section,  may 
sue  therefor  in  the  district  court  of  the  United  States  for  the  district  in 
which  the  defendant  resides  or  is  found  or  has  an  agent,  without  respect 
to  the  amount  in  controversy,  and  shall  recover  threefold  the  damages 
sustained,  and  the  cost  of  the  suit,  including  a  reasonable  attorney's  fee. 

The  foregoing  provisions'  shall  not  be  construed  to  deprive  the 
proper  State  courts  of  jurisdiction  in  actions  for  damages  thereunder. 

Special  Duty  in  Customs  Cases. 

Sec.  802.  That  if  any  article  produced  in  a  foreign  country  is  im- 
ported into  the  United  States  under  any  agreement,  understanding,  or 
condition  that  the  importer  thereof  or  any  other  person  in  the  United 
States  shall  not  use,  purchase,  or  deal  in,  or  shall  be  restricted  in  his 
using,  purchasing,  or  dealing  in,  the  articles  of  any  other  person,  there 
shall  be  levied,  collected,  and  paid  thereon,  in  addition  to  the  duty  other- 
wise imposed  by  law,  a  special  duty  equal  to  double  the  amount  of  such 
duty :  Provided,  That  the  above  shall  not  be  interpreted  to  prevent  the 
establishing  in  this  country  on  the  part  of  a  foreign  producer  of  an  ex- 
clusive agency  for  the  sale  in  the  United  States  of  the  products  of  said 
foreign  producer  or  merchant,  nor  to  prevent  such  exclusive  agent  from 
agreeing  not  to  use,  purchase,  or  deal  in  the  article  of  any  other  person, 
but  this  proviso  shall  not  be  construed  to  exempt  from  the  provisions  of 
this  section  any  article  imported  by  such  exclusive  agent  if  such  agent  is 
recjuired  by  the  foreign  producer  or  if  it  is  agreed  between  such  agent 
and  such  foreign  producer  that  any  agreement,  understanding  or  condi- 
tion set  out  in  this  section  shall  be  imposed  by  such  agent  upon  the  sale 
or  other  disposition  of  such  article  to  any  person  in  the  United  States. 

Rules  and  Regulations. 

Sec.  803.  That  the  Secretary  of  the  Treasury  shall  make  such  rules 
and  regulations  as  are  necessary  for  the  carrying  out  of  the  provisions 
of  section  eight  hundred  and  two. 

Sec.  804.  That  whenever  any  country,  dependency,  or  colony  shall 
prohibit  the  importation  of  any  article  the  product  of  the  soil  or  industry 
of  the  United  States  and  not  injurious  to  health  or  morals,  the  President 
shall  have  power  to  prohibit,  during  the  period  such  prohibition  is  in 
force,  the  importation  into  the  United  States  of  similar  articles,  or  in 
case  the  United  States  does  not  import  similar  articles  from  that  country, 
then  other  articles,  the  products  of  such  country,  dependency,  or  colony. 

And  the  Secretary  of  the  Treasury,  with  the  approval  of  the  Presi- 

(30) 


466  Important  Federal  Laws 

dent,   shall  make   such   rules  and   regulations  as  'are   necessary   for   the 
execution  of  the  provisions  of  this  section. 

Retaliatory  Restrictions. 

Sec.  805.  That  whenever  during  the  existence  of  a  war  in  which 
the  United  States  is  not  engaged,  the  President  shall  be  satisfied  that 
there  is  reasonable  ground  to  believe  that  under  the  laws,  regulations, 
or  practices  of  any  country,  colony,  or  dependency  contrary  to  the  law 
and  practice  of  nations,  the  importation  into  their  own  or  any  other 
country,  dependency,  or  colony  of  any  article  the  product  of  the  soil  or 
industry  of  the  United  States  and  not  injurious  to  health  or  morals  is 
prevented  or  restricted  the  President  is  authorized  and  empowered  to 
prohibit  or  restrict  during  the  period  such  prohibition  or  restriction  is  in 
force,  the  importation  into  the  United  States  of  similar  or  other  articles, 
products  of  such  country,  dependency,  or  colony  as  in  his  opinion  the 
public  interest  may  require ;  and  in  such  case  he  shall  make  proclamation 
stating  the  article  or  articles  which  are  prohibited  from  importation  into 
the  United  States ;  and  any  person  or  persons  who  shall  import,  or 
attempt  or  conspire  to  import,  or  be  concerned  in  importing,  such  article 
or  articles  into  the  United  States  contrary  to  the  prohibition  in  such 
proclamation,  shall  be  liable  to  a  fine  of  not  less  than  $2,000  nor  more 
than  $50,000,  or  to  imprisonment  not  to  exceed  two  years,  or  both,  in  the 
discretion  of  the  court.  The  President  may  change,  modify,  revoke,  or 
renew  such  proclamation  in  his  discretion. 

Same. 

Sec.  806.  That  whenever,  during  the  existence  of  a  war  in  which 
the  United  States  is  not  engaged,  the  President  shall  be  satisfied  that 
there  is  reasonable  ground  to  believe  that  any  vessel,  American  or  foreign, 
is,  on  account  of  the  laws,  regulations,  or  practices  of  a  belligerent  Gov- 
ernment, making  or  giving  any  undue  or  unreasonable  preference  or  ad- 
vantage in  any  respect  whatsoever  to  any  particular  person,  company, 
firm,  or  corporation,  or  any  particular  description  of  traffic  in  the  United 
States  or  its  possessions  or  to  any  citizens  of  the  United  States  residing 
in  neutral  countries  abroad,  or  is  subjecting  any  particular  person,^  com- 
pany, firm,  or  corporation  or  any  particular  description  of  traffic  in  the 
United  States  or  its  possessions,  or  any  citizens  of  the  United  States 
residing  in  neutral  countries  abroad  to  any  undue  or  unreasonable  prej- 
udice, disadvantage,  injury,  or  discrimination  in  regards  to  accepting, 
receiving,  transporting,  or  delivering,  or  refusing  to  accept,  receive, 
transfer,  or  deliver  any  cargo,  freight  or  passengers,  or  in  any  other  re- 
spect whatsoever,  he  is  hereby  authorized  and  empowered  to  direct  the 
detention  of  such  vessels  by  withholding  clearance  or  by  formal  notice 
forbidding  departure,  and  to  revoke,  modify,  or  renew  any  such  direction. 

That  whenever,  during  the  existence  of  a  war  in  which  the  United 
States  is  not  engaged,  the  President  shall  be  satisfied  that  there  is 
reasonable  ground  to  believe  that  under  the  laws,  regulations,  or  prac- 
tices   of    any   belligerent    country   or    Government,    American    ships    or 


Unfair  Competition  467 

American  citizens  are  not  accorded  any  of  the  facilities  of  commerce 
which  the  vessels  or  citizens  of  that  belligerent  country  enjoy  in  the 
United  States  or  its  possessions,  or  are  not  accorded  by  such  belligerent 
equal  privileges  or  facilities  of  trade  with  vessels  or  citizens  of  any 
nationality  other  than  that  of  such  belligerent,  the  President  is  hereby 
authorized  and  empowered  to  withhold  clearance  from  one  or  more 
vessels  of  such  belligerent  country  until  such  belligerent  shall  restore  to 
such  American  vessels  and  American  citizens  reciprocal  liberty  of  com- 
merce and  equal  facilities  of  trade;  or  the  President  may  direct  that 
similar  privileges  and  facilities,  if  any,  enjoyed  by  vessels  or  citizens  of 
such  belligerent  in  the  United  States  or  its  possessions  be  refused  to 
vessels  or  citizens  of  such  belligerent ;  and  in  such  case  he  shall  make 
proclamation  of  his  direction,  stating  the  facilities  and  privileges  which 
shall  be  refused,  and  the  belligerent  to  whose  vessels  or  citizens  they  are 
to  be  refused,  and  thereafter  the  furnishing  of  such  prohibited  privileges 
and  facilities  to  any  vessel  or  citizen  of  the  belligerent  named  in  such 
proclamation  shall  be  unlawful;  and  he  may  change,  modify,  revoke,  or 
renew  such  proclamation  ;  and  any  person  or  persons  who  shall  furnish 
or  attempt  or  conspire  to  furnish  or  be  concerned  in  furnishing  or  in 
the  concealment  of  furnishing  facilities  or  privileges  to  ships  or  persons 
contrary  to  the  prohibition  in  such  proclamation  shall  be  liable  to  a  fine 
of  not  less  than  $2,000  nor  more  than  $50,000  or  to  imprisonment  not  to 
exceed  two  years,  or  both,  in  the  discretion  of  the  court. 

In  case  any  vessel  which  is  detained  by  virtue  of  this  Act  shall  de- 
part or  attempt  to  depart  from  the  jurisdiction  of  the  United  States 
without  clearance  or  other  lawful  authority,  the  owner  or  master  or 
person  or  persons  having  charge  or  command  of  such  vessel  shall  be 
severally  liable  to  a  fine  of  not  less  than  $2,000  nor  more  than  $10,000, 
or  to  imprisonment  not  to  exceed  two  years,  or  both,,  and  in  addition 
such  vessel  shall  be  forfeited  to  the  United  States. 

That  the  President  of  the  United  States  is  hereby  authorized  and 
empowered  to  employ  such  part  of  the  land  or  naval  forces  of  the 
United  States  as  shall  be  necessary  to  carry  out  the  purposes  of  this  Act. 

Saving  Clause.  TITLE  IX. 

Sec.  900.  That  if  any  clause,  sentence,  paragraph,  or  part  of  this 
Act  shall  for  any  reason  be  adjudged  by  any  court  of  competent 
jurisdiction  to  be  invalid,  such  judgment  shall  not  afifect,  impair,  or  in- 
validate the  remainder  of  said  Act,  but  shall  be  confined  in  its  operation 
to  the  clause,  sentence,  paragraph,  or  part  thereof  directly  involved  in 
the  controversy  in  which  such  judgment  shall  have  been  rendered. 

Sec.  902.  That  unless  otherwise  herein  specially  provided,  this  Act 
shall  take  efifect  on  the  day  following  its  passage,  and  all  provisions  of 
any  Act  or  Acts  inconsistent  with  the  provisions  of  this  Act  are  hereby 
repealed. 

Note.— Sections  900  and  902  apply  to  all  of  the  provisions  of  the  Act  of 
September  8,  1916,  pp.  319-377  and  pp.  472-479. 


INTERSTATE  COMMERCE. 


CHAPTER  XV. 
THE  INTERSTATE  COMMERCE  ACT. 

Act  of  February  4,  1SS7,  as  Amended. 
An  Act  to  regulate  commerce. 

Carriers  Subject  to  the  Act;  Definitions. 

Section  1.  That  the  provisions  of  this  Act  shall  apply  to  any 
corporation  or  any  person  or  persons  engaged  in  the  transportation  of 
oil  or  other  commodity,  except  water  and  except  natural  or  artificial 
gas,  by  means  of  pipe  lines,  or  partly  by  pipe  lines  and  partly  by  rail- 
road, or  partly  by  pipe  lines  and  partly  by  water,  and  to  telegraph, 
telephone,  and  cable  companies  (whether  wire  or  wireless)  engaged  in 
sending  messages  from  one  State,  Territory,  or  District  of  the  United 
States,  to  any  other  State,  Territory,  or  District  of  the  United  States, 
or  to  any  foreign  country,  who  shall  be  considered  and  held  to  be 
common  carriers  within  tlie  meaning  and  purpose  of  this  Act,  and  to 
any  common  carrier  or  carriers  engaged  in  the  transportation  of  pas- 
sengers or  property  wholly  by  railroad  (or  partly  by  railroad  and  partly 
by  water  when  both  are  used  under  a  common  control,  management, 
or  arrangement  for  a  continuous  carriage  or  shipment),  from  one  State 
or  Territory  of  the  United  States  or  the  District  of  (Columbia,  to  any 
other  State  or  Territory  of  the  United  States  or  the  District  of 
Columbia,  or  from  one  place  in  a  Territory  to  another  place  in  the 
same  Territory,  or  from  any  place  in  the  United  States  to  an  adjacent 
foreign  country,  or  from  any  place  in  the  United  States  through  a 
foreign  country  to  any  other  place  in  the  United  States,  and  also  to 
the  transportation  in  like  manner  of  property  shipped  from  any  place 
in  the  United  States  to  a  foreign  country  and  carried  from  such  place 
to  a  port  of  trans-shipment,  or  shipped  from  a  foreign  country  to  any 
place  in  the  United  States  and  carried  to  such  place  from  a  port  of 
entry  either  in  the  United  States  or  an  adjacent  foreign  country:  Pro- 
vided, however,  That  the  provisions  of  this  Act  shall  not  apply  to  the 
transportation  of  passengers  or  property,  or  to  the  receiving,  deliver- 
ing, storage,  or  handling  of  property  wholly  within  one  State  and  not 
shipped  to  or  from  a  foreign  country  from  or  to  any  State  or  Terri- 
tory as  aforesaid,  nor  shall  they  apply  to  the  transmission  of  messages 
by  teleplione,  telegraph,  or  cable  wholly  within  one  State  and  not  trans- 
mitted to  or  from  a  foreign  country  from  or  to  any  State  or  Territory 
as  aforesaid. 

The    term    "common    carrier"    as    used    in    this    Act    shall    include 


Interstate  Commerce  469 

express  companies  and  sleeping  car  companies.  The  term  "railroad" 
as  used  in  this  Act  shall  include  all  bridges  and  ferries  used  or  operated 
in  connection  with  any  railroad,  and  also  all  the  road  in  use  by  any 
corporation  operating  a  railroad,  whether  owner  or  operated  under  a 
contract,  agreement,  or  lease,  and  shall  also  include  all  switches,  spurs, 
tracks,  and  terminal  facilities  of  every  kind  used  or  necessary  in  the 
transportation  of  the  persons  or  property  designated  herein,  and  also 
all  freight  depots,  yards,  and  grounds  used  or  necessary  in  the  trans- 
portation or  delivery  of  any  of  said  property;  and  the  term  "transpor- 
tation" shall  include  cars  and  other  vehicles  and  all  instrumentalities 
and  facilities  of  shipment  or  carriage,  irrespective  of  ownership  or  of 
any  contract,  express  or  implied,  for  the  use  thereof  and  all  services 
in  connection  with  the  receipt,  delivery,  elevation,  and  transfer  in 
transit,  ventilation,  refrigeration  or  icing,  storage,  and  handling  of  prop- 
erty transported;  and  it  shall  be  the  duty  of  every  carrier  subject  to 
the  provisions  of  this  Act  to  provide  and  furnish  such  transportation 
upon  reasonable  request  therefor,  and  to  establish  through  routes  and 
just  and  reasonable  rates  applicable  thereto ;  and  to  provide  reasonable 
facilities  for  operating  such  through  routes  and  to  make  reasonable 
rules  and  regulations  with  respect  to  the  exchange,  interchange,  and 
return  of  cars  used  therein,  and  for  the  operation  of  such  through 
routes,  and  providing  for  reasonable  compensation  to  those  entitled 
thereto. 

Service  and  Charges  Must  be  Just  and  Reasonable. 

All  charges  made  for  any  service  rendered  or  to  be  rendered  in 
the  transportation  of  passengers  or  property  and  for  the  transmission 
of  rnessages  by  telegraph,  telephone,  or  cable,  as  aforesaid,  or  in  con- 
nection therewith,  shall  be  just  and  reasonable;  and  every  unjust  and 
unreasonable  charge  for  such  sendee  or  any  part  thereof  is  prohibited 
and  declared  to  be  unlawful :  Provided,  That  messages  by  telegraph, 
telephone,  or  cable,  subject  to  the  provisions  of  this  Act,  may  be  classi- 
fied into  day,  night,  repeated,  unrepeated,  letter,  commercial,  press, 
Government,  and  such  other  classes  as  are  just  and  reasonable,  and 
different  rates  may  be  charged  for  the  different  classes  of  messages : 
And  provided  further.  That  nothing  in  this  Act  shall  be  construed  to 
prevent  telephone,  telegraph,  and  cable  companies  from  entering  into 
contracts  with  common  carriers,  for  the  exchange  of  services. 

And  it  is  hereby  made  the  duty  of  all  common  carriers  subject  to 
the  provisions  of  this  Act  to  establish,  observe,  and  enforce  just  and 
reasonable  classifications  of  property  for  transportation,  with  refer- 
ence to  which  rates,  tariffs,  regulations,  or  practices  are  or  may  be 
made  or  prescribed,  and  just  and  reasonable  regulations  and  practices 
aft'ecting  classifications,  rates,  or  tariffs,  the  issuance,  form,  and  sub- 
stance of  tickets,  receipts,  and  bills  of  lading,  the  manner  and  method 
of  presenting,  marking,  packing,  and  delivering  property   for  transpor- 


470  Important  Federal  Laws 

tation,  the  facilities  for  transportation,  the  carrying  of  personal,  sam- 
ple, and  excess  baggage,  and  all  other  matters  relating  to  or  connected 
with  the  receiving,  handling,  transporting,  storing,  and  delivery  of  prop- 
erty subject  to  the  provisions  of  this  Act  which  may  be  necessary  or 
proper  to  secure  the  safe  and  prompt  receipt,  handling,  transportation, 
and  delivery  of  property  subject  to  the  provisions  of  this  Act  upon 
just  and  reasonable  terms,  and  every  such  unjust  and  unreasonable 
classification,  regulation,  and  practice  with  reference  to  commerce  be- 
tween the  States  and  with  foreign  countries  is  prohibited  and  declared 
to  be  unlawful. 

Free  Passes  Prohibited. 

No  common  carrier  subject  to  the  provisions  of  this  Act  shall, 
after  January  first,  nineteen  hundred  and  seven,  directly  or  indirectly, 
issue  or  give  any  interstate  free  ticket,  free  pass,  or  free  transporta- 
tion for  passengers,  except  to  its  employees  and  their  families,  its 
officers,  agents,  surgeons,  physicians,  and  attorneys  at  law ;  to  min- 
isters of  religion,  traveling  secretaries  of  railroad  Young  Men's  Christ- 
ian Associations,  inmates  of  hospitals  and  charitable  and  eleemosynary 
institutions,  and  persons  exclusively  engaged  in  charitable  and  eleemosy- 
nary work ;  to  indigent,  destitute,  and  homeless  persons,  and  to  such 
persons  when  transported  by  charitable  societies  or  hospitals,  and  the 
necessary  agents  employed  in  such  transportation ;  to  inmates  of  the 
National  Homes  or  State  Homes  for  Disabled  Volunteer  Soldiers,  and 
of  Soldiers'  and  Sailors'  Homes,  including  those  about  to  enter  and 
those  returning  home  after  discharge ;  to  necessary  care  takers  of  live 
stock,  poultry,  milk,  and  fruit ;  to  employees  on  sleeping  cars,  express 
cars,  and  to  linemen  of  telegraph  and  telephone  companies ;  to  Railway 
Mail  Service  employees,  post-office  inspectors,  customs  inspectors,  and 
immigration  inspectors ;  to  newsboys  on  trains,  baggage  agents,  wit- 
nesses attending  any  legal  investigation  in  which  the  common  carrier 
is  interested,  persons  injured  in  wrecks  and  physicians  and  nurses  at- 
tending such  persons :  Provided,  That  this  provision  shall  not  be  con- 
strued to  prohibit  the  interchange  of  passes  for  the  officers,  agents,  and 
employees  of  common  carriers,  and  their  families ;  nor  to  pnohibit 
any  common  carrier  from  carrying  passengers  free  with  the  object  of 
providing  relief  in  cases  of  general  epidemic,  pestilence,  or  other  calam- 
itous visitation :  And  provided  further.  That  this  provision  shall  not  be 
construed  to  prohibit  the  privilege  of  passes  or  franks,  or  the  exchange 
thereof  with  each  other,  for  the  officers,  agents,  employees,  and  their 
families  of  such  telegraph,  telephone,  and  cable  lines,  and  the  officers, 
agents,  employees  and  their  families  of  other  common  carriers  subject 
to  the  provisions  of  this  Act:  Provided  further.  That  the  term 
"employees"  as  used  in  this  paragraph  shall  include  furloughed.  pen- 
sioned, and  superannuated  employees,  persons  who  have  become  dis- 
abled or  infirm  in   the   service   of   any  such   common   carrier,   and   the 


Interstate  Commerce  471 

remains  of  a  person  killed  in  the  employment  of  a  carrier  and  ex- 
employees  traveling  for  the  purpose  of  entering  the  service  of  any  such 
common  carrier;  and  the  term  "families"  as  used  in  this  paragraph 
shall  include  the  families  of  those  persons  named  in  this  proviso,  also 
the  families  of  persons  killed,  and  the  widows  during  widowhood  and 
minor  children  during  minority  of  persons  who  died,  while  in  the  serv- 
ice of  any  such  common  carrier.  Any  common  carrier  violating  this 
provision  shall  be  deemed  guilty  of  a  misdemeanor,  and  for  each  offense, 
on  conviction,  shall  pay  to  the  United  States  a  penalty  of  not  less  than 
one  hundred  dollars  nor  more  than  two  thousand  dollars,  and  any 
person,  other  than  the  persons  excepted  in  this  provision,  who  uses  any 
such  interstate  free  ticket,  free  pass,  or  free  transportation  shall  be 
subject  to  a  like  penalty.  Jurisdiction  of  oft'enses  under  this  provi- 
sion shall  be  the  same  as  that  provided  for  offenses  in  an  Act  entitled 
"An  Act  to  further  regulate  commerce  with  foreign  nations  and  among 
the  States,"  approved  February  nineteenth,  nineteen  hundred  and  three, 
and  any  amendment  thereof.     (See  section  22.) 

Commodities  Clause. 

From  and  after  May  first,  nineteen  hundred  and  eight,  it  shall 
be  unlawful  for  any  railroad  company  to  transport  from  any  State, 
Territorv.  or  the  District  of  Columbia,  to  any  other  State.  Territory, 
or  the  District  of  Columbia,  or  to  any  foreign  country,  any  article  or 
commodity,  other  than  timber  and  the  manufactured  products  thereof, 
manufactured,  mined,  or  produced  by  it.  or  under  its  authority,  or  which 
it  may  own  in  whole  or  in  part,  or  in  which  it  may  have  any  interest, 
direct  or  indirect,  except  such  articles  or  commodities  as  may  be  nec- 
essary and  intended  for  its  use  in  the  conduct  of  its  business  as  a 
common  carrier. 

Carriers'  Duty  to  Construct  Switch  Connections. 

Any  common  carrier  subject  to  the  provisions  of  this  Act.  upon 
application  of  any  lateral,  branch  line  of  railroad,  or  of  any  shipper 
tendering  interstate  traffic  for  transportation,  shall  construct,  maintain, 
and  operate  upon  reasonable  terms  a  switch  connection  with  any  such 
lateral,  branch  line  of  railroad,  or  private  side  track  which  rnay  be 
constructed  to  connect  with  its  railroad,  where  such  connection  is  rea- 
sonably practicable  and  can  be  put  in  with  safety  and  will  furnish 
sufficient  business  to  justify  the  construction  and  maintenance  of  the 
same ;  and  shall  furnish  cars  for  the  movement  of  such  traffic  to  the 
best  of  its  ability  without  discrimination  in  favor  of  or  against  any 
such  shipper.  If  any  common  carrier  shall  fail  to  install  and  operate 
any  such  switch  or  connection  as  aforesaid,  on  application  therefor  in 
writing  by  any  shipper  or  owner  of  such  lateral,  branch  line  of  rail- 
road, such  shipper  or  owner  of  such  lateral  branch  line  of  railroad 
may  make  complaint  to  the  Commission,  as  provided  in  section  thir- 
teen of  this  Act,  and  the  Commission  shall  hear  and  investigate  the  same 


472  Important  Federal  Laws 

and  shall  determine  as  to  the  safety  and  practicability  thereof  and 
justification  and  reasonable  compensation  therefor,  and  the  Commission 
may  make  an  order,  as  provided  in  section  fifteen  of  this  x\ct,  directing 
the  common  carrier  to  comply  with  the  provisions  of  this  section  in 
accordance  with  such  order,  and  such  order  shall  be  enforced  as  here- 
inafter provided  for  the  enforcement  of  all  other  orders  by  the  Com- 
mission, other  than  orders  for  the  payment  of  money.  (As  amended 
June  29,  1906,  April  13,  1908,  and  June  18,  1910.) 

Unjust  Discrimination  Defined  and  Forbidden. 

Sec.  2.  That  if  any  common  carrier  subject  to  the  provisions  of 
this  Act  shall,  directly  or  indirectly,  by  any  special  rate,  rebate,  draw- 
back, or  other  device,  charge,  demand,  collect,  or  receive  from  any 
person  or  persons  a  greater  or  less  compensation  for  any  service  ren- 
dered, or  to  be  rendered,  in  the  transportation  of  passengers  or  prop- 
erty, subject  to  the  provisions  of  this  Act,  than  it  charges,  demands, 
collects,  or  receives  from  any  other  person  or  persons  for  doing  for 
him  or  them  a  like  and  contemporaneous  service  in  the  transportation 
of  a  like  kind  of  traffic  under  substantially  similar  circumstances  and 
conditions,  such  common  carrier  shall  be  deemed  guilty  of  unjust  dis- 
crimination, which  is  hereby  prohibited  and  declared  to  be  unlawful. 

Discriminations  and  Preferences  Forbidden. 

Sec.  3.  That  it  shall  be  unlawful  for  any  common  carrier  sub- 
ject to  the  provisions  of  this  Act  to  make  or  give  any  undue  or  unrea- 
sonable preference  or  advantage  to  any  particular  person,  company, 
firm,  corporation,  or  locality,  or  any  particular  description  of  traffic, 
in  any  respect  whatsoever,  or  to  subject  any  particular  person,  com- 
pany, firm,  corporation,  or  locality,  or  any  particular  description  of 
trafftc,  to  any  undue  or  imreasonable  prejudice  or  disadvantage  in  any 
respect  whatsoever. 

Every  common  carrier  subject  to  the  provisions  of  this  Act  shall, 
according  to  their  respective  powers,  afiford  all  reasonable,  proper,  and 
equal  facilities  for  the  interchange  of  traffic  between  their  respective 
lines,  and  for  the  receiving,  forwarding,  and  delivering  of  passengers 
and  property  to  and  from  their  several  lines  and  those  connecting  there- 
with, and  shall  not  discriminate  in  their  rates  and  charges  between  such 
connecting  lines  ;  but  this  shall  not  be  construed  as  requiring  any  such 
common  carrier  to  give  the  use  of  its  tracks  or  terminal  facilities  to 
another  carrier  engaged  in  like  business. 

Long  and  Short  Haul  Provision. 

Sec.  4.  That  it  shall  be  unlawful  for  any  common  carrier  sub- 
ject to  the  provisions  of  this  Act  to  charge  or  receive  any  greater 
compensation  in  the  aggregate  for  the  transportation  of  passengers,  or 
of  like  kind  of  property,  for  a  shorter  than  for  a  longer  distance  over 
the  same  line  or  route  in  the  same  direction,  the  shorter  being  included 


Interstate  Commerce  473 

within  the  longer  distance,  or  to  charge  any  greater  compensation  as  a 
through  route  than  the  aggregate  of  the  intermediate  rates  subject  to 
the  provisions  of  this  Act ;  but  this  shall  not  be  construed  as  authoriz- 
ing any  common  carrier  within  the  terms  of  this  Act  to  charge  or  receive 
as  great  compensation  for  a  shorter  as  for  a  longer  distance :  Provided, 
however,  That  upon  application  to  the  Interstate  Commerce  Commission 
such  common  carrier  may  in  special  cases,  after  investigation,  be  author- 
ized by  the  Commission  to  charge  less  for  longer  than  for  shorter  dis- 
tances for  the  transportation  of  passengers  or  property ;  and  the  Com- 
mission may  from  time  to  time  prescribe  the  extent  to  which  such 
designated  common  carrier  may  be  relieved  from  the  operation  of  this 
section :  Provided  further,  That  no  rates  or  charges  lawfully  existing 
at  the  time  of  the  passage  of  this  amendatory  Act  shall  be  required  to 
be  changed  by  reason  of  the  provisions  of  this  section  prior  to  the 
expiration  of  six  months  after  the  passage  of  this  Act,  nor  in  any  case 
where  application  shall  have  been  filed  before  the  Commission,  in  ac- 
cordance with  the  provisions  of  this  section,  until  a  determination  of 
such  application  by  the  Commission. 

Whenever  a  carrier  by  railroad  shall  in  competition  with  a  water 
route  or  routes  reduce  the  rates  on  the  carriage  of  any  species  of  freight 
to  or  from  competitive  points,  it  shall  not  be  permitted  to  increase  such 
rates  unless  after  hearing  by  the  Interstate  Commerce  Commission  it 
shall  be  found  that  such  proposed  increase  rests  upon  changed  condi- 
tions other  than  the  elimination  of  water  competition.  (As  amended 
June  18,  1910.) 

Pooling  Forbidden ;  Ownership  of  Competing  Lines. 

Sec.  5.  That  it  shall  be  unlawful  for  any  common  carrier  subject 
to  the  provisions  of  this  Act  to  enter  into  any  contract,  agreement,  or 
combination  with  any  other  common  carrier  or  carriers  for  the  pooling 
of  freights  of  dififerent  and  competing  railroads,  or  to  divide  between 
them  the  aggregate  or  net  proceeds  of  the  earnings  of  such  railroads, 
or  any  portion  thereof;  and  in  any  case  of  an  agreement  for  the  pooling 
of  freights  as  aforesaid,  each  day  of  its  continuance  shall  be  deemed  a 
separate  ofifense. 

From  and  after  the  first  day  of  July,  nineteen  hundred  and  four- 
teen, it  shall  be  unlawful  for  any  railroad  company  or  other  common 
carrier  subject  to  the  Act  to  regulate  commerce  to  own,  lease,  operate, 
control,  or  have  any  interest  whatsoever  (by  stock  ownership  or  other- 
wise, either  directly,  indirectly,  through  any  holding  company,  or  by 
stockholders  on  directors  in  common,  or  in  any  other  manner)  in  any 
common  carrier  by  water  operated  through  the  Panama  Canal  or  else- 
where with  which  said  railroad  or  other  carrier  aforesaid  does  or  may 
compete  for  traffic  or  any  vessel  carrying  freight  or  passengers  upon 
said  water  route  or  elsewhere  with  which  said  railroad  or  other  car- 
rier aforesaid  does  or  may  compete  for  traffic ;  and  in  case  of  the  vio- 


474  Important  Federal  Laws 

lation  of  this  provision  each  day  in  which  such  violation  continues  shall 
be  deemed  a  separate  offense. 

Jurisdiction  is  hereby  conferred  on  the  Interstate  Commerce  Corn- 
mission  to  determine  questions  of  fact  as  to  the  competition  or  possi- 
bility of  competition,  after  full  hearing,  on  the  application  of  any  rail- 
road company  or  other  carrier.  Such  application  may  be  filed  for  the 
purpose  of  determining  whether  any  existing  service  is  in  violation  of 
this  section  and  pray  for  an  order  permitting  the  continuance  of  any 
vessel  or  vessels  already  in  operation,  or  for  the  purpose  of  ask- 
ing an  order  to  install  new  service  not  in  conflict  with  the  provisions 
of  this  paragraph.  The  Commission  may  on  its  o\wh  motion  or  the 
application  of  any  shipper  institute  proceedings  to  inquire  into  the 
operation  of  any  vessel  in  use  by  any  railroad  or  other  carrier  which 
has  not  applied  to  the  Commission  and  had  the  question  of  competition 
or  the  possibility  of  competition  determined  as  herein  provided.  In 
all  such  cases  the  order  of  said  Commission  shall  be  final. 

If  the  Interstate  Commerce  Commission  shall  be  of  the  opinion 
that  anv  such  existing  specified  service  by  water  other  than  through 
the  Panama  Canal  is  being  operated  in  the  interest  of  the  public  and 
is  of  advantage  to  the  convenience  and  commerce  of  the  people,  and  that 
such  extension  will  neither  exclude,  prevent,  nor  reduce  competition 
on  the  route  by  water  under  consideration,  the  Interstate  Commerce 
Commission  may,  by  order,  extend  the  time  during  which  such  service 
by  water  may  continue  to  be  operated  beyond  July  first,  nineteen  hun- 
dred and  fourteen.  In  every  case  of  such  extension  the  rates,  schedules, 
and  practices  of  such  water  carrier  shall  be  filed  with  the  Interstate 
Commerce  Commission  and  shall  be  subject  to  the  Act  to  regulate 
commerce  and  all  amendments  thereto  in  the  same  manner  and  to  the 
same  extent  as  is  the  railroad  or  other  common  carrier  controlling  such 
water  carrier  or  interested  in  any  manner  in  its  operation :  Provided. 
Any  application  for  extension  under  the  terms  of  this  provision  filed 
wnth  the  Interstate  Commerce  Commission  prior  to  July  first,  nineteen 
hundred  and  fourteen,  but  for  any  reason  not  heard  and  disposed  of 
before  said  date,  may  be  considered  and  granted  thereafter. 

Violators  of  Sherman  Act  Not  to  Use  Canal. 

No  vessel  permitted  to  engage  in  the  coastwise  or  foreign  trade 
of  the  United  States  shall  be  permitted  to  enter  or  pass  through  said 
canal  if  such  ship  is  owned,  chartered,  operated,  or  controlled  by  any 
person  or  company  which  is  doing  business  in  violation  of  the  provi- 
sions of  the  Act  of  Congress  approved  July  second,  eighteen  hundred 
and  ninety,  entitled  "An  Act  to  protect  trade  and  commerce  against 
unlawful  restraints  and  monopolies,"  or  the  provisions  of  sections 
seventy-three  to  seventy-seven,  both  inclusive,  of  an  Act  approved 
August  twenty-seventh,  eighteen  hundred  and  ninety-four,  entitled  "An 
Act  to  reduce  taxation,  to  provide  revenue  for  the  government,  and  for 


Interstate  Commerce  475 

other  purposes,"  or  the  provisions  of  any  other  Act  of  Congress  amend- 
ing or  supplementing  the  said  Act  of  July  second,  eighteen  hundred  and 
ninety,  conmionly  known  as  the  Sherman  Antitrust  Act,  and  amend- 
ments thereto,  or  said  sections  of  the  Act  of  August  twenty-seventh, 
eighteen  hundred  and  ninety-four.  The  question  of  fact  may  be  deter- 
mined by  the  judgment  of  any  court  of  the  United  States  of  competent 
jurisdiction  in  any  cause  pending  before  it  to  which  the  owners  or 
operators  of  such  ship  are  parties.  Suit  may  be  brought  by  any  shipper 
or  bv  the  Attorney  General  of  the  United  States.  (As  amended  August 
24,  i912.) 

Schedules  of  Rates  Open  to  Public. 

Sec.  6.  That  every  common  carrier  subject  to  the  provisions  of  this 
Act  shall  file  with  the  Commission  created  by  this  Act  and  print  and  keep 
open  to  public  inspection  schedules  showing  all  the  rates,  fares,  and  charges 
for  transportation  between  different  point  s  on  its  own  route  and  between 
points  on  its  own  route  and  points  on  the  route  of  any  other  carrier  by 
railroad,  by  pipe  line,  or  by  water  when  a  through  route  and  joint  rate 
have  been  established.  If  no  joint  rate  over  the  through  route  has  been 
established,  the  several  carriers  in  such  through  route  shall  tile,  print  and 
keep  open  to  public  inspection  as  aforesaid,  the  separately  established 
rates,  fares  and  charges  applied  to  the  through  transportation.  The 
schedules  printed  as  aforesaid  by  any  such  common  carrier  shall  plainly 
state  the  places  between  which  property  and  passengers  will  be  car- 
ried, and  shall  contain  the  classification  of  freight  in  force,  and  shall 
also  state  separately  all  terminal  charges,  storage  charges,  icing  charges, 
and  all  other  charges  which  the  Commission  may  require,  all  privileges 
or  facilities  granted  or  allowed  and  any  rules  or  regulations  which  in 
any  wise  change,  afit'ect,  or  determine  any  part  or  the  aggregate  of 
such  aforesaid  rates,  fares,  and  charges,  or  the  value  of  the  service 
rendered  to  the  passenger,  shipper,  or  consignee.  Such  schedules  shall 
be  plainly  printed  in  large  type,  and  copies  for  the  use  of  the  public 
shall  be  kept  posted  in  tw^o  public  and  conspicuous  places  in  every 
depot,  station,  or  office  of  such  carrier  where  passengers  or  freight, 
respectively,  are  received  for  transportation,  in  such  form  that  they 
shall  be  accessible  to  the  public  and  can  be  conveniently  inspected.  The 
provisions  of  this  section  shall  apply  to  all  traffic,  transportation,  and 
facilities  defined  in  this  Act. 

Any  common  carrier  subject  to  the  provisions  of  this  Act  receiving 
freight  in  the  United  States  to  be  carried  through  a  foreign  countrv  to 
any  place  in  the  United  States  shall  also  in  like  manner  print  and  keep 
open  to  public  inspection,  at  every  depot  or  office  where  such  freight  is 
received  for  shipment,  schedules  showing  the  through  rates  established 
and  charged  by  such  common  carrier  to  all  points  in  the  United  States 
beyond  the  foreign  country  to  which  it  accepts  freight  for  shipment ; 
and  any  freight  shipped  from  the  United  States  through  a  foreign  coun- 


476  Important  Federal  Laws 

try  into  the  United  States  the  through  rate  on  which  shall  not  have 
been  made  public,  as  required  by  this  Act,  shall,  before  it  is  admitted 
into  the  United  States  from  said  foreign  country,  be  subject  to  customs 
duties  as  if  said  freight  were  of  foreign  production. 

Thirty  Days  Public  Notice  of  Change  in  Rates  Must  Be  Given. 

No  change  shall  be  made  in  the  rates,  fares,  and  charges  or  joint 
rates,  fares,  and  charges  which  have  been  filed  and  published  by  any 
common  carrier  in  compliance  with  the  requirements  of  this  section, 
except  after  thirty  days'  notice  to  the  Commission  and  to  the  public 
published  as  aforesaid,  which  shall  plainly  state  the  changes  proposed 
to  be  made  in  the  schedule  then  in  force  and  the  time  when  the  changed 
rates,  fares,  or  charges  will  go  into  eft'ect ;  and  the  proposed  changes  shall 
be  shown  by  printing  new  schedules,  or  shall  be  plainly  indicated  upon 
the  schedules  in  force  at  the  time  and  kept  open  to  public  inspection : 
Provided,  That  the  Commission  may,  in  its  discretion  and  for  good 
cause  shown,  allow  changes  upon  less  than  the  notice  herein  specified, 
or  modify  the  requirements  of  this  section  in  respect  to  publishing, 
posting,  and  filing  of  tariffs,  either  in  particular  instances  or  by  a  gen- 
eral order  applicable  to  special  or  peculiar  circumstances  or  conditions. 

Joint  Tariffs. 

The  names  of  the  several  carriers  which  are  parties  to  any  joint 
tariff  shall  be  specified  therein,  and  each  of  the  parties  thereto,  other 
than  the  one  filing  the  same,  shall  file  with  the  Commission  such  evi- 
dence of  concurrence  therein  or  acceptance  thereof  as  may  be  required 
or  approved  by  the  Commission,  and  where  such  evidence  of  concur- 
rence or  acceptance  is  filed  it  shall  not  be  necessary  for  the  carriers 
filing  the  same  to  also  file  copies  of  the  tarift's  in  which  they  are  named 
as  parties. 

Everv  common  carrier  subject  to  this  Act  shall  also  file  with  said 
Commission  copies  of  all  contracts,  agreements,  or  arrangements  with 
other  common  carriers  in  relation  to  any  traffic  affected  by  the  provi- 
sions of  this  Act  to  which  it  may  be  a  party. 

Commission  May  Prescribe  Forms  of  Schedules. 

The  Commission  may  determine  and  prescribe  the  form  in  which 
the  schedules  required  by  this  section  to  be  kept  open  to  public  inspec- 
tion shall  be  prepared  and  arranged  and  may  change  the  form  from 
time  to  time  as  shall  be  found  expedient. 

No  carrier,  unless  otherwise  provided  by  this  Act,  shall  engage 
or  participate  in  the  transportation  of  passengers  or  property,  as  defined 
in  this  Act,  unless  the  rates,  fares,  and  charges  upon  which  the  same 
are  transported  by  said  carrier  have  been  filed  and  published  in  accord- 
ance with  the  provisions  of  this  Act ;  nor  shall  any  carrier  charge  or 
demand  or  collect  or  receive  a  greater  or  less  or  different  compensation 
for  such  transportation  of  passengers  or  property,  or  for  any  service  in 
connection  therewith,  between,  the  points  named  in  such  tarift's  than  the 


Interstate  Commerce  477 

rates,  fares,  and  charges  which  are  specified  in  the  tariff  filed  and  in 
effect  at  the  time ;  nor  shall  any  carrier  refund  or  remit  in  any  manner 
or  by  any  device  any  portion  of  the  rates,  fares,  and  charges  so  specified, 
nor  extend  to  any  shipper  or  person  any  privileges  or  facilities  in  the 
transportation  of  passengers  or  property,  except  such  as  are  specified 
in  such  tariff's :  Provided,  That  wherever  the  word  "carrier"  occurs  in 
this  Act  it  shall  be  held  to  mean  "common  carrier." 

Military  Necessity. 

That  in  time  of  war  or  threatened  war  preference  and  precedence 
shall,  upon  the  demand  of  the  President  of  the  United  States,  be  given, 
over  all  other  traffic,  to  the  transportation  of  troops  and  material  of 
war,  and  carriers  shall  adopt  every  means  within  their  control  to  facili- 
tate and  expedite  the  military  traffic.  And  in  time  of  peace  shipments 
consigned  to  agents  of  the  United  States  for  its  use  shall  be  delivered  by 
the  carriers  as  promptly  as  possible  and  without  regard  to  any  embargo 
that  may  have  been  declared,  and  no  such  embargo  shall  apply  to  ship- 
ments so  consigned.      (As  amended  August  29,    1916.) 

Commission  May  Reject  Certain  Schedules. 

The  Commission  may  reject  and  refuse  to  file  any  schedule  that  is 
tendered  for  filing  which  does  not  provide  and  give  lawful  notice  of 
its  efifective  date,  and  any  schedule  so  rejected  by  the  Commission  shall 
be  void  and  its  use  shall  be  unlawful. 

In  case  of  failure  or  refusal  on  the  part  of  any  carrier,  receiver, 
or  trustee  to  comply  with  the  terms  of  any  regulation  adopted  and 
promulgated  or  any  order  made  by  the  Commission  under  the  provi- 
sions of  this  section,  such  carrier,  receiver,  or  trustee  shall  be  liable 
to  a  penalty  of  five  hundred  dollars  for  each  such  offense,  and  twenty- 
five  dollars  for  each  and  every  day  of  the  continuance  of  such  offense, 
which  shall  accrue  to  the  United  States  and  may  be  recovered  in  a  civil 
action  brought  by  the  United  States. 

Carrier  to  Furnish  Written  Statement  of  Rate. 

If  any  common  carrier  subject  to  the  provisions  of  this  Act,  after 
written  request  made  upon  the  agent  of  such  carrier  hereinafter  in  this 
section  referred  to,  by  any  person  or  company  for  a  written  statement 
of  the  rate  or  charge  applicable  to  a  described  shipment  between  stated 
places  under  the  schedules  or  tariff's  to  which  such  carrier  is  a  party, 
shall  refuse  or  omit  to  give  such  written  statement  within  a  reasonable 
time,  or  shall  misstate  in  writing  the  applicable  rate,  and  if  the  person 
or  company  making  such  request  suff'ers  damage  in  consequence  of  such 
refusal  or  omission  or  in  consequence  of  the  misstatement  of  the  rate, 
either  through  making  the  shipment  over  a  line  or  route  for  which  the 
proper  rate  is  higher  than  the  rate  over  another  available  line  or  route, 
or  through  entering  into  any  sale  or  other  contract  whereunder  such 
person  or  company  obligates  himself  or  itself  to  make  such  shipment  of 
freight  at  his  or  its  cost,  then  the  said  carrier  shall  be  liable  to  a  penalty 


478  Iaiportant  Federal  Laws 

of  two  hundred  and  fifty  dollars,  which  shall  accrue  to  the  United 
States  and  may  be  recovered  in  a  civil  action  brought  by  the  United 
State.';. 

Name  of  Carrier's  Agent  to  be  Posted. 

It  shall  be  the  duty  of  every  carrier  by  railroad  to  keep  at  all  times 
conspicuously  posted  in  every  station  where  freight  is  received  for 
transportation  the  name  of  an  agent  resident  in  the  city,  village,  or 
town  where  such  station  is  located,  to  whom  application  may  be  made 
for  the  information  by  this  section  required  to  be  furnished  on  written 
request ;  and  in  case  any  carrier  shall  fail  at  any  time  to  have  such 
name  so  posted  in  any  station,  it  shall  be  sufficient  to  address  such 
request  in  substantially  the  following  form:  "The  Station  Agent  of  the 

Company   at  Station,"   together   with   the   name   of   the 

proper  postoffice,  inserting  the  name  of  the  carrier  company  and  of  the 
station  in  the  blanks,  and  to  serve  the  same  by  depositing  the  request 
so  addressed,  with  postage  thereon  prepaid,  in  any  postoffice. 

Commission  Has  Jurisdiction  Over  Rail  and  Water  Traffic  in  Certain 
Particulars. 

When  property  may  be  or  is  transported  from  point  to  point  in 
the  United  States  by  rail  and  water  through  the  Panama  Canal  or 
otherwise,  the  transportation  being  by  a  common  carrier  or  carriers, 
and  not  entirely  within  the  limits  of  a  single  State,  the  Interstate  Com- 
merce Commission  shall  have  jurisdiction  of  such  transportation  and  of 
the  carriers,  both  by  rail  and  by  water,  which  may  or  do  engage  in 
the  same,  in  the  following  particulars,  in  addition  to  the  jurisdiction 
given  bv  the  Act  to  regulate  commerce,  as  amended  June  eighteenth, 
nineteen  hundred  and  ten : 

(a)  To  establish  physical  connection  between  the  lines  of  the 
rail  carrier  and  the  dock  of  the  water  carrier  by  directing  the  rail  car- 
rier to  make  suitable  connection  between  its  line  and  a  track  or  tracks 
which  have  been  constructed  from  the  dock  to  the  limits  of  its  right 
of  way,  or  by  directing  either  or  both  the  rail  and  water  carrier,  in- 
dividually or  in  connection  with  one  another,  to  construct  and  connect 
with  the  lines  of  the  rail  carrier  a  spur  track  or  tracks  to  the  dock. 
This  provision  shall  only  apply  where  such  connection  is  reasonably 
practicable,  can  be  made  with  safety  to  the  public,  and  where  the  amount 
of  business  to  be  handled  is  sufficient  to  justify  the  outlay. 

The  Commission  shall  have  full  authority  to  determine  the  terms 
and  conditions  upon  which  these  connecting  tracks,  when  constructed, 
shall  be  operated,  and  it  may,  either  in  the  construction  or  the  opera- 
tion of  such  tracks,  determine  what  sum  shall  be  paid  to  or  by  either 
carrier.  The  provisions  of  this  paragraph  shall  extend  to  cases  where 
the  dock  is  owned  by  other  parties  than  the  carrier  involved. 

(b)  To  establish  through  routes    and    maximum    joint  rates  be- 


Interstate  Commerce  479 

tween  and  over  such  rail  and  water  lines,  and  to  determine  all  the 
terms  and  conditions  under  which  such  lines  shall  be  operated  in  the 
handling  of  the  traffic  embraced. 

(c)  To  establish  maximum  proportional  rates  by  rail  to  and  from 
the  ports  to  which  the  triffic  is  brought,  or  from  which  it  is  taken  by  the 
water  carrier,  and  to  determine  to  what  traffic  and  in  connection  with 
what  vessels  and  upon  what  terms  and  conditions  such  rates  shall  apply. 
By  proportional  rates  are  meant  those  which  differ  from  the  correspond- 
ing local  rates  to  and  from  the  port  and  which  apply  only  to  traffic 
which  has  been  brought  to  the  port  or  is  carried  from  the  port  by  a 
common  carrier  by  water. 

(d)  If  any  rail  carrier  subject  to  the  Act  to  regulate  commerce 
enters  into  arrangements  with  any  water  carrier  operating  from  a 
port  in  the  United  States  to  a  foreign  country,  through  the  Panama 
Canal  or  otherwise,  for  the  handling  of  through  business  between  in- 
terior points  of  the  United  States  and  such  foreign  country,  the  Inter- 
state Commerce  Commission  may  require  such  railway  to  enter  into 
similar  arrangements  with  any  or  all  other  lines  of  steamships  operat- 
ing from  said  port  to  the  same  foreign  country. 

The  orders  of  the  Interstate  Commerce  Commission  relating  to 
this  section  shall  only  be  made  upon  formal  complaint  or  in  proceedings 
instituted  by  the  Commission  of  its  own  motion  and  after  full  hearing. 
The  orders  provided  for  in  the  two  amendments  to  the  Act  to  regulate 
commerce  enacted  in  this  section  shall  be  served  in  the  same  manner 
and  enforced  by  the  same  penalties  and  proceedings  as  are  the  orders 
of  the  Commission  made  under  the  provisions  of  section  fifteen  of  the 
Act  to  regulate  commerce,  as  amended  June  eighteenth,  nineteen  hun- 
dred and  ten,  and  they  may  be  conditioned  for  the  payment  of  any 
sum  or  the  giving  of  security  for  the  payment  of  any  sum  or  the  dis- 
charge of  any  obligation  which  may  be  required  by  the  terms  of  said 
order.  (As  amended  March  2,  1889,  June  29,  1906,  June  18,  1910, 
and  August  24,  1912.) 

Continuous  Passage. 

Sec.  7.  That  it  shall  be  unlawful  for  any  common  carrier  subject 
to  the  provisions  of  this  Act  to  enter  into  any  combination,  contract, 
or  agreement,  expressed  or  implied,  to  prevent,  by  change  of  time  sched- 
ule, carriage  in  different  cars,  or  by  other  means  or  devices,  the  car- 
riage of  freights  from  being  continuous  from  the  place  of  shipment 
to  the  place  of  destination ;  and  no  break  of  bulk,  stoppage,  or  interrup- 
tion made  by  such  common  carrier  shall  prevent  the  carriage  of  freights 
from  being  and  being  treated  as  one  continuous  carriage  from  the  place 
of  shipment  to  the  place  of  destination,  unless  such  break,  stoppage, 
or  interruption  was  made  in  good  faith  for  some  necessary  purpose, 
and  without  any  intent  to  avoid  or  unnecessarily  interrupt '  such  con- 
tinuous carriage  or  to  evade  any  of  the  provisions  of  this  Act. 


480  Important  Federal  Laws 

Liability  of  Common  Carriers  For  Damages  Caused  by  Violation  of 
this  Act. 

Sec.  8.  That  in  case  any  common  carrier  subject  to  the  provisions 
of  this  Act  shall  do.  cause  to  be  done,  or  permit  to  be  done  any  act, 
matter,  or  thing  in  this  Act  prohibited  or  declared  to  be  unlawful,  or 
shall  omit  to  do  any  act,  matter,  or  thing  in  this  Act  required  to  be 
done,  such  common  carrier  shall  be  liable  to  the  person  or  persons  in- 
jured thereby  for  the  full  amount  of  damages  sustained  in  conse- 
quence of  any  such  violation  of  the  provisions  of  this  Act,  together 
with  a  reasonable  counsel  or  attorney's  fee,  to  be  fixed  by  the  court 
in  every  case  of  recovery,  which  attorney's  fee  shall  be  taxed  and 
collected  as  part  of  the  costs  in  the  case. 

Procedure  in  Case  of  Damages. 

Sec.  9.  That  any  person  or  persons  claiming  to  be  damaged  by 
any  common  carrier  subject  to  the  provisions  of  this  Act  may  either 
make  complaint  to  the  Commission  as  hereinafter  provided  for,  or  may 
bring  suit  in  his  or  their  own  behalf  for  the  recovery  of  the  damages 
for  which  such  common  carrier  may  be  liable  under  the  provisions  of 
this  Act.  in  any  district  or  circuit  court  of  the  United  States  of  com- 
petent jurisdiction;  but  such  person  or  persons  shall  not  have  the  right 
to  pursue  both  of  said  remedies,  and  must  in  each  case  elect  which  one 
of  the  two  methods  of  procedure  herein  provided  for  he  or  they  will 
adopt.  In  any  such  action  brought  for  the  recovery  of  damages  the 
court  before  which  the  same  shall  be  pending  may  compel  any  director, 
officer,  receiver,  trustee,  or  agent  of  the  corporation  or  company  defend- 
ant in  such  suit  to  attend,  appear,  and  testify  in  such  case,  and  may 
compel  the  production  of  the  books  and  papers  of  such  corporation  or 
company  party  to  any  such  suit;  the  claim  that  any  such  testimony  or 
evidence  may  tend  to  criminate  the  person  giving  such  evidence  shall 
not  excuse  such  witness  from  testifying,  but  such  evidence  or  testimony 
shall  not  be  used  against  such  person  on  the  trial  of  any  criminal  pro- 
ceeding. 

Penalties. 

Sec.  10.  That  any  common  carrier  subject  to  the  provisions  of 
this  Act,  or,  whenever  such  common  carrier  is  a  corporation,  any  director 
or  officer  thereof,  or  any  receiver,  trustee,  lessee,  agent,  or  person  acting 
for  or  employed  by  such  corporation,  who.  alone  or  with  any  other 
corporation,  company,  person,  or  party,  shall  willfully  do  or  cause 
to  be  done,  or  shall  willingly  suffer  or  permit  to  be  done,  any  act, 
matter,  or  thing  in  this  Act  prohibited  or  declared  to  be  unlawful, 
or  who  shall  aid  or  abet  therein,  or  shall  willfully  omit  or  fail  to  do 
any  act.  matter,  or  thing  in  this  Act  required  to  be  done,  or  shall  cause 
or  willingly  suffer  or  permit  any  act,  matter,  or  thing  so  directed  or 
required  by  this  Act  to  be  done  not  to  be  so  done,  or  shall  aid  or  abet 
any  such   omission  or  failure,  or  shall  be   guilty  of   any  infraction  of 


Interstate  Commerce  481 

this  Act  for  which  no  penalty  is  otherwise  provided,  or  who  shall  aid 
or  abet  therein,  shall  be  deemed  guilty  of  a  misdemeanor,  and  shall, 
upon  conviction  thereof  in  any  district  court  of  the  United  States  within 
the  jurisdiction  of  which  such  offense  was  committed,  be  subject  to  a 
fine  of  not  to  exceed  five  thousand  dollars  for  each  offense :  Provided, 
That  if  the  offense  for  which  any  person  shall  be  convicted  as  afore- 
said shall  be  an  unlawful  discrimination  in  rates,  fares,  or  charges  for 
the  transportation  of  passengers  or  property,  such  person  shall,  in 
addition  to  the  fine  hereinbefore  provided  for,  be  liable  to  imprisonment 
in  the  penitentiary  for  a  term  of  not  exceeding  two  years,  or  both  such 
fine  and  imprisonment,  in  the  discretion  of  the  court. 

Any  common  carrier  subject  to  the  provisions  of  this  Act,  or, 
whenever  such  common  carrier  is  a  corporation,  any  officer  or  agent 
thereof,  or  any  person  acting  for  or  employed  by  such  corporation, 
who,  by  means  of  false  billing,  false  classification,  false  weighing,  or 
false  report  of  weight,  or  by  any  other  device  or  means,  shall  know- 
ingly and  willfully  assist,  or  shall  willingly  suffer  or  permit,  any  per- 
son or  persons  to  obtain  transportation  for  property  at  less  than  the 
regular  rates  then  established  and  in  force  on  the  line  of  transporta- 
tion of  such  common  carrier,  shall  be  deemed  guilty  of  a  misdemeanor, 
and  shall,  upon  conviction  thereof  in  any  court  of  the  United  States  of 
competent  jurisdiction  within  the  district  in  which  such  offense  was 
committed,  be  subject  to  a  fine  of  not  exceeding  five  thousand  dollars, 
or  imprisonment  in  the  penitentiary  for  a  term  of  not  exceeding  two 
years,  or  both,  in  the  discretion  of  the  court,  for  each  offense. 

Any  person,  corporation,  or  company,  or  any  agent  or  officer  there- 
of, who  shall  deliver  property  for  transportation  to  anv  common  car- 
rier subject  to  the  provisions  of  this  Act.  or  for  whom,  as  consignor  or 
consignee,  any  such  carrier  shall  transport  property,  who  shall  know- 
ingly and  willfully,  directly  or  indirectly,  himself  or  by  employee,  agent, 
officer,  or  otherwise,  by  false  billing,  false  classification,  false  weighing, 
false  representation  of  the  contents  of  the  package  or  the  substance  of 
the  property,  false  report  of  weight,  false  statement,  or  by  anv  other 
device  or  means,  whether  with  or  without  the  consent  or  connivance  of 
the  carrier,  its  agent,  or  officer,  obtain  or  attempt  to  obtain  transporta- 
tion for  such  property  at  less  than  the  regular  rates  then  established  and 
in  force  on  the  line  of  transportation ;  or  wdio  shall  knowingly  and 
willfully,  directly  or  indirectly,  himself  or  by  employee,  agent,  officer, 
or  otherwise,  by  false  statement  or  representation  as  to  cost,  value, 
nature,  or  extent  of  injury,  or  by  the  use  of  any  false  bill,  bill  of 
lading,  receipt,  voucher,  roll,  account,  claim,  certificate,  affidavit,  or 
deposition,  knowing  the  same  to  be  false,  fictitious,  or  fraudulent,  or 
to  contain  any  false,  fictitious,  or  fraudulent  statement  or  entry,  obtain 
or  attempt  to  obtain  any  allowance,  refund,  or  payment  for  damage 
or  otherwise  in  connection  with  or  growing  out  of  the  transportation 
of  or  agreement  to  transport   such  property,  wdiether  with  or  w^ithout 

(31) 


482  Important  Federal  Laws 

the  consent  or  connivance  of  the  carrier,  whereby  the  compensation  of 
such  carrier  for  such  transportation,  either  before  or  after  payment, 
shall  in  fact  be  made  less  than  the  regular  rates  then  established  and 
in  force  on  the  line  of  transportation,  shall  be  deemed  guilty  of  fraud, 
which  is  hereby  declared  to  be  a  misdemeanor,  and  shall,  upon  con- 
viction thereof  in  any  court  of  the  United  States  of  competent  jurisdic- 
tion within  the  district  in  which  such  offense  was  wholly  or  m  part 
committed,  be  subject  for  each  oft'ense  to  a  fine  of  not  exceeding  five 
thousand  dollars  or  imprisonment  in  the  penitentiary  for  a  term  of 
not  exceeding  two  years,  or  both,  in  the  discretion  of  the  court:  Pro- 
vided, That  the  penalty  of  imprisonment  shall  not  apply  to  artificial 
persons. 

If  any  such  person,  or  any  officer  or  agent  of  any  such  corpora- 
tion or  company,  shall,  by  payment  of  money  or  other  thing  of  value, 
solicitation,  or  otherwise,  induce  or  attempt  to  induce  any  common 
carrier  subject  to  the  provisions  of  this  Act,  or  any  of  its  officers  or 
agents,  to  discriminate  unjustly  in  his,  its,  or  their  favor  as  against 
any  other  consignor  or  consignee  in  the  transportation  of  property,  or 
shall  aid  or  abet  any  common  carrier  in  any  such  unjust^  discrimina- 
tion, such  person  or  such  officer  or  agent  of  such  corporation  or  com- 
panv  shall  be  deemed  guilty  of  a  misdemeanor,  and  shall,  upon  con- 
viction thereof  in  any  court  of  the  United  States  of  competent  juris- 
diction within  the  district  in  which  such  offense  was  committed,  be  sub- 
ject to  a  fine  of  not  exceeding  five  thousand  dollars,  or  imprisonment 
in  the  penitentiary  for  a  term  of  not  exceeding  two  years,  or  both, 
in  the  discretion  of  the  court,  for  each  offense;  and  such  person,  cor- 
poration, or  company  shall  also,  together  with  said  common  carrier,  be 
liable,  jointlv  or  severally,  in  an  action  to  be  brought  by  any  consignor 
or  consignee  discriminated  against  in  any  court  of  the  United  States  of 
competent  jurisdiction  for  all  damages  caused  by  or  resulting  therefrom. 
(As  amended  March  2.  1889,  and  June  18,  1910.) 

Interstate   Commerce   Commissioners — Method   of   Appointment  and 
Terms. 

Sec.  11.  That  a  Commission  is  hereby  created  and  established 
to  be  known  as  the  Interstate  Commerce  Commission,  which  shall  be 
composed  of  five  Commissioners,  who  shall  be  appointed  by  the  Presi- 
dent, by  and  with  the  advice  and  consent  of  the  Senate.  The  Commis- 
sioners' first  appointed  under  this  Act  shall  continue  in  office  for  the 
term  of  two,  three,  four,  five,  and  six  years,  respectively,  from  the 
first  day  of  January.  Anno  Domini  eighteen  hundred  and  eighty-seven, 
the  term  of  each  to' be  designated  by  the  President:  but  their  successors 
shall  be  appointed  for  terms  of  six  years,  except  that  any  person  chosen 
to  fill  a  vacancy  shall  be  appointed  only  for  the  unexpired  time  of  the 
Commissioner  whom  he  shall  succeed.  Any  Commissioner  may  be 
removed  by  the  President  for  inefficiency,  neglect  of  duty,  or  malfeas- 
ance  in   office.      Not   more   than   three   of   the   Commissioners    shall   be 


Interstate  Commerce  -   483 

appointed  from  the  same  political  party.  No  person  in  the  employ  of 
or  holding  any  official  relation  to  any  common  carrier  subject  to  the 
provisions  of  this  Act,  or  owning  stock  or  bonds  thereof,  or  who  is 
in  any  manner  pecuniarily  interested  therein,  shall  enter  upon  the  duties 
of  or  hold  such  office.  Said  Commissioner  shall  not  engage  in  any 
other  business,  vocation,  or  employment.  No  vacancy  in  the  Commi.";- 
sion  shall  impair  the  right  of  the  remaining  Commissioners  to  exer- 
cise all  the  powers  of  the  Commission.  (See  section  24,  enlarging  Com- 
mission and  increasing  salaries.) 

Powers  of  the  Commission. 

Sec.  12.  That  the  Commission  hereby  created  shall  have  authority 
to  inquire  into  the  management  of  the  business  of  all  common  car- 
riers subject  to  the  provisions  of  this  Act,  and  shall  keep  itself  informed 
as  to  the  manner  and  method  in  which  the  same  is  conducted,  and  shall 
have  the  right  to  obtain  from  such  common  carriers  full  and  com- 
plete information  necessary  to  enable  the  Commission  to  perform  the 
duties  and  carr}-  out  the  objects  for  which  it  was  created ;  and  the  Com- 
mission is  hereby  authorized  and  required  to  execute  and  enforce  the 
provisions  of  this  Act ;  and,  upon  the  request  of  the  Commission,  it  shall 
be  the  duty  of  any  district  attorney  of  the  United  States  to  whom  the 
Commission  may  apply  to  institute  in  the  proper  court  and  to  prosecute 
under  the  direction  of  the  Attorney  General  of  the  United  States  all 
necessary  proceedings  for  the  enforcement  of  the  provisions  of  this 
Act  and  for  the  punishment  of  all  violations  thereof  and  the  costs  and 
expenses  of  such  prosecution  shall  be  paid  out  of  the  appropriation  for 
the  expenses  of  the  courts  of  the  United  States  ;  and  for  the  purposes 
of  this  Act  the  Commission  shall  have  power  to  require,  by  subpoena,  the 
attendance  and  testimony  of  witnesses  and  the  production  of  all  books, 
papers,  tarififs,  contracts,  agreements,  and  documents  relating  to  any 
matter  under  investigation. 

Such  attendance  of  witnesses,  and  the  production  of  such  docu- 
mentary evidence,  may  be  required  from  any  place  in  the  United  States, 
at  any  designated  place  of  hearing.  And  in  case  of  disobedience  to  a 
subpoena  the  Commission,  or  any  party  to  a  proceeding  before  the  Com- 
mission, may  invoke  the  aid  of  any  court  of  the  United  States  in  requir- 
ing the  attendance  and  testimony  of  witnesses  and  the  production  of 
books,  papers,  and  documents  under  the  provisions  of  this  section. 

And  any  of  the  circuit  courts  of  the  United  States  within  the  juris- 
diction of  'which  such  inquiry  is  carried  on  may,  in  case  of  contumacy 
or  refusal  to  obey  a  subpoena  issued  to  any  common  carrier  subject  to 
the  provisions  of  this  Act.  or  other  person,  issue  an  order  requiring  such 
common  carrier  or  other  person  to  appear  before  said  Commission  (and 
produce  books  and  papers  if  so  ordered)  and  give  evidence  touching  the 
matter  in  question ;  and  any  failure  to  obey  such  order  of  the  court 
may  be  punished  by  such  court  as  a  contempt  thereof.  The  claim  that 
any  such  testimony  or  evidence  may  tend  to  criminate  the  person  giving 


484  Important  Federal  Laws 

such  evidence  shall  not  excuse  such  witness  from  testifying;  but  such 
evidence  or  testimony  shall  not  be  used  against  such  person  on  the 
trial  of  any  criminal  proceeding. 

The  testimony  of  any  witness  may  be  taken,  at  the  instance  of  a 
party,  in  any  proceeding  or  investigation  pending  before  the  Commis- 
sion, by  deposition,  at  any  time  after  a  cause  or  proceeding  is  at  issue 
on  petition  and  answer.  The  Commission  may  also  order  testimony  to 
be  taken  by  deposition  in  any  proceeding  or  investigation  pending  be- 
fore it,  at  any  stage  of  such  proceeding  or  investigation.  Such  deposi- 
tions may  be  taken  before  any  judge  of  any  court  of  the  United  States, 
or  any  commissioner  of  a  circuit,  or  any  clerk  of  a  district  or  circuit 
court,  or  any  chancellor,  justice,  or  judge  of  a  supreme  or  superior 
court,  mayor  or  chief  magistrate  of  a  city,  judge  of  a  county  court,  or 
court  of  common  pleas  of  any  of  the  United  States,  or  any  notary  public, 
not  being  of  counsel  or  attorney  to  either  of  the  parties,  nor  interested 
in  the  event  of  the  proceeding  or  investigation.  Reasonable  notice  must 
first  be  given  in  writing  by  the  party  or  his  attorney  proposing  to  take 
such  deposition  to  the  opposite  party  or  his  attorney  of  record,  as  either 
may  be  nearest,  which  notice  shall  state  the  name  of  the  witness  and 
the  time  and  place  of  the  taking  of  his  deposition.  Any  person  may  be 
compelled  to  appear  and  depose,  and  to  produce  documentary  evidence, 
in  the  same  manner  as  witnesses  may  be  compelled  to  appear  and 
testify  and  produce  documentary  evidence  before  the  Commission  as 
hereinbefore  provided. 

Every  person  deposing  as  herein  provided  shall  be  cautioned  and 
sworn  (or  affirm,  if  he  so  request)  to  testify  the  whole  truth,  and 
shall  be  carefully  examined.  His  testimony  shall  be  reduced  to  writing 
by  the  magistrate  taking  the  deposition,  or  under  his  direction,  and  shall, 
after  it  has  been  reduced  to  writing,  be  subscribed  by  the  deponent. 

If  a  witness  whose  testimony  may  be  desired  to  be  taken  by  deposi- 
tion be  in  a  foreign  country,  the  deposition  may  be  taken  before  an 
officer  or  person  designated  by  the  Commission,  or  agreed  upon  by  the 
parties  by  stipulation  in  writing  to  lie  filed  with  the  Commission.  All 
depositions  must  be  promptly  filed  with  the  Commission. 

Witnesses  whose  depositions  are  taken  pursuant  to  this  Act,  and 
the  magistrate  or  other  officer  taking  the  same,  shall  severally  be  en- 
titled to  the  same  fees  as  are  paid  for  like  services  in  the  courts  of  the 
United  States.     (As  amended  March  2,  1889,  and  February  10,  1891.) 

Complaints  to  Commission — Investigations. 

Sec.  13.  That  any  person,  firm,  corporation,  company,  or  associa- 
tion, or  any  mercantile,  agricultural,  or  manufacturing  society  or  other 
organization,  or  any  body  politic  or  municipal  organization,  or  any 
common  carrier,  complaining  of  anything  done  or  omitted  to  be  done 
by  any  common  carrier  subject  to  the  provisions  of  this  Act,  in  contra- 
vention  of   the   provisions   thereof,   may   apply   to   said   Commission   by 


Interstate  Commerce  485 

petition,  which  shall  hriefly  state  the  facts ;  whereupon  a  statement  of 
the  complaint  thus  made  shall  be  forwarded  by  the  Commission  to  such 
common  carrier,  who  shall  be  called  upon  to  satisfy  the  complaint,  or  to 
answer  the  same  in  writing,  within  a  reasonable  time,  to  be  specified  by 
the  Commission.  If  such  common  carrier  within  the  time  specified  shall 
make  reparation  for  the  injury  alleged  to  have  been  done,  the  common 
carrier  shall  be  relieved  of  liability  to  the  complainant  only  for  the 
particular  violation  of  law  thus  complained  of.  If  such  carrier  or  car- 
riers shall  not  satisfy  the  complaint  within  the  time  specified,  or  there 
shall  appear  to  be  any  reasonable  ground  for  investigating  said  com- 
plaint, it  shall  be  the  duty  of  the  Commission  to  investigate  the  matters 
complained  of  in  such  manner  and  by  such  means  as  it  shall  deem 
proper. 

Commission  May  Issue  Orders  in  Investigations  Begun  on  its  Own 
Motion. 

Said  Commission  shall,  in  like  manner  and  with  the  same  authority 
and  powers,  investigate  any  complaint  forwarded  by  the  railroad  com- 
missioner or  railroad  commission  of  any  State  or  Territory  at  the  re- 
quest of  such  commissioner  or  commission,  and  the  Interstate  Com- 
merce Commission  shall  have  full  authority  and  power  at  any  time 
to  institute  an  inquiry,  on  its  own  motion,  in  any  case  and  as  to  any 
matter  or  thing  concerning  wdiich  a  complaint  is  authorized  to  be  made, 
to  or  before  said  Commission  by  any  provision  of  this  Act.  or  concern- 
ing which  any  questions  may  arise  under  any  of  the  provisions  of  this 
Act,  or  relating  to  the  enforcement  of  any  of  the  provisions  of  this 
Act.  And  the  said  Commission  shall  have  the  same  powers  and  author- 
ity to  proceed  with  any  inquiry  instituted  on  its  own  motion  as  though 
it  had  been  appealed  to  by  complaint  or  petition  under  any  of  the  pro- 
visions of  this  Act,  including  the  power  to  make  and  enforce  any  order 
or  orders  in  the  case,  or  relating  to  the  matter  or  thing  concerning  which 
the  inquiry  is  had  excepting  orders  for  the  payment  of  money.  No 
complaint  shall  at  any  time  be  dismissed  because  of  the  absence  of  direct 
damage  to  the  complainant.      (As  amended  June   18,   1910.) 

Commission  Must  Report,  Stating  Its  Conclusions  and  Order. 

Sec.  14.  That  whenever  an  investigation  shall  be  made  by  said 
Commission,  it  shall  be  its  duty  to  make  a  report  in  writing  in  respect 
thereto,  which  shall  state  the  conclusions  of  the  Commission,  together 
with  its  decision,  order,  or  requirement  in  the  premises ;  and  in  case 
damages  are  awarded  such  report  shall  include  the  findings  of  fact  on 
which  the  award  is  made. 

All  reports  of  investigations  made  by  the  Commission  shall  be 
entered  of  record,  and  a  copy  thereof  shall  be  furnished  to  the  party 
who  may  have  complained,  and  to  any  common  carrier  that  may  have 
been  complained  of. 

The   Commission   may   provide    for   the   publication    of    its    reports 


486  Important  Federal  Laws 

and  decisions  in  such  form  and  manner  as  may  be  best  adapted  for 
public  information  and  use,  and  such  authorized  pubHcations  shall  be 
competent  evidence  of  the  reports  and  decisions  of  the  Commission 
therein  contained  in  all  courts  of  the  United  States  and  the  several 
States  without  any  further  proof  or  authentication  thereof.  The  Com- 
mission may  also  cause  to  be  printed  for  earlv  distribution  its  annual 
reports.     (As  amended  March  2,  1889,  and  June  29,  1906.) 

Powers  of  the  Commission. 

Sec.  15.  That  whenever,  after  full  hearing  upon  a  complaint  made 
as  provided  in  section  thirteen  of  this  Act,  or  after  full  hearing  under 
an  order  for  investigation  and  hearing  made  by  the  Commission  on  its 
own  initiative  (either  in  extension  of  awy  pending  complaint  or  with- 
out any  complaint  whatever),  the  Conmiission  shall  be  of  opinion  that 
any  individual  or  joint  rates  or  charges  whatsoever  demanded,  charged, 
or  collected  by  any  common  carrier  or  carriers  subject  to  the  provisions 
of  this  Act  for  the  transportation  of  persons  or  property  or  for  the 
transmission  of  messages  by  telegraph  or  telephone  as  defined  in  the 
first  section  of  this  Act,  or  that  any  individual  or  joint  classifications, 
regulations,  or  practices  whatsoever  of  such  carrier  or  carriers  subject 
to  the  provisions  of  this  Act  are  unjust  or  unreasonable  or  unjustly 
discriminatory,  or  unduly  preferential  or  prejudicial  or  otherwise  in 
violation  of  any  of  the  provisions  of  this  Act,  the  Commission  is  hereby 
authorized  and  empowered  to  determine  and  prescribe  what  will  be 
the  just  and  reasonable  individual  or  joint  rate  or  rates,  charge  or 
charges,  to  be  thereafter  observed  in  such  case  as  the  maximum  to  be 
charged,  and  what  individual  or  joint  classification,  regulation,  or  prac- 
tice is  just,  fair,  and  reasonable,  to  be  thereafter  followed,  and  to  make 
an  order  that  the  carrier  or  carriers  shall  cease  and  desist  from  such 
violation  to  the  extent  to  which  the  Commission  finds  the  same  to  exist, 
and  shall  not  thereafter  publish,  demand,  or  collect  any  rate  or  charge 
for  such  transportation  or  transmission  in  excess  of  the  maximum  rate 
or  charge  so  prescribed,  and  shall  adopt  the  classification  and  shall  con- 
form to  and  observe  the  regulation  or  practice  so  prescribed.  All  orders 
of  the  Commission,  except  orders  for  the  payment  of  money,  shall  take 
eflfect  within  such  reasonable  time,  not  less  than  thirty  days,  and  shall 
continue  in  force  for  such  period  of  time,  not  exceeding  two  years,  as 
shall  be  prescribed  in  the  order  of  the  Commission,  unless  the  same 
shall  be  suspended  or  modified  or  set  aside  by  the  Commission,  or  be 
suspended  or  set  aside  by  a  court  of  competent  jurisdiction.  When- 
ever the  carrier  or  carriers,  in  obedience  to  such  order  of  the  Commis- 
sion or  otherwise,  in  respect  to  joint  rates,  fares,  or  charges,  shall  fail 
to  agree  among  themselves  upon  the  apportionment  or  division  thereof 
the  Commission  may,  after  hearing,  make  a  supplemental  order  pre- 
scribing the  just  and  reasonable  proportion  of  such  joint  rate  to  be 
received  by  each  carrier  party  thereto,  which  order  shall  take  effect  as 
a  part  of  the  original  order. 


Interstate  Commerce  487 

Whenever  there  shall  be  filed  with  the  Commission  any  schedule 
stating  a  new  individual  or  joint  rate,  fare,  or  charge,  or  any  new  indi- 
vidual or  joint  classification,  or  any  new  individual  or  joint  regulation 
or  practice  affecting  any  rate,  fare,  or  charge,  the  Commission  shall 
have,  and  it  is  hereby  given,  authority,  either  upon  complaint  or  upon 
its  own  initiative  without  complaint,  at  once,  and  if  it  so  orders,  with- 
out answer  or  other  formal  pleading  by  the  interested  carrier  or  car- 
riers, but  upon  reasonable  notice,  to  enter  upon  a  hearing  concerning 
the  propriety  of  such  rate,  fare,  charge,  classification,  regulation,  or 
practice ;  and  pending  such  hearing  and  the  decision  thereon  the  Com- 
mission upon  filing  with  such  schedule  and  delivering  to  the  carrier  or 
carriers  affected  thereby  a  statement  in  writing  of  its  reasons  for  such 
suspension  may  suspend  the  operation  of  such  schedule  and  defer  the 
use  of  such  rate,  fare,  charge,  classification,  .regulation,  or  practice,  but 
not  for  a  longer  period  than  one  hundred  and  twenty  days  beyond  the 
time  when  such  rate,  fare,  charge,  classification,  regulation,  or  practice 
would  otherwise  go  into  effect ;  and  after  full  hearing,  whether  com- 
pleted before  or  after  the  rate,  fare,  charge,  classification,  regulation, 
or  practice  goes  into  effect,  the  Commission  may  make  such  order  in 
reference  to  such  rate,  fare,  charge,  classification,  regulation,  or  practice 
as  would  be  proper  in  a  proceeding  initiated  after  the  rate,  fare,  charge, 
classification,  regulation,  or  practice  had  become  eft'ective :  Provided, 
That  if  any  such  hearing  can  not  be  concluded  within  the  period  of  sus- 
pension, as  above  stated,  the  Interstate  Commerce  Commission  may,  in 
its  discretion,  extend  the  time  of  suspension  for  a  further  period  not 
exceeding  six  months.  At  any  hearing  involving  a  rate  increased  after 
January  first,  nineteen  hundred  and  ten,  or  of  a  rate  sought  to  be 
increased  after  the  passage  of  this  Act,  the  burden  of  proof  to  show 
that  the  increased  rate  or  proposed  increased  rate  is  just  and  reasonable 
shall  be  upon  the  common  carrier,  and  the  Commission  shall  give  to 
the  hearing  and  decision  of  such  questions  preference  over  all  other 
questions  pending  before  it  and  decide  the  same  as  speedily  as  possible. 

The  Commission  may  also,  after  hearing,  on  a  complaint  or  upon 
its  own  initiative  without  complaint,  establish  through  routes  and  joint 
classifications,  and  may  establish  joint  rates  as  the  maximum  to  be 
charged  and  may  prescribe  the  division  of  such  rates  as  hereinbefore 
provided  and  the  terms  and  conditions  under  which  such  through  routes 
shall  be  operated,  whenever  the  carriers  themselves  shall  have  refused 
or  neglected  to  establish  voluntarily  such  through  routes  or  joint  classi- 
fications or  joint  rates ;  and  this  provision  shall  apply  when  one  of  the 
connecting  carriers  is  a  water  line.  The  Commission  shall  not,  how- 
ever, establish  any  through  route,  classification,  or  rate  between  street 
electric  passenger  railways  not  engaged  in  the  general  business  of  trans- 
porting freight  in  addition  to  their  passenger  and  express  business  and 
railroads  of  a  dift'erent  character,  nor  shall  the  Commission  have  the 
right  to  establish   any  route,   classification,   rate,    fare,   or  charge  when 


488  Important  Federal  Laws 

the  transportation  is  wholly  by  water,  and  any  transportation  by  w-ater 
affected  by  this  Act  shall  be  subject  to  the  laws  and  regulations  applic- 
able to  transportation  by  water. 

And  in  establishing  such  through  route,  the  Commission  shall  not 
require  any  company,  without  its  consent,  to  embrace  in  such  route 
substantially  less  than  the  entire  length  of  its  railroad  and  of  any 
intermediate  railroad  operated  in  conjunction  and  under  a  common 
management  or  control  therewith  which  lies  between  the  termini  of 
such  proposed  through  route,  unless  to  do  so  would  make  such  through 
route  unreasonably  long  as  compared  with  another  practicable  through 
route  which  could  otherwise  be  established. 

In  all  cases  where  at  the  time  of  delivery  of  property  to  any  rail- 
road corporation  being  a  common  carrier,  for  transportation  subject  to 
the  provisions  of  this  Act  to  any  point  of  destination,  between  wdiich 
and  the  point  of  such  delivery  for  shipment  two  or  more  through  routes 
and  through  rates  shall  have  been  established  as  in  this  Act  provided 
to  which  through  routes  and  through  rates  such  carrier  is  a  party,  the 
person,  firm,  or  corporation  making  such  shipment,  subject  to  such 
reasonable  exceptions  and  regulations  as  the  Interstate  Commerce  Com- 
mission shall  from  time  to  time  prescribe,  shall  have  the  right  to  desig- 
nate in  writing  by  which  of  such  through  routes  such  property  shall 
be  transported  to  destination,  and  it  shall  thereupon  be  the  duty  of  the 
initial  carrier  to  route  said  property  and  issue  a  through  bill  of  lading 
therefor  as  so  directed,  and  to  transport  said  property  over  its  own 
line  or  lines  and  deliver  the  same  to  a  connecting  line  or  lines  according 
to  such  through  route,  and  it  shall  be  the  duty  of  each  of  said  con- 
necting carriers  to  receive  said  property  and  transport  it  over  the  said 
line  or  lines  and  deliver  the  same  to  the  next  succeeding  carrier  or 
consignee  according  to  the  routing  instructions  in  said  bill  of  lading: 
Provided,  however,  That  the  shipper  shall  in  all  instances  have  the  right 
to  determine,  where  competing  lines  of  railroad  constitute  portions  of  a 
through  line  or  route,  over  which  of  said  competing  lines  so  constituting 
a  portion  of  said  through  line  or  route  his  freight  shall  be  transported. 

It  shall  be  unlawful  for  any  common  carrier  subject  to  the  pro- 
visions of  this  Act,  or  any  officer,  agent,  or  employee  of  such  common 
carrier,  or  for  any  other  person  or  corporation  lawfully  authorized  by 
such  common  carrier  to  receive  information  therefrom,  knowingly  to 
disclose  to  or  permit  to  be  acquired  by  any  person  or  corporation  other 
than  the  shipper  or  consignee,  without  the  consent  of  such  shipper  or 
consignee,  any  information  concerning  the  nature,  kind,  quantitv.  desti- 
nation, consignee,  or  routing  of  any  property  tendered  or  delivered  to 
such  common  carrier  for  interstate  transportation,  which  information 
may  be  used  to  the  detriment  or  prejudice  of  such  shipper  or  consio-nee, 
or  which  may  improperly  disclose  his  business  transactions  to  a  com- 
petitor;  and  it  shall  also  be  unlawful  for  any  person  or  corporation  to 
solicit   or   knowingly    receive   any   such    information   which    mav   be    so 


Interstate  Commerce  489 

used :  Provided,  That  nothing  in  this  Act  shall  be  construed  to  prevent 
the  giving  of  such  information  in  response  to  any  legal  process  issued 
under  the  authority  of  any  state  or  federal  court,  or  to  any  officer  or 
agent  of  the  Government  of  the  United  States,  or  of  any  State  or  Ter- 
ritory, in  the  exercise  of  his  powers,  or  to  any  officer  or  other  duly 
authorized  person  seeking  such  information  for  the  prosecution  of  per- 
sons charged  with  or  suspected  of  crime ;  or  information  given  by  a  com- 
mon carrier  to  another  carrier  or  its  duly  authorized  agent,  for  the  pur- 
pose of  adjusting  mutual  traffic  accounts  in  the  ordinary  course  of  busi- 
ness of  such  carriers. 

Any  person,  corporation,  or  association  violating  any  of  the  pro- 
visions of  the  next  preceding  paragraph  of  this  section  shall  be  deemed 
guilty  of  a  misdemeanor,  and  for  eajch  ofifense,  on  conviction,  shall  pay 
to  the  United  States  a  penalty  of  not  more  than  one  thousand  dollars. 

If  the  owner  of  property  transported  under  this  Act  directly  or 
indirectly  renders  any  service  connected  with  such  transportation,  or 
furnishes  any  instrumentality  used  therein,  the  charge  and  allowance 
therefor  shall  be  no  more  than  is  just  and  reasonable,  and  the  Com- 
mission may,  after  hearing  on  a  complaint  or  on  its  own  initiative, 
determine  what  is  a  reasonable  charge  as  the  maximum  to  be  paid  by 
the  carrier  or  carriers  for  the  services  so  rendered  or  for  the  use  of  the 
instrumentality  so  furnished,  and  fix  the  same  by  appropriate  order, 
which  order  shall  have  the  same  force  and  effect  and  be  enforced  in  like 
manner  as  the  orders  above  provided  for  under  this  section. 

The  foregoing  enumeration  of  powers  shall  not  exclude  anv  power 
which  the  Commission  would  otherwise  have  in  the  making  of  an  order 
under  the  provisions  of  this  Act.  (As  amended  June  29,  1906,  and 
June  18,  1910.) 

Award  of  Damages  by  Commission. 

Sec.  16.  That  if,  after  hearing  on  a  complaint  made  as  provided 
in  section  thirteen  of  this  Act,  the  Commission  shall  determine  that  any 
party  complainant  is  entitled  to  an  award  of  damages  under  the  provi- 
sions of  this  Act  for  a  violation  thereof,  the  Commission  shall  make  an 
order  directing  the  carrier  to  pay  to  the  complainant  the  sum  to  which 
he  is  entitled  on  or  before  a  day  named. 

If  a  carrier  does  not  comply  with  an  order  for  the  payment  of 
money  within  the  time  limit  in  such  order,  the  complainant,  or  any 
person  for  whose  benefit  such  order  was  made,  may  file  in  the  circuit 
court  of  the  United  States  for  the  district  in  which  he  resides  or  in 
which  is  located  the  principal  operating  office  of  the  carrier,  or  through 
which  the  road  of  the  carrier  runs,  or  in  any  state  court  of  general  juris- 
diction having  jurisdiction  of  the  parties,  a  petition  setting  forth  briefly 
the  causes  for  which  he  claims  damages,  and  the  order  of  the  Com- 
mission in  the  premises.  Such  suit  in  the  circuit  court  of  the  United 
States  shall  proceed  in  all  respects  like  other  civil  suits  for  damages, 
except  that  on  the  trial  of  such  suit  the  findings  and  order  of  the  Com- 


490  Important  Federal  Laws 

mission  shall  be  prima  facie  evidence  of  the  facts  therein  stated,  and 
except  that  the  petitioner  shall  not  be  liable  for  costs  in  the  circuit 
court  nor  for  costs  at  any  subsequent  stage  of  the  proceedings  unless 
they  accrue  upon  his  appeal.  If  the  petitioner  shall  finally  prevail  he 
shall  be  allowed  a  reasonable  attorney's  fee,  to  be  taxed  and  collected 
as  a  part  of  the  costs  of  the  suit.  All  complaints  for  the  recovery  of 
damages  shall  be  filed  with  the  Commission  within  two  years  from  the 
time  the  cause  of  action  accrues,  and  not  after,  and  a  petition  for  the 
enforcement  of  an  order  for  the  payment  of  money  shall  be  filed  in  the 
circuit  court  or  state  court  within  one  year  from  the  date  of  the  order, 
and  not  after. 

In  such  suits  all  parties  in  whose  favor  the  Commission  may  have 
made  an  award  for  damages  by  a  single  order  may  be  joined  as  plain- 
tiffs, and  all  of  the  carriers  parties  to  such  order  awarding  such  dam- 
ages may  be  joined  as  defendants,  and  such  suit  may  be  maintained  by 
such  joint  plaintiffs  and  against  such  joint  defendants  in  any  district 
where  any  one  of  such  joint  plaintiffs  could  maintain  such  suit  against 
any  one  of  such  joint  defendants ;  and  service  of  process  against  any 
one  of  such  defendants  as  may  not  be  found  in  the  district  where  the 
suit  is  brought  may  be  made  in  any  district  where  such  defendant  car- 
rier has  its  principal  operating  office.  In  case  of  such  joint  suit  the 
recovery,  if  any,  may  be  by  judgment  in  favor  of  any  one  of  such  plain- 
tiffs, against  the  defendant  found  to  be  liable  to  such  plaintiff. 

Every  order  of  the  Commission  shall  be  forthwith  served  upon  the 
designated  agent  of  the  carrier  in  the  city  of  Washington  or  in  such 
other  manner  as  may  be  provided  by  law. 

The  Commission  shall  be  authorized  to  suspend  or  modify  its  orders 
upon  such  notice  and  in  such  manner  as  it  shall  deem  proper. 

It  shall  be  the  duty  of  every  common  carrier,  its  agents  and  em- 
ployees, to  observe  and  comply  with  such  orders  so  long  as  the  same 
shall  remain  in  effect. 

Any  carrier,  any  officer,  representative,  or  agent  of  a  carrier,  or 
any  receiver,  trustee,  lessee,  or  agent  of  either  of  them,  who  knowingly 
fails  or  neglects  to  obey  any  order  made  under  the  provisions  of  section 
fifteen  of  this  Act  shall  forfeit  to  the  United  States  the  sum  of  five 
thousand  dollars  for  each  offense.  Every  distinct  violation  shall  be  a 
separate  offense,  and  in  case  of  a  continuing  violation  each  day  shall 
be  deemed  a  separate  offense. 

The  forfeiture  provided  for  in  this  Act  shall  be  payable  into  the 
Treasury  of  the  United  States,  and  shall  be  recoverable  in  a  civil  suit 
in  the  name  of  the  United  States,  brought  in  the  district  where  the 
carrier  has  its  principal  operating  office,  or  in  any  district  through  which 
the  road  of  the  carrier  runs. 

It  shall  be  the  duty  of  the  various  district  attorneys,  under  the 
direction  of  the  Attorney  General  of  the  United  States,  to  prosecute 
for  the  recovery  of  forfeitures.     The  costs  and  expenses  of  such  prose- 


Interstate  Commerce  491 

cution  shall  be  paid  out  of  the  appropriation   for  the  expenses   of  the 
courts  of  the  United  States. 

The  Commission  may  employ  such  attorneys  as  it  finds  necessary 
for  proper  legal  aid  and  service  of  the  Commission  or  its  members  in 
the  conduct  of  their  work  or  for  proper  representation  of  the  public 
interests  in  investigations  made  by  it  or  cases  or  proceedings  pending 
before  it,  whether  at  the  Commission's  own  instance  or  upon  com- 
plaint, or  to  appear  for  and  represent  the  Commission  in  any  case 
pending  in  the  Commerce  Court ;  and  the  expenses  of  such  employment 
shall  be  paid  out  of  the  appropriation  for  the  Commission. 

Commerce  Court  to  Enforce  Orders  Other  Than  for  Payment  of 
Money. 

If  any  carrier  fails  or  neglects  to  obey  any  order  of  the  Commis- 
sion other  than  for  the  payment  of  money,  while  the  same  is  in  effect, 
the  Interstate  Commerce  Commission  or  any  party  injured  thereby,  or 
the  United  States,  by  its  Attorney  General,  may  apply  to  the  Commerce 
Court  for  the  enforcement  of  such  order.  If,  after  hearing,  that  Court 
determines  that  the  order  was  regularly  made  and  duly  served,  and  that 
the  carrier  is  in  disobedience  of  the  same,  the  Court  shall  enforce  obe- 
dience to  such  order  by  a  writ  of  injunction  or  other  proper  process, 
mandatory  or  otherwise,  to  restrain  such  carrier,  its  officers,  agents,  or 
representatives,  from  further  disobedience  of  such  order,  or  to  enjoin 
upon  it  or  them  obedience  to  the  same. 

Note. — The  Commerce  Court  was  abolished  in  1913  and  its  duties  conferred 
upon  the  United  States  District  Court. 

The  copies  of  schedules  and  classifications  and  tariffs  of  rates, 
fares,  and  charges,  and  of  all  contracts,  agreements,  and  arrangements 
between  common  carriers  filed  with  the  Commission  as  herein  provided, 
and  the  statistics,  tables,  and  figures  contained  in  the  annual  or  other 
reports  of  carriers  made  to  the  Commission  as  required  under  the  pro- 
visions of  this  Act  shall  be  preserved  as  public  records  in  the  custody 
of  the  secretary  of  the  Commission,  and  shall  be  received  as  prima  facie 
evidence  of  what  they  purport  to  be  for  the  purpose  of  investigations 
by  the  Commission  and  in  all  judicial  proceedings ;  and  copies  of  and 
extracts  from  any  of  said  schedules,  classifications,  tariffs,  contracts, 
agreements,  arrangements,  or  reports,  made  public  records  as  afore- 
said, certified  by  the  secretary,  under  the  Commission's  seal,  shall  be 
received  in  evidence  with  like  effect  as  the  originals.  (As  amended 
March  2,  1889,  June  29,  1906,  and  June  18,  1910.) 

Commission  May  Grant  Rehearings. 

Sec.  16a.  That  after  a  decision,  order,  or  requirement  has  been 
made  by  the  Commission  in  any  proceeding  any  party  thereto  may  at 
any  time  make  application  for  rehearing  of  the  same,  or  any  matter 
determined  therein,  and  it  shall  be  lawful  for  the  Commission  in  its 
discretion   to   grant   such   a    rehearing   if    sufficient    reason   therefor   be 


492  Important  Federal  Laws 

made  to  appear.  Applications  for  rehearing  shall  be  governed  by  such 
general  rules  as  the  Commission  may  establish.  No  such  application 
shall  excuse  any  carrier  from  complying  with  or  obeying  any  decision, 
order,  or  requirement  of  the  Commission,  or  operate  in  any  manner  to 
stay  or  postpone  the  enforcement  thereof,  without  the  special  order  of 
the  Commission.  In  case  a  rehearing  is  granted  the  proceedings  there- 
upon shall  conform  as  nearly  as  may  be  to  the  proceedings  in  an  original 
hearing,  except  as  the  Commission  may  otherwise  direct ;  and  if,  in 
its  judgment,  after  such  rehearing  and  the  consideration  of  all  facts, 
including  those  arising  since  the  former  hearing,  it  shall  appear  that 
the  original  decision,  order,  or  requirement  is  in  any  respect  unjust  or 
unwarranted,  the  Commission  may  reverse,  change,  or  modify  the  same 
accordingly.  Any  decision,  order,  or  requirement  made  after  such  re- 
hearing, reversing,  changing,  or  modifying  the  original  determination 
shall  be  subject  to  the  same  provisions  as  an  original  order.  (Added 
June  29,  1906.) 

Commission  May  Determine  its  Own  Procedure. 

Sec.  17.  That  the  Commission  may  conduct  its  proceedings  in 
such  manner  as  will  best  conduce  to  the  proper  dispatch  of  business 
and  to  the  ends  of  justice.  A  majority  of  the  Commission  shall  con- 
stitute a  quorum  for  the  transaction  of  business,  but  no  Commissioner 
shall  participate  in  any  hearing  or  proceeding  in  which  he  has  any  pecu- 
niary interest.  Said  Commission  may,  from  time  to  time,  make  or 
amend  such  general  rules  or  orders  as  may  be  requisite  for  the  order 
and  regulation  of  proceedings  before  it,  including  forms  of  notices 
and  the  service  thereof,  which  shall  conform,  as  nearly  as  may  be, 
to  those  in  use  in  the  courts  of  the  United  States.  Any  party  may 
appear  before  said  Commission  and  be  heard,  in  person  or  by  attorney. 
Every  vote  and  official  act  of  the  Commission  shall  be  entered  of  record, 
and  its  proceedings  shall  be  pul)lic  upon  the  request  of  either  party 
interested.  Said  Commission  shall  have  an  official  seal,  which  shall  be 
judicially  noticed.  Either  of  the  members  of  the  Commission  may 
administer  oaths  and  affirmations  and  sign  subpcenas.  (As  amended 
March  2,  1889.) 

Salaries  of  Commissioners,  Witness  Fees. 

Sec.  18.  That  each  Commissioner  shall  receive  an  annual  salary 
of  seven  thousand  five  hundred  dollars,  payable  in  the  same  manner  as 
the  judges  of  the  courts  of  the  United  States.  The  Commission  shall 
appoint  a  secretary,  who  shall  receive  an  annual  salary  of  three  thousand 
five  hundred  dollars, ^  payable  in  like  manner.  The  Commission 
shall  have  authority  to  employ  and  fix  the  compensation  of  such  other 
employees  as  it  may  find  necessary  to  the  proper  performance  of  its 
duties.  Until  otherwise  provided  by  law,  the  Commission  may  hire 
suitable  offices  for  its  use,  and  shall  have  authority  to  procure  all  neces- 
1  Increased  to  $5,000  in  1907. 


Interstate  Commerce  493 

sary  office  supplies.  Witnesses  summoned  before  the  Commission  shall 
be  paid  the  same  fees  and  mileage  that  are  paid  witnesses  in  the  courts 
of  the  United  States. 

All  of  the  expenses  of  the  Commission,  including  all  necessary 
expenses  for  transportation  incurred  by  the  Commissioners,  or  by  their 
employees  under  their  orders,  in  making  any  investigation,  or  upon 
official  business  in  any  other  places  than  in  the  city  of  Washington, 
shall  be  allowed  and  paid  on  the  presentation  of  itemized  vouchers 
therefor  approved  bv  the  chairman  of  the  Commission.  (As  amended 
March  2,  1889.)      (See  also  section  24.) 

Office  of  Commission. 

Sec.  19.  That  the  principal  office  of  the  Commission  shall  be  in 
the  city  of  Washington,  where  its  general  sessions  shall  be  held ;  but 
whenever  the  convenience  of  the  public  or  the  parties  may  be  promoted, 
or  delay  or  expense  prevented  thereby,  the  Commission  may  hold  spe- 
cial sessions  in  any  part  of  the  United  States.  It  may,  by  one  or  more 
of  the  Commissioners,  prosecute  any  inquiry  necessary  to  its  duties, 
in  any  part  of  the  United  States,  into  any  matter  or  question  of  fact 
pertaining  to  the  business  of  any  common  carrier  subject  to  the  pro- 
visions of  this  Act. 

Act  of  M;nvli  1.  1013. 

Valuation  of  Property;  Investigation  by  Commission;  Experts. 

Sec.  19a.  That  the  Commission  shall,  as  hereinafter  provided,  in- 
vestigate, ascertain,  and  report  the  value  of  all  the  property  owned  or 
used  by  every  common  carrier  subject  to  the  provisions  of  this  Act. 
To  enable  the  Commission  to  make  such  investigation  and  report,  it  is 
authorized  to  employ  such  experts  and  other  assistants  as  may  be  neces- 
sary. The  Commission  may  appoint  examiners  who  shall  have  power 
to  administer  oaths,  examine  witnesses,  and  take  testimony.  The  Com- 
mission shall  make  an  inventory  which  shall  list  the  property  of  every 
common  carrier  subject  to  the  provisions  of  this  Act  in  detail,  and 
show  the  value  thereof  as  hereinafter  provided,  and  shall  classify  the 
physical  property,  as  nearly  as  practicable,  in  conformity  with  the  classi- 
fication of  expenditures  for  road  and  equipment,  as  prescribed  by  the 
Interstate  Commerce  Commission. 

First.  In  such  investigation  said  Commission  shall  ascertain  and 
report  in  detail  as  to  each  piece  of  property  owned  or  used  by  said 
common  carrier  for  its  purposes  as  a  common  carrier,  the  original  cost 
to  date,  the  cost  of  reproduction  new,  the  cost  of  reproduction  less 
depreciation,  and  an  analysis  of  the  methods  bv  which  these  several 
costs  are  obtained,  and  the  reason  for  their  differences,  if  any.  The 
Commission  shall  in  like  manner  ascertain  and  report  separately  other 
values,  and  elements  of  value,  if  any,  of  the  property  of  such  common 
carrier,  and  an  analysis  of  the  methods  of  valuation  employed,  and  of 


494  Important  Federal  Laws 

the  reasons  for  any  differences  between  any  such  value,  and  each  of 
the    foregoing  cost  values. 

Second.  Such  investigation  and  report  shall  state  in  detail  and 
separately  from  improvements  the  original  cost  of  all  lands,  rights  of 
way,  and'  terminals  owned  or  used  for  the  purposes  of  a  common  car- 
rier, and  ascertained  as  of  the  time  of  dedication  to  public  use,  and  the 
present  value  of  the  same,  and  separately  the  original  and  present  cost 
of  condemnation  and  damages  or  of  purchase  in  excess  of  such  original 
cost  or  present  value. 

Third.  Such  investigation  and  report  shall  show  separately  the 
property  held  for  purposes  other  than  those  of  a  common  carrier,  and 
the  original  cost  and  present  value  of  the  same,  together  with  an 
analysis  of  the  methods  of  valuation  employed. 

Fourth.  In  ascertaining  the  original  cost  to  date  of  the  property 
of  such  common  carrier  the  Commission,  in  addition  to  such  other 
elements  as  it  may  deem  necessary,  shall  investigate  and  report  upon 
the  historv  and  organization  of  the  present  and  of  any  previous  cor- 
poration operating  such  property ;  upon  any  increases  or  decreases  of 
stocks,  bonds,  or  other  securities,  in  any  reorganization ;  upon  moneys 
received  by  any  such  corporation  by  reason  of  any  issues  of  stocks, 
bonds,  or  other  securities ;  upon  the  syndicating,  banking,  and  other 
financial  arrangements  under  which  such  issues  were  made  and  the 
expense  thereof  ;  and  upon  the  net  and  gross  earnings  of  such  corpo- 
rations ;  and  shall  also  ascertain  and  report  in  such  detail  as  may  be 
determined  by  the  Commission  upon  the  expenditure  of  all  moneys  and 
the  purposes  for  which  the  same  were  expended. 

Fifth.  The  Commission  shall  ascertain  and  report  the  amount  and 
value  of  any  aid,  gift,  grant  of  right  of  way,  or  donation,  made  to  any 
such  common  carrier,  or  to  any  previous  corporation  operating  such 
property,  by  the  Government  of  the  United  States  or  by  any  State, 
county,  or  municipal  government,  or  by  individuals,  associations,  or 
corporations  ;  and  it  shall  also  ascertain  and  report  the  grants  of  land 
to  any  such  common  carrier,  or  any  previous  corporation  operating  such 
property,  by  the  Government  of  the  United  States,  or  by  any  State, 
county,  or  municipal  government,  and  the  amount  of  money  derived 
from  the  sale  of  any  portion  of  such  grants  and  the  value  of  the  unsold 
portion  thereof  at  the  time  acquired  and  at  the  present  time,  also,  the 
amount  and  value  of  any  concession  and  allowance  made  by  such  com- 
mon carrier  to  the  Government  of  the  United  States,  or  to  any  State, 
county,  or  municipal  government  in  consideration  of  such  aid,  gift, 
grant,  or  donation. 

Except  as  herein  otherwise  provided,  the  Commission  shall  have 
power  to  prescribe  the  method  of  procedure  to  be  followed  in  the  con- 
duct of  the  investigation,  the  form  in  which  the  results  of  the  valua- 
tion shall  be  submitted,  and  the  classification  of  the  elements  that  con- 
stitute  the    ascertained   value,   and    such    investigation    shall    show    the 


Interstate  Commerce  495 

value  of  the  property  of  every  common  carrier  as  a  whole  and  sepa- 
rately the  value  of  its  property  in  each  of  the  several  States  and  Terri- 
tories and  the  District  of  Columbia,  classified  and  in  detail  as  herein 
required. 

Such  investigation  shall  be  commenced  within  sixty  days  after  the 
approval  of  this  Act  and  shall  be  prosecuted  with  diligence  and  thor- 
oughness, and  the  result  thereof  reported  to  Congress  at  the  beginning 
of  each  regular  session  thereafter  until  completecl. 

Every  common  carrier  subject  to  the  provisions  of  this  Act  shall 
furnish  to  the  Commission  or  its  agents  from  time  to  time  and  as  the 
Commission  may  require  maps,  profiles,  contracts,  reports  of  engineers, 
and  any  other  documents,  records,  and  papers,  or  copies  of  any  or  all 
of  the  same,  in  aid  of  such  investigation  and  determination  of  the  value 
of  the  property  of  said  common  carrier,  and  shall  grant  to  all  agents 
of  the  Commission  free  access  to  its  right  of  way,  its  property,  and 
its  accounts,  records,  and  memoranda  whenever  and  wherever  requested 
by  any  such  duly  authorized  agent,  and  every  common  carrier  is  hereby 
directed  and  required  to  co-operate  with  and  aid  the  Commission  in 
the  work  of  the  valuation  of  its  property  in  such  further  particulars 
and  to  such  extent  as  the  Commission  may  require  and  direct,  and  all 
rules  and  regulations  made  bv  the  Commission  for  the  purpose  of 
administering  the  provisions  of  this  section  and  section  twenty  of  this 
Act  shall  have  the  full  force  and  effect  of  law.  Unless  otherwise 
ordered  bv  the  Commission,  with  the  reasons  therefor,  the  records  and 
data  of  the  Commission  shall  be  open  to  the  inspection  and  examina- 
tion of  the  public. 

Upon  the  completion  of  the  valuation  herein  provided  for  the 
Commission  shall  thereafter  in  like  manner  keep  itself  informed  of  all 
extensions  and  improvements  or  other  changes  in  the  condition  and 
value  of  the  property  of  all  common  carriers,  and  shall  ascertain  the 
value  thereof,  and  shall  from  time  to  time  revise  and  correct  its  val- 
uations, showing  such  revision  and  correction  classified  and  as  a  whole 
and  separately  in  each  of  the  several  States  and  Territories  and  the 
District  of  Columbia,  which  valuations,  both  original  and  corrected, 
shall  be  tentative  valuations  and  shall  be  reported  to  Congress  at  the 
beginning  of  each  regular  session. 

To  enable  the  Commission  to  make  such  changes  and  corrections 
in  its  valuations  of  each  class  of  property,  every  common  carrier  sub- 
ject to  the  provisions  of  this  Act  shall  make  such  reports  and  furnish 
such  information  as  the  Commission   may  require. 

Whenever  the  Commission  shall  have  completed  the  tentative  val- 
uation of  the  property  of  any  common  carrier,  as  herein  directed,  and 
before  such  valuation  shall  become  final,  the  Commission  shall  sfive 
notice  by  registered  letter  to  the  said  carrier,  the  Attorney  General  of 
the  United  States,  the  governor  of  anv  State  in  which  the  property  so 
valued   is   located,   and  to   such   additional   parties   as  the   Commission 


496  Important  Federal  Laws 

may  prescribe,  stating  the  valuation  placed  upon  the  several  classes  of 
property  of  said  carrier,  and  shall  allow  thirty  days  in  which  to  file  a 
protest  of  the  same  with  the  Commission.  If  no  protest  is  filed  within 
thirty  days,  said  valuation  shall  become  final  as  of  the  date  thereof. 

If  notice  of  protest  is  filed  the  Commission  shall  fix  a  time  for 
hearing  the  same,  and  shall  proceed  as  promptly  as  may  be  to  hear  and 
consider  any  matter  relative  and  material  thereto  which  may  be  pre- 
sented in  support  of  any  such  protest  so  filed  as  aforesaid.  If  after 
hearing  any  protest  of  such  tentative  valuation  under  the  provisions 
of  this  Act  the  Commission  shall  be  of  the  opinion  that  its  valuation 
should  not  become  final,  it  shall  make  such  changes  as  may  be  neces- 
sary, and  shall  issue  an  order  making  such  corrected  tentative  valua- 
tion final  as  of  the  date  thereof.  All  final  valuations  by  the  Commis- 
sion and  the  classification  thereof  shall  be  published  and  shall  be  prima 
facie  evidence  of  the  value  of  the  property  in  all  proceedings  under 
the  Act  to  regulate  commerce  as  of  the  date  of  the  fixing  thereof,  and 
in  all  judicial  proceedings  for  the  enforcement  of  the  Act  approved 
February  fourth,  eighteen  hundred  and  eighty-seven,  commonly  known 
as  "the  Act  to  regulate  commerce,"  and  the  various  Acts  amendatory 
thereof,  and  in  all  judicial  proceedings  brought  to  enjoin,  set  aside, 
annul,  or  suspend,  in  whole  or  in  part,  any  order  of  the  Interstate 
Commerce    Commission. 

If  upon  the  trial  of  any  action  involving  a  final  value  fixed  by  the 
Commission,  evidence  shall  be  introduced  regarding  such  value  which 
is  found  by  the  court  to  be  different  from  that  ofifered  upon  the  hear- 
ing before  the  Commission,  or  additional  thereto  and  substantially  af- 
fecting said  value,  the  court,  before  proceeding  to  render  judgment  shall 
transmit  a  copy  of  such  evidence  to  the  Commission,  and  shall  stay 
further  proceedings  in  said  action  for  such  time  as  the  court  shall 
determine  from  the  date  of  such  transmission.  Upon  the  receipt  of 
such  evidence  the  Commission  shall  consider  the  same  and  may  fix  a 
final  value  different  from  the  one  fixed  in  the  first  instance,  and  may 
alter,  modify,  amend  or  rescind  any  order  which  it  has  made  involv- 
ing said  final  value,  and  shall  report  its  action  thereon  to  said  court 
within  the  time  fixed  by  the  court.  If  the  Commission  shall  alter,  mod- 
ify, or  amend  its  order,  such  altered,  modified,  or  amended  order  shall 
take  the  place  of  the  original  order  complained  of  and  judgment  shall 
be  rendered  thereon  as  though  made  by  the  Commission  in  the  first 
instance.  If  the  original  order  shall  not  be  rescinded  or  changed  by 
the  Commission,  judgment  shall  be  rendered  upon  such  original  order. 

The  provisions  of  this  section  shall  apply  to  receivers  of  carriers 
and  operating  trustees.  In  case  of  failure  or  refusal  on  the  part  of 
any  carrier,  receiver,  or  trustee  to  comply  with  all  the  requirements  of 
this  section  and  in  the  manner  prescribed  by  the  Commission  such  car- 
rier, receiver,  or  trustee  shall  forfeit  to  the  United  States  the  sum  of 
five  hundred  dollars  for  each  such  offense  and  for  each  and  every  day 


Interstate  Commerce  497 

of  the  continuance  of  such  offense,  such  forfeitures  to  be  recoverable 
in  the  same  manner  as  other  forfeitures  provided  for  in  section  sixteen 
of  the  Act  to  regulate  commerce. 

That  the  district  courts  of  the  United  States  shall  have  juris- 
diction, upon  the  application  of  the  Attorney  General  of  the  United 
States  at  the  request  of  the  Commission,  alleging  a  failure  to  comply 
with  or  a  violation  of  any  of  the  provisions  of  this  section  by  any 
common  carrier,  to  issue  a  writ  or  writs  of  mandamus  commanding 
such  common  carrier  to  comply  with  the  provisions  of  this  section. 

It  shall  be  the  duty  of  every  common  carrier  by  railroad  whose 
property  is  being  valued  under  the  Act  of  March  first,  nineteen  hun- 
dred and  thirteen,  to  transport  the  engineers,  field  parties,  and  other 
employees  of  the  United  States  who  are  actually  engaged  in  making 
surveys  and  other  examination  of  the  physical  property  of  said  carrier 
necessary  to  execute  said  Act  from  point  to  point  on  said  railroad  as 
may  be  reasonably  required  by  them  in  the  actual  discharge  of  their 
duties ;  and,  also,  to  move  from  point  to  point  and  store  at  such  points 
as  may  be  reasonably  required  the  cars  of  the  United  States  which  are 
being  used  to  house  and  maintain  said  employees ;  and,  also,  to  carry 
the  supplies  necessary  to  maintain  said  employees  and  the  other  prop- 
erty of  the  United  States  actually  used  on  said  railroad  in  said  work  of 
valuation.  The  service  above  required  shall  be  regarded  as  a  special 
service  and  shall  be  rendered  under  such  forms  and  regulations  and 
for  such  reasonable  compensation  as  may  be  prescribed  by  the  Inter- 
state Commerce  Commission  and  as  will  insure  an  accurate  record  and 
account  of  the  service  rendered  by  the  railroad,  and  such  evidence  of 
transportation,  bills  of  lading,  and  so  forth,  shall  be  furnished  to  the 
Commission  as  may  from  time  to  time  be  required  by  the  Commission. 
(As  amended  August  1,   1914.) 

Commission  May  Require  Annual  Reports;  Uniform  Accounts. 

Sec.  20.  That  the  Commission  is  hereby  authorized  to  require 
annual  reports  from  all  common  carriers  subject  to  the  provisions  of 
this  Act,  and  from  the  owners  of  all  railroads  engaged  in  interstate 
commerce  as  defined  in  this  Act,  to  prescribe  the  manner  in  which  such 
reports  shall  be  made,  and  to  require  from  such  carriers  specific  an- 
swers to  all  questions  upon  which  the  Commission  may  need  informa- 
tion. Such  annual  reports  shall  show  in  detail  the  amount  of  capital 
stock  issued,  the  amounts  paid  therefor,  and  the  manner  of  payment 
for  the  same :  the  dividends  paid,  the  surplus  fund,  if  any,  and  the 
number  of  stockholders  ;  the  funded  and  floating  debts  and  the  interest 
paid  thereon  ;  the  cost  and  value  of  the  carrier's  property,  franchises, 
and  equipments  ;  the  number  of  employees  and  the  salaries  paid  each 
class ;  the  amounts  expended  for  improvements  each  vear,  how  ex- 
pended, and  the  character  of  such  improvements;  the  earnings  and 
receipts  from  each  branch  of  business  and  from  all  sources ;  the  operat- 
(32) 


498  Important  Federal  Laws 

ing  and  other  expenses  ;  the  balances  of  profit  and  loss ;  and  a  complete 
exhibit  of  the  financial  operations  of  the  carrier  each  year,  including 
an  annual  balance  sheet.  Such  reports  shall  also  contain  such  informa- 
tion in  relation  to  rates  or  regulations  concerning  fares  or  freights,  or 
agreements,  arrangements,  or  contracts  affecting  the  same  as  the  Com- 
mission may  require ;  and  the  Commission  may,  in  its  discretion,  for 
the  purpose  of  enabling  it  the  better  to  carry  out  the  purposes  of  this 
Act,  prescribe  a  period  of  time  within  which  all  common  carriers  sub- 
ject to  the  provisions  of  this  Act  shall  have,  as  near  as  may  be,  a 
uniform  system  of  accounts,  and  the  manner  in  which  such  accounts 
shall  be  kept. 

Said  detailed  reports  shall  contain  all  the  required  statistics  for 
the  period  of  twelve  months  ending  on  the  thirtieth  day  of  June  in 
each  year,  or  on  the  thirty-first  day  of  December  in  each  year  if  the 
Commission  by  order  substitute  that  period  for  the  year  ending  ]\me 
thirtieth,  and  shall  be  made  out  under  oath  and  filed  with  the  Com- 
mission at  its  office  in  Washington  within  three  months  after  the  close 
of  the  year  for  which  the  report  is  made,  unless  additional  time  be 
granted  in  any  case  by  the  Commission;  and  if  any  carrier,  person,  or 
corporation  subject  to  the  provisions  of  this  Act  shall  fail  to  make 
and  file  said  annual  reports  within  the  time  above  specified,  or  within 
the  time  extended  by  the  Commission,  for  making  and  filing  the  same, 
or  shall  fail  to  make  specific  answer  to  any  question  authorized  by  the 
provisions  of  this  section  within  thirty  days  from  the  time  it  is  law- 
fully required  so  to  do,  such  party  shall  forfeit  to  the  United  States 
the  sum  of  one  hundred  dollars  for  each  and  every  day  it  shall  con- 
tinue to  be  in  default  with  respect  thereto.  The  Commission  shall 
also  have  authority  by  general  or  special  orders  to  require  said  car- 
riers, or  any  of  them,  to  file  monthly  reports  of  earnings  and  expenses, 
and  to  file  periodical  or  special,  .or  both  periodical  and  special,  reports 
concerning  any  matters  about  which  the  Commission  is  authorized  or 
required  by  this  or  any  other  law  to  inc[uire  or  to  keep  itself  informed 
or  which  it  is  required  to  enforce;  and  such  periodical  or  special  re- 
ports shall  be  under  oath  whenever  the  Commission  so  requires;  and  if 
any  such  carrier  shall  fail  to  make  and  file  any  such  periodical  or  spe- 
cial report  within  the  time  fixed  by  the  Commission,  it  shall  be  subject 
to  the  forfeitures  last  above  provided. 

Said  forfeitures  shall  be  recovered  in  the  manner  provided  for 
the  recovery  of   forfeitures  under  the  provisions  of  this  Act. 

The  oath  required  by  this  section  may  be  taken  before  any  person 
authorized  to  administer  an  oath  by  the  laws  of  the  State  in  which  the 
same  is  taken. 

The  Commission  may,  in  its  discretion,  prescribe  the  forms  of  any 
and  all  accounts,  records,  and  memoranda  to  be  kept  by  carriers  sub- 
ject to  the  provisions  of  this  Act,  including  the  accounts,  records,  and 
memoranda   of   the    movement   of   traffic    as    well    as   the    receipts    and 


Interstate  Commerce  499 

expenditures  of  moneys.  The  Commission  shall  at  all  times  have  access 
to  all  accounts,  records,  and  memoranda  kept  by  carriers  subject  to  this 
Act,  and  it  shall  be  unlawful  for  such  carriers  to  keep  any  other  ac- 
counts, records,  or  memoranda  than  those  prescribed  or  approved  by  the 
Commission,  and  it  may  employ  special  agents  or  examiners,  who  shall 
have  authority  under  the  order  of  the  Commission  to  inspect  and  ex- 
amine any  and  all  accounts,  records,  and  memoranda  kept  by  such 
carriers.  This  provision  shall  apply  to  receivers  of  carriers  and  oper- 
ating trustees. 

In  case  of  failure  or  refusal  on  the  part  of  any  such  carrier,  re- 
ceiver, or  trustee  to  keep  such  accounts^  records,  and  memoranda  on 
the  books  and  in  the  manner  prescribed  by  the  Commission,  or  to 
submit  such  accounts,  records,  and  memoranda  as  are  kept  to  the  in- 
spection of  the  Commission  or  any  of  its  authorized  agents  or  exam- 
iners, such  carrier,  receiver,  or  trustee  shall  forfeit  to  the  United 
States  the  sum  of  five  hundred  dollars  for  each  such  offense  and  for 
each  and  every  day  of  the  continuance  of  such  oft'ense,  such  forfeitures 
to  be  recoverable  in  the  same  manner  as  other  forfeitures  provided  for 
in  this  Act. 

Any  person  who  shall  willfully  make  any  false  entry  in  the  ac- 
counts of  any  book  of  accounts  or  in  any  record  or  memoranda  kept 
by  a  carrier,  or  who  shall  willfully  destroy,  mutilate,  alter,  or  by  any 
other  means  or  device  falsify  the  record  of  any  such  account,  record, 
or  memoranda,  or  who  shall  willfully  neglect  or  fail  to  make  full,  true, 
and  correct  entries  in  such  accounts,  records,  or  memoranda  of  all  facts 
and  transactions  appertaining  to  the  carrier's  business,  or  shall  keep 
any  other  accounts,  records,  or  memoranda  than  those  prescribed  or 
approved  by  the  Commission,  shall  be  deemed  guilty  of  a  misdemeanor, 
and  shall  be  subject,  upon  conviction  in  any  court  of  the  United  States 
of  competent  jurisdiction,  to  a  fine  of  not  less  than  one  thousand  dollars 
nor  more  than  five  thousand  dollars  or  imprisonment  for  a  term  not 
less  than  one  year  nor  more  than  three  years,  or  both  such  fine  and 
imprisonment:  Provided,  That  the  Commission  may  in  its  discretion 
issue  orders  specifying  such  operating,  accounting,  or  financial  papers, 
records,  books,  blanks,  tickets,  stubs,  or  documents  of  carriers  which 
may,  after  a  reasonable  time,  be  destroyed,  and  prescribing  the  length 
of  time  such  books,  papers,  or  documents  shall  be  preserved. 

Any  examiner  who  divulges  any  fact  or  information  which  may 
come  to  his  knowledge  during  the  course  of  such  examination,  except 
in  so  far  as  he  may  be  directed  by  the  Commission  or  by  a  court  or 
judge  thereof,  shall  be  subject,  upon  conviction  in  any  court  of  the 
United  States  of  competent  jurisdiction,  to  a  fine  of  not  more  than 
five  thousand  dollars  or  imprisonment  for  a  term  not  exceeding  two 
years,  or  both. 

That  the  circuit  and  district  courts  of  the  United  States  shall  have 
jurisdiction,  upon  the  application  of  the  Attorney  General  of  the  United 


500  Important  Federal  Laws 

States  at  the  request  of  the  Commission,  alleging  a  failure  to  comply 
with  or  a  violation  of  any  of  the  provisions  of  said  Act  to  regulate 
commerce  or  of  any  Act  supplementary  thereto  or  amendatory  thereof 
by  any  common  carrier,  to  issue  a  writ  or  writs  of  mandamus  com- 
manding such  common  carrier  to  comply  with  the  provisions  of  said 
Acts,  or  any  of  them. 

And  to  carry  out  and  give  effect  to  the  provisions  of  said  Acts, 
or  any  of  them,  the  Commission  is  hereby  authorized  to  employ  spe- 
cial agents  or  examiners  who  shall  have  power  to  administer  oaths, 
examine  witnesses,  and  receive  evidence. 

Act  of  March  4,  1915. 
Bills  of  Lading. 

That  any  common  carrier,  railroad,  or  transportation  company 
subject  to  the  provisions  of  this  Act  receiving  property  for  transporta- 
tion from  a  point  in  one  State  or  Territory  or  the  District  of  Columbia 
to  a  point  in  another  State.  Territory,  District  of  Columbia,  or  from 
any  point  in  the  United  States  to  a  point  in  an  adjacent  foreign  country 
shall  issue  a  receipt  or  bill  of  lading  therefor,  and  shall  be  liable  to  the 
lawful  holder  thereof  for  any  loss,  damage,  or  injury  to  such  property 
caused  by  it  or  by  any  common  carrier,  railroad,  or  transportation  com- 
pany to  which  such  property  may  be  delivered  or  over  whose  line  or  lines 
such  property  may  pass  within  the  United  States  or  within  an  adjacent 
foreign  country  when  transported  on  a  through  bill  of  lading,  and  no 
contract,  receipt,  rule,  regulation,  or  other  limitation  of  any  character 
whatsoever,  shall  exempt  such  common  carrier,  railroad,  or  transpor- 
tation company  from  the  liability  hereby  imposed ;  and  any  such  com- 
mon carrier,  railroad,  or  transportation  company  so  receiving  property 
for  transportation  from  a  point  in  one  State,  Territory,  or  the  District 
of  Columbia  to  a  point  in  another  State  or  Territory,  or  from  a  point 
in  a  State  or  Territory  to  a  point  in  the  District  of  Columbia,  or  from 
any  point  in  the  United  States  to  a  point  in  an  adjacent  foreign  coun- 
try, or  for  transportation  wholly  within  a  Territory  shall  be  liable  to 
the  lawful  holder  of  said  receipt  or  bill  of  lading  or  to  any  party 
entitled  to  recover  thereon,  whether  such  receipt  or  bill  of  lading  has 
been  issued  or  not,  for  the  full  actual  loss,  damage,  or  injury  to  such 
property  caused  by  it  or  by  any  such  common  carrier,  railroad,  or 
transportation  company  to  which  such  property  may  be  delivered  or 
over  whose  line  or  lines  such  property  may  pass  Avithin  the  United 
States  or  within  an  adjacent  foreign  country  when  transported  on  a 
through  bill  of  lading,  notwithstanding  any  limitation  of  liability  or  lim- 
itation of  the  amount  of  recovery  or  representation  or  agreement  as 
to  value  in  any  such  receipt  or  bill  of  lading,  or  in  any  contract,  rule, 
regulation,  or  in  any  tariff  filed  with  the  Interstate  Commerce  Com- 
mission ;  and  any  such  limitation,  without  respect  to  the  manner  or 
form  in  which  it  is  sought  to  be  made  is  hereby  declared  to  be  unlawful 
and   void :    Provided,    That   nothing   in   this    section    shall   deprive    any 


Interstate  Commerce  501 

holder  of  such  receipt  or  bill  of  lading  of  any  remedy  or  right  of  action 
which  he  has  under  the  existing  law:  Provided  further,  That  it  shall 
be  unlawful  for  any  such  common  carrier  to  provide  by  rule,  contract, 
regulation,  or  otherwise  a  shorter  period  for  giving  notice  of  claims 
than  ninety  days  and  for  the  filing  of  claims  for  a  shorter  period  than 
four  months,  and  for  the  institution  of  suits  than  two  years :  Provided, 
however,  That  if  the  loss,  damage,  or  injury  complained  of  was  due 
to  delay  or  damage  while  being  loaded  or  unloaded,  or  damaged  in 
transit  by  carelessness  or  negligence,  then  no  notice  of  claim  nor  filing 
of  claim  shall  be  required  as  a  condition  precedent  to  recovery.  (As 
amended  August  9,  1916.) 

Initial  Carrier  May  Have  Recourse  Upon  Carrier  Responsible  for  Loss 
or  Damages. 

That  the  common  carrier,  railroad,  or  transportation  company 
issuing  such  receipt  or  bill  of  lading  shall  be  entitled  to  recover  from 
the  common  carrier,  railroad,  or  transportation  company  on  whose  line 
the  loss,  damage,  or  injury  shall  have  been  sustained  the  amount  of 
such  loss,  damage,  or  injury  as  it  may  be  required  to  pay  to  the  owners 
of  such  property,  as  may  be  evidenced  by  any  receipt,  judgment,  or 
transcript  thereof. 

No  suit  brought  in  any  State  court  of  competent  jurisdiction 
against  a  railroad  company,  or  other  corporation,  or  person,  engaged 
in  and  carrying  on  the  business  of  a  common  carrier,  to  recover  dam- 
ages for  delay,  loss  of,  or  injury  to  property  received  for  transporta- 
tion by  such  common  carrier  under  section  twenty  of  the  Act  to  regu- 
late commerce,  approved  February  fourth,  eighteen  hundred  and  eighty- 
seven,  as  amended  June  twenty-ninth,  nineteen  hundred  and  six,  April 
thirteenth,  nineteen  hundred  and  eight,  February  twenty-fifth,  nineteen 
hundred  and  nine,  and  June  eighteenth,  nineteen  hundred  and  ten.  shall 
be  removed  to  any  court  of  the  United  States  where  the  matter  in  con- 
troversv  does  not  exceed,  exclusive  of  interest  and  costs,  the  sum  or 
value  of  $3,000.     (As  amended  August  9,  1916.) 

Annual  Reports  of  the  Commission  to  Congress. 

Sec.  21.  That  the  Commission  shall,  on  or  before  the  first  day 
of  December  in  each  year,  make  a  report,  which  shall  be  transmitted  to 
Congress,  and  copies  of  which  shall  be  distributed  as  are  the  other 
reports  transmitted  to  Congress.  This  report  shall  contain  such  infor- 
mation and  data  collected  by  the  Commission  as  may  be  considered  of 
value  in  the  determination  of  questions  connected  with  the  regulation 
of  commerce,  together  with  such  recommendations  as  to  additional  leg- 
islation relating  thereto  as  the  Commission  may  deem  necessary ;  and 
the  names  and  compensation  of  the  persons  employed  by  said  Com- 
mission.    (As  amended  March  2,   1889.) 

Persons  and  Prooerty  that  May  be  Carried  Free  or  at  Reduced  Rates. 

Sec.    22.     That    nothing    in    this    Act    shall    prevent    the    carriage, 


502  Important  Federal  Laws 

storage,  or  handling  of  property  free  or  at  reduced  rates  for  the  United 
States,  State,  or  municipal  governments,  or  for  charitable  purposes, 
or  to  or  from  fairs  and  expositions  for  exhibition  thereat,  or  the  free 
carriage  of  destitute  and  homeless  persons  transported  by  charitable 
societies,  and  the  necessary  agents  employed  in  such  transportation,  or 
the  issuance  of  mileage,  excursion,  or  commutation  passenger  tickets ; 
nothing  in  this  Act  shall  be  construed  to  prohibit  any  common  carrier 
from  giving  reduced  rates  to  ministers  of  religion,  or  to  municipal 
governments  for  the  transportation  of  indigent  persons,  or  to  inmates 
of  the  National  Homes  or  State  Homes  for  Disabled  Volunteer  Sol- 
diers, and  of  Soldiers'  and  Sailors'  Orphan  Homes,  including  those 
about  to  enter  and  those  returning  home  after  discharge,  under  arrange- 
ments with  the  boards  of  managers  of  said  homes ;  nothing  in  this  Act 
shall  be  construed  to  prevent  railroads  from  giving  free  carriage  to 
their  own  officers  and  employees,  or  to  prevent  the  principal  officers  of 
any  railroad  company  or  companies  from  exchanging  passes  or  tickets 
with  other  railroad  companies  for  their  officers  and  employees ;  noth- 
ing in  this  Act  shall  be  construed  to  prohibit  any  common  carrier  from 
giving  reduced  rates  for  members  of  National  Guard  organizations 
traveling  to  and  from  joint  encampments  with  the  regular  army;  and 
nothing  in  this  Act  contained  shall  in  any  way  abridge  or  alter  the 
remedies  now  existing  at  common  law  or  by  statute,  but  the  provisions 
of  this  Act  are  in  addition  to  such  remedies :  Provided,  That  no  pend- 
ing litigation  shall  in  any  way  be  aiTected  by  this  Act :  Provided  fur- 
ther, That  nothing  in  this  Act  shall  prevent  the  issuance  of  joint  inter- 
changeable five-thousand-mile  tickets,  with  special  privileges  as  to  the 
amount  of  free  baggage  that  may  be  carried  under  mileage  tickets  of 
one  thousand  or  more  miles.  But  before  any  common  carrier,  subject 
to  the  provisions  of  this  Act,  shall  issue  any  such  joint  interchangeable 
mileage  tickets  with  special  privileges,  as  aforesaid,  it  shall  file  with 
the  Interstate  Commerce  Commission  copies  of  the  joint  tariffs  of 
rates,  fares,  or  charges  on  which  such  joint  interchangeable  mileage 
tickets  are  to  be  based,  together  with  specifications  of  the  amount  of 
free  baggage  permitted  to  be  carried  under  such  tickets,  in  the  same 
manner  as  common  carriers  are  required  to  do  with  regard  to  other 
joint  rates  by  section  six  of  this  Act;  and  all  the  provisions  of  said 
section  six  relating  to  joint  rates,  fares,  and  charges  shall  be  observed 
by  said  common  carriers  and  enforced  by  the  Interstate  Commerce 
Commission  as  fully  with  regard  to  such  joint  interchangeable  mileage 
tickets  as  with  regard  to  other  joint  rates,  fares,  and  charges  referred 
to  in  said  section  six.  It^shall  be  unlawful  for  any  common  carrier 
that  has  issued  or  authorized  to  be  issued  any  such  joint  interchange- 
able mileage  tickets  to  demand,  collect,  or  receive  from  any  person 
or  persons  a  greater  or  less  compensation  for  transportation  of  persons 
or  baggage  under  such  joint  interchangeable  mileage  tickets  than  that 
required  by  the  rate,  fare,  or  charge  specified  in  the  copies  of  the  joint 


Interstate  Commerce  503 

tariff  of  rates,  fares,  or  charges  filed  with  .the  Commission  in  force  at 
the  time.  The  provisions  of  section  ten  of  this  Act  shall  apply  to  any 
violation  of  the  requirements  of  this  proviso.  (As  amended  March  2, 
1889,  February  8,  1895,  and  August  29,  1916.) 

United  States  Courts  to  Command  Movement  of  Interstate  Traffic  or 
the  Furnishing  of  Cars  or  Other  Transportation  Facilities. 

Sec.  23.  That  the  circuit  and  district  courts  of  the  United  States 
shall  have  jurisdiction  upon  the  relation  of  any  person  or  persons,  firm, 
or  corporation,  alleging  such  violation  by  a  common  carrier,  of  any  of 
the  provisions  of  the  Act  to  which  this  is  a  supplement  and  all  Acts 
amendatory  thereof,  as  prevents  the  relator  from  having  interstate 
traffic  moved  by  said  common  carrier  at  the  same  rates  as  are  charged, 
or  upon  terms  or  conditions  as  favorable  as  those  given  by  said  com- 
mon carrier  for  like  traffic  under  similar  conditions  toany  other  ship- 
per, to  issue  a  writ  or  writs  of  mandamus  against  said  common  car- 
rier, commanding  such  common  carrier  to  move  and  transport  the 
traffic,  or  to  furnish  cars  or  other  facilities  for  transportation  for  the 
party  applying  for  the  writ :  Provided,  That  if  any  question  of  fact  as 
to  the  proper  compensation  to  the  common  carrier  for  the  service  to  be 
enforced  by  the  writ  is  raised  by  the  pleadings,  the  writ  of  peremptory 
mandamus  may  issue,  notwithstanding  such  question  of  fact  is  unde- 
termined, upon  such  terms  as  to  security,  payment  of  money  into  the 
court,  or  otherwise,  as  the  court  may  think  proper,  pending  the  deter- 
mination of  the  question  of  fact:  Provided.  That  the  remedy  hereby 
given  by  writ  of  mandamus  shall  be  cumulative,  and  shall  not  be  held 
to  exclude  or  interfere  with  other  remedies  provided  by  this  Act  or 
the  Act  to  which  it  is  a  supplement.     (Added  March  2,  1889.) 

Commission  to  Consist  of  Seven  Members;  Terms;  Salaries;  Quali- 
fications. 

Sec.  24.  That  the  Interstate  Commerce  Commission  is  ihereby 
enlarged  so  as  to  consist  '))f  seven  members  with  terms  of  seven  years, 
and  each  shall  receive  te^  thousand  dollars  compensation  annually.  The 
qualifications  of  the  Commissioners  and  the  manner  of  the  payment  of 
their  salaries  shall  be  as  already  provided  by  law.  Such  enlargement 
of  the  Commission  shall  be  accomplished  through  appointment  bv  the 
President,  by  and  with  the  advice  and  consent  of  the  Senate,  of  two 
additional  Interstate  Commerce  Commissioners,  one  for  a  term  expir- 
ing December  thirty-first,  nineteen  hundred  and  eleven,  one  for  a  term 
expiring  December  thirty-first,  nineteen  hundred  and  twelve.  The  terms 
of  the  present  Commissioners,  or  of  any  successor  appointed  to  fill  a 
vacancv  caused  by  the  death  or  resignation  of  any  of  the  present  Com- 
missioners, shall  expire  as  heretofore  provided  by  law.  Their  successors 
and  the  successors  of  the  additional  Commissioners  herein  provided  for 
shall  be  appointed  for  the  full  terms  of  seven  years,  except  that  any 
person  appointed  to  fill  a  vacancy  shall  be  appointed  only  for  the  unex- 


504  Important  Federal  Laws 

pired  term  of  the  Commissioner  whom  he  shall  succeed.  Not  more 
than  four  Commissioners  shall  be  appointed  from  the  same  political 
party.     (Added  June  29,  1906.) 

(Additional  provisions  in  Act  of  June  29,  1906.)  (Sec.  9.)  That 
all  existing  laws  relating  to  the  attendance  of  witnesses  and  the  pro- 
duction of  evidence  and  the  compelling  of  testimony  under  the  Act  to 
regulate  commerce  and  all  Acts  amendatory  thereof  shall  apply  to  any 
and  all  proceedings  and  hearings  under  this  Act. 

(Sec.  10.)  That  all  laws  and  parts  of  laws  in  conflict  with  the 
provisions  of  this  Act  are  hereby  repealed;  but  the  amendments  herein 
provided  for  shall  not  affect  causes  now  pending  in  courts  of  the  United 
States,  but  such  causes  shall  be  prosecuted  to  a  conclusion  in  the  man- 
ner heretofore  provided  by  law. 

(Sec.  11.)  That  this  Act  shall  take  effect  and  be  in  force  from 
and  after  its  passage. 

Carriers  Must  Designate  Agents  in  Washington  for  Purposes  of  Ser- 
vice, 

(Additional  provisions  in  Act  of  June  18,  1910.)  (Sec.  6,  par.  2.) 
It  shall  be  the  duty  of  every  common  carrier  subject  to  the  provisions 
of  this  Act,  within  sixty  days  after  the  taking  effect  of  this  Act,  to 
designate  in  writing  an  agent  in  the  city  of  Washington,  District  of 
Columbia,  upon  whom  service  of  all  notices  and  processes  may  be  made 
for  and  on  behalf  of  said  common  carrier  in  any  proceeding  or  suit 
pending  before  the  Interstate  Commerce  Commission  or  before  said 
Commerce  Court,  and  to  file  such  designation  in  the  office  of  the  secre- 
tary of  the  Interstate  Commerce  Commission,  which  designation  may 
from  time  to  time  be  changed  by  like  writing  similarly  filed ;  and  there- 
upon service  of  all  notices  and  processes  may  be  made  upon  such  com- 
mon carrier  by  leaving  a  copy  thereof  with  such  designated  agent  at 
his  office  or  usual  place  of  residence  in  the  city  of  Washington,  with 
like  effect  as  if  made  personally  upon  such  common  carrier,  and  in 
default  of  such  designation  of  such  agent,  service  of  any  notice  or  other 
process  in  any  proceeding  before  said  Interstate  Commerce  Commission 
or  Commerce  Court  may  be  made  by  posting  such  notice  or  process  in 
the  office  of  the  secretary  of  the  Interstate  Commerce  Commission. 

(Sec.  15.)  That  nothing  in  this  Act  contained  shall  undo  or  im- 
pair any  proceedings  heretofore  taken  by  or  before  the  Interstate  Com- 
merce Commission  or  any  of  the  acts  of  said  Commission  ;  and  in  any 
cases,  proceedings,  or  matters  now  pending  before  it,  the  Commission 
may  exercise  any  of  the  powers  hereby  conferred  upon  it.  as  would  be 
proper  in  cases,  proceedings,  or  matters  hereafter  initiated  and  nothing 
in  this  Act  contained  shall  operate  to  release  or  affect  any  obligation, 
liability,  penalty,  or  forfeiture  heretofore  existing  against  or  incurred 
by  any  person,  corporation,  or  association. 


Immunity  of  Witnesses — Anti-Rebate  505 

IMMUNITY  OF  WITNESSES  ACT. 

Act  of  June  30,  1906. 
An  Act  defining  the  right  of  immunity  of  witnesses  under  the  Act  entitled 
"An  Act  in  relation  to  testimony  before  the  Interstate  Commerce  Commis- 
sion," and  so  forth,  approved  February  eleventh,  eighteen  hundred  and 
ninety-three,  and  an  Act  entitled  "An  Act  to  establish  the  Department  of 
Commerce  and  Labor,"  approved  February  fourteenth,  nineteen  hundred 
and  three,  and  an  Act  entitled  "An  Act  to  further  regulate  commerce  with 
foreign  nations  and  among  the  States,"  approved  February  nineteenth, 
nineteen  hundred  and  three,  and  an  Act  entitled  "An  Act  making  appro- 
priations for  the  legislative,  executive,  and  judicial  expenses  of  the  Gov- 
ernment for  the  fiscal  year  ending  June  thirtieth,  nineteen  hundred  and 
four,  and  for  other  purposes,"  approved  February  twenty-fifth,  nineteen 
hundred  and  three. 

That  under  the  immunity  provisions  in  the  Act  entitled  "An  Act 
in  relation  to  testimony  before  the  Interstate  Commerce  Commission," 
and  so  forth,  approved  February  eleventh,  eighteen  hundred  and  ninety- 
three,  in  section  six  of  the  Act  entitled  "An  Act  to  establish  the  Depart- 
ment of  Commerce  and  Labor,"  approved  February  fourteenth,  nineteen 
hundred  and  three,  and  in  the  Act  entitled  "An  Act  to  further  regulate 
commerce  with  foreign  nations  and  among  the  States,"  approved  Feb- 
ruary nineteenth,  nineteen  hundred  and  three,  and  in  the  Act  entitled 
"An  Act  making  appropriations  for  the  legislative,  executive,  and  judicial 
expenses  of  the  Government  for  the  fiscal  year  ending  June  thirtieth, 
nineteen  hundred  and  four,  and  for  other  purposes,"  approved  February 
twenty-fifth,  nineteen  hundred  and  three,  immunity  shall  extend  only  to 
a  natural  person  who,  in  obedience  to  a  subpoena,  gives  testimony  under 
oath  or  produces  evidence,  documentary  or  otherwise,  under  oath. 


ANTI-REBATE  ACT. 

[Elldns  Act.] 

Act  of  February  19,   1903. 

An  Act  to   further   regulate  commerce  with   foreign   nations   and  among  the 
States. 

Corporation  Liable — Rebates  Prohibited — Penalties. 

Sec.  1.  That  any  thing  done  or  omitted  to  be  done  by  a  corporation 
common  carrier,  subject  to  the  Act  to  regulate  commerce  and  the  Acts 
amendatory  thereof,  which,  if  done  or  omitted  to  be  done  by  any  director 
or  officer  thereof,  or  any  receiver,  trustee,  lessee,  agent,  or  person  acting 
for  or  employed  by  such  corporation,  would  constitute  a  misdemeanor 
under  said  Acts  or  under  this  Act,  shall  also  be  held  to  be  a  misdemeanor 
committed  by  such  corporation,  and  upon  conviction  thereof  it  shall  be 
subject  to  like  penalties  as  are  prescribed  in  said  Acts  or  by  this  Act  with 
reference  to  such  persons,  except  as  such  penalties  are  herein  changed. 
The  willful  failure  upon  the  part  of  any  carrier  subject  to  said  Acts 
to  file  and  publish  the  tariffs  or  rates  and  charges  as  required  by  said 


506  Important  Federal  Laws 

Acts,  or  strictly  to  observe  such  tariffs  until  changed  according  to  law, 
shall  be  a  misdemeanor,  and  upon  conviction  thereof  the  corporation 
off'ending  shall  be  subject  to  a  fine  of  not  less  than  one  thousand  dollars 
nor  more  than  twenty  thousand  dollars  for  each  oft'ense ;  and  it  shall 
be  unlawful  for  any  person,  persons,  or  corporation  to  ofl'er,  grant,  or 
give,  or  to  solicit,  accept,  or  receive  any  rebate,  concession,  or  discrimi- 
nation in  respect  to  the  transportation  of  any  property  in  interstate  or 
foreign  commerce  by  any  common  carrier  subject  to  said  Act  to  regulate 
commerce  and  the  Acts  amendatory  thereof  whereby  any  such  property 
shall  by  any  device  whatever  be  transported  at  a  less  rate  than  that  named 
in  the  tariffs  published  and  filed  by  such  carrier,  as  is  required  by  said 
Act  to  regulate  commerce  and  the  Acts  amendatory  thereof,  or  whereby 
anv  other  advantage  is  given  or  discrimination  is  practiced.  Every  per- 
son or  corporation,  whether  carrier  or  shipper,  who  shall,  knowingly, 
offer,  grant,  or  give,  or  solicit,  accept,  or  receive  any  such  rebates,  con- 
cession, or  discrimination  shall  be  deemed  guilty  of  a  misdemeanor,  and 
on  conviction  thereof  shall  be  punished  by  a  fine  of  not  less  than  one 
thousand  dollars  nor  more  than  twenty  thousand  dollars :  Provided, 
That  anv  person,  or  any  officer  or  director  of  any  corporation  subject 
to  the  provisions  of  this  Act,  or  the  Act  to  regulate  commerce  and  the 
Acts  amendatory  thereof,  or  any  receiver,  trustee,  lessee,  agent  or 
person  acting  for  or  employed  by  any  such  corporation,  who  shall 
be  convicted  as  aforesaid,  shall,  in  addition  to  the  fine  herein  provided 
for,  be  liable  to  imprisonment  in  the  penitentiary  for  a  term  of  not 
exceeding  two  years,  or  both  such  fine  and  imprisonment,  in  the  discre- 
tion of  the  court.  Every  violation  of  this  section  shall  be  prosecuted  in 
anv  court  of  the  United  States  having  jurisdiction  of  crimes  within 
the  district  in  which  such  violation  was  committed,  or  through  which 
the  transportation  may  have  been  conducted  ;  and  whenever  the  offense 
is  begun  in  one  jurisdiction  and  completed  in  another  it  may  be  dealt 
with,  inquired  of,  tried,  determined,  and  punished  in  either  jurisdiction 
in  the  same  manner  as  if  the  offense  had  been  actually  and  wholly  com- 
mitted therein. 

In  construing  and  enforcing  the  provisions  of  this  section,  the  act, 
omission,  or  failure  of  any  officer,  agent,  or  other  person  acting  for  or 
employed  by  any  common  carrier,  or  shipper,  acting  within  the  scope  of 
his  employment,  shall  in  every  case  be  also  deemed  to  be  the  act,  omis- 
sion, or  failure  of  such  carrier  or  shipper  as  well  as  that  of  the  person. 
Whenever  any  carrier  files  with  the  Interstate  Commerce  Commission 
or  publishes  a  particular  rate  under  the  provisions  of  the  Act  to  regu- 
late commerce  or  Acts  amendatory  thereof,  or  participates  in  any  rates 
so  filed  or  published,  that  rate  as  against  such  carrier,  its  officers  or 
agents,  in  any  prosecution  begun  under  this  Act  shall  be  conclusively 
deemed  to  be  the  legal  rate,  and  any  departure  from  such  rate,  or  any 
oft'er  to  depart  therefrom,  shall  be  deemed  to  be  an  offense  under  this 
section  of  this  Act. 


Anti-Rebate  Act  ^^]. 

Any  person,  corporation,  or  company  who  shall  deliver  property  for 
interstate  transportation  to  any  common  carrier,  subject  to  the  provisions 
of  this  Act,  or  for  whom  as  consignor  or  consignee,  any  such  carrier 
shall  transport  property  from  one  State,  Territory,  or  the  District  of 
Columbia  to  any  other  State,  Territory,  or  the  District  of  Columbia,  or 
foreign  country,  who  shall  knowingly  by  employee,  agent,  officer,  or 
otherwise,  directly  or  indirectly,  by  or  through  any  means  or  device  what- 
soever, receive  or  accept  from  such  common  carrier  any  sum  of  money 
or  any  other  valuable  consideration  as  a  rebate  or  offset  against  the 
regular  charges  for  transportation  of  such  property,  as  fixed  by  the 
schedules  of  rates  provided  for  in  this  Act,  shall  in  addition  to  any 
penalty  provided  by  this  Act  forfeit  to  the  United  States  a  sum  of 
inoney  three  times  the  amount  of  money  so  received  or  accepted  and 
three  times  the  value  of  any  other  consideration  so  received  or  accepted, 
to  be  ascertained  by  the  trial  court ;  and  the  Attorney  General  of  the 
United  States  is  authorized  and  directed,  whenever  he  has  reasonable 
grounds  to  believe  that  any  such  person,  corporation,  or  company  has 
knowingly  received  or  accepted  from  any  such  common  carrier  any  sum 
of  money  or  other  valuable  consideration  as  a  rebate  or  offset  as  afore- 
said, to  institute  in  any  court  of  the  United  States  of  competent  jurisdic- 
tion a  civil  action  to  collect  the  said  sum  or  sums  so  forfeited  as  afore- 
said ;  and  in  the  trial  of  said  action  all  such  rebates  or  other  considera- 
tions so  received  or  accepted  for  a  period  of  six  years  prior  to  the  com- 
mencement of  the  action,  may  be  included  therein,  and  the  amount  recov- 
ered shall  be  three  times  the  total  amount  of  money,  or  three  times  the 
total  value  of  such  consideration,  so  received  or  accepted,  or  both,  as 
the  case  may  be.      (As  amended  June  29,  1906.) 

Parties  to  Suit. 

Sec.  2.  That  in  any  proceeding  for  the  enforcement  of  the  provi- 
sions of  the  statutes  relating  to  interstate  commerce,  whether  such  pro- 
ceedings be  instituted  before  the  Interstate  Commerce  Commission  or  be 
begun  originally  in  any  circut  court  of  the  United  States,  it  shall  be 
lawful  to  include  as  parties,  in  addition  to  the  carrier,  all  persons  inter- 
ested in  or  affected  by  the  rate,  regulation,  or  practice  under  considera- 
tion, and  inquiries,  investigations,  orders,  and  decrees  may  be  made  with 
reference  to  and  against  such  additional  parties  in  the  same  manner, 
to  the  same  extent,  and  subject  to  the  same  provisions  as  are  or  shall 
be  authorized  by  law  with  respect  to  carriers. 

Enforcement  Through  Court — Immunity. 

Sec.  3.  That  whenever  the  Interstate  Commerce  Commission  shall 
have  reasonable  ground  for  belief  that  any  common  carrier  is  engaged 
in  the  carriage  of  passengers  or  freight  traffic  between  given  points  at 
less  than  the  published  rates  on  file,  or  is  committing  any  discriminations 
forbidden  by  law,  a  petition  may  be  presented  alleging  such  facts  to  the 
circuit  court  of  the  United  States  sitting  in  equity  having  jurisdiction ; 


508  Important  Federal  Laws 

and  when  the  act  complained  of  is  alleged  to  have  been  committed  or  as 
being  committed  in  part  in  more  than  one  judicial  district  or  State,  it 
may  be  dealt  with,  inquired  of,  tried,  and  determined  in  either  such 
judicial  district  or  State,  whereupon  it  shall  be  the  duty  of  the  court 
summarily  to  inquire  into  the  circumstances,  upon  such  notice  and  in 
such  manner  as  the  court  shall  direct  and  without  the  formal  pleadings 
and  proceedings  applicable  to  ordinary  suits  in  equity,  and  to  make  such 
other  persons  or  corporations  parties  thereto  as  the  court  may  deem 
necessary,  and  upon  being  satisfied  of  the  truth  of  the  allegations  of  said 
petition  said  court  shall  enforce  an  observance  of  the  published  tariffs  or 
direct  and  require  a  discontinuance  of  such  discrimination  by  proper 
orders,  writs,  and  process,  which  said  orders,  writs,  and  process  may  be 
enforceable  as  well  against  the  parties  interested  in  the  traffic  as  against 
the  carrier,  subject  to  the  right  of  appeal  as  now  provided  by  law.  It 
shall  be  the  duty  of  the  several  district  attorneys  of  the  United  States, 
whenever  the  Attorney  General  shall  direct,  either  of  his  own  motion  or 
upon  the  request  of  the  Interstate  Commerce  Commission,  to  institute 
and  prosecute  such  proceedings,  and  the  proceedings  provided  for  by  this 
Act  shall  not  preclude  the  bringing  of  suit  for  the  recovery  of  damages 
by  any  party  injured,  or  any  other  action  provided  by  said  Act  approved 
February  fourth,  eighteen  hundred  and  eighty-seven,  entitled  "An  Act  to 
regulate  commerce"  and  the  Acts  amendatory  thereof.  And  in  proceed- 
ings under  this  Act  and  the  Acts  to  regulate  commerce  the  said  courts 
shall  have  the  power  to  compel  the  attendance  of  witnesses,  both  upon 
the  part  of  the  carrier  and  the  shipper,  who  shall  be  required  to  answer 
on  all  subjects  relating  directly  or  indirectly  to  the  matter  in  controversy, 
and  to  compel  the  production  of  all  books  and  papers,  both  of  the  carrier 
and  the  shipper,  which  relate  directly  or  indirectly  to  such  transaction ; 
the  claim  that  such  testimony  or  evidence  may  tend  to  criminate  the  per- 
son giving  such  evidence  shall  not  excuse  such  person  from  testifying  or 
such  corporation  producing  its  books  and  papers,  but  no  person  shall  be 
prosecuted  or  subjected  to  any  penalty  or  forfeiture  for  or  on  account  of 
any  transaction,  matter,  or  thing  concerning  which  he  may  testify  or  pro- 
duce evidence  documentary  or  otherwise  in  such  proceeding:  Provided, 
That  the  provisions  of  an  Act  entitled  "An  Act  to  expedite  the  hearing 
and  determination  of  suits  in  equity  pending  or  hereafter  brought  under 
the  Act  of  July  second,  eighteen  hundred  and  ninety,  entitled  'An  Act  to 
protect  trade  and  commerce  against  unlawful  restraints  and  monopolies,' 
'An  Act  to  regulate  commerce,'  approved  February  fourth,  eighteen  hun- 
dred and  eighty-seven,  or  any  other  acts  having  a  like  purpose  that  may 
be  hereafter  enacted,  approved  February  eleventh,  nineteen  hundred  and 
three,"  shall  apply  to  any  case  prosecuted  under  the  direction  of  the  At- 
torney General  in  the  name  of  the  Interstate  Commerce  Commission. 

Repeals. 

Sec.  4.    That  all  acts  and  parts  of  Acts  in  conflict  with  the  provisions 
of  this  Act  are  hereby  repealed,  but  such  repeal  shall  not  afifect  causes 


Expediting  Act  509 

now  pending  nor  rights  which  have  already  accrued,  but  such  causes  shall 
be  prosecuted  to  a  conclusion  and  such  rights  enforced  in  a  manner  here^ 
tofore  provided  by  law  and  as  modihed  by  the  provisions  of  this  Act. 
Sec.  5.    That  this  Act  shall  take  effect  from  its  passage. 


EXPEDITING  ACT. 

Act  of  June  25,  1910. 

An  Act  to  expedite  the  hearing  and  determination  of  suits  in  equity  pending 
or  hereafter  brought  under  the  act  of  July  second,  eighteen  hundred  and 
ninety,  entitled  "An  Act  to  protect  trade  and  commerce  against  unlawful 
restraints  and  monopolies,"  "An  Act  to  regulate  commerce,"  approved 
February  fourth,  eighteen  hundred  and  eighty-seven,  or  any  other  Acts 
having  a  like  purpose  that  may  be  hereafter  enacted. 

Sec.  1.  (As  amended  June  25,  1910.)  That  in  any  suit  in  equity 
pending  or  hereafter  brought  in  any  circuit  court  of  the  United  States 
under  the  Act  entitled  ''An  Act  to  protect  trade  and  commerce  against 
unlawful  restraints  and  monopolies,"  approved  July  second,  eighteen  hun- 
dred and  ninety,  "An  Act  to  regulate  commerce,"  approved  February 
fourth,  eighteen  hundred  and  eighty-seven,  or  any  other  Acts  having  a 
like  purpose  that  hereafter  may  be  enacted,  wherein  the  United  States  is 
complainant,  the  Attorney  General  may  file  with  the  clerk  of  such  court 
a  certificate  that,  in  his  opinion,  the  case  is  of  general  public  importance, 
a  copy  of  which  shall  be  immediately  furnished  by  such  clerk  to  each  of 
the  circuit  judges  of  the  circuit  in  which  the  case  is  pending.  Thereupon 
such  case  shall  be  given  precedence  over  others  and  in  every  way  expe- 
dited, and  be  assigned  for  hearing  at  the  earliest  practicable  day,  before 
not  less  than  three  of  the  circuit  judges  of  said  court,  if  there  be  three  or 
more;  and  if  there  be  not  more  than  two  circuit  judges,  then  before  them 
and  such  district  judge  as  they  may  select ;  or,  in  case  the  full  court  shall 
not  at  any  time  be  made  up  by  reason  of  the  necessary  absence  or  dis- 
qualification of  one  or  more  of  the  said  circuit  judges,  the  justice  of  the 
Supreme  Court  assigned  to  that  circuit  or  the  other  circuit  judge  or 
judges  may  designate  a  district  judge  or  judges  within  the  circuit  who 
shall  be  competent  to  sit  in  said  court  at  the  hearing  of  said  suit.  In  the 
event  the  judges  sitting  in  such  case  shall  be  equally  divided  in  opinion 
as  to  the  decision  or  disposition  of  said  cause,  or  in  the  event  that  a  ma- 
jority of  said  judges  shall  be  unable  to  agree  upon  the  judgment,  order, 
or  decree  finally  disposing  of  said  case  in  said  court  which  should  be  en- 
tered in  said  cause,  then  they  shall  immediately  certify  that  fact  to  the 
Chief  Justice  of  the  United  States,  who  shall  at  once  designate  and 
appoint  some  circuit  judge  to  sit  with  said  judges  and  to  assist  in  deter- 
mining said  cause.  Such  order  of  the  Chief  Justice  shall  be  immediately 
transmitted  to  the  clerk  of  the  circuit  court  in  which  said  cause  is  pend- 
ing, and  shall  be  entered  upon  the  minutes  of  said  court.  Thereupon 
said  cause  shall  at  once  be  set  down   for  reargument  and  the  parties 


510  Important  Federal  Laws 

thereto  notified  in  writing  by  the  clerk  of  said  court  of  the  action  of  the 
court  and  the  date  fixed  for  the  reargument  thereof.  The  provisions  of 
this  section  shall  apply  to  all  causes  and  proceedings  in  all  courts  now 
pending,  or  which  may  hereafter  be  brought. 

Appeal  to  Supreme  Court. 

Sec.  2.  That  in  every  suit  in  equity  pending  or  hereafter  brought  in 
any  circuit  court  of  the  United  States  under  any  of  said  Acts,  wherein 
the  United  States  is  complainant,  including  cases  submitted  but  not  yet 
decided,  an  appeal  from  the  final  decree  of  the  circuit  court  will  lie  only 
to  the  Supreme  Court  and  must  be  taken  within  sixty  days  from  the 
entry  thereof :  Provided,  That  in  any  case  where  an  appeal  may  have 
been  taken  from  the  final  decree  of  a  circuit  court  to  the  circuit  court  of 
appeals  before  this  Act  takes  effect,  the  case  shall  proceed  to  a  final 
decree  therein,  and  an  appeal  may  be  taken  from  such  decree  to  the 
Supreme  Court  in  the  manner  now  provided  by  law. 

Public,  No.  82,  approved  February  11,  1903;  Public,  No.  310, 
approved  June  25,  1910. 


COMPULSORY  TESTIMONY  ACT. 

Act  of  February  11,  1S93. 

An  Act  in  relation  to  testimony  before  the  Interstate  Commerce  Commission, 
and  in  cases  or  proceedings  under  or  connected  with  an  Act  entitled  "An 
Act  to  regulate  commerce,"  approved  February  fourth,  eighteen  hundred 
and   eighty-seven,  and  amendments   thereto. 

No  Person  to  be  Excused  from  Testifying  by  Fear  of  Incrimination. 

Sec.  1.  That  no  person  shall  be  excused  from  attending  and  testify- 
ing or  from  producing  books,  papers,  tarift's,  contracts,  agreements  and 
documents  before  the  Interstate  Commerce  Commission,  or  in  obedience  to 
the  subpoena  of  the  Commission,  whether  such  subpoena  be  signed  or 
issued  by  one  or  more  Commissioners,  or  in  any  cause  or  proceeding,  crim- 
inal or  otherwise,  based  upon  or  growing  out  of  any  alleged  violation  of  the 
Act  of  Congress,  entitled  "An  Act  to  regulate  commerce,"  approved  Feb- 
ruary fourth,  eighteen  hundred  and  eighty-seven,  or  of  any  amendment 
thereof  on  the  ground  or  for  the  reason  that  the  testimony  or  evidence, 
documentary  or  otherwise,  required  of  him,  may  tend  to  criminate  him  or 
subject  him  to  a  penalty  or  forfeiture.  But  no  person  shall  be  prose- 
cuted or  subjected  to  any  penalty  or  forfeiture  for  or  on  account  of  any 
transaction,  matter  or  thing,  concerning  which  he  may  testify,  or  produce 
evidence,  documentary  or  otherwise,  before  said  Commission,  or  in  obe- 
dience to  its  subpoena,  or  the  subpoena  of  either  of  them,  or  in  any  such 
case  or  proceeding:  Provided,  That  no  person  so  testifying  shall  be  ex- 
empt from  prosecution  and  punishment  for  perjury  committed  in  so 
testifying. 

Any  person  who  shall  neglect  or  refuse  to  attend  and  testify,  or  to 
answer  any  lawful  inquiry,  or  to  produce  books,  papers,  tariffs,  contracts, 


Compulsory  Testimony — Bills  of  Lading  511 

agreements  and  documents,  if  in  his  power  to  do  so,  in  obedience  to  the 
subpoena  or  lawful  requirement  of  the  Cdmmission  shall  be  guilty  of  an 
offense  and  upon  conviction  thereof  by  a  court  of  competent  jurisdiction 
shall  be  punished  by  fine  not  less  than  one  hundred  dollars  nor  more  than 
five  thousand  dollars,  or  by  imprisonment  for  not  more  than  one  year 
or  by  both  such  fine  and  imprisonment. 


BILL  OF  LADING  ACT. 

Act  of  August  29,  1916. 
An  Act  relating  to  bills  of  lading  in  interstate  and  foreign  commerce. 

Bills  of  Lading — Issued  in  Interstate  and  Foreign  Commerce. 

That  bills  of  lading  issued  by  any  common  carrier  for  the  trans- 
portation of  goods  in  any  Territory  of  the  United  States,  or  the  Dis- 
trict of  Columbia,  or  from  a  place  in  a  State  to  a  place  in  a  foreign 
country,  or  from  a  place  in  one  State  to  a  place  in  another  State,  or 
from  a  place  in  one  State  to  a  place  in  the  same  State  through  another 
State  or  foreign  country,  shall  be  governed  by  this  Act. 

Straight  Bills  Defined. 

Sec.  2.  That  a  bill  in  which  it  is  stated  that  the  goods  are  con- 
signed or  destined  to  a  specified  person  is  a  straight  bill. 

Order  Bills  Defined. 

Sec.  3.  That  a  bill  in  which  it  is  stated  that  the  goods  are  con- 
signed or  destined  to  the  order  of  any  person  named  in  such  bill  is  an 
order  bill.  Any  provision  in  such  a  bill  or  in  any  notice,  contract,  rule, 
regulation,  or  tariff  that  it  is  non-negotiable  shall  be  null  and  void  and 
shall  not  affect  its  negotiability  within  the  meaning  of  this  Act  unless 
upon  its  face  and  in  writing  agreed  to  by  the  shipper. 

Issues  in  Part  for  Continental  Use  Forbidden. 

Sec.  4.  That  order  bills  issued  in  a  State  for  the  transportation  of 
goods  to  any  place  in  the  United  States  or  the  Continent  of  North 
America,  except  Alaska  and  Panama,  shall  not  be  issued  in  parts  or 
sets.  If  so  issued,  the  carrier  issuing  them  shall  be  liable  for  failure 
to  deliver  the  goods  described  therein  to  anyone  who  purchases  a  part 
for  value  in  good  faith,  even  though  the  purchase  be  after  the  delivery 
of  the  goods  by  the  carrier  to  a  holder  of  one  of  the  other  parts :  Pro- 
vided, however,  That  nothing  contained  in  this  section  shall  be  inter- 
preted or  construed  to  forbid  the  issuing  of  order  bills  in  parts  or  sets 
for  such  transportation  of  goods  to  Alaska,  Panama,  Porto  Rico,  the 
Philippines,  Hawaii,  or  foreign  countries,  or  to  impose  the  liabilities  set 
forth  in  this  section  for  so  doing. 

Duplicates — Character  to  be  Noted. 

Sec.  5.  That  when  more  than  one  order  bill  is  issued  in  a  State  for 
the  same  goods  to  be  transported  to  any  place  in  the  United  States  on 


512  Important  Federal  Laws 

the  Continent  of  North  America,  except  Alaska  and  Panama,  the  word 
"dupHcate,"  or  some  other  word  or  words  indicating  that  the  document 
is  not  an  original  bill,  shall  be  placed  plainly  upon  the  face  of  every 
such  bill  except  the  one  first  issued.  A  carrier  shall  be  liable  for  the 
damage  caused  by  his  failure  so  to  do  to  anyone  who  has  purchased  the 
bill  for  value  in  good  faith  as  an  original,  even  though  the  purchase 
be  after  the  delivery  of  the  goods  by  the  carrier  to  the  holder  of  the 
original  bill :  Provided,  however,  That  nothing  contained  in  this  section 
shall  in  such  case  for  such  transportation  of  goods  to  Alaska,  Panama, 
Porto  Rico,  the  Philippines,  Hawaii,  or  foreign  countries  be  interpreted 
or  construed  so  as  to  require  the  placing  of  the  word  "duplicate"  thereon, 
or  to  impose  the  liabilities  set  forth  in  this  section  for  failure  so  to  do. 

Nonnegotiability  to  be  Marked. 

Sec.  6.  That  a  straight  bill  shall  have  placed  plainly  upon  its  face 
by  the  carrier  issuing  it  "non-negotiable''  or  "not  negotiable." 

This  section  shall  not  apply,  however,  to  memoranda  or  acknowl- 
edgments of  an  informal  character. 

Order  Bills. 

Sec.  7.  That  the  insertion  in  an  order  bill  of  the  name  of  a  person 
to  .be  notified  of  the  arrival  of  the  goods  shall  not  limit  the  negotia- 
bility of  the  bill  or  constitute  notice  to  a  purchaser  thereof  of  any  rights 
or  equities  of  such  person  in  the  goods. 

Delivery  of  Goods  by  Carrier. 

Sec.  8.  That  a  carrier,  in  the  absence  of  some  lawful  excuse,  is 
bound  to  deliver  goods  upon  a  demand  made  either  by  the  consignee 
named  in  the  bill  for  the  goods  or,  if  the  bill  is  an  order  bill,  by  the 
holder  thereof,  if  such  a  demand  is  accompanied  by — 

(a)  An  offer  in  good  faith  to  satisfy  the  carrier's  lawful  lien  upon 
the  goods ; 

(b)  Possession  of  the  bill  of  lading  and  an  offer  in  good  faith  to 
surrender,  properly  indorsed,  the  bill  which  was  issued  for  the  goods, 
if  the  bill  is  an  order  bill;  and 

(c)  A  readiness  and  willingness  to  sign,  when  the  goods  are  de- 
livered, an  acknowledgment  that  they  have  been  delivered,  if  such  sig- 
nature is  requested  by  the  carrier. 

In  case  the  carrier  refuses  or  fails  to  deliver  the  goods,  in  com- 
pliance with  a  demand  by  the  consignee  or  holder  so  accompanied,  the 
burden  shall  be  upon  the  carrier  to  establish  the  existence  of  a  lawful 
excuse  for  such  refusal  or  failure. 

Person  Entitled  to  Delivery. 

Sec.  9.  That  a  carrier  is  justified,  subject  to  the  provisions  of  the 
three  following  sections,  in  delivering  goods  to  one  who  is — 

(a)  A  person  lawfully  entitled  to  the  possession  of  the  goods,  or 

(b)  The  consignee  named  in  a  straight  bill  for  the  goods,  or 

(c)  A  person  in  possession  of  an  order  bill  for  the  goods,  by  the 


Bills  of  Lading  513 

terms  of  which  the  goods  are  deliverable  to  his  order ;  or  which  has 
been  indorsed  to  him,  or  in  blank  by  the  consignee,  or  by  the  mediate 
or  immediate  indorsee  of  the  consignee. 

Liability  for  Unauthorized  Delivery. 

Sec.  10.  That  wdiere  a  carrier  delivers  goods  to  one  who  is  not 
lawfully  entitled  to  the  possession  of  them,  the  carrier  shall  be  liable  to 
anyone  having  a  right  of  property  or  possession  in  the  goods  if  he  de- 
livered the  goods  otherwise  than  as  authorized  by  subdivisions  (b)  and 
(c)  of  the  preceding  section ;  and,  though  he  delivered  the  goods  as 
authorized  by  either  of  said  subdivisions,  he  shall  be  so  liable  if  prior 
to  such  delivery  he — 

(a)  Had  been  requested,  by  or  on  behalf  of  a  person  having  a  right 
of  property  or  possession  in  the  goods,  not  to  make  such  delivery,  or 

(b)  Had  information  at  the  time  of  the  delivery  that  it  was  to  a 
person  not  lawfully  entitled  to  the  possession  of  the  goods. 

Such  request  or  information,  to  be  effective  within  the  meaning  of 
this  section,  must  be  given  to  an  officer  or  agent  of  the  carrier,  the  actual 
or  apparent  scope  of  whose  duties  includes  action  upon  such  a  request 
or  information,  and  must  be  given  in  time  to  enable  the  officer  or  agent 
to  whom  it  is  given,  acting  with  reasonable  diligence,  to  stop  delivery  of 
the  goods. 

Liability  if  bill  not  taken  up  and  canceled. 

Sec.  11.  That  except  as  provided  in  section  twenty-six,  and  except 
when  compelled  by  legal  process,  if  a  carrier  delivers  goods  for  which 
an  order  bill  had  been  issued,  the  negotiation  of  which  would  transfer 
the  right  to  the  possession  of  the  goods,  and  fails  to  take  up  and  cancel 
the  bill,  such  carrier  shall  be  liable  for  failure  to  deliver  the  goods  to 
anyone  who  for  value  and  in  good  faith  purchases  such  bill,  whether 
such  purchaser  acquired  title  to  the  bill  before  or  after  the  delivery  of 
the  goods  by  the  carrier  and  notwithstanding  delivery  was  made  to  the 
person  entitled  thereto. 

Partial  Delivery. 

Sec.  12.  That  except  as  provided  in  section  twenty-six,  and  except 
when  compelled  by  legal  process,  if  a  carrier  delivers  part  of  the  goods 
for  which  an  order  bill  had  been  issued  and  fails  either — 

(a)  To  take  up  and  cancel  the  bill,  or 

(b)  To  place  plainly  upon  it  a' statement  that  a  portion  of  the  goods 
has  been  delivered,  with  a  description  which  may  be  in  general  terms 
either  of  the  goods  or  packages  that  have  been  so  delivered  or  of  the 
goods  or  packages  which  still  remain  in  the  carrier's  possession,  he  shall 
be  liable  for  failure  to  deliver  all  the  goods  specified  in  the  bill  to 
anyone  who  for  value  and  in  good  faith  purchases  it,  whether  such  pur- 
chaser acquired  title  to  it  before  or  after  the  delivery  of  any  portion  of 
the  goods  by  the  carrier,  and  notwithstanding  such  delivery  was  made 
to  the  person  entitled  thereto. 

(33) 


514  Important  Federal  Laws 

Alterations,  etc.,  Void. 

Sec.  13.  That  any  alteration,  addition,  or  erasure  in  a  bill  after  its 
issue,  without  authority  from  the  carrier  issuing  the  same,  either  in  writ- 
ing or  noted  on  the  bill,  shall  be  void,  whatever  be  the  nature  and  pur- 
pose of  the  change,  and  the  bill  shall  be  enforceable  according  to  its 
original  tenor. 

Lost,  etc..  Order  Bills — Delivery  of  Goods  on  Order  of  Court. 

Sec.  14.  That  where  an  order  bill  has  been  lost,  stolen,  or  de- 
stroyed a  court  of  competent  jurisdiction  may  order  the  delivery  of  the 
goods  upon  satisfactory  proof  of  such  loss,  theft,  or  destruction  and 
upon  the  giving  of  a  bond,  with  sufficient  surety,  to  be  approved  by  the 
court,  to  protect  the  carrier  or  any  person  injured  by  such  delivery  from 
any  liability  or  loss  incurred  by  reason  of  the  original  bill  retnaining 
outstanding.  The  court  may  also  in  its  discretion  order  the  payment 
of  the  carrier's  reasonable  costs  and  counsel  fees :  Provided,  a  voluntary 
indemnifying  bond  without  order  of  court  shall  be  binding  on  the  parties 
thereto. 

The  delivery  of  the  goods  under  an  order  of  the  court,  as  provided 
in  this  section,  shall  not  relieve  the  carrier  from  liability  to  a  person 
to  whom  the  order  bill  has  been  or  shall  be  negotiated  for  value  with- 
out notice  of  the  proceedings  or  of  the  delivery  of  the  goods. 

Liability  for  Duplicate  Bills. 

Sec.  15.  That  a  bill,  upon  the  face  of  which  the  word  "duplicate" 
or  some  other  word  or  words  indicating  that  the  document  is  not  an 
original  bill  is  placed,  plainly  shall  impose  upon  the  carrier  issuing  the 
same  the  liability  of  one  who  represents  and  warrants  that  such  bill  is 
an  accurate  copy  of  an  original  bill  properly  issued,  but  no  other  lia- 
bility. 

Liability  for  Refusing  Delivery  of  Goods. 

Sec.  16.  That  no  title  to  goods  or  right  to  their  possession  asserted 
by  a  carrier  for  his  own  benefit  shall  excuse  him  from  liability  for 
refusing  to  deliver  the  goods  according  to  the  terms  of  a  bill  issued  for 
them,  unless  such  title  or  right  is  derived  directly  or  indirectly  from  a 
transfer  made  by  the  consignor  or  consignee  after  the  shipment,  or 
from  the  carrier's  lien. 

Protection  if  Adverse  Claims  Made. 

Sec.  17.  That  if  more  than  one  person  claim  the  title  or  posses- 
sion of  goods,  the  carrier  may  require  all  known  claimants  to  inter- 
plead, either  as  a  defense  to  an  action  brought  against  him  for  non- 
delivery of  the  goods  or  as  an  original  suit,  whichever  is  appropriate. 

Time  Allowed  to  Ascertain  Ov^^ner. 

Sec.  18.  That  if  some  one  other  than  the  consignee  or  the  person 
in  possession  of  the  bill  has  a  claim  to  the  title  or  possession  of  the 
goods,  and  the  carrier  has  information  of  such  claim,  the  carrier  shall  be 


Bills  of  Lading  515 

excused  from  liability  for  refusing  to  deliver  the  goods,  either  to  the 
consignee  or  person  in  possession  of  the  bill  or  to  the  adverse  claimant, 
until  the  carrier  has  had  a  reasonable  time  to  ascertain  the  validity  of 
the  adverse  claim  or  to  bring  legal  proceedings  to  compel  all  claimants 
to  interplead. 

Enforcing  Rights  of  Third  Persons. 

Sec.  19.  That  except  as  provided  in  the  two  preceding  sections 
and  in  section  nine,  no  right  or  title  of  a  third  person,  unless  enforced 
by  legal  process,  shall  be  a  defense  to  an  action  brought  by  the  con- 
signee of  a  straight  bill  or  by  the  holder  of  an  order" bill  against  the 
carrier  for  failure  to  deliver  the  goods  on  demand. 

Responsibility  for  Goods — When  Loaded  by  Carrier. 

Sec.  20.  That  when  goods  are  loaded  by  a  carrier  such  carrier 
shall  count  the  packages  of  goods,  if  package  freight,  and  ascertain  the 
kind  and  quantity  if  bulk  freight,'  and  such  carrier  shall  not,  in  such 
cases,  insert  in  the  bill  of  lading  or  in  any  notice,  receipt,  contract,  rule, 
regulation,  or  tariff,  "Shipper's  weight,  load,  and  count,"  or  other  words 
of  like  purport,  indicating  that  the  goods  were  loaded  by  the  shipper 
and  the  description  of  them  made  by  him  or  in  case  of  bulk  freight  and 
freight  not  concealed  by  packages  the  description  made  by  him.  If  so 
inserted,  contrary  to  the  provisions  of  this  section,  said  words  shall  be 
treated  as  null  and  void  and  as  if  not  inserted  therein. 

Loaded  by  Shipper  in  Packages  or  Bulk. 

Sec.  21.  That  when  package  freight  or  bulk  freight  is  loaded  by  a 
shipper  and  the  goods  are  described  in  a  bill  of  lading  merely  by  a 
statement  of  marks  or  labels  upon  them  or  upon  packages  containing 
them,  or  by  a  statement  that  the  goods  are  said  to  be  goods  of  a  certain 
kind  or  quantity,  or  in  a  certain  condition,  or  it  is  stated  in  the  bill  of 
lading  that  packages  are  said  to  contain  goods  of  a  certain  kind  or 
quantity  or  in  a  certain  condition,  or  that  the  contents  or  condition  of 
the  contents  of  packages  are  unknown,  or  words  of  like  purport  are 
contained  in  the  bill  of  lading,  such  statements,  if  true,  shall  not  make 
liable  the  carrier  issuing  the  bill  of  lading,  although  the  goods  are  not 
of  the  kind  or  quantity  or  in  the  condition  which  the  marks  or  labels 
upon  them  indicate,  or  of  the  kind  or  quantity  or  in  the  condition  they 
were  said  to  be  by  the  consignor.  The  carrier  may  also  by  inserting 
in  the  bill  of  lading  the  words  "Shipper's  weight,  load,  and  count,"  or 
other  words  of  like  purport  indicate  that  the  goods  were  loaded  by  the 
shipper  and  the  description  of  them  made  by  him  ;  and  if  such  state- 
ment be  true,  the  carrier  shall  not  be  liable  for  damages  caused  by  the 
improper  loading  or  by  the  non-receipt  or  by  the  misdescription  of  the 
goods  described  in  the  bill  of  lading:  Provided,  however,  Where  the 
shipper  of  bulk  freight  installs  and  maintains  adequate  facilities  for 
weighing  such  freight,  and  the  same  are  available  to  the  carrier,  then 
the  carrier,   upon   written   request   of   such   shipper   and   when   given   a 


516  Important  Federal  Laws 

reasonable  opportunity  so  to  do,  shall  ascertain  the  kind  and  quantity 
of  bulk  freight  within  a  reasonable  time  after  such  written  request,  and 
the  carriers  shall  not  in  such  cases  insert  in  the  bill  of  lading  the  words 
"Shipper's  weight,"  or  other  words  of  like  purport,  and  if  so  inserted 
contrary  to  the  provisions  of  this  section,  said  words  shall  be  treated 
as  null  and  void  and  as  if  not  inserted  therein. 

Liability  of  Carrier  for  Acts  of  Agents. 

Sec.  22.  That  if  a  bill  of  lading  has  been  issued  by  a  carrier  or  on 
his  behalf  by  an  agent  or  employee  the  scope  of  whose  actual  or  apparent 
authority  includes  the  receiving  of  goods  and  issuing  bills  of  lading 
therefor  for  transportation  in  commerce  among  the  several  States  and 
with  foreign  nations,  the  carrier  shall  be  liable  to  (a)  the  owner  of 
goods  covered  by  a  straight  bill  subject  to  existing  right  of  stoppage  in 
transitu  or  (b)  the  holder  of  an  order  bill,  who  has  given  value  in  good 
faith,  relying  upon  the  description  therein  of  the  goods,  for  damages 
caused  by  the  non-receipt  by  the  carrier  of  all  or  part  of  the  goods  or 
their  failure  to  correspond  with  the  description  thereof  in  the  bill  at 
the  time  of  its  issue. 

Protection  Against  Attachment. 

Sec.  23.  That  if  goods  are  delivered  to  a  carrier  by  the  owner  or 
by  a  person  whose  act  in  conveying  the  title  to  them  to  a  purchaser  for 
value  in  good  faith  would  bind  the  owner,  and  an  order  bill  is  issued 
for  them,  thev  can  not  thereafter,  while  in  the  possession  of  the  carrier, 
be  attached  by  garnishment  or  otherwise  or  be  levied  upon  under  an 
execution  unless  the  bill  be  first  surrendered  to  the  carrier  or  its  nego- 
tiation enjoined.  The  carrier  shall  in  no  such  case  be  compelled  to 
deliver  the  actual  possession  of  the  goods  until  the  bill  is  surrendered  to 
him  or  impounded  by  the  court. 

Legal  Rights  of  Creditors. 

Sec.  24.  That  a  creditor  whose  debtor  is  the  owner  of  an  order 
bill  shall  be  entitled  to  such  aid  from  courts  of  appropriate  jurisdiction 
by  injunction  and  otherwise  in  attaching  such  bill  or  in  satisfying  the 
claim  by  means  thereof  as  is  allowed  at  law  or  in  equity  in  regard  to 
property  which  can  not  readily  be  attached  or  levied  upon  by  ordinary 
legal  process. 

Limit  of  Carrier's  Lien. 

Sec.  25.  That  if  an  order  bill  is  issued  the  carrier  shall  have  a 
lien  on  the  goods  therein  mentioned  for  all  charges  on  those  goods  for 
freight,  storage,  demurrage  and  terminal  charges,  and  expenses  neces- 
sary for  the  preservation  of  the  goods  or  incident  to  their  transportation 
subsequent  to  the  date  of  the  bill  and  all  other  charges  incurred  in  trans- 
portation and  delivery,  unless  the  bill  expressly  enumerates  other  charges 
for  which  a  lien  is  claimed.     In  such  case  there  shall  also  be  a  lien  for 


Bills  of  Lading  517 

the  charges  enumerated  so  far  as  they  are  allowed  by  law  and  the  con- 
tract between  the  consignor  and  the  carrier. 

Carrier  Not  Liable  if  Goods  Lawfully  Sold. 

Sec.  26.  That  after  goods  have  been  lawfully  sold  to  satisfy  a 
carrier's  lien,  or  because  they  have  not  been  claimed,  or  because  they 
are  perishable  or  hazardous,  the  carrier  shall  not  thereafter  be  liable 
for  failure  to  deliver  the  goods  themselves  to  the  consignee  or  owner 
of  the  goods,  or  to  a  holder  of  the  bill  given  for  the  goods  when  they 
were  shipped,  even  if  such  bill  be  an  order  bill. 

Negotiation  of  Order  Bills. 

Sec.  27.  That  an  order  bill  may  be  negotiated  by  delivery  where, 
by  the  terms  of  the  bill,  the  carrier  undertakes  to  deliver  the  goods  to 
the  order  of  a  specified  person,  and  such  person  or  a  subsequent  indorsee 
of  the  bill  has  indorsed  it  in  blank. 

Indorsement  to  Order. 

Sec.  28.  That  an  order  bill  may  be  negotiated  by  the  indorsement 
of  the  person  to  whose  order  the  goods  are  deliverable  by  the  tenor 
of  the  bill.  Such  indorsement  may  be  in  blank  or  to  a  specified  person. 
If  indorsed  to  a  specified  person,  it  may  be  negotiated  again  bv  the 
indorsement  of  such  person  in  blank  or  to  another  specified  person. 
Subsequent  negotiation  may  be  made  in  like  manner. 

Transfer  of  Bill. 

Sec.  29.  That  a  bill  may  be  transferred  by  the  holder  by  delivery, 
accompanied  with  an  agreement,  express  or  implied,  to  transfer  the  title 
to  the  bill  or  to  the  goods  represented  thereby.  A  straight  bill  can  not 
be  negotiated  free  from  existing  equities,  and  the  indorsement  of  such 
a  bill  gives  the  transferee  no  additional  right. 

Negotiation  of  Bills  by  Possessor. 

Sec.  30.  That  an  order  bill  may  be  negotiated  by  any  person  in 
possession  of  the  same,  however  such  possession  may  have  been  ac- 
quired, if  by  the  terms  of  the  bill  the  carrier  undertakes  to  deliver  the 
goods  to  the  order  of  such  person,  or  if  at  the  time  of  negotiation  the 
bill  is  in  such  form  that  it  may  be  negotiated  by  delivery. 

Rights  of  Purchaser. 

Sec.  31.  That  a  person  to  whom  an  order  bill  has  been  duly  nego- 
tiated acquires  thereby — 

(a)  Such  title  to  the  goods  as  the  person  negotiating  the  bill  to  him 
had  or  had  ability  to  convey  to  a  purchaser  in  good  faith  for  value,  and 
also  such  title  to  the  goods  as  the  consignee  and  consignor  had  or  had 
power  to  convey  to  a  purchaser  in  good  faith  for  value ;  and 

(b)  The  direct  obligation  of  the  carrier  to  hold  possession  of  the 
goods  for  him  according  to  the  terms  of  the  bill  as  fully  as  if  the  carrier 
had  contracted  directly  with  him. 


518  Important  Federal  Laws 

Rights  of  Transferee  if  Bill  Not  Negotiated. 

Sec.  32.  Tliat  a  person  to  whom  a  bill  has  been  transferred,  but 
not  negotiated,  acquires  thereby  as  against  the  transferor  the  title  to  the 
goods,  subject  to  the  terms  of  any  agreement  with  the  transferor.  If 
the  bill  is  a  straight  bill  such  person  also  acquires  the  right  to  notify 
the  carrier  of  the  transfer  to  him  of  such  bill  and  thereby  to  become 
the  direct  obligee  of  whatever  obligations  the  carrier  owed  to  the  trans- 
feror of  the  bill  immediately  before  the  notification. 

Prior  to  the  notification  of  the  carrier  by  the  transferor  or  trans- 
feree of  a  straight  bill  the  title  of  the  transferee  to  the  goods  and  the 
right  to  acquire  the  obligation  of  the  carrier  may  be  defeated  by  garnish- 
ment or  by  attachment  or  execution  upon  the  goods  by  a  creditor  of 
the  transferor,  or  by  a  notification  to  the  carrier  by  the  transferor  or  a 
subsequent  purchaser  from  the  transferor  of  a  subsequent  sale  of  the 
goods  by  the  transferor. 

A  carrier  has  not  received  notification  within  the  meaning  of  this 
section  unless  an  ofificer  or  agent  of  the  carrier,  the  actual  or  apparent 
scope  of  whose  duties  includes  action  upon  such  a  notification,  has  been 
notified ;  and  no  notification  shall  be  effective  until  the  officer  or  agent 
to  whom  it  is  given  has  had  time,  with  the  exercise  of  reasonable  dili- 
gence, to  communicate  with  the  agent  or  agents  having  actual  possession 
or  control  of  the  goods. 

Order  Bills — Indorsement. 

Sec.  3^.  That  where  an  order  bill  is  transferred  for  value  by 
delivery,  and  the  indorsement  of  the  transferor  is  essential  for  negotia- 
tion, the  transferee  acquires  a  right  against  the  transferor  to  compel 
him  to  indorse  the  bill,  unless  a  contrary  intention  appears.  The  nego- 
tiation shall  take  effect  as  of  the  time  when  the  indorsement  is  actually 
made.     This  obligation  may  be  specifically  enforced. 

Warrant  of  Transferor. 

Sec.  34.  That  a  person  who  negotiates  or  transfers  for  value  a  bill 
by  indorsement  or  deliver^',  unless  a  contrary  intention  appears,  war- 
rants— 

(a)  That  the  bill  is  genuine; 

(b)  That  he  has  a  legal  right  to  transfer  it; 

(c)  That  he  has  knowledge  of  no  fact  which  would  impair  the 
validity  or  worth  of  the  bill ; 

(d)  That  he  has  a  right  to  transfer  the  title  to  the  goods,  and  that 
the  goods  are  merchantable  or  fit  for  a  particular  purpose  whenever 
such  warranties  would  have  been  implied  if  the  contract  of  the  parties 
had  been  to  transfer  without  a  bill  the  goods  represented  thereby. 

Limit  of  Indorser's  Liability. 

Sec.  35.  That  the  indorsement  of  a  bill  shall  not  make  the  indorser 
liable  for  any  failure  on  the  part  of  the  carrier  or  previous  indorsers 
of  the  bill  to  fulfill  their  respective  obligations. 


Bills  of  Lading  519 

Responsibility  of  Holder  of  Bill  for  Security,  etc. 

Sec.  36.  That  a  mortgagee  or  pledgee  or  other  holder  of  a  bill 
for  security  who  in  good  faith  demands  or  receives  payment  of  the  debt 
for  which  such  bill  is  security,  whether  from  a  party  to  a  draft  drawn 
for  such  debt  or  from  any  other  person,  shall  not  be  deemed  by  so 
doing  to  represent  or  warrant  the  genuineness  of  such  bill  or  the  quan- 
tity or  quahty  of  the  goods  therein  described. 

Validity  of  Negotiation  by  Purchaser  for  Value,  etc.,  of  Bill  Wrong- 
fully Sold. 
Sec.  37.  That  the  validity  of  the  negotiation  of  a  bill  is  not  im- 
paired by  the  fact  that  such  negotiation  was  a  breach  of  duty  on  the 
part  of  the  person  making  the  negotiation,  or  by  the  fact  that  the  owner 
of  the  bill  was  deprived  of  the  possession  of  the  same  by  fraud,  acci- 
dent, mistake,  duress,  loss,  theft,  or  conversion,  if  the  person  to  whom 
the  bill  was  negotiated,  or  a  person  to  whom  the  bill  was  subsequently 
negotiated,  gave  value  therefor  in  good  faith,  without  notice  of  the 
breach  of  duty,  or  fraud,  accident,  mistake,  duress,  loss,  theft,  or  con- 
version. 

Validity  of  Negotiation  by  Purchaser  for  Value,  etc.,  if  Goods  Mort- 
gaged, etc. 

Sec.  38.  That  where  a  person,  having  sold,  mortgaged,  or  pledged 
goods  which  are  in  a  carrier's  possession  and  for  which  an  order  bill 
has  been  issued,  or  having  sold,  mortgaged,  or  pledged  the  order  bill 
representing  such  goods,  continues  in  possession  of  the  order  bill,  the 
subsequent  negotiation  thereof  by  that  person  under  any  sale,  pledge, 
or  other  disposition  thereof  to  any  person  receiving  the  same  in  good 
faith,  for  value  and  without  notice  of  the  previous  sale,  shall  have  the 
same  effect  as  if  the  first  purchaser  of  the  goods  or  bill  had  expressly 
authorized  the  subsequent  negotiation. 

Purchaser  for  Value,  Etc.,  Exempt  from  Seller's  Liens,  Etc.,  on  Goods. 
Sec.  39.  That  where  an  order  bill  has  been  issued  for  goods  no 
seller's  lien  or  right  of  stoppage  in  transitu  shall  defeat  the  rights  of 
any  purchaser  for  value  in  good  faith  to  whom  such  bill  has  been  nego- 
tiated, whether  such  negotiation  be  prior  or  subsequent  to  the  notifica- 
tion to  the  carrier  who  issued  such  bill  of  the  seller's  claim  to  a  lien 
or  right  of  stoppage  in  transitu.  Nor  shall  the  carrier  be  obliged  to 
deliver  or  justified  in  delivering  the  goods  to  an  unpaid  seller  unless 
such  bill  is  first  surrendered  for  cancellation. 

Rights  of  Mortgagees  and  Lien  Holders. 

Sec.  40.  That,  except  as  provided  in  section  thirty-nine,  nothing 
in  this  Act  shall  limit  the  rights  and  remedies  of  a  mortgagee  or  lien 
holder  whose  mortgage  or  lien  on  goods  would  be  valid,  apart  from  this 
Act,  as  against  one  who  for  value  and  in  good  faith  purchased  from 
the  owner,  immediately  prior  to  the  time  of  their  delivery  to  the  carrier, 


520  Important  Federal  Laws 

the  goods  which  are  subject  to  the  mortgage  or  lien  and  obtained  pos- 
session of  them. 

Penalties. 

Sec.  41.  That  any  person  who,  knowingly  or  with  intent  to  de- 
fraud, falsely  makes,  alters,  forges,  counterfeits,  prints  or  photographs 
any  bill  of  lading  purporting  to  represent  goods  received  for  shipment 
among  the  several  States  or  with  foreign  nations,  or  with  like  intent 
utters  or  publishes  as  true  and  genuine  any  such  falsely  altered,  forged, 
counterfeited,  falsely  printed  or  photographed  bill  of  lading,  knowing 
it  to  be  falsely  altered,  forged,  counterfeited,  falsely  printed  or  photo- 
graphed, or  aids  in  making,  altering,  forging,  counterfeiting,  printing 
or  photographing,  or  uttering  or  publishing  the  same,  or  issues  or  aids 
in  issuing  or  procuring  the  issue  of,  or  negotiates  or  transfers  for  value 
a  bill  which  contains  a  false  statement  as  to  the  receipt  of  the  goods, 
or  as  to  any  other  matter,  or  who,  with  intent  to  defraud,  violates,  or 
fails  to  comply  with,  or  aids  in  any  violation  of,  or  failure  to  comply 
with  any  provision  of  this  Act,  shall  be  guilty  of  a  misdemeanor,  and, 
upon  conviction,  shall  be  punished  for  each  ofTense  by  imprisonment 
not  exceeding  five  years,  or  by  a  fine  not  exceeding  $5,000,  or  both. 

Meaning  of  Words  Used. 

Sec.  42.  First.  That  in  this  Act,  unless  the  context  of  subject  mat- 
ter otherwise  requires — 

"Action"  includes  counterclaim,  set-ofif,  and  suit  in  equity. 

"Bill"  means  bill  of  lading  governed  by  this  Act. 

"Consignee"  means  the  person  named  in  the  bill  as  the  person  to 
whom  delivery  of  the  goods  is  to  be  made. 

"Consignor"  means  the  person  named  in  the  bill  as  the  person  from 
whom  the  goods  have  been  received  for  shipment. 

"Goods"  means  merchandise  or  chattels  in  course  of  transportation 
or  which  have  been  or  are  about  to  be  transported. 

"Holder"  of  a  bill  means  a  person  who  has  both  actual  possession  of 
such  bill  and  a  right  of  property  therein. 

"Order"  means  an  order  by  indorsement  on  the  bill. 

"Person"  includes  a  corporation  or  partnership,  or  two  or  more 
persons  having  a  joint  or  common  interest. 

To  "purchase"  includes  to  take  as  mortgagee  and  to  take  as  pledgee. 

"State"  includes  any  Territory,  District,  insular  possession,  or 
isthmian  possession. 

Prior  Bills  Not  Affected. 

Sec.  43.  That  the  provisions  of  this  Act  do  not  apply  to  bills  made 
and  delivered  prior  to  the  taking  effect  thereof. 

Invalidity  of  Any  Part,  Not  to  Affect  Remainder  of  Act. 

Sec.  44.  That  the  provisions  and  each  part  thereof  and  the  sections 
and  each  part  thereof  of  this  Act  are  independent  and  severable,  and 


Bills  of  Lading 


521 


the  declaring  of  any  provision  or  part  thereof,  or  provisions  or  part 
thereof,  or  section  or  part  thereof,  or  sections  or  part  thereof,  uncon- 
stitutional shall  not  impair  or  render  unconstitutional  any  other  pro- 
vision or  part  thereof  or  section  or  part  thereof. 

Time  of  Taking  Effect. 

Sec.  45.     That  this  Act  shall  take  efTect  and  be  in  force  on  and  after 
the  first  day  of  January  next  after  its  passage. 


FEDERAL  ELECTIONS. 


PUBLICITY  OF  CAMPAIGN  CONTRIBUTIONS. 

Act  of  June  25,   1910. 

An   Act  providing   for  publicity   of  contributions  made   for  the   puri>ose   of  in- 
fluencing elections  at  which  Representatives  in  Congress  are  elected. 

Political  Committee  Defined. 

Sec.  1.  That  the  term  "poHtical  committee"  under  the  provisions  of 
this  Act  shall  include  the  national  committees  of  all  political  parties  and 
the  national  congressional  campaign  committees  of  all  political  parties 
and  all  committees,  associations,  or  organizations  which  shall  in  two  or 
more  States  influence  the  result  or  attempt  to  influence  the  result  of  an 
election  at  which  Representatives  in  Congress  are  to  be  elected. 

Chairman  knd  Treasurer — Duty  of  Treasurer. 

Sec.  2.  That  every  political  committee  as  defined  in  this  Act  shall 
have  a  chairman  and  a  treasurer.  It  shall  be  the  duty  of  the  treasurer  to 
keep  a  detailed  and  exact  account  of  all  money  or  its  equivalent  received 
by  or  promised  to  such  committee  or  any  member  thereof,  or  by  or  to  any 
person  acting  under  its  authority  or  in  its  behalf,  and  the  name  of  every 
person,  firm,  association,  or  committee  from  whom  received,  and  of  all 
expenditures,  disbursements,  and  promises  of  payment  or  disbursement 
made  by  the  committee  or  any  member  thereof,  or  by  any  person  acting 
under  its  atithority  or  in  its  behalf,  and  to  whom  paid,  distributed,  or 
disbursed.  No  officer  or  member  of  such  committee,  or  other  person 
acting  under  its  authority  or  in  its  behalf  shall  receive  any  money  or  its 
equivalent,  or  expend  or  promise  to  exoend  any  money  on  behalf  of  such 
committee,  until  after  a  chairman  and  treasurer  of  such  committee  shall 
have  been  chosen. 

Disbursements  in  Excess  of  $10.00 — Requirements. 

Sec.  3.  That  every  payment  or  disbursement  made  by  a  political 
committee  exceeding  ten  dollars  in  amount  be  evidenced  by  a  receipted 
bill  stating  the  particulars  of  expense,  and  every  such  record,  voucher, 
receipt,  or  account  shall  be  preserved  for  fifteen  months  after  the  election 
to  which  it  relates. 

Accounts  of  Contributions. 

Sec.  4.  That  whoever,  acting  under  the  authority  or  in  behalf  of 
such  political  committee,  whether  as  a  member  thereof  or  otherwise, 
receives  any  contribution,  payment,  loan,  gift,  advance,  deposit,  or  prom- 
ise of  money  or  its  equivalent  shall,  on  demand,  and  in  any  event  within 
five   days   after   the   receipt   of    such   contribution,    payment,   loan,   gift, 


Campaign  Contributions  523 

advance,  deposit,  or  promise,  render  to  the  treasurer  of  such  political 
committee  a  detailed  account  of  the  same,  together  with  the  name  and 
address  from  whom  received,  and  said  treasurer  shall  forthwith  enter 
the  same  in  a  ledger  or  record  to  be  kept  by  him  for  that  purpose. 

Publicity  of  Campaign  Contributions. 

"Sec.  5.  That  the  treasurer  of  every  such  political  committee  shall, 
not  more  than  fifteen  days  and  not  less  than  ten  days  next  before  an 
election  at  which  Representatives  in  Congress  are  to  be  elected  in  two 
or  more  States,  file  in  the  office  of  the  Clerk  of  the  House  of  Represen- 
tatives at  Washington,  District  of  Columbia,  with  said  Clerk,  an  item- 
ized detailed  statement ;  and  on  each  sixth  day  thereafter  until  such  elec- 
tion said  treasurer  shall  file  with  said  Clerk  a  supplemental  itemized 
detailed  statement.  Each  of  said  statements  shall  conform  to  the  require- 
ments of  the  following  section  of  this  act,  except  that  the  supplemental 
statement  herein  required  need  not  contain  any  item  of  which  publicity 
is  given  in  a  previous  statement.  Each  of  said  statements  shall  be  full 
and  complete,  and  shall  be  signed  and  sworn  to  by  said  treasurer. 

"It  shall  also  be  the  duty  of  said  treasurer  to  file  a  similar  statement 
with  said  Clerk  within  thirty  days  after  such  election,  such  final  statement 
also  to  be  signed  and  sworn  to  by  said  treasurer  and  to  conform  to  the 
requirements  of  the  following  section  of  this  Act.  The  statements  so 
filed  with  the  Clerk  of  the  House  shall  be  preserved  by  him  for  fifteen 
months  and  shall  be  a  part  of  the  public  records  of  his  office  and  shall  be 
open  to  public  inspection.     (As  amended  August  19,  1911.) 

What  Public  Statements  Must  Show. 

"Sec.  6.  That  the  statements  required  by  the  preceding  section  of 
this  Act  shall  state : 

"First.  The  name  and  address  of  each  person,  firm,  association,  or 
committee  who  or  which  has  contributed,  promised,  loaned,  or  advanced 
to  such  political  committee,  or  any  officer,  member,  or  agent  thereof  either 
in  one  or  more  items,  money  or  its  equivalent  of  the  aggregate  amount 
or  value  of  one  hundred  dollars  or  more,  and  the  amount  or  sum  con- 
tributed, promised,  loaned,  or  advanced  by  each. 

"Second.  The  aggregate  sum  contributed,  promised,  loaned,  or 
advanced  to  such  {political  committee,  or  to  any  officer,  member,  or  agent 
thereof,  in  amounts  of  less  than  one  hundred  dollars. 

"Third.  The  total  sum  of  all  contributions,  promises,  loans,  and 
advances  received  by  such  political  committee  or  any  officer,  member,  or 
agent  thereof. 

"Fourth.  The  name  and  address  of  each  person,  firm,  association, 
'or  committee  to  whom  such  political  committee,  or  any  officer,  member  or 
agent  thereof,  has  distributed,  contributed,  loaned,  advanced,  or  promised 
any  sum  of  money  or  its  equivalent  of  the  amount  or  value  of  ten  dollars 
or  more,  stating  the  amount  or  sum  distributed,  disbursed,  contributed, 
loaned,  advanced,  or  promised  to  each,  and  the  purpose  thereof. 


524  Important  Federal  Laws 

"Fifth.  The  aggregate  sum  distributed,  disbursed,  contributed, 
loaned,  advanced,  or  promised  by  such  poHtical  committee,  or  any  officer, 
member,  or  agent  thereof,  where  the  amount  or  value  of  such  distribu- 
tion, disbursement,  loan,  advance,  or  promise  to  any  one  person,  firm, 
association,  or  committee  in  one  or  more  items  is  less  than  ten  dollars. 

"Sixth.  The  total  sum  disbursed,  distributed,  contributed,  loaned, 
advanced,  or  promised  by  such  political  committee,  or  any  officer,  mem- 
ber, or  agent  thereof."     (As  amended  August  19,  1911.) 

Persons  Expending  Over  $50.00  to  Influence  the  Election  of  a  Con- 
gressman Must  File  Statements. 
Sec.  7.  That  every  person,  firm,  association,  or  committee,  except 
political  committees  as  hereinbefore  defined,  that  shall  expend  or  promise 
any  sum  of  money  or  other  thing  of  value  amounting  to  fifty  dollars  or 
more  for  the  purpose  of  influencing  or  controlling,  in  two  or  more  States, 
the  result  of  an  election  at  which  Representatives  to  the  Congress  of 
the  United  States  are  elected,  unless  he  or  it  shall  contribute  the  same 
to  a  political  committee  as  hereinbefore  defined,  shall  file  the  statements 
of  the  same  under  oath,  as  required  by  section  six  of  this  Act,  in  the 
office  of  the  Clerk  of  the  House  of  Representatives,  at  Washington, 
District  of  Columbia,  which  statements  shall  be  held  by  said  Clerk  in  all 
respects  as  required  by  section  five  of  this  Act. 

"Candidate"  Defined — Duties  of  Candidates  for  Congress. 

"Sec.  8.  The  word  'candidate'  as  used  in  this  section  shall  include 
all  persons  whose  names  are  presented  for  nomination  for  Representative 
or  Senator  in  the  Congress  of  the  United  States  at  any  primary  election 
or  nominating  convention,  or  for  indorsement  or  election  at  any  general 
or  special  election  held  in  connection  with  the  nomination  or  election  of  a 
person  to  fill  such  office,  whether  or  not  such  persons  are  actually  nom- 
inated, indorsed,  or  elected. 

"Every  person  who  shall  be  a  candidate  for  nomination  at  any  pri- 
mary election  or  nominating  convention,  or  for  election  at  any  general  or 
special  election,  as  Representative  in  the  Congress  of  the  United  States, 
shall,  not  less  than  ten  nor  more  than  fifteen  days  before  the  day  for 
holding  such  primary  election  or  nominating  convention,  and  not  less  than 
ten  nor  more  than  fifteen  days  before  the  day  of  the  general  or  special 
election  at  which  candidates  for  Representatives  are  to  be  elected,  file 
with  the  Clerk  of  the  House  of  Representatives  at  Washington,  District 
of  Columbia,  a  full,  correct,  and  itemized  statement  of  all  moneys  and 
things  of  value  received  by  him  or  by  anyone  for  him  with  his  knowledge 
and  consent,  from  any  source,  in  aid  or  support  of  his  candidacy,  together 
with  the  names  of  all  those  who  have  furnished  the  same  in  whole  or  in 
part ;  and  such  statement  shall  contain  a  true  and  itemized  account  of  all 
moneys  and  things  of  value  given,  contributed,  expended,  used,  or  prom- 
ised by  such  candidate,  or  by  his  agent,  representative,  or  other  person 
for  and  in  his  behalf  with  his  knowledge  and  consent,  together  with  the 


Campaign  Contributions  525 

names  of  all  those  to  whom  any  and  all  such  gifts,  contributions,  pay- 
ments, or  promises  were  made,  for  the  purpose  of  procuring  his  nomina- 
tion or  election. 

"Every  person  who  shall  be  a  candidate  for  nomination  at  any  pri- 
mary election  or  nominating  convention,  or  for  indorsement  at  any  gen- 
eral or  special  election,  or  election  by  the  legislature  of  any  State,  as  Sen- 
ator in  the  Congress  of  the  United  States,  shall,  not  less  than  ten  nor 
more  than  fifteen  days  before  the  day  for  holding  such  primary  election 
or  nominating  convention,  and  not  less  than  ten  nor  more  than  fifteen 
days  before  the  day  of  the  general  or  special  election  at  which  he  is  seek- 
ing indorsement,  and  not  less  than  five  nor  more  than  ten  days  before  the 
day  upon  which  the  first  vote  is  to  be  taken  in  the  two  houses  of  the 
legislature  before  which  he  is  a  candidate  for  election  as  Senator,  file 
with  the  Secretary  of  the  Senate  at  Washington,  District  of  Columbia,  a 
full,  correct,  and  itemized  statement  of  all  moneys  and  things  of  value 
received  by  him  or  by  anyone  for  him  with  his  knowledge  and  consent, 
from  any  source,  in  aid  or  support  of  his  candidacy,  together  with  the 
names  of  all  those  who  have  furnished  the  same  in  whole  or  in  part ;  and 
such  statement  shall  contain  a  true  and  itemized  account  of  all  moneys 
and  things  of  value  given,  contributed,  expended,  used,  or  promised  by 
such  candidate,  or  by  his  agent,  representative,  or  other  person  for  and 
in  his  behalf  with  his  knowledge  and  consent,  together  with  the  names 
of  all  those  to  whom  any  and  all  such  gifts,  contributions,  payments,  or 
promises  were  made  for  the  purpose  of  procuring  his  nomination  or 
election. 

"Every  such  candidate  for  nomination  at  any  primary  election  or 
nominating  convention,  or  for  indorsement  or  election  at  any  general  or 
special  election,  or  for  election  by  the  legislature  of  any  State,  shall, 
within  fifteen  days  after  such  primary  election  or  nominating  convention, 
and  within  thirty  days  after  any  such  general  or  special  election,  and 
within  thirty  days  after  the  day  upon  which  the  legislature  shall  have 
elected  a  Senator,  file  with  the  Clerk  of  the  House  of  Representatives 
or  with  the  Secretary  of  the  Senate,  as  the  case  may  be,  a  full,  correct,  and 
itemized  statement  of  all  moneys  and  things  of  value  received  by  him 
or  by  anyone  for  him  with  his  knowledge  and  consent,  from  any  source, 
in  aid  or  support  of  his  candidacy,  together  with  the  names  of  all  those 
who  have  furnished  the  same  in  whole  or  in  part;  and  such  statement 
shall  contain  a  true  and  itemized  account  of  all  moneys  and  things  of 
value  given,  contributed,  expended,  used  or  promised  by  such  candidate, 
or  by  his  agent,  representative,  or  other  person  for  and  in  his  behalf 
with  his  knowledge  and  consent,  up  to,  on,  and  after  the  day  of  such  pri- 
mary election,  nominating  convention,  general  or  special  election,  or  elec- 
tion by  the  legislature,  together  with  the  names  of  all  those  to  whom  any 
and  all  such  gifts,  contributions,  payments,  or  promises  were  made  for 
the  purpose  of  procuring  his  nomination,  indorsement,  or  election. 

"Every   such  candidate  shall  include  therein  a   statement  of  every 


526  Important  Federal  Laws 

promise  or  pledge  made  by  him,  or  by  any  one  for  him  with  his  knowl- 
edge and  consent  or  to  whom  he  has  given  authority  to  make  any  such 
promise  or  pledge,  before  the  completion  of  any  such  primary  election  or 
nominating  convention  or  general  or  special  election  or  election  by  the 
legislature,  relative  to  the  appointment  or  recommendation  for  appoint- 
ment of  any  person  to  any  position  of  trust,  honor,  or  profit,  either  in  the 
county.  State,  or  Nation,  or  in  any  political  sub-division  thereof,  or  in 
any  private  or  corporate  employment,  for  the  purpose  of  procuring  the 
support  of  such  person  or  of  any  person  in  his  candidacy,  and  if  any 
such  promise  or  pledge  shall  have  been  made  the  names  or  name,  the 
address  or  addresses,  and  the  occupation  or  occupations  of  the  person  or 
persons  to  whom  such  promise  or  pledge  shall  have  been  made,  shall  be 
stated,  together  with  a  description  of  the  position  relating  to  which  such 
promise  or  pledge  has  been  made.  In  the  event  that  no  such  promise  or 
pledge  has  been  made  by  such  candidate,  that  fact  shall  be  distinctly 
stated. 

"No  candidate  for  Representative  in  Congress  or  for  Senator  of 
the  United  States  shall  promise  any  office  or  position  to  any  person,  or 
to  use  his  influence  or  to  give  his  support  to  any  person  for  any  office 
or  position  for  the  purpose  of  procuring  the  support  of  such  person,  or 
of  any  person,  in  his  candidacy ;  nor  shall  any  candidate  for  Senator  of 
the  United  States  give,  contribute,  expend,  use,  or  promise  any  money 
or  thing  of  value  to  assist  in  procuring  the  nomination  or  election  of  any 
particular  candidate  for  the  legislature  of  the  State  in  which  he  resides, 
but  such  candidate  may,  within  the  limitations  and  restrictions  and  sub- 
ject to  the  requirements  of  this  act,  contribute  to  political  committees 
having  charge   of   the   disbursement   of   campaign   funds. 

"No  candidate  for  Representative  in  Congress  or  for  Senator  of 
the  United  States  shall  give,  contribute,  expend,  use,  or  promise,  or  cause 
to  be  given,  contributed,  expended,  used,  or  promised,  in  procuring  his 
nomination  and  election,  any  sum,  in  the  aggregate,  in  excess  of  the 
amount  which  he  may  lawfully  give,  contribute,  expend,  or  promise 
under  the  laws  of  the  State  in  which  he  resides :  Provided,  That  no  can- 
didate for  Representative  in  Congress  shall  give,  contribute,  expend, 
use  or  promise  any  sum,  in  the  aggregate,  exceeding  five  thousand  dollars 
in  any  campaign  for  his  nomination  and  election  ;  and  no  candidate  for 
Senator  of  the  United  States  shall  give,  contrioute,  expend,  use,  or  prom- 
ise any  sum,  in  the  aggregate,  exceeding  ten  thousand  dollars  in  any  cam- 
paign for  his  nomination  and  election :  Provided  further.  That  money 
expended  by  any  such  candidate  to  meet  and  discharge  any  assessment, 
fee,  or  charge  made  or  levied  upon  candidates  by  the  laws  of  the 
State  in  which  he  resides,  or  for  his  necessary  personal  expenses,  in- 
curred for  himself  alone,  for  travel  and  subsistence,  stationery  and  post- 
age, writing  or  printing  (other  than  in  newspapers),  and  distributing 
letters,  circulars,  and  posters,  and  for  telegraph  and  telephone  service, 
shall  not  be  regarded  as  an  expenditure  within  the  meaning  of  this  sec- 


Campaign  Contributions  527 

tion,  and  shall  not  be  considered  any  part  of  the  sum  herein  fixed  as  the 
limit  of  expense  and  need  not  be  shown  in  the  statements  herein  required 
to  be  filed. 

"The  statements  herein  required  to  be  made  and  filed  before  the  gen- 
eral election,  or  the  election  by  the  legislature  at  which  such  candidate 
seeks  election,  need  not  contain  items  of  which  publicity  is  given  in  a 
previous  statement,  but  the  statement  required  to  be  made  and  filed  after 
said  general  election  or  election  by  the  legislature  shall,  in  addition  to  an 
itemized  statement  of  all  expenses  not  theretofore  given  publicity,  contain 
a  summary  of  all  preceding  statements. 

"Any  person,  not  then  a  candidate  for  Senator  of  the  United  States, 
who  shall  have  given,  contributed,  expended,  used,  or  promised  any 
money  or  thing  of  value  to  aid  or  assist  in  the  nomination  or  election  of 
any  particular  member  of  the  legislature  of  the  State  in  which  he  resides, 
shall,  if  he  thereafter  becomes  a  candidate  for  such  office,  or  if  he  shall 
thereafter  be  elected  to  such  office  without  becoming  a  candidate  therefor, 
comply  with  all  of  the  provisions  of  this  section  relating  to  candidates 
for  such  office,  so  far  as  the  same  may  be  applicable ;  and  the  statement 
herein  required  to  be  made,  verified,  and  filed  after  such  election  shall 
contain  a  full,  true  and  itemized  account  of  each  and  every  gift,  contri- 
bution, expenditure,  and  promise  whenever  made,  in  any  wise  relating  to 
the  nomination  or  election  of  members  of  the  legislature  of  said  State, 
or  in  any  wise  connected  with  or  pertaining  to  his  nomination  and  elec- 
tion of  which  publicity  is  not  given  in  a  previous  statement. 

"Every  statement  herein  required  shall  be  verified  by  the  oath  or 
affirmation  of  the  candidate,  taken  before  an  officer  authorized  to  admin- 
ister oaths ;  and  the  depositing  of  any  such  statement  in  a  regular  post 
office,  directed  to  the  Clerk  of  the  House  of  Representatives,  or  to  the 
Secretary  of  the  Senate,  as  the  case  may  be,  duly  stamped  and  registered, 
within  the  time  required  herein,  shall  be  deemed  a  sufficient  filing  of  any 
such  statement  under  any  of  the  provisions  of  this  Act." 

"This  Act  shall  not  be  construed  to  annul  or  vitiate  the  laws  of  any 
State,  not  directly  in  conflict  herewith,  relating  to  the  nomination  or 
election  of  candidates  for  the  offices  herein  named,  or  to  exempt  any 
such  candidate  from  complying  with  such  State  laws."  (As  amended 
August  19,  1911,  and  August  23,  1912.) 

Candidates  for  Congress  May  Pay  All  Necessary  Personal  Expenses 
Out  of  Own  Private  Funds. 

"Sec.  9.  That  any  person  may  in  connection  with  such  election 
incur  and  pay  from  his  own  private  funds  for  the  purpose  of  influencing 
or  controlling  in  two  or  more  States,  the  results  of  an  election  at  which 
Representatives  to  the  Congress  of  the  United  States  are  elected,  all  nec- 
essary personal  expenses  for  his  traveling,  for  stationery,  and  postage, 
and  for  telegraph  and  telephone  service  without  being  subject  to  the  pro- 
visions of  this  Act."     (As  amended  August  19,  1911.) 


528  Important  Federal  Laws 

Candidates  May  Pay  Proper  Legal  Expenses. 

Sec.  10.  That  nothing  contained  in  this  act  shall  Hmit  or  affect  the 
right  of  any  person  to  spend  money  for  proper  legal  expenses  in  main- 
taining or  contesting  the  results  of  any  election. 

Penalties  for  Violation  of  Act. 

Sec.  11.  That  every  person  wilfully  violating  any  of  the  foregoing 
provisions  of  this  Act  shall,  upon  conviction,  be  fined  not  more  than  one 
thousand  dollars  or  imprisoned  not  more  than  one  year,  or  both. 


CAMPAIGN  CONTRIBUTIONS  BY  CORPORATIONS. 

Act  of  January  26,  1907. 

An  Act  to  prohibit  corporations  from  making  money  contributions  in  connection 
with  political  elections. 

Federal  Law — Prohibiting  Contributions  by  Corporations, 

That  it  shall  be  unlawful  for  any  national  bank,  or  any  corporation 
organized  by  authority  of  any  laws  of  Congress  to  make  a  money  contri- 
bution in  connection  with  any  election  to  any  political  office.  It  shall 
also  be  unlawful  for  any  corporation  whatever  to  make  a  money  contri- 
bution in  connection  with  any  election  at  which  Presidential  and  Vice- 
Presidential  electors  or  a  Representative  in  Congress  is  to  be  voted  for 
or  any  election  by  any  State  legislature  of  a  United  States  Senator. 
Every  corporation  which  shall  make  any  contribution  in  violation  of  the 
foregoing  provisions  shall  be  subject  to  a  tine  not  exceeding  five  thou- 
sand dollars,  and  every  officer  or  director  of  any  corporation  who  shall 
consent  to  any  contribution  by  the  corporation  in  violation  of  the  fore- 
going provisions  shall  upon  conviction  be  punished  by  a  fine  of  not  ex- 
ceeding one  thousand  dollars  and  not  less  than  two  hundred  and  fifty 
dollars,  or  by  imprisonment  for  a  term  of  not  more  than  one  year,  or 
both  such  fine  and  imprisonment  in  the  discretion  of  the  court. 

Note. — For  laws  against  abuses  of  the  electric  franchise,  see  sections  19  to 
26  of  the  Criminal  Code,  pp.  700-701. 


NATIONAL  DEFENSE. 


THE  NATIONAL  DEFENSE  ACT. 

Act  of  June  3,  1916. 

An  Act  for  making  further  and  more  effectual  provision  for  the  national  defense, 
and  for  other  purposes. 

Forces  Constituting  the  Army. 

Sec.  1.  That  the  Army  of  the  United  States  shall  consist  of  the 
Reo^ular  Army,  the  Volunteer  Army,  the  Officers'  Reserve  Corps,  the 
Enlisted  Reserve  Corps,  the  National  Guard  while  in  the  service  of 
the  United  States,  and  such  other  land  forces  as  are  now  or  may  hereafter 
be  authorized  by  law. 

Composition  of  the  Regular  Army. 

Sec.  2.  The  Regular  Army  of  the  United  States,  including  the 
existing  organizations,  shall  consist  of  sixty-four  regiments  of  Infan- 
try, twenty-five  regiments  of  Cavalry,  twenty-one  regiments  of  Field 
Artillery,  a  Coast  Artillery  Corps,  the  brigade,  division,  army  corps, 
and  army  headquarters,  with  their  detachments  and  troops,  a  General 
Stafif  Corps,  an  Adjutant  General's  Department,  an  Inspector  General's 
Department,  a  Judge  Advocate  General's  Department,  a  Quartermaster 
Corps,  a  Medical  Department,  a  Corps  of  Engineers,  an  Ordnance  De- 
partment, a  Signal  Corps,  the  officers  of  the  Bureau  of  Insular  Affairs, 
the  Militia  Bureau,  the  detached  officers,  the  detached  noncommissioned 
officers,  the  chaplains,  the  Regular  Army  Reserve,  all  organized  as 
hereinafter  provided,  and  the  following  as  now  authorized  by  law:  The 
officers  and  enlisted  men  on  the  retired  list ;  the  additional  officers ; 
the  professors,  the  Corps  of  Cadets,  the  general  Army  service  detach- 
ment, and  detachment  of  Cavalry,  Field  Artillery,  and  Engineers,  and 
the  band  of  the  United  States  Military  Academy ;  the  post  noncommis- 
sioned staff  officers ;  the  recruiting  parties,  the  recruit  depot  detach- 
ments, and  unassigned  recruits ;  the  service  school  detachments ;  the 
disciplinary  guards ;  the  disciplinary  organizations ;  the  Indian  Scouts  ; 
and  such  other  officers  and  enlisted  men  as  are  now  or  may  be  here- 
after provided  for:  Provided.  That  hereafter  the  enlisted  personnel  of 
all  organizations  of  the  Regular  Army  shall  at  all  times  be  maintained 
at  a  strength  not  below  the  minimum  strength  fixed  bv  law:  Provided 
further,  That  the  total  enlisted  force  of  the  line  of  the  Regular  Army, 
excluding  the  Philippine  Scouts  and  the  enlisted  men  of  the  Quarter- 
master Corps,  of  the  ]\Iedical  Department,  and  of  the  Signal  Corps, 
and  the  unassigned  recruits,  shall  not  at  any  one  time,  except  in  the 
event  of  actual  or  threatened  war  or  similar  emergency  in  which  the 
(34) 


530  Important  Federal  Laws 

public  safety  demands  it,  exceed  one  hundred  and  seventy-five  thou- 
sand men:  Provided  further.  That  the  unassigned  recruits  at  depots  or 
elsewhere  shall  at  no  time,  except  in  time  of  war,  exceed  by  more  than 
seven  per  centum  the  total  authorized  enlisted  strength. 

Composition  of  Brigades,  Divisions,  and  So  Forth. 

Sec.  3.  The  mobile  troops  of  the  Regular  Army  of  the  United 
States  shall  be  organized,  as  far  as  practicable,  into  brigades  and  divi- 
sions. The  President  is  authorized,  in  time  of  actual  or  threatened  hos- 
tilities, or  when  in  his  opinion  the  interests  of  the  public  service  de- 
mand it,  to  organize  the  brigades  and  divisions  into  such  army  corps  or 
armies,  as  may  be  necessary.  The  typical  Infantry  brigade  shall  con- 
sist of  a  headquarters  and  three  regiments  of  Infantry.  The  typical 
Cavalry  brigade  shall  consist  of  a  headquarters  and  three  regiments 
of  Cavalry.  The  typical  Field  Artillery  brigade  shall  consist  of  a  head- 
quarters and  three  regiments  of  Field  Artillery.  The  typical  Infantry 
division  shall  consist  of  a  headquarters,  three  Infantry  brigades,  one 
regiment  of  Cavalry,  one  Field  Artillery  brigade,  one  regiment  of  Engi- 
neers, one  field  signal  battalion,  one  aero  squadron,  one  ammunition 
train,  one  supply  train,  one  engineer  train,  and  one  sanitary  train.  The 
typical  Cavalry  division  shall  consist  of  a  headquarters,  three  Cavalry 
brigades,  one  regiment  of  Field  Artillery  (horse),  one  battalion  of 
mounted  Engineers,  one  field  signal  battalion  (mounted), _  one  aero 
squadron,  one  ammunition  train,  one  supply  train,  one  engineer  train, 
and  one  sanitary  train.  The  typical  army  corps  shall  consist  of  a 
headquarters,  two  or  more  Infantry  divisions,  one  or  more  Cavalry 
brigades  or  a  Cavalry  division,  one  Field  Artillery  brigade,  one  tele- 
graph battalion,  and  one  field  signal  battalion,  and  such  ammunition, 
supply,  engineer,  and  sanitary  trains  as  the  President  may  deem  neces- 
sary.'  A  brigade,  a  division,  an  army  corps,  and  an  army  headquarters 
shall  consist  of  such  officers,  enlisted  men,  and  civilians  as  the  President 
may  prescribe.  Each  supply  train,  ammunition  train,  sanitary  train,  and 
engineer  train  shall  consist  of  such  officers  and  enlisted  men  and  shall  be 
organized  as  the  President  may  prescribe,  the  line  officers  necessary  there- 
with to  be  detailed  under  the  provisions  of  sections  twenty-six  and  twenty- 
seven.  Act  of  Congress  approved  February  second,  nineteen  hundred  and 
one.  Nothing  herein  contained,  however,  shall  prevent  the  President  from 
increasing  or  decreasing  the  number  of  organizations  prescribed  for  the 
typical  brigades,  divisions,  and  army  corps,  or  from  prescribing  new  and 
dififerent  organizations  and  personnel  as  the  efficiency  of  the  service  may 
require. 

General  Officers  of  the  Line.  ^ 

Sec.  4.  Officers  commissioned  to  and  holding  in  the  Army  the  office 
of  a  general  officer  shall  hereafter  be  known  as  general  officers  of  the 
line ;  officers  commissioned  to  and  holding  in  the  Army  an  office  other 
than  that  of  a  general  officer,  but  to  which  the  rank  of  a  general  officer 


National  Defense  Act  531 

is  attached,  shall  be  known  as  general  officers  of  the  staff.  The  number  of 
general  officers  of  the  line  now  authorized  by  law  is  hereby  increased  by 
four  major  generals  and  nineteen  brigadier  generals:  Provided,  That 
hereafter  in  time  of  peace  major  generals  of  the  line  shall  be  appointed 
from  officers  of  the  grade  of  brigadier  general  of  the  line,  and  brigadier 
generals  of  the  line  shall  be  appointed  from  officers  of  the  grade  of  colonel 
of  the  line  of  the  Regular  Army. 

The  General  Staff  Corps. 

Sec.  5.  The  General  Staff'  Corps  shall  consist  of  one  Chief 
of  Staff,  detailed  in  time  of  peace  from  major  general  of  the  line; 
two  Assistants  to  the  Chief  of  Staff',  who  shall  be  general  officers  of 
the  line,  one  of  whom,  not  above  the  grade  of  brigadier  general,  shall 
be  president  of  the  Army  War  College ;  ten  colonels ;  ten  lieutenant 
colonels ;  fifteen  majors ;  and  seventeen  captains,  to  be  detailed  from 
corresponding  grades  in  the  Army,  as  in  this  section  hereinafter  pro- 
vided. All  officers  detailed  in  the  General  Staff  Corps  shall  be  detailed 
therein  for  periods  of  four  years,  unless  sooner  relieved.  While  serving 
in  the  General  Staff  Corps  officers  may  be  temporarily  assigned  to  duty 
with  any  branch  of  the  Army.  Upon  being  relieved  from  duty  in  the 
General  Staff'  Corps  officers  shall  return  to  the  branch  of  the  Army  in 
which  they  hold  permanent  commissions,  and  no  officer  shall  be  eligible  to 
a  further  detail  in  the  General  Staff  Corps  until  he  shall  have  served  two 
years  with  the  branch  of  the  Army  in  which  commissioned,  except  in  time 
of  actual  or  threatened  hostilities.  Section  twenty-seven  of  the  Act  of 
Congress  approved  February  second,  nineteen  hundred  and  one,  shall  apply 
to  each  position  vacated  by  officers  below  the  grade  of  general  officer 
detailed  in  the  General  Staff  Corps. 

Not  more  than  one-half  of  all  of  the  officers  detailed  in  said  corps 
shall  at  any  time  be  stationed,  or  assigned  to  or  employed  upon  any  duty, 
in  or  near  the  District  of  Columbia.  All  officers  detailed  in  said  corps 
shall  be  exclusively  employed  in  the  study  of  military  problems,  the  prep- 
aration of  plans  for  the  national  defense  and  the  utilization  of  the  military 
forces  in  time  of  war,  in  investigating  and  reporting  upon  the  efficiency 
and  state  of  preparedness  of  such  forces  for  service  in  peace  or  war,  or 
on  appropriate  general  staff  duties  in  connection  with  troops,  including 
the  National  Guard,  or  as  military  attaches  in  foreign  countries,  or  on 
other  duties,  not  of  an  administrative  nature,  on  which  they  can  be  law- 
fully and  properly  employed :  Provided,  That  no  officer  shall  be  detailed 
as  a  member  of  the  General  Staff  Corps,  other  than  the  Chief  of  Staff 
and  the  general  officers  herein  provided  for  as  assistants  to  the  Chief  of 
Staff,  except  upon  the  recommendation  of  a  board  of  five  officers  not  below 
the  rank  of  colonel,  who  shall  be  selected  by  the  President  or  the  Secre- 
tary of  War,  and  neither  the  Chief  of  Staff  nor  more  than  two  other 
members  of  the  General  Staff  Corps,  nor  any  officer  not  a  member  of 
said  corps,  who  shall  have  been  stationed  or  employed  on  any  duty  in  or 
near  the  District  of  Columbia  within  one  year  prior  to  the  date  of  con- 


532  Important  Federal  Laws 

veiling  of  any  such  board,  shall  be  detailed  as  a  member  thereof.  No 
recommendation  made  by  any  such  board  shall,  for  more  than  one  year 
after  the  making  of  such  recommendation  or  at  any  time  after  the  con- 
vening of  another  such  board,  unless  again  recommended  by  the  new 
board,  be  valid  as  a  basis  for  the  detail  of  any  officer  as  a  member  of 
the  General  Staff  Corps ;  and  no  alteration  whatever  shall  be  made  in 
any  report  or  recommendation  of  any  such  board,  either  with  or  without 
the  consent  of  members  thereof,  after  the  board  shall  have  submitted 
such  report  or  recommendation  and  shall  have  adjourned  sine  die :  Pro- 
vided further.  That  the  War  College  shall  remain  fully  subject  to  the 
supervising,  co-ordinating,  and  informing  powers  conferred  by  law  upon 
members  of  the  General  Staff'  Corps,  and  officers  for  duty  as  instructors 
or  students  in  or  as  attaches  of  said  college  may  be  selected  and  detailed 
freely  from  among  members  of  said  corps,  but  any  officer  so  selected  and 
detailed  other  than  one  director  shall  thereupon  cease  to  be  a  member  of 
said  corps  and  shall  not  be  eligible  for  redetail  therein  so  long  as  he 
shall  remain  on  said  duty ;  and  no  officer  on  the  active  list  of  the  Army 
shall,  for  more  than  thirtv  days  in  any  calendar  year,  be  attached  to  or 
assigned  to  duty  in  the  War  College  in  any  capacity  other  than  that  of 
president,  director,  instructor,  or  student,  or,  unless  a  member  of  the 
General  Staff  Corps,  be  attached  to  or  employed  in  the  office  of  the  Chief 
of  Staff:  Provided  further.  That  the  organizations  heretofore  existing 
in  or  in  connection  with  the  office  of  the  Chief  of  Staff'  under  the  desig- 
nations of  the  mobile  army  division  and  the  Coast  Artillery  division  be, 
and  they  are  hereby,  abolished  and  shall  not  be  re-established.  The  busi- 
ness heretofore  transacted  in  said  divisions,  except  such  as  comes  clearly 
within  the  general  powers  specified  in  and  conferred  upon  members  of 
the  General  Staff'  Corps  by  the  organic  Act  of  Congress  approved  Feb- 
ruary fourteenth,  nineteen  hundred  and  three,  is  hereby  transferred  as 
follows,  to  wit,  to  the  office  of  the  Chief  of  Coast  Artillery,  all  business 
apportioned  to  that  office  by  law  or  Army  regulations  at  the  time  of  the 
creation  of  the  Coast  Artillery  division  of  the  office  of  the  Chief  of 
Staff;  to  the  office  of  the  Adjutant  General  or  other  bureau  or  bureaus 
concerned,  all  other  business ;  and,  subject  to  the  exercise  of  the  super- 
vising, co-ordinating,  and  informing  powers  conferred  upon  members 
of  the  General  Staff  Corps  by  the  Act  of  Congress  last  hereinbefore 
cited,  the  business  transferred  by  this  proviso  to  certain  bureaus  or  offices 
shall  hereafter  be  transacted  exclusively  by  or  under  the  direction  of  the 
respective  heads  thereof  ;  and  the  Chief  of  Coast  Artillery  shall  be  an 
additional  member  of  the  General  Staff"  Corps  and  shall  also  be  advisor 
to  and  informant  of  the  Chief  of  Staff'  in  respect  to  the  business  under 
his  charge :  Provided  further.  That  hereafter  members  of  the  General 
Staff  Corps  shall  be  confined  strictly  to  the  discharge  of  the  duties  of 
the  general  nature  of  those  specified  for  them  in  this  section  and  in  the 
organic  Act  of  Congress  last  hereinbefore  cited,  and  they  shall  not  be 
permitted  to  assume  or  engage  in  work  of  an  administrative  nature  that 


National  Defense  Act  533 

pertains  to  established  bureaus  or  offices  of  the  War  Department,  or 
that,  being  assumed  or  engaged  in  by  members  of  the  General  Staff 
Corps,  would  involve  impairment  of  the  responsibility  or  initiative  of 
such  bureaus  or  offices,  or  would  cause  injurious  or  unnecessary  duplica- 
tion of  or  delay  in  the  work  thereof:  Provided  further,  That  all  pay  and 
allowances  shall  be  forfeited  by  any  superior  for  any  period  during 
which,  by  his  order  or  his  permission,  or  by  reason  of  his  neglect,  any 
subordinate  shall  violate  any  of  the  foregoing  provisions  of  this  section : 
Provided  further.  That  if  any  officer  detailed  in  the  General  StafT  Corps, 
or  as  an  officer  of  any  staff  corps  or  department  of  the  Army,  shall  be 
promoted  to  the  next  higher  grade  while  so  serving  he  may  be  permitted 
to  serve  out  the  period  of  his  detail,  and  the  number  of  officers  in  the 
organization  in  which  he  shall  be  serving  and  in  the  grade  to  which  he 
shall  have  been  promoted  shall  be  increased  by  one  for  such  time  as  he 
shall  be  an  additional  number  in  said  organization  and  grade ;  but  the 
whole  number  of  officers  detailed  to  said  organization  shall  at  no  time 
exceed  the  aggregate  of  the  numbers  allowed  to  the  several  grades  thereof 
by  law  other  than  this  proviso. 

The  Adjutant  General's  Department. 

Sec.  6.  The  Adjutant  General's  Department  shall  consist  of  the 
Adjutant  General  with  the  rank  of  brigadier  general ;  seven  adjutants- 
generals  with  the  rank  of  colonel ;  thirteen  adjutants-general  with  the  rank 
of  lieutenant  colonel ;  and  thirty  adjutants-general  with  the  rank  of  major. 

The  Inspector  General's  Department. 

Sec.  7.  The  Inspector  General's  Department  shall  consist  of  one 
Inspector  General  with  the  rank  of  brigadier  general;  four  inspectors- 
general  with  the  rank  of  colonel ;  eight  inspectors-general  with  the  rank 
of  lieutenant  colonel ;  and  sixteen  inspectors-general  with  the  rank  of 
major. 

The  Judge  Advocate  General's  Department. 

Sec.  8.  The  Judge  Advocate  General's  Department  shall  consist  of 
one  Judge  Advocate  General  with  the  rank  of  brigadier  general;  four 
judge  advocates  with  the  rank  of  colonel ;  seven  judge  advocates  with  the 
rank  of  lieutenant  colonel ;  and  twenty  judge  advocates  with  the  rank  of 
major:  Provided,  That  acting  judge  advocates  may  be  detailed  under  the 
provisions  of  existing  law  for  separate  brigades  and  for  separate  general 
court-martial  jurisdictions,  and  when  not  immediately  required  for  ser- 
vice with  a  geographical  department,  tactical  division,  separate  brigade, 
or  other  separate  general  court-martial  jurisdiction,  acting  judge  advo- 
cates may  be  assigned  to  such  other  legal  duty  as  the  exigencies  of  the 
service  may  require :  Provided  further.  That,  of  the  vacancies  created 
in  the  Judge  Advocate  General's  Department  by  this  Act,  one  such  va- 
cancy, not  below  the  grade  of  major,  shall  be  filled  by  the  appointment 
of  a  person  from  civil  life,  not  less  than  forty-five  nor  more  than  fifty 
years  of  age,  who  shall  have  been  for  ten  years  a  judge  of  the  Supreme 


534  Important  Federal  Laws 

Court  of  the  Philippine  Islands,  shall  have  served  for  two  years  as  a 
captain  in  the  Regular  or  Volunteer  Army,  and  shall  be  proficient  in 
the  Spanish  language  and  laws:  Provided  further,  That  so  much  of  the 
Act  of  Congress  approved  August  twenty- fourth,  nineteen  hundred  and 
twelve,  as  relates  to  the  detachment  or  detail  of  officers  for  duty  in  the 
Judge  Advocate  General's  Department  shall  hereafter  be  held  to  apply 
only  to  the  acting  judge  advocates  authorized  by  law;  and  hereafter  no 
officer  shall  be  or  remain  detached  from  any  command  or  assigned  to  any 
duty  or  station  with  intent  to  enable  or  aid  him  to  pursue  the  study  of 
law :  And  provided  further,  That  no  officer  of  the  Judge  Advocate  Gen- 
eral's Department  below  the  rank  of  colonel  shall  be  promoted  therein 
until  he  shall  have  successfully  passed  a  written  examination  before  a 
board  consisting  of  not  less  than  two  officers  of  the  Judge  Advocate 
General's  Department,  to  be  designated  by  the  Secretary  of  War,  such 
examination  to  be  prescribed  by  the  Secretary  of  War  and  to  be  held  at 
such  time  anterior  to  the  accruing  of  the  right  to  promotion  as  may  be 
for  the  best  interests  of  the  service:  Provided,  That  should  any  officer 
in  the  grade  of  major  or  the  Judge  Advocate  General's  Department  fail 
in  his  physical  examination  and  be  found  incapacitated  for  service  by 
reason  of  physical  disability  contracted  in  the  line  of  duty,  he  shall  be 
retired  with  the  rank  to  which  his  seniority  entitled  him  to  be  promoted ; 
but  if  he  should  be  found  disqualified  for  promotion  for  any  other  rea- 
son, a  second  examination  shall  not  be  allowed,  but  the  Secretary  of  War 
shall  appoint  a  board  of  review  to  consist  of  two  officers  of  the  Judge 
Advocate  General's  Department  superior  in  rank  to  the  officer  examined, 
none  of  whom  shall  have  served  as  a  member  of  the  board  which  exam- 
ined him.  If  the  unfavorable  finding  of  the  examining  board  is  con- 
curred in  by  the  board  of  review,  the  officer  reported  disqualified  for 
promotion  shall  be  honorably  discharged  from  the  service  with  one  year's 
pay.  If  the  action  of  the  examining  board  is  disapproved  by  the  board 
of  review,  the  officer  shall  be  considered  qualified  and  shall  be  promoted : 
Provided '  further,  That  any  lieutenant  colonel  of  the  Judge  Advocate 
General's  Department  who,  at  his  first  examination  for  promotion  to  the 
grade  of  colonel,  has  been  found  disqualified  for  such  promotion  for  any 
reason  other  than  physical  disability  incurred  in  the  line  of  duty  shall  be 
suspended  from  promotion  and  his  right  thereto  shall  pass  successively 
to  such  officers  next  below  him  in  rank  as  are  or  may  become  eligible  to 
promotion  under  existing  law  during  the  period  of  his  suspension ;  and 
any  such  officer  suspended  from  promotion  shall  be  re-examined  as  soon 
as  practicable  after  the  expiration  of  one  year  from  the  date  of  the 
completion  of  the  examination  that  resulted  in  his  suspension ;  and  if  on 
such  re-examination  he  is  found  qualified  for  promotion,  he  shall  again 
become  eligible  thereto;  but  if  he  is  found  disqualified  by  reason  of 
physical  disability  incurred  in  line  of  duty  in  either  examination,  he  shall 
be  retired,  with  the  rank  to  which  his  seniority  entitled  him  to  be  pro- 
moted; and  if  he  is  not  found  disqualified  by  reason  of  such  physical 


National  Defense  Act  535 

disability,  but  is  found  disqualified  for  promotion  for  any  other  reason 
in  the  second  examination,  he  shall  be  retired  without  promotion. 

The  Quartermaster  Corps. 

Sec.  9.  The  Quartermaster  Corps  shall  consist  of  one 
Quartermaster  General  with  the  rank  of  major  general;  two  assistants 
to  the  Quartermaster  General  with  the  rank  of  brigadier  general ;  twenty- 
one  colonels;  twenty-four  lieutenant  colonels;  sixty-eight  majors;  one 
hundred  and  eighty  captains ;  and  the  pay  clerks  now  in  active  service, 
who  shall  hereafter  have  the  rank,  pay,  and  allowances  of  a  second 
lieutenant,  and  the  President  is  hereby  authorized  to  appoint  and 
commission  them,  by  and  with  the  advice  and  consent  of  the  Senate, 
second  lieutenants  in  the  Quartermaster  Corps,  United  States  Army.  The 
total  enlisted  strength  of  the  Quartermaster  Corps  and  the  number  in 
each  grade  shall  be  limited  and  fixed  from  time  to  time  by  the  President 
in  accordance  with  the  needs  of  the  Army,  and  shall  consist  of  quarter- 
master sergeants,  senior  grade ;  quartermaster  sergeants ;  sergeants,  first 
class ;  sergeants ;  corporals ;  cooks ;  privates,  first  class ;  and  privates. 
The  number  in  the  various  grades  shall  not  exceed  the  following  per- 
centages of  the  total  authorized  enlisted  strength  of  the  Quartermaster 
Corps,  namely :  Quartermaster  sergeants,  senior  grade,  five-tenths  of  one 
per  centum ;  quartermaster  sergeants,  six  per  centum ;  sergeants,  first 
class,  two  and  five-tenths  per  centum ;  sergeants,  twenty-five  per  centum ; 
corporals,  ten  per  centum ;  privates,  first  class,  forty-five  per  centum ; 
privates,  nine  per  centum ;  cooks,  two  per  centum :  Provided,  That  the 
master  electricians  now  authorized  by  law  for  the  Quartermaster  Corps 
shall  hereafter  be  known  as  quartermaster  sergeants,  senior  grade,  and 
shall  be  included  in  the  number  of  quartermaster  sergeants,  senior  grade, 
herein  authorized :  And  provided  further,  That  all  work  pertaining  to 
construction  and  repair  that  has  heretofore  been  done  by  or  under  the 
direction  of  officers  of  the  Quartermaster  Corps  shall,  except  as  other- 
wise now  provided  by  laws  or  regulations,  hereafter  be  done  by  or  under 
the  direction  of  officers  of  said  corps. 

The  Medical  Department. 

Sec.  10.  The  Medical  Department  shall  consist  of  one  Surgeon 
General,  with  the  rank  of  major  general  during  the  active  service  of  the 
present  incumbent  of  that  office,  and  thereafter  with  the  rank  of  brigadier 
general,  who  shall  be  chief  of  said  department,  a  Medical  Corps,  a  ^Itd- 
ical  Reserve  Corps  within  the  limit  of  time  fixed  by  this  Act,  a  Dental 
Corps,  a  Veterinary  Corps,  an  enlisted  force,  the  Nurse  Corps  and  con- 
tract surgeons  as  now^  authorized  by  law,  the  commissioned  officers  of 
which  shall  be  citizens  of  the  United  States. 

The  Medical  Corps  shall  consist  of  commissioned  officers  below  the 
grade  of  brigadier  general,  proportionally  distributed  among  the  several 
grades  as  in  the  Medical  Corps  now  established  by  law.  The  total  num- 
ber of   such  officers  shall   approximately  be   equal   to,   but  not   exceed. 


536  Important  Federal  Laws 

except  as  hereinafter  provided,  seven  for  every  one  thousand  of  the  total 
enhsted  strength  of  the  Regular  Army  authorized  from  time  to  time  by 
law:  Provided,  That  if  by  reason  of  a  reduction  by  law  in  the  authorized 
enlisted  strength  of  the  Army  aforesaid  the  total  number  of  officers  in 
the  Medical  Corps  commissioned  previously  to  such  reduction  shall  for 
the  time  being  exceed  the  equivalent  of  seven  to  one  thousand  of  such 
reduced  enlisted  strength  no  original  appointment  to  commissioned  rank 
in  said  corps  shall  be  made  until  the  total  number  of  commissioned  offi- 
cers thereof  shall  have  been  reduced  below  the  equivalent  of  seven  to  the 
thousand  of  the  said  reduced  enlisted  strength,  nor  thereafter  so  as  to 
make  the  total  number  of  commissioned  officers  thereof  in  excess  of  the 
equivalent  of  seven  to  the  thousand  of  said  reduced  enlisted  strength ; 
and  no  promotion  shall  be  made  above  the  grade  of  captain  in  said  corps 
until  the  number  of  officers  in  the  grade  above  that  of  captain  to  which 
the  promotion  is  due  shall  have  been  reduced  below  the  proportional 
number  authorized  for  such  grade  on  the  basis  of  the  reduced  enlisted 
strength,  nor  thereafter  so  as  to  make  the  number  of  officers  in  such 
grade  in  excess  of  the  proportional  number  authorized  on  the  basis  of 
said  reduced  enlisted  strength :  Provided  further.  That  when  in  time  of 
war  the  Regular  Army  shall  have  been  increased  by  virtue  of  the  provi- 
sions of  this  or  any  other  Act,  the  medical  officers  appointed  to  meet 
such  increase  shall  be  honorably  discharged  from  the  service  of  the 
United  States  when  the  reduction  of  the  enlisted  strength  of  the  Army 
shall  take  place:  Provided  further.  That  persons  hereafter  commissioned 
in  the  Medical  Corps  shall  be  citizens  of  the  United  States  between  the 
ages  of  twenty-two  and  thirty  years  and  shall  be  promoted  to  the  grade 
of  captain  upon  the  completion  of  five  years'  service  in  the  Medical 
Corps  and  upon  passing  the  examinations  prescribed  by  the  President 
for  promotion  to  the  grade  of  captain  in  the  Medical  Corps :  Provided 
further,  That  relative  rank  among  captains  in  the  Medical  Corps,  who 
have  or  shall  have  attained  that  rank  by  operation  of  law  after  a  period 
of  service  fixed  thereby,  shall  be  determined  by  counting  all  the  service 
rendered  by  them  as  officers  in  said  corps  and  as  assistant  surgeons  in 
the  Regular  Army,  subject,  however,  to  loss  of  files  by  reason  of  sen- 
tence of  court-martial  or  by  reason  of  failure  to  pass  examination  for 
promotion :  Provided  further,  That  hereafter  the  President  shall  be  au- 
thorized to  detail  not  to  exceed  five  officers  of  the  Medical  Department 
of  the  Army  for  duty  with  the  military  relief  division  of  the  American 
National  Red  Cross. 

The  enlisted  force  of  the  Medical  Department  shall  consist  of  the 
following  personnel,  who  shall  not  be  included  in  the  effective  strength 
of  the  Army  nor  counted  as  a  part  of  the  enlisted  force  provided  by  law : 
Master  hospital  sergeants,  hospital  sergeants,  sergeants  (first-class),  ser- 
geants, corporals,  cooks,  horseshoers,  saddlers,  farriers,  mechanics,  pri- 
vates (first-class),  and  privates:  Provided,  That  master  hospital  ser- 
geants shall  be  appointed  by  the  Secretary  of  War,  but  no  person  shall 


National  Defense  Act  537 

be  appointed  master  hospital  sergeant  until  he  shall  have  passed  a  satis- 
factory examination   under   such   regulations   as   the   Secretary  of   War 
may  prescribe  before  a  board  of  one  or  more  medical  officers  as  to  his 
qualifications    for  the  position,   including  knowledge  of   pharmacy,   and 
demonstrated   his   fitness   therefor   by   service   of   not   less   than   twelve 
months  as  hospital  sergeant  or  sergeant,  first  class,  Medical  Department, 
or  as  sergeant,  first  class,  in  the  Hospital  Corps  now  established  by  law ; 
and  no  person  shall  be  designated  for  such  examination  except  by  written 
authority  of  the  Surgeon  General :    Provided   further,  That  original  en- 
listments  for  the   Medical   Department   shall  be  made   in  the  grade  of 
private,  and  re-enlistments  and  promotions  of  enlisted  men  therein,  ex- 
cept as  hereinbefore  prescribed,  and  transfers  thereto  from  the  enlisted 
force  of  the  line  or  other  stafif  departments  and  corps  of  the  Army  shall 
be  governed  by  such  regulations  as  the  Secretary  of  War  may  prescribe: 
Provided  further.  That  the  enlisted  men  of  the  Hospital  Corps  who  are 
in  active  service  at  the  time  of  the  approval  of  this  Act  are  hereby  trans- 
ferred to  the  corresponding  grades  of  the  Medical  Department  established 
by  this  Act :  Provided  further.  That  the  total  number  of  enlisted  men  in 
the  Aledical  Department  shall  be  approximately  equal  to,  but  not  exceed, 
except  as  hereinafter  provided,  the  equivalent  of  five  per  centum  of  the 
total  enlisted  strength  of  the  Army  authorized  from  time  to  time  by  law: 
Provided  further.  That  in  time  of  actual  or  threatened  hostilities,  the 
Secretary  of  War  is  hereby  authorized  to  enlist  or  cause  to  be  enlisted 
in  the  Medical  Department  such  additional  number  of  men  as  the  service 
may  require:  Provided  further.  That  the  number  of  enlisted  men  in  each 
of  the  several  grades  designated  below  shall  not  exceed,  except  as  here- 
inafter provided,  the  following  percentages  of  the  total  authorized  en- 
listed strength  of  the  Medical  Department,  to  wit :     Master  hospital  ser- 
geants, one-half  of  one  per  centum ;  hospital  sergeants,  one-half  of  one 
per  centum ;  sergeants,  first  class,  seven  per  centum ;  sergeants,  eleven 
per  centum ;  corporals,  five  per  centum ;  and  cooks,  six  per  centum :  Pro- 
vided further.  That  the  number  of  horseshoers,  saddlers,  farriers,  and 
mechanics  in  the  Medical  Department  shall  not  exceed  one  each  to  each 
authorized  ambulance  company  or  like  organization :  Provided  further, 
That  in  said  department  the  number  of   privates,  first  class,  shall  not 
exceed  twenty-five  per  centum  of  the  number  of  privates:  Provided  fur- 
ther. That  if  by  reason  of  a  reduction  by  operation  of  law  in  the  author- 
ized enlisted  strength  of  the  Army  aforesaid  the  number  of  non-com- 
missioned officers  of  any  grade  in  the  Medical  Department  whose  war- 
rants were  issued  previously  to  such  reduction  shall  for  the  time  being 
exceed  the  percentage  hereinabove  specified  for  such  grade,  no  promo- 
tion to  such  grade  shall  be  made  until  the  percentage  of  non-commis- 
sioned officers  therein  shall  have  been  reduced  below  that  authorized  for 
such  grade  on  the  basis  of  the  said  reduced  enlisted  strength,  nor  there- 
after so  as  to  make  the  percentage  of  non-commissioned  officers  therein 
in  excess  of  the  percentage  authorized  on  the  basis  of  the  said  reduced 


538  Important  Federal  Laws 

enlisted  strength ;  but  non-commissioned  officers  may  be  re-enlisted  in 
the  grades  held  by  them  previously  to  such  reduction  regardless  of  the 
percentages  aforesaid;  and  when  under  this  provision  the  number^  of 
non-commissioned  officers  of  any  grade  exceeds  the  percentage  specified, 
any  non-commissioned  officer  thereof,  not  under  charges,  may  be  dis- 
charged on  his  own  application:  Provided  further,  That  privates,  first 
class,  of  the  Medical  Department  shall  be  eligible  for  ratings  for  addi- 
tional pay  as  follows :  As  dispensary  assistant,  $2  a  month ;  as  nurse,  $3 
a  month  ;  as  surgical  assistant,  $5  a  month :  Provided  further.  That  no 
enlisted  man  shall  receive  more  than  one  rating  for  additional  pay  under 
the  provisions  of  this  section,  nor  shall  any  enlisted  man  receive  any 
additional  pay  under  such  rating  unless  he  shall  have  actually  performed 
the  duties  for  which  he  shall  be  rated. 

The  President  is  hereby  authorized  to  appoint  and  commission,  by 
and  with  the  advice  and  consent  of  the  Senate,  dental  surgeons,  who  are 
citizens  of  the  United  States  between  the  ages  of  twenty-one  and  twenty- 
seven  years,  at  the  rate  of  one  for  each  one  thousand  enlisted  men  of 
the  line  of  the  Army.  Dental  surgeons  shall  have  the  rank,  pay,  and 
allowances  of  first  lieutenants  until  they  have  completed  eight  years'  ser- 
vice. Dental  surgeons  of  more  than  eight  but  less  than  twenty-four 
years'  service  shall,  subject  to  such  examination  as  the  President  may 
prescribe,  have  the  rank,  pay,  and  allowances  of  captains.  Dental  sur- 
geons of  more  than  twenty- four  years'  service  shall,  subject  to  such 
examination  as  the  President  may  prescribe,  have  the  rank,  pay,  and 
allowances  of  major:  Provided,  That  the  total  number  of  dental  sur- 
geons with  rank,  pay,  and  allowances  of  major  shall  not  at  any  time 
exceed  fifteen:  And  provided  further.  That  all  laws  relating  to  the 
examination  of  officers  of  the  Medical  Corps  for  promotion  shall  be 
applicable  to  dental  surgeons. 

Authority  is  hereby  given  to  the  Secretary  of  War  to  grant  permis- 
sion, by  revocable  license,  to  the  American  National  Red  Cross  to  erect 
and  maintain  on  any  military  reservations  within  the  jurisdiction  of  the 
United  States  buildings  suitable  for  the  storage  of  supplies,  or  to  occupy 
for  that  purpose  buildings  erected  by  the  United  States,  under  such  regu- 
lations as  the  Secretary  of  War  may  prescribe,  such  supplies  to  be  avail- 
able for  the  aid  of  the  civilian  population  in  case  of  serious  national  dis- 
aster. 

Corps  of  Engineers. 

Sec.  11.  The  Corps  of  Engineers  shall  consist  of  one  Chief  of 
Engineers,  with  the  rank  of  brigadier  general ;  twenty-three  colonels ; 
thirty  lieutenant  colonels;  seventy-two  majors;  one  hundred  and  fifty- 
two  captains ;  one  hundred  and  forty-eight  first  lieutenants  ;  seventy-nine 
second  lieutenants;  and  the  enlisted  men  hereinafter  enumerated.  The 
Engineer  troops  of  the  Corps  of  Engineers  shall  consist  of  one  band, 
seven  regiments,  and  two  mounted  battalions. 

Each  regiment  of  Engineers  shall  consist  of  one  colonel ;  one  lieu- 


National  Defense  Act  539 

tenant  colonel ;  two  majors ;  eleven  captains ;  twelve  first  lieutenants ;  six 
second  lieutenants ;  two  master  engineers,  senior  grade ;  one  regimental 
sergeant  major ;  two  regimental  supply  sergeants ;  two  color  sergeants ; 
one  sergeant  bugler ;  one  cook ;  one  wagoner  for  each  authorized  wagon 
of  the  field  and  combat  train,  and  two  battalions. 

Each  battalion  of  a  regiment  of  Engineers  shall  consist  of  one  major, 
one  captain,  one  battalion  sergeant  major;  three  master  engineers,  junior 
grade;  and  three  companies.  Each  Engineer  company  (regimental) 
shall  consist  of  one  captain;  two  first  lieutenants;  one  second  lieutenant; 
one  first  sergeant ;  three  sergeants,  first  class ;  one  mess  sergeant ;  one 
supply  sergeant ;  one  stable  sergeant ;  six  sergeants ;  twelve  corporals ;  one 
horseshoer  ;  two  buglers  ;  one  saddler  ;  two  cooks  ;  nineteen  privates,  first 
class;  and  fifty-nine  privates:  Provided,  That  the  President  may,  in  his 
discretion,  increase  a  regiment  of  Engineers  by  two  master  engineers 
senior  grade,  and  two  sergeants ;  each  battalion  of  a  regiment  of  Engi- 
neers by  three  master  engineers,  junior  grade ;  and  each  Engineer  com- 
pany (regimental)  by  two  sergeants,  six  corporals,  one  cook,  twelve 
privates,  first  class,  and  thirty-four  privates. 

The  Engineer  band  shall  consist  of  one  band  leader;  one  assistant 
band  leader ;  one  first  sergeant ;  two  band  sergeants ;  four  band  cor- 
porals ;  two  musicians,  first  class  ;  four  musicians,  second  class ;  thirteen 
musicians,  third  class ;  and  two  cooks. 

Each  battalion  of  mounted  Engineers  shall  consist  of  one  major; 
five  captains ;  seven  first  lieutenants  ;  three  second  lieutenants ;  one  mas- 
ter engineer,  senior  grade;  one  battalion  sergeant  major;  one  battalion 
supply  sergeant ;  three  master  engineers,  junior  grade ;  one  corporal ;  one 
wagoner  for  each  authorized  wagon  of  the  field  and  combat  train ;  and 
three  mounted  companies.  Each  mounted  Engineer  company  shall  con- 
sist of  one  captain ;  two  first  lieutenants ;  one  second  lieutenant ;  one  first 
sergeant ;  two  sergeants,  first  class ;  one  mess  sergeant ;  one  supply  ser- 
geant ;  one  stable  sergeant ;  four  sergeants ;  eight  corporals ;  two  horse- 
shoers  ;  one  saddler  ;  two  cooks  ;  two  buglers  ;  twelve  privates,  first  class  ; 
and  thirty-seven  privates :  Provided.  That  the  President  may,  in  his  dis- 
cretion, increase  the  battalions  of  mounted  Engineers  by  one  master 
engineer,  senior  grade ;  two  sergeants  ;  and  three  master  engineers,  junior 
grade ;  and  a  mounted  Engineer  company  by  two  sergeants ;  three  cor- 
porals ;  eight  privates,  first  class ;  and  twenty-four  privates :  Provided 
//further.  That  appropriate  officers  to  command  the  regiments,  battalions, 
■  and  companies  herein  authorized  and  for  duty  with  and  as  staff  officers 
of  such  organizations  shall  be  detailed  from  the  Corps  of  Engineers,  and 
shall  not  be  in  excess  of  the  numbers  in  each  grade  enumerated  in  this 
section.  The  enlisted  force  of  the  Corps  of  Engineers  and  the  officers 
serving  therewith  shall  constitute  a  part  of  the  line  of  the  Army. 

The  Ordnance  Department. 

Sec.  12.  The  Ordnance  Department  shall  consist  of  one  Chief 
of     Ordnance,    with    the     rank    of    brigadier    general;    ten    colonels; 


540  Important  Federal  Laws 

fifteen  lieutenant  colonels;  thirt3'-t\vo  majors;  forty-two  captains; 
forty-two  first  lieutenants ;  the  ordnance  sergeants,  as  now  author- 
ized by  law,  and  such  other  enlisted  men  of  grades  now  authorized 
by  law  as  the  President  may  direct :  Provided,  That  ordnance  ser- 
geants shall  be  selected  by  the  Secretary  of  War  from  the  sergeants 
of  the  line  or  Ordnance  Department  who  shall  have  served  faithfully 
for  eight  years,  including  four  years  in  the  grade  of  non-commissioned 
ofiicer :  Provided  further.  That  vacancies  which  may  occur  in  the  com- 
missioned personnel  of  the  Ordnance  Department  shall  be  subject  to  the 
provisions  of  sections  twenty-six  and  twenty-seven  of  the  Act  approved 
February  second,  nineteen  hundred  and  one,  the  Acts  approved  June 
twenty-fifth,  nineteen  hundred  and  six,  and  February  twenty-fourth, 
nineteen  hundred  and  fifteen,  and  Acts  amendatory  thereof  relating  to 
the  Ordnance  Department :  Provided  further.  That  hereafter  the  Secre- 
tary of  War  is  authorized  to  detail  not  to  exceed  thirty  lieutenants  from 
the  Armv  at  large  for  duty  as  student  officers  in  the  establishments  of 
the  Ordnance  Department  for  a  period  of  two  years ;  and  the  completion 
of  the  prescribed  course  of  instruction  shall  constitute  the  examination 
for  detail  in  the  Ordnance  Department. 

The  Signal  Corps. 

Sec.  13.  The  Signal  Corps  shall  consist  of  one  Chief  Signal 
Officer,  with  the  rank  of  brigadier  general ;  three  colonels ;  eight  lieu- 
tenant colonels;  ten  majors;  thirty  captains;  seventy-five  first  lieuten- 
ants ;  and  the  aviation  section,  which  shall  consist  of  one  colonel ;  one 
lieutenant  colonel ;  eight  majors ;  twenty- four  captains ;  and  one 
hundred  and  fourteen  first  lieutenants ;  who  shall  be  selected  from 
among  officers  of  the  Army  at  large  of  corresponding  grades  or  from 
among  officers  of  the  grade  below,  exclusive  of  those  serving  by  detail 
in  staff  corps  or  departments,  who  are  qualified  as  military  aviators,  and 
shall  be  detailed  to  serve  as  aviation  officers  for  periods  of  four  years 
unless  sooner  relieved ;  and  the  provisions  of  section  twenty-seven  of  the 
Act  of  Congress  approved  February  second,  nineteen  hundred  and  one, 
are  hereby  extended  to  apply  to  said  aviation  officers  and  to  vacancies 
created  in  any  arm,  corps,  or  department  of  the  Army  by  the  detail  of 
said  officers  therefrom;  but  nothing  in  said  Act  or  in  any  other  law  now 
in  force  shall  be  held  to  prevent  the  detail  or  redetail  at  any  time,  to  fill 
a  vacancv  among  the  aviation  officers  authorized  by  this  Act,  of  any 
officer  who,  during  prior  service  as  an  aviation  officer  of  the  aviation 
section,  shall  have  become  proficient  in  military  aviation. 

Aviation  officers  may,  when  qualified  therefor,  be  rated  as  junior 
military  aviators  or  as  military  aviators,  but  no  person  shall  be  so  rated 
until  there  shall  have  been  issued  to  him  a  certificate  to  the  effect  that 
he  is  qualified  for  the  rating,  and  no  certificate  shall  be  issued  to  any 
person  until  an  aviation  examining  board,  which  shall  be  composed  of 
three  officers  of  experience  in  the  aviation  service  and  two  medical  offi- 
cers, shall  have  examined  him,  under  general  regulations  to  be  prescribed 


National  Defense  Act  541 

by  the  Secretary  of  War  and  published  to  the  Army  by  the  War  Depart- 
ment, and  shall  have  reported  him  to  be  qualified  for  the  rating.  No 
person  shall  receive  the  rating  of  military  aviator  until  he  shall  have 
served  creditably  for  three  years  as  an  aviation  officer  with  the  rating  of 
a  junior  military  aviator. 

Each  aviation  officer  authorized  by  this  Act  shall,  while  on  duty 
that  requires  him  to  participate  regularly  and  frequently  in  aerial  flights, 
receive  an  increase  of  twenty-five  per  centum  in  the  pay  of  his  grade 
and  length  of  service  under  his  commission.  Each  duly  qualified  junior 
military  aviator  shall,  while  so  serving,  have  the  rank,  pay,  and  allow- 
ances of  one  grade  higher  than  that  held  by  him  under  his  commission 
if  his  rank  under  said  commission  be  not  higher  than  that  of  captain, 
and  while  on  duty  requiring  him  to  participate  regularly  and  frequently 
in  aerial  flights  he  shall  receive  in  addition  an  increase  of  fifty  per 
centum  in  the  pay  of  his  grade  and  length  of  service  under  his  commis- 
sion. Each  military  aviator  shall,  while  so  serving,  have  the  rank,  pay, 
and  allowance  of  one  grade  higher  than  that  held  by  him  under  his 
commission  if  his  rank  under  said  commission  be  not  higher  than  that 
of  captain,  and  while  on  duty  requiring  him  to  participate  regularly  and 
frequently  in  aerial  flights  he  shall  receive  in  addition  an  increase  of 
seventy-five  per  centum  of  the  pay  of  his  grade  and  length  of  service 
under  his  commission :  Provided  further.  That  the  provisions  of  the  Act 
of  March  second,  nineteen  hundred  and  thirteen,  allowing  increase  of 
pay  and  allovrances  to  officers  detailed  by  the  Secretary  of  War  on  avia- 
tion duty,  are  hereby  repealed :  Provided  further,  That  hereafter  mar- 
ried officers  of  the  line  of  the  Army  shall  be  eligible  equally  with  un- 
married officers,  and  subject  to  the  same  conditions,  for  detail  to  avia- 
tion duty  ;  and  the  Secretary  of  War  shall  have  authority  to  cause  as 
many  enlisted  men  of  the  aviation  section  to  be  instructed  in  the  art  of 
flying  as  he  may  deem  necessary :  Provided  further.  That  hereafter  the 
age  of  officers  shall  not  be  a  bar  to  their  first  detail  in  the  aviation  section 
of  the  Signal  Corps,  and  neither  their  age  nor  their  rank  shall  be  a  bar 
to  their  subsequent  details  in  said  section :  Provided  further.  That,  when 
it  shall  be  impracticable  to  obtain  from  the  Army  officers  suitable  for  the 
aviation  section  of  the  Signal  Corps  in  the  number  allowed  by  law  the 
dift'erence  between  that  number  and  the  number  of  suitable  officers 
actually  available  for  duty  in  said  section  may  be  made  up  by  appoint- 
ments in  the  grade  of  aviator.  Signal  Corps,  and  that  grade  is  hereby 
created.  The  personnel  for  said  grade  shall  be  obtained  from  especially 
qualified  civilians  who  shall  be  appointed  and  commissioned  in  said 
grade:  Provided  further.  That  whenever  any  aviator  shall  have  become 
unsatisfactory  he  shall  be  discharged  from  the  Army  as  such  aviator. 
The  base  pay  of  an  aviator.  Signal  Corps,  shall  be  $150  per  month,  and 
he  shall  have  the  allowances  of  a  master  signal  electrician  and  the  same 
percentage  of  increase  in  pay  for  length  of  service  as  is  allowed  to  a 
master  signal  electrician. 


542  Important  Federal  Laws 

The  total  enlisted  strength  of  the  Signal  Corps  shall  be  limited  and 
fixed  from  time  to  time  by  the  President  in  accordance  with  the  needs 
of  the  Army,  and  shall  consist  of  master  signal  electricians ;  sergeants, 
first  class;  sergeants;  corporals;  cooks;  horseshoers ;  private,  first  class; 
and  privates  ;  the  number  in  each  grade  being  fixed  from  time  to  time 
bv  the  President.  The  numbers  in  the  various  grades  shall  not  exceed 
the  following  percentages  of  the  total  authorized  enlisted  strength  of  the 
Signal  Corps,  namely :  Master  signal  electricians,  two  per  centum ;  ser- 
geants, first  class,  seven  per  centum ;  sergeants,  ten  per  centum ;  cor- 
porals, twenty  per  centum.  The  number  of  privates,  first  class,  shall  not 
exceed  twenty-five  per  centum  of  the  number  of  privates.  Authority  is 
hereby  given  the  President  to  organize,  in  his  discretion,  such  part  of 
the  commissioned  and  enlisted  personnel  of  the  Signal  Corps  into  such 
number  of  companies,  battalions,  and  aero  squadrons  as  the  necessities 
of  the  service  may  demand. 

Bureau  of  Insular  Affairs  of  the  War  Department. 

Sec.  14.  Nothing  in  this  Act  shall  be  construed  to  repeal  existing 
laws  relating  to  the  organization  of  the  Bureau  of  Insular  Affairs  of  the 
War  Department. 

Chaplains. 

Sec.  15.  The  President  is  authorized  to  appoint,  by  and  with  the 
advice  and  consent  of  the  Senate,  chaplains  in  the  Army  at  the  rate 
of  not  to  exceed,  including  chaplains  now  in  service,  one  for  each 
regiment  of  Cavalry,  Infantry,  Field  Artillery,  and  Engineers,  and  one 
for  each  one  thousand  two  hundred  officers  and  men  of  the  Coast  Artil- 
lery Corps,  with  rank,  pay,  and  allowances  as  now  authorized  by  law  : 
Provided,  That  in  the  appointment  of  chaplains  in  the  Regular  Army, 
preference  and  priority  shall  be  given  to  applicant  veterans,  if  otherwise 
duly  qualified  and  who  shall  not  have  passed  the  age  of  forty-one  years 
at  the  time  of  application,  who  have  rendered  honorable  war  service  in 
the  Army  of  the  United  States  or  who  have  been  honorably  discharged 
from  such  Army. 

Veterinarians. 

Sec.  16.  The  President  is  hereby  authorized,  by  and  with  the  advice 
and  consent  of  the  Senate,  to  appoint  veterinarians  and  assistant  veteri- 
narians in  the  Army,  not  to  exceed,  including  veterinarians  now  in  service, 
two  such  officers  for  each  regiment  of  Cavalry,  one  for  every  three  bat- 
teries of  Field  Artillery,  one  for  each  mounted  battalion  of  Engineers, 
seventeen  as  inspectors  of  horses  and  mules  and  as  veterinarians  in  the 
Quartermaster  Corps,  and  seven  as  inspectors  of  meats  for  the  Quarter- 
master Corps ;  and  said  veterinarians  and  assistant  veterinarians  shall 
be  citizens  of  the  United  States  and  shall  constitute  the  Veterinary  Corps 
and  shall  be  a  part  of  the  Medical  Department  of  the  Army. 

Hereafter  a  candidate  for  appointment  as  assistant  veterinarian 
must  be  a  citizen  of  the  United  States,  between  the  ages  of  twenty-one 


National  Defense  Act  543 

and  twenty-seven  years,  a  graduate  of  a  recognized  veterinary  college 
or  university,  and  shall  not  be  appointed  until  he  shall  have  passed  a 
satisfactory  examination  as  to  character,  physical  condition,  general  edu- 
cation, and  professional  qualifications. 

An  assistant  veterinarian  appointed  under  this  Act  shall,  for  the 
first  five  years  of  service  as  such,  have  the  rank,  pay,  and  allowances  of 
second  lieutenant ;  that  after  five  years  of  service  he  shall  have  the  rank, 
pay,  and  allowances  of  first  lieutenant;  that  after  fifteen  years  of  service 
he  shall  be  promoted  to  be  a  veterinarian  with  the  rank,  pay,  and  allow- 
ances of  captain,  and  that  after  tw^enty  years'  service  he  shall  have  the 
rank,  pay,  and  allowances  of  a  major :  Provided,  That  any  assistant 
veterinarian,  in  order  to  be  promoted  as  hereinbefore  provided,  must 
first  pass  a  satisfactory  examination,  under  such  rules  as  the  President 
may  prescribe,  as  to  professional  qualifications  and  adaptability  for  the 
military  service ;  and  if  such  assistant  veterinarian  shall  be  found  defi- 
cient at  such  examination  he  shall  be  discharged  from  the  Army  \vith 
one  year's  pay. 

The  veterinarians  of  Cavalry  and  Field  Artillery  now  in  the  Army, 
together  with  such  veterinarians  of  the  Quartermaster  Corps  as  are  now 
employed  in  said  corps,  who  at  the  date  of  the  approval  of  this  Act 
shall  have  had  less  than  five  years'  governmental  service,  may  be  ap- 
pointed in  the  Veterinary  Corps  as  assistant  veterinarians  with  the  rank, 
pay.  and  allowances  of  second  lieutenant ;  those  who  shall  have  had  over 
five  years  of  such  service  may  be  appointed  in  said  corps  as  assistant 
veterinarians  with  the  rank,  pay,  and  allowances  of  first  lieutenant ;  and 
those  who  shall  have  had  over  fifteen  years  of  such  service  may  be 
appointed  in  said  corps  as  veterinarians  with  the  rank,  pay,  and  allow- 
ances of  captain:  Provided,  That  no  such  appointment  of  anv  veterina- 
rian shall  be  made  unless  he  shall  first  pass  satisfactorily  a  practical 
professional  and  physical  examination  as  to  his  fitness  for  the  military 
service:  Provided  further.  That  veterinarians  now  in  the  Army  or  in 
the  employ  of  the  Quartermaster  Corps  who  shall  fail  to  pass  the  pre- 
scribed physical  examination  because  of  disability  incident  to  the  service 
and  sufficient  to  prevent  them  from  the  performance  of  duty  valuable 
to  the  Government  shall  be  placed  upon  the  retired  list  of  the  Armv 
with  seventy-five  per  centum  of  the  pay  to  which  they  would  have  been 
entitled  if  appointed  in  the  Veterinary  Corps  as  hereinbefore  prescribed. 

The  Secretary  of  War,  upon  recommendation  of  the  Surgeon  Gen- 
eral of  the  Army,  may  appoint  in  the  Veterinary  Corps,  for  such  time 
as  their  services  may  be  required,  such  number  of  reserve  veterinarians 
as  may  be  necessary  to  attend  public  animals  pertaining  to  the  Quarter- 
master Corps.  Reserve  veterinarians  so  employed  shall  have  the  pay  and 
allowances  of  second  lieutenant  during  such  employment  and  no  longer: 
Provided,  That  such  reserve  veterinarians  shall  be  graduates  of  a  recog- 
nized veterinary  college  or  university  and  shall  pass  a  satisfactory  ex- 
amination as  to  character,  physical  condition,  general  education,  and  pro- 


544  Important  Federal  Laws 

fessional  qualifications  in  like  manner  as  hereinbefore  required  of  assist- 
ant veterinarians ;  such  reserve  veterinarians  shall  constitute  a  list  of  eligi- 
bles  for  appointment  as  assistant  veterinarians,  subject  to  all  the  condi- 
tions hereinbefore  prescribed  for  the  appointment  of  assistant  veterina- 
rians. 

Within  a  limit  of  time  to  be  fixed  by  the  Secretary  of  War,  candi- 
dates for  appointment  as  assistant  veterinarians  who  shall  have  passed 
satisfactorily  the  examinations  prescribed  for  that  grade  by  this  Act 
shall  be  appointed,  in  the  order  of  merit  in  which  they  shall  have  passed 
such  examination,  to  vacancies  as  they  occur,  such  appointments  to_  be 
for  a  probationary  period  of  two  years,  after  which  time,  if  the  services 
of  the  probationers  shall  have  been  satisfactory,  they  shall  be  permanently 
appointed  with  rank  to  date  from  the  dates  of  rank  of  their  probationary 
appointments.  Probationary  veterinarians  whose  services  are  found  un- 
satisfactory shall  be  discharged  at  any  time  during  the  probationary 
period,  or  at  the  end  thereof,  and  shall  have  no  further  claims  against 
the  Government  on  account  of  their  probationary  service. 

The  Secretary  of  War  shall  from  time  to  time  appoint  boards  of 
examiners  to  conduct  the  veterinary  examinations  hereinbefore  pre- 
scribed, each  of  said  boards  to  consist  of  three  medical  officers  and  two 
veterinarians. 

Composition  of  Infantry  Units. 

Sec.  17.  Each  regiment  of  Infantry  shall  consist  of  one  colonel,  one 
lieutenant  colonel,  three  majors,  fifteen  captains,  sixteen  first  lieutenants, 
fifteen  second  lieutenants,  one  headquarters  company,  one  machine-gun 
company,  one  supply  company,  and  twelve  infantry  companies  organized 
into  three  battalions  of  four  companies  each. 

Each  battalion  shall  consist  of  one  major,  one  first  lieutenant, 
mounted  (battalion  adjutant),  and  four  companies.  Each  Infantry  com- 
pany in  battahon  shall  consist  of  one  captain,  one  first  lieutenant,  one 
second  lieutenant,  one  first  sergeant,  one  mess  sergeant,  one  supply  ser- 
geant, six  sergeants,  eleven  corporals,  two  cooks,  two  buglers,  one  ma- 
chanic,  nineteen  privates    (first  class),   and  fifty-six  privates. 

Each  Infantry  headquarters  company  shall  consist  of  one  captain, 
mounted  (regimental  adjutant)  ;  one  regimental  sergeant  major,  mounted; 
three  battalion  sergeants  major,  mounted;  one  first  sergeant  (drum 
major);  two  color  sergeants;  one  mess  sergeant;  one  supply  sergeant: 
one  stable  sergeant ;  one  sergeant ;  two  cooks  ;  one  horseshoer ;  one  band 
leader;  one  assistant  band  leader;  one  sergeant  bugler;  two  band  ser- 
geants; four  band  corporals;  two  musicians,  first  class;  four  musicians, 
second  class;  thirteen  musicians,  third  class;  four  privates,  first  class, 
mounted :  and  twelve  privates,  mounted. 

Each  Infantry  machine-gun  company  shall  consist  of  one  captain, 
mounted  ;  one  first  lieutenant,  mounted  ;  two  second  lieutenants,  mounted  ; 
one  first  sergeant,  mounted;  one  mess  sergeant;  one  supply  sergeant, 
mounted ;  one  stable  sergeant,  mounted ;  one  horseshoer ;  five  sergeants ; 


National  Defense  Act  545 

six  corporals ;  two  coolcs ;  two  buglers ;  one  mechanic ;  eight  privates, 
first  class  ;  and  twenty-four  privates. 

Each  Infantry  supply  company  shall  consist  of  one  captain, 
mounted ;  one  second  lieutenant,  mounted ;  three  regimental  supply  ser- 
geants, mounted;  one  first  sergeant,  mounted;  one  mess  sergeant;  one 
stable  sergeant ;  one  corporal,  mounted ;  one  cook ;  one  saddler ;  one 
horseshoer;  and  one  wagoner  for  each  authorized  wagon  of  the  field 
and  combat  train:  Provided,  That  the  President  may  in  his  discretion 
increase  a  company  of  Infantry  by  two  sergeants,  six  corporals,  one 
cook,  one  mechanic,  nine  privates  (first  class),  and  thirty-one  privates; 
an  Infantry  machine-gun  company  by  two  sergeants,  two  corporals,  one 
mechanic,  four  privates,  first  class,  and  twelve  privates. 

The  commissioned  officers  required  for  the  Infantry  headquarters, 
supply,  and  machine-gun  companies  and  for  the  companies  organized 
into  battalions  shall  be  assigned  from  those  hereinbefore  authorized. 

Composition  of  Cavalry  Units. 

Sec.  18.  Each  regiment  of  Cavalry  shall  consist  of  one  colonel,  one 
Heutenant  colonel,  three  majors,  fifteen  captains,  sixteen  first  lieutenants, 
sixteen  second  lieutenants,  one  headquarters  troop,  one  machine-gun 
troop,  one  supply  troop,  and  twelve  troops  organized  into  three  squadrons 
of  four  troops  each. 

Each  squadron  shall  consist  of  one  major,  one  first  lieutenant 
(squadron  adjutant),  and  four  troops.  Each  troop  in  squadron  shall 
consist  of  one  captain,  one  first  lieutenant,  one  second  lieutenant,  one 
first  sergeant,  one  mess  sergeant,  one  supply  sergeant,  one  stable  ser- 
geant, five  sergeants,  eight  corporals,  two  cooks,  two  horseshoers,  one 
saddler,  two  buglers,  ten  privates  (first  class),  and  thirty-six  privates. 

Each  headquarters  troop  shall  consist  of  one  captain  (regimental 
adjutant),  one  regimental  sergeant  major,  three  squadron  sergeants 
major,  one  first  sergeant  (drum  major),  two  color  sergeants,  one  mess 
sergeant,  one  supply  sergeant,  one  stable  sergeant,  one  sergeant,  two 
cooks,  one  horseshoer,  one  saddler,  two  privates  (first  class),  and  nine 
privates,  one  band  leader,  one  assistant  band  leader,  one  sergeant  bugler, 
two  band  sergeants,  four  band  corporals,  two  musicians  (first  class), 
four  musicians   (second  class),  and  thirteen  musicians   (third  class). 

Each  machine-gun  troop  shall  consist  of  one  captain,  one  first  lieu- 
tenant, two  second  lieutenants,  one  first  sergeant,  one  mess  sergeant, 
one  supply  sergeant,  one  stable  sergeant,  two  horseshoers,  five  sergeants, 
six  corporals,  two  cooks,  one  mechanic,  one  saddler,  two  buglers,  twelve 
privates   (first  class),  and  thirty-five  privates. 

Each  supply  troop  shall  consist  of  one  captain  (regimental  supply 
ofHcer),  two  second  lieutenants,  three  regimental  supply  sergeants,  one 
first  sergeant,  one  mess  sergeant,  one  stable  sergeant,  one  corporal,  one 
cook,  one  horseshoer.  one  saddler,  and  one  wagoner  for  each  authorized 
wagon  of  the  field  and  combat  train :  Provided,  That  the  President  may, 
in  his  discretion,  increase  each  troop  of  Cavalry  by  ten  privates    (first 

(35) 


546  Important  Federal  Laws 

class)  and  twenty-five  privates;  the  headquarters  troop  by  two  sergeants, 
five  corporals,  one  horseshoer,  five  privates  (first  class),  and  eighteen 
privates;  each  machine-gun  troop  by  three  sergeants,  two  corporals, 
one  mechanic,  one  private  (first  class),  and  fourteen  privates;  each 
supply  troop  bv  one  corporal,  one  cook,  one  saddler,  and  one  horseshoer. 
The  commissioned  officers  required  for  the  Cavalry  headquarters, 
supply,  and  machine-gun  troops,  and  for  the  troops  organized  into 
squadrons,  shall  be  assigned  from  those  hereinbefore  authorized. 

Composition  of  Field  Artillery  Units. 

Sec.  19.  The  Field  Artillery,  including  mountain  artillery,  light 
artillery,  horse  artillery,  heavy  artillery  (field  and  siege  types),  shall  con- 
sist of  one  hundred  and  twenty-six  gun  or  howitzer  batteries  organized 
into  twenty-one  regiments. 

In  time  of  actual  or  threatened  hostilities  the  President  is  author- 
ized to  organize  such  number  of  ammunition  batteries  and  battalions, 
depot  batteries  and  battalions,  and  such  artillery  parks  with  such  num- 
bers and  grades  of  personnel  and  such  organizations  as  he  may  deem 
necessary.  The  officers  necessary  for  such  organization  shall  be  sup- 
plied from  the  Officers'  Reserve  Corps  provided  by  this  Act  and  by 
temporary  appointment  as  authorized  by  section  eight  of  the  Act  of 
Congress'  approved  April  twenty-fifth,  nineteen  hundred  and  fourteen. 
The  enlisted  men  necessary  for  such  organizations  shall  be  supplied 
from   the   Regular   Army   Reserve   provided   by   this   Act   or    from   the 

Regular  Army. 

Each  regiment  of  Field  Artillery  shall  consist  of  one  colonel,  one 
lieutenant  colonel,  one  captain,  one  headquarters  comi)any.  one  supply 
company,  and  such  number  of  gun  and  howitzer  battalions  as  the  Pres- 
ident may  direct.  Nothing  shall  prevent  the  assembling,  in  the  same 
rec^iment'of    gun    and    howitzer    battalions    of    different    calibers  and 

classes. 

Each  gun  or  howitzer  battery  shall  consist  of  one  captain,  two  first 
lieutenants,  two  second  lieutenants,  one  first  sergeant,  one  supply  ser- 
geant, one  stable  sergeant,  one  mess  sergeant,  six  sergeants,  thirteen 
corporals,  one  chief  mechanic,  one  saddler,  two  horseshoers,  one  me- 
chanic, two  buglers,  three  cooks,  twenty-two  privates  (first  class),  and 
seventy-one  privates.  When  no  enlisted  men  of  the  Quartermaster 
Corps  are  attached  for  such  positions  there  shall  be  added  to  each  bat- 
tery of  mountain  artillery  one  packmaster  (sergeant,  first  class),  one 
assistant  packmaster  (sergeant),  and  one  cargador  (corporal). _ 

Each  headquarters  company  of  a  regiment  of  two  battalions  shall 
consist  of  one  captain,  one  first  lieutenant,  one  regimental  sergeant 
major,  two  battalion  sergeants  major,  one  first  sergeant,  two  color  ser- 
geants', one  mess  sergeant,  one  supply  sergeant,  one  stable  sergeant,  t^yo 
sergeants,  nine  corporals,  one  horseshoer,  one  saddler,  one  mechanic, 
three  buglers,  two  cooks,  five  privates  (first  class),  fifteen  privates,  one 
band  leader,  one  assistant  band  leader,  one  sergeant  bugler,   two  band 


National  Defense  Act  547 

sergeants,  four  band  corporals,  two  musicians  (first  class),  four  musi- 
cians (second  class),  and  thirteen  musicians  (third  class).  That  when 
a  regiment  consists  of  three  battalions  there  shall  be  added  to  the  head- 
quarters company  one  battalion  sergeant  major,  one  sergeant,  three  cor- 
porals, one  bugler,  one  private  (first  class),  and  five  privates.  When 
no  enlisted  men  of  the  Quartermaster  Corps  is  attached  for  such  posi- 
tions, there  shall  be  added  to  each  mountain  artillery  headqquarters  com- 
pany one  packmaster  (sergeant,  first  class),  one  assistant  packmaster 
(sergeant),  and  one  cargador   (corporal). 

Each  supply  company  of  a  regiment  of  two  battalions  shall  consist 
of  one  captain,  one  first  lieutenant,  two  regimental  supply  sergeants,  one 
first  sergeant,  one  mess  sergeant,  one  corporal,  one  cook,  one  horseshoer, 
one  saddler,  two  privates,  and  one  wagoner  for  each  authorized  wagon 
of  the  field  train.  When  a  regiment  consists  of  three  battalions  there 
shall  be  added  to  the  supply  company  one  second  lieutenant,  one  regi- 
mental supply  sergeant,  one  private,  and  one  wagoner  for  each  addi- 
tional authorized  wagon  of  the  field  train. 

Each  gun  or  howitzer  battalion  shall  consist  of  one  major,  one 
captain,  and  batteries  as  follows :  Mountain  artillery  battalions  and  light 
artillery  gun  or  howitzer  battalions  serving  with  the  field  artillery  of 
Infantry  divisions  shall  contain  three  batteries;  horse  artillerv  battalions 
and  heavy  field  artillery  gun  or  howitzer  battalions  shall  contain  two 
batteries :  Provided,  That  the  President  may,  in  his  discretion,  increase 
the  headquarters  company  of  a  regiment  of  two  battalions  by  two  ser- 
geants, five  corporals,  one  horseshoer,  one  mechanic,  one  private  (first 
class),  and  six  privates;  the  headquarters  company  of  a  regiment  of 
three  battalions  by  one  sergeant,  seven  corporals,  one  horseshoer,  one 
mechanic,  two  cooks,  two  privates  (first  class),  and  seven  privates;  the 
supply  company  of  a  regiment  of  two  battalions  by  one  corporal,  one 
cook,  one  horseshoer.  and  one  saddler;  the  supply  company  for  a  regi- 
ment of  three  battalions  by  one  corporal,  one  cook,  one  horseshoer,  and 
one  saddler ;  a  gun  or  howitzer  battery  by  three  sergeants,  seven  cor- 
porals, one  horseshoer,  two  mechanics,  one  bugler,  thirteen  privates  (first 
class),  and  thirty-seven  privates. 

Coast  Artillery  Corps. 

Sec.  20.  The  Coast  Artillery  Corps  shall  consist  of  one  Chief 
of  Coast  Artillery,  with  the  rank  of  brigadier  general ;  twenty-four 
colonels;  twenty-four  lieutenant  colonels;  seventy-two  majors;  three 
hundred  and  sixty  captains ;  three  hundred  and  sixtv  first  lieu- 
tenants ;  three  hundred  and  sixty  second  lieutenants ;  thirty-one  ser- 
geants major,  senior  grade;  sixty- four  sergeants  major,  junior  grade; 
forty-one  master  electricians ;  seventy-two  engineers ;  ninety-nine  elec- 
trician sergeants,  first  class ;  two  hundred  and  seventy-five  assistant  en- 
gineers ;  ninety-nine  electrician  sergeants,  second  class ;  one  hundred  and 
six  firemen ;  ninety-three  radio  sergeants ;  sixty-two  master  gunners ; 
two   hundred   and   sixty-three   first   sergeants;  two   hundred   and   sixty- 


548  Important  Federal  Laws 

three  supply  sergeants ;  two  hundred  and  sixty-three  mess  sergeants  ; 
two  thousand  one  hundred  and  four  sergeants ;  three  thousand  one  hun- 
dred and  fifty-six  corporals;  five  hundred  and  twenty-six  cooks;  five 
hundred  and  twenty-six  mechanics ;  five  hundred  and  twenty-six  buglers ; 
five  thousand  two  hundred  and  twenty-five  privates,  first  class  ;  fifteen 
thousand  six  hundred  and  seventy-five  privates ;  and  eighteen  bands,  or- 
ganized as  hereinbefore  provided  for  the  Engineer  band.  The  rated 
men  of  the  Coast  Artillery  Corps  shall  consist  of  casemate  electricians ; 
observers,  first  class  ;  plotters  ;  chief  planters  ;  coxswains  ;  chief  loaders  ; 
observers,  second  class ;  gim  commanders  and  gun  pointers.  The  total 
number  of  rated  men  shall  not  exceed  one  thousand  seven  hundred  and 
eighty-four.  Coxswains  shall  receive  $9  per  month  in  addition  to  the 
pay  of  their  grade. 

Porto  Rico  Regiment  of  Infantry. 

Sec.  21.  The  Porto  Rico  Regiment  of  Infantry  of  the  United  States 
Army  shall  hereafter  have  the  same  organization,  and  the  same  grades  and 
numbers  of  commissioned  ofiicers  and  enlisted  men,  as  are  by  this  Act  or 
shall  hereafter  be  prescribed  by  law  for  other  regiments  of  Infantry  of  the 
Army.  All  vacancies  created  by  this  Act  or  occurring  hereafter  in  com- 
missioned offices  of  said  regiment  above  the  grade  of  second  lieutenant 
and  below  the  grade  of  colonel  shall,  except  as  hereinafter  provided  to 
the  contrary,  be  filled  by  promotion  according  to  seniority  in  the  sev- 
eral grades  and  within  the  regiment,  subject  to  the  examination  pre- 
scribed by  section  three  of  the  Act  of  Congress  approved  October  first, 
eighteen  hundred  and  ninety,  and  said  section  is  hereby  extended  so  as 
to  apply  in  the  cases  of  all  officers  below  the  grade  of  lieutenant  colonel, 
who  shall  hereafter  be  examined  for  promotion  in  the  Porto  Rico  Regi- 
ment of  Infantry,  except  that  the  President  may  prescribe  such  a  sys- 
tem of  examination  for  the  promotion  of  officers  of  said  regiment  as  he 
may  deem  advisable. 

The  colonel  of  said  regiment  shall  be  detailed  by  the  President, 
from  among  officers  of  Infantry  of  the  Army  not  below  the  grade  of 
lieutenant  colonel,  for  a  period  of  four  years  unless  sooner  relieved. 
Vacancies  created  by  this  Act  in  the  grades  of  lieutenant  colonel  and 
major  in  said  regiment  shall  be  filled  by  appointments  from  the  senior 
captains  in  regimental  rank  of  the  Porto  Rico  regiment  mentioned  in 
the  Act  of  March  fourth,  nineteen  hundred  and  fifteen;  and  captains 
and  lieutenants  of  said  regiment  shall  also  be  eligible  for  such  detached 
service,  transfer,  or  assignment  to  duty  with  other  organizations  as  may 
be  approved  by  the  Secretary  of  War;  but  vacancies  created  by  such 
detachment  of  officers  shall  not  be  filled  by  promotions  or  appointments. 

All  men  hereafter  enlisting  in  said  regiment  shall  be  natives  of 
Porto  Rico.  All  enlistments  in  the  regiment  shall  hereafter  be  the  same 
as  is  provided  herein  for  the  Regular  Army,  and  the  regiment,  or  any 
part  thereof,  may  be  ordered  for  service  outside  the  island  of  Porto 
Rico.     The  pay  and  allowances  of  members  of  said  regiment  shall  be 


National  Defense  Act  549 

the  same  as  provided  by  law  for  officers  and  enlisted  men  of  like  grades 
in  the  Regailar  Army. 

Vacancies  created  by  this  Act  or  occurring  hereafter  in  the  grade 
of  second  lieutenant  in  said  regiment  shall  be  filled  during  any  calendar 
year  by  the  appointment  by  the  President,  by  and  with  the  advice  and 
consent  of  the  Senate,  of  any  native  of  Porto  Rico  graduated  from  the 
United  States  Military  Academy,  and,  after  such  appointment  shall  have 
been  made  or  provided  for,  by  like  appointment  of  native  citizens  of 
Porto  Rico  between  twenty-one  and  twenty-seven  years  of  age. 

Provided,  That  officers  of  the  Porto  Rico  Regiment  of  Infantry, 
United  States  Army,  who  held  commissions  in  the  Porto  Rico  Provi- 
sional Regiment  of  Infantry  on  June  thirtieth,  nineteen  hundred  and 
eight,  shall  now  and  hereafter  take  rank  in  their  grades  in  the  same  rela- 
tive order  held  by  them  in  said  Porto  Rico  Provisional  Regiment  of 
Infantry  on  June  thirtieth,  nineteen  hundred  and  eight,  subject  to  any 
loss  in  rank  due  to  failure  to  pass  examinations  for  promotion  or  to 
sentence  of  court-martial. 

Sec.  22.  All  existing  laws  pertaining  to  or  afifecting  the  United 
States  Military  Academy  and  civilian  or  military  personnel  on  duty 
thereat  in  any  capacity  whatever,  the  officers  and  enlisted  men  on  the 
retired  list,  the  detached  and  additional  officers  under  the  Act  of  Con- 
gress approved  March  third,  nineteen  hundred  and  eleven,  recruiting 
parties,  recruit  depots  and  unassigned  recruits,  service  school  detach- 
ments. United  States  disciplinary  barracks  guards,  disciplinary  organi- 
zations, the  Philippine  Scouts,  and  Indian  scouts  shall  continue  and  re- 
main in  force  except  as  herein  specifically  provided  otherwise. 

Original  Appointments  to  Be  Provisional. 

Sec.  23.  Hereafter  all  appointments  of  persons  other  than  grad- 
uates of  the  United  States  Military  Academy  to  the  grade  of  second 
lieutenant  in  the  Regular  Army  shall  be  provisional  for  a  period  of  two 
years,  at  the  close  of  which  period  such  appointments  shall  be  made  per- 
manent if  the  appointees  shall  have  demonstrated,  under  such  regula- 
tions as  the  President  may  prescribe,  their  suitability  and  moral,  pro- 
fessional, and  physical  fitness  for  such  permanent  appointment,  but 
should  any  appointee  fail  so  to  demonstrate  his  suitability  and  fitness, 
his  appointment  shall  terminate ;  and  should  any  officer  become  eligible 
for  promotion  to  a  vacancy  in  a  higher  grade  and  qualify  therefor  before 
the  expiration  of  two  years  from  the  date  of  his  original  appointment, 
he  shall  receive  a  provisional  appointment  in  such  higher  grade,  which 
appointment  shall  be  made  permanent  when  he  shall  have  qualified  for 
permanent  appointment  upon  the  expiration  of  two  years  from  the  date 
of  his  original  appointment,  or  shall  terminate  if  he  shall  fail  so  to 
qualify. 

Increase  to  Be  Made  in  Five  Increments. 

Sec.  24.  Except  as  otherwise  specifically  provided  by  this  Act, 
the  increases  in  the  commissioned  and  enlisted  personnel  of  the  Regular 


550  Important  Federal  Laws 

Army  provided  by  this  Act  shall  be  made  in  five  annual  increments, 
each  of  which  shall  be,  in  each  grade  of  each  arm,  corps,  and  depart- 
ment, as  nearly  as  practicable,  one-fifth  of  the  total  increase  authorized 
for  each  arm,  corps,  and  department.  Officers  promoted  to  vacancies 
created  or  caused  by  the  addition  of  the  first  increment  shall  be  pro- 
moted to  rank  from  July  first,  nineteen  hundred  and  sixteen,  and  those 
promoted  to  vacancies  created  or  caused  by  the  second  increment  shall 
be  promoted  to  rank  from  July  first,  nineteen  hundred  and  seventeen ; 
those  promoted  to  vacancies  created  or  caused  by  the  addition  of  the 
third  increment  shall  be  promoted  to  rank  from  July  first,  nineteen 
hundred  and  eighteen ;  those  promoted  to  vacancies  created  or  caused 
by  the  addition  of  the  fourth  increment  shall  be  promoted  to  rank  from 
July  first,  nineteen  hundred  and  nineteen ;  and  those  promoted  to  vacan- 
cies created  or  caused  by  the  addition  of  the  fifth  increment  shall  be 
promoted  to  rank  from  July  first,  nineteen  hundred  and  twenty :  Pro- 
vided. That  in  the  event  of  actual  or  threatened  war  or  similar  emergency 
in  which  the  public  safety  demands  it  the  President  is  authorized  to 
immediately  organize  the  entire  increase  authorized  by  this  Act,  or  so 
much  thereof  as  he  may  deem  necessary,  and  when,  in  the  judgment  of 
the  President,  war  becomes  imminent,  all  of  said  organizations  that  shall 
then  be  below  the  maximum  enlisted  strength  authorized  bv  law  shall 
be  raised  forthwith  to  that  strength,  and  shall  be  maintained  as  nearly 
as  possible  thereat  so  long  as  war,  or  the  imminence  of  war,  shall  con- 
tinue. 

Vacancies  in  the  grade  of  second  lieutenant,  created  or  caused  by 
the  increases  due  to  this  Act,  in  any  fiscal  year  shall  be  filled  by  appoint- 
ment in  the  following  order:  (1)  Of  cadets  graduated  from  the  United 
States  Military  Academy  during  the  preceding  fiscal  year  for  whom 
vacancies  did  not  become  available  during  the  fiscal  year  in  which  thev 
were  graduated;  (2)  under  the  provisions  of  existing  law,  of  enlisted 
men.  including  officers  of  the  Philippine  Scouts,  whose  fitness  for  pro- 
motion shall  have  been  determined  by  competitive  examination;  (3)  of 
members  of  the  Officers'  Reserve  Corps  between  the  ages  of  twenty-one 
and  twenty-seven  years ;  (4)  of  commissioned  officers  of  the  National 
Guard  between  the  ages  of  twenty-one  and  twenty-seven  years;  (5)  of 
such  honor  graduates,  between  the  ages  of  twenty-one  and  twentv-seven 
years,  of  distinguished  colleges  as  are  now  or  may  hereafter  be  entitled 
to  preference  by  general  orders  of  the  War  Department;  and  (6)  of 
candidates  from  civil  life  between  the  ages  of  twenty-one  and  twenty- 
seven  years  ;  and  the  President  is  authorized  to  make  the  necessary  rules 
and  regulations  to  carry  these  provisions  into  effect :  Provided,  That  anv 
such  original  vacancies  not  so  filled,  and  remaining  at  the  time  of  grad- 
uation of  any  class  at  the  United  States  Military  Academy,  may  be 
filled  by  the  appointment  of  members  of  that  class  ;  and  all  vacancies  in 
the  grade  of  second  lieutenant  not  created  or  caused  by  the  increase  due 
to  this  Act  shall  be  filled  as  provided  in  the  Act  making  appropriation 


National  Defense  Act  551 

for  the  support  of  the  Army,  approved  March  third,  nineteen  hundred 
and  eleven :  Provided  further,  That  enlisted  men  of  the  Regular  Army 
who  have  completed  one  year's  service  with  an  organization  may  be- 
come candidates  for  vacancies  in  the  grade  of  second  lieutenant  created 
or  caused  by  the  increases  due  to  the  operation  of  this  Act :  Provided 
further.  That  appointments  to  the  grade  of  second  lieutenant  in  the 
Corps  of  Engineers  including  those  created  by  this  Act,  shall  continue 
to  be  made  as  now  provided  by  law,  but  that  officers  of  the  Army  or 
Navy  of  the  United  States  may  become  candidates  for  said  appointments 
under  the  provisions  of  section  five  of  the  Act  of  Congress  approved 
February  twenty-seventh,  nineteen  hundred  and  eleven,  without  pre- 
viously vacating  their  commissions  as  officers  and  that  the  Secretary  of 
War  may,  in  his  discretion,  allow  persons  to  become  candidates  with- 
out previously  establishing  eligibility  for  appointment  as  junior  engineer 
under  the  Engineer  Bureau  of  the  War  Department :  Provided  further, 
That  officers  appointed  to  original  vacancies  in  the  grade  of  second  lieu- 
tenant created  or  caused  by  this  Act  shall  take  lineal  and  relative  rank 
according  to  dates  of  appointment,  and  the  lineal  and  relative  rank  of 
second  lieutenants  appointed  on  the  same  date  shall  be  determined  under 
such  regulations  as  the  Secretary  of  War  may  prescribe :  Provided  fur- 
ther, That  the  President  may  recommission  persons  who  have  hereto- 
fore held  commissions  in  the  Regular  Army  and  have  left  the  service 
honorably,  after  ascertaining  that  they  are  qualified  for  service  physi- 
cally, morally,  and  as  to  age  and  military  fitness ;  such  recommissioned 
officers  shall  take  rank  at  the  foot  of  the  respective  grades  which  they 
held  at  the  time  of  their  separation  from  the  Army :  Provided  further, 
That  the  provisions  of  existing  law  requiring  examinations  to  determine 
fitness  for  promotion  of  officers  of  the  Army  are  hereby  extended  to 
include  promotions  to  all  grades  below  that  of  brigadier  general :  Pro- 
vided further.  That  examinations  of  officers  in  the  grades  of  major  and 
lieutenant  colonel  shall  be  confined  to  problems  involving  the  higher 
functions  of  staff  duties  and  command:  And  provided  further,  That  in 
time  of  war  retired  officers  of  the  Army  may  be  employed  on  active 
duty,  in  the  discretion  of  the  President,  and  when  so  employed  they 
shall  receive  the  full  pay  and  allowances  of  their  grade:  And  provided 
further.  That  hereafter  any  retired  officer,  who  has  been  or  shall  be 
detailed  on  active  duty,  shall  receive  the  rank,  pay,  and  allowances  of 
the  grade,  not  above  that  of  major,  that  he  would  have  attained  in  due 
course  of  promotion  if  he  had  remained  on  the  active  list  for  a  period 
beyond  the  date  of  his  retirement  equal  to  the  total  amount  of  time 
during  which  he  has  been  detailed  on  active  duty  since  his  retirement. 

The  Detached  Officers. 

Sec.  25.  That  on  July  first,  nineteen  hundred  and  sixteen,  the  line 
of  the  x*\rmy  shall  be  increased  by  eight  hundred  and  twenty-two  extra 
officers  of  the  Cavalry,  Field  /Artillery,  Coast  Artillery  Corps,  and  In- 
fantry arms  of  the  service,  of  grades   from  first  lieutenant  to  colonel, 


552  Important  Federal  Laws 

inclusive,  lawfully  available  for  detachment  from  their  proper  arms  for 
duty  with  the  National  Guard,  or  other  duty,  the  usual  period  of  which 
exceeds  one  year.  Said  extra  ofhcers,  together  with  the  two  hundred 
detached  officers  provided  for  by  the  Act  of  Congress  approved  March 
third,  nineteen  hundred  and  eleven,  shall  on  and  after  July  first,  nine- 
teen hundred  and  sixteen,  constitute  the  Detached  Officers'  List;  and 
all  positions  vacated  by  officers  assigned  to  said  list,  and  the  officers 
so  assigned  shall  be  subject  to  the  provisions  of  section  twenty-seven  of 
the  Act  of  Congress  approved  February  second,  nineteen  hundred  and 
one,  with  reference  to  details  to  the  stafT  corps.  The  total  number  of 
officers  hereby  authorized  for  each  grade  on  said  list  entire  shall  be 
in  proportion  to  the  total  number  of  officers  of  the  corresponding  grade 
now  authorized  by  law  other  than  this  Act  for  all  of  the  said  four 
arms  combined,  exclusive  of  second  lieutenants  and  of  the  two  hun- 
dred extra  officers  authorized  by  the  Act  of  Congress  approved  March 
third,  nineteen  hundred  and  eleven,  and  exclusive  also  of  the 
additional  officers  authorized  by  the  Act  to  restore  lineal  rank  lost 
through  the  system  of  regimental  promotion  formerly  in  force ;  and 
the  total  number  of  officers  hereby  authorized  for  each  grade  in  each 
of  said  arms  on  said  list  shall  be  in  the  proportion  borne  by  the 
number  of  officers  now  authorized  by  law  other  than  this  Act  for  such 
grade  and  arm  to  the  total  number  of  officers  now  authorized  by  law 
other  than  this  Act  for  the  corresponding  grade  in  all  of  the  said  four 
arms  combined,  exclusive  of  the  extra  and  additional  officers  last  here- 
inbefore specified  and  excluded:  Provided.  That  all  vacancies  created 
or  caused  by  the  foregoing  provisions  of  this  section  in  grades  above 
that  of  second  lieutenant  shall  be  filled  by  promotion  according  to  law 
existing  on  and  before  the  date  of  approval  of  this  Act,  and  subject  to 
the  examinations  prescribed  by  existing  law.  As  soon  as  practicable  after 
such  promotions  shall  have  been  made,  there  shall  be  detached  from  each 
arm  and  assigned  to  the  Detached  Officers'  List  a  number  of  officers 
of  each  grade  equal  to  the  number  of  officers  of  said  grade  by  which 
said  arm  shall  have  been  increased  by  the  foregoing  provisions  of  this 
section ;  and  thereafter  any  vacancy  created  Or  caused  in  any  of  the 
said  arms  of  the  service  by  the  assignment  of  an  officer  of  any  grade 
to  said  Detached  Officers'  List  shall  be  filled,  subject  to  such  examina- 
tion as  is  now  or  may  hereafter  be  prescribed  by  law,  by  the  promo- 
tion of  the  officer  who  shall  be  the  senior  in  length  of  commissioned 
service  of  those  eligible  to  promotion  in  the  next  lower  grade  in  the 
arm  in  which  such  vacancy  shall  occur:  Provided  further.  That  no 
officer  of  any  of  said  arms  of  the  service  shall  be  permitted  to  remain 
on  said  Detached  Officers'  List  for  more  than  forty-five  days  unless 
he  shall  have  been  actually  present  for  duty  for  at  least  two  years  out 
of  the  last  preceding  six  years  with  an  organization  composed  of  one 
or  more  statutory  units,  or  the  equivalent  thereof,  of  the  arm  to  which 
he  shall  belong.    Any  vacancy  created  in  said  list  by  the  removal  of  any 


National  Defense  Act  553 

officer  therefrom  because  he  shall  not  have  been  present  for  duty  as 
prescribed  in  this  proviso  shall  be  filled  by  the  transfer  to  said  list  of 
an  officer  having  the  same  grade  and  belonging  to  the  same  arm  as  the 
officer  whose  removal  from  said  list  shall  have  created  said  vacancy ;  but, 
except  as  before  prescribed  in  this  proviso,  all  officers  who  shall  have  been 
assigned  to  said  list  shall  remain  thereon  for  not  less  than  four  years  from 
the  respective  dates  of  their  assignment  thereto,  unless  in  the  meantime 
they  shall  have  been  separated  entirely  from  the  Army,  or  shall  have 
been  promoted  or  appointed  to  higher  offices,  or  shall  have  been  retired 
from  active  service:  Provided  further,  That  after  the  apportionment  of 
officers  to  said  Detached  Officers'  List  shall  have  been  made  as  author- 
ized by  this  Act,  whenever  any  vacancy  shall  have  been  caused  in  said 
list  by  the  separation  of  an  officer  of  any  grade  therefrom,  such  vacancy 
shall,  except  as  prescribed  in  the  last  preceding  proviso,  be  filled  by 
the  detail  and  assignment  to  said  list  of  an  officer  of  the  corresponding 
grade  in  that  arm  in  which  there  shall  be  found  the  officer  of  the  next 
lower  grade  who  at  that  time  shall  be  the  senior  in  length  of  commis- 
sioned service  of  all  the  officers  of  the  said  lower  grade  in  all  of  the 
four  arms  hereinbefore  specified ;  if  two  or  more  officers  of  different 
arms  shall  be  found  to  have  equal  seniority  in  length  of  commissioned 
service  in  said  lower  grade,  the  question  of  seniority  shall  be  decided 
by  their  relative  standing  on  the  list  of  the  commissioned  officers  of  the 
Army :  Provided  further,  That  with  a  view  to  equalize  inequalities  in 
past  promotions  of  officers  of  the  line  of  the  Army,  on  July  first,  nine- 
teen hundred  and  sixteen,  the  Cavalry  shall  be  increased  by  seventeen 
colonels,  and  the  Infantry  by  four  colonels,  all  of  whom  shall  be  addi- 
tional officers  in  that  grade,  and  shall  not  bar  nor  retard  the  promotion 
to  which  any  officer  would  be  entitled  if  the  appointment  of  the  said 
additional  officers  had  never  been  authorized ;  and  after  July  first,  nine- 
teen hundred  and  nineteen,  no  vacancies  occurring  among  the  said  addi- 
tional officers  shall  be  filled  and  the  offices  so  vacated  shall  cease  and  de- 
termine :  And  provided  further.  That  for  the  purpose  of  lessening  as  much 
as  possible  inequalities  of  promotion  due  to  the  increase  in  the  number 
of  officers  of  the  line  of  the  Army  under  the  provisions  of  this  Act.  any 
vacancies  created  and  caused  by  this  Act  in  commission  grades  below 
that  of  lieutenant  colonel  in  any  arm  of  said  line  may,  in  the  discretion  of 
the  President  and  under  such  regulations  as  he  may  prescribe  in  further- 
ance of  the  purpose  stated  in  this  proviso,  be  filled  by  the  promotion  or 
transfer  without  promotion  of  officers  of  other  branches  of  the  line 
of  the  Army ;  but  no  such  promotion  or  transfer  shall  be  made  in  the 
case  of  any  officer  unless  it  shall  have  been  recommended  by  an  examin- 
ing board  composed  of  five  officers,  senior  in  rank  to  such  officer,  and  of 
the  arm  to  which  the  promotion  or  transfer  of  such  officer  shall  have 
been  proposed,  who  after  having  made  a  personal  examination  of  such 
officer  and  of  his  official  record,  shall  have  reported  him  qualified  for 


554  Important  Federal  Laws 

service  in  said  arm  in  the  grade  to  which  his  promotion  or  transfer  shall 
have  been  proposed. 

Retirement  of  Officers  of  Philippine  Scouts. 

Sec.  26.     Captains  and  lieutenants  of  Philippine    Scouts    who    are 
citizens  of   the  United   States   shall  hereafter  be  entitled  to  retirement 
under  the  laws  governing  the  retirement  of  enlisted  men  of  the  Regular 
Army,  except  that  they  shall  be  retired  in  the  grade  held  by  them  a:t 
the  date  of  retirement,  shall  be  entitled  to  retirement  for  disability  under 
the  same  conditions  as  officers  of  the  Regular  Army,  and  that  they  shall 
receive,  as  retired  pay,  the  amount  allowed  by  law,  as  retired  pay  and 
allowances,   of   master   signal   electricians   of   the   United   States   Army, 
and  no  more:  Provided,  That  double  time  for  service  beyond  the  con- 
tinental limits  of  the  United  States  shall  not  be  counted   for  the  pur- 
poses of  this  section  so  as  to  reduce  the  actual  period  of  service  below 
twenty  years :  Provided  further.  That  former  officers  of  the  Philippine 
Scouts  who,  because  of  disability  occasioned  by  wounds  received  in  ac- 
tion, have  resigned  or  been  discharged   from  the  service,  or  who  have 
heretofore  served  as  such  for  a  period  of  more  than  five  years  and  have 
been   retired  as   enlisted  men,   shall  be  placed   upon  the   retired   list   as 
officers  of  Philippine  Scouts  and  thereafter  receive  the  retired  pay  and 
allowances  by  this  section  for  other  officers  of  Philippine  Scouts:  And 
provided    further,   That   any    former   officer   of    Philippine    Scouts   who 
vacated  his  office  in  the  Philippine   Scouts  by  discharge  or  resignation 
on  account   of   disability  contracted  in  the  line  of   duty  and   who  was 
subsequentlv  retired  as  an  enlisted  man,   except  any   former  officer  of 
Philippine   Scouts  who  has  been  retired  as  an  enlisted  man  by  special 
Act  of  Congress,  shall  be  transferred  to  the  retired  list  created  by  this 
section  and  shall  thereafter  receive  the  retired  pay  and  allowances  author- 
ized by  this  section,  and  no  more.     Officers  of  Philippine  Scouts  retired 
under  the  provisions  of  this  section  shall  not  form  part  of  the  limited 
retired  list  now  authorized  by  law. 

Enlistments  in  the  Regular  Army.  ' 

Sec.  27.  On  and  after  the  first  day  of  November,  nineteen  hundred 
and  sixteen,  all  enlistments  in  the  Regular  Army  shall  be  for  a  term 
of  seven  years,  the  first  three  years  to  be  in  the  active  service  with  the 
organizations  of  which  those  enlisted  form  a  part  and,  except  as  other- 
wise provided  herein,  the  last  four  years  in  the  Regular  Army  Reserve 
hereinafter  provided  for :  Provided,  That  at  the  expiration  of  three 
years'  continuous  service  with  such  organizations,  either  under  a  first 
or  any  subsequent  enlistment,  any  soldier  may  be  re-enlisted  for  another 
period  of  seven  years,  as  above  provided  for,  in  which  event  he  shall 
receive  his  final  discharge  from  his  prior  enlistment :  Provided  further. 
That  after  the  expiration  of  one  year's  honorable  service  any  enlisted 
man  serving  within  the  continental  limits  of  the  United  States  whose 
company,  troop,  battery,  or  detachment  commander  shall  report  him  as 


National  Defense  Act  555 

proficient  and  sufficiently  trained  may,  in  the  discretion  of  the  Secretary 
of  War,  be  furloughed  to  the  Regular  Army  Reserve  under  such  regu- 
lations as  the  Secretary  of  War  may  prescribe,  but  no  man  furloughed 
to  the  reserve  shall  be  eligible  to  re-enlist  in  the  service  until  the  expira- 
tion of  his  term  of  seven  years:  Provided  further.  That  in  all  enlist- 
ments hereafter  accomplished  under  the  provisions  of  this  Act  three  years 
shall  be  counted  as  an  enlistment  period  in  computing  continuous  service 
pay:  Provided  further,  That  any  noncommissioned  officer  discharged 
with  an  excellent  character  shall  be  permitted,  at  the  expiration  of  three 
years  in  the  active  service,  to  re-enlist  in  the  organization  from  which 
discharged  with  the  rank  and  grade  held  by  him  at  the  time  of  his 
discharge  if  he  re-enlists  within  twenty  days  after  the  date  of  such 
discharge:  Provided  further.  That  no  person  under  the  age  of  eighteen 
years  shall  be  enlisted  or  mustered  into  the  military  service  of  the  United 
States  without  the  written  consent  of  his  parents  or  guardians,  provided 
that  such  minor  has  such  parents  or  guardians  entitled  to  his  custody 
and  control :  And  provided  further.  That  the  President  is  authorized  in 
his  discretion  to  utilize  the  services  of  postmasters  of  the  second,  third, 
and  fourth  classes  in  procuring  the  enlistment  of  recruits  for  the  Army, 
and  for  each  recruit  accepted  for  enlistment  in  the  Army,  the  postmaster 
procuring  his  enlistment  shall  receive  the  sum  of  $5. 

In  addition  to  military  training,  soldiers  while  in  the  active  service 
shall  hereafter  be  given  the  opportunity  to  study  and  receive  instruc- 
tion upon  educational  lines  of  such  character  as  to  increase  their 
military  efficiency  and  enable  them  to  return  to  civil  life  better  equipped 
for  industrial,  commercial,  and  general  business  occupations.  Civilian 
teachers  may  be  employed  to  aid  the  Army  Officers  in  giving  such  in- 
struction, and  part  of  this  instruction  may  consist  of  vocational  educa- 
tion either  in  agriculture  or  the  mechanic  arts.  The  Secretary  of  War, 
with  the  approval  of  the  President,  shall  prescribe  rules  and  regulations 
for  conducting  the  instruction  herein  provided  for,  and  the  Secretary  of 
War  shall  have  the  power  at  all  times  to  suspend,  increase,  or  decrease 
the  amount  of  such  instruction  offered  as  may  in  his  judgment  be  con- 
sistent with  the  requirements  of  military  instruction  and  service  of  the 
soldiers. 

Pay  of  Certain  Enlisted  Men. 

Sec.  28.  Hereafter  the  monthly  pay  of  enlisted  men  of  certain 
grades  of  the  Army  created  in  this  Act  shall  be  as  follows,  namely: 
Quartermaster  sergeant,  senior  grade,  Quartermaster  Corps  ;  master  hos- 
pital sergeant,  Medical  Department ;  master  engineer,  senior  grade.  Corps 
of  Engineers  ;  and  band  leader.  Infantry,  Cavalry,  Artillery,  and  Corps 
of  Engineers,  $75;  hospital  sergeant.  Medical  Department;  and  master 
engineer,  junior  grade.  Corps  of  Engineers,  $65;  sergeant,  first  class. 
Medical  Department,  $50;  sergeant,  first  class.  Corps  of  Engineers;  regi- 
mental supply  sergeant.  Infantry,  Cavalry,  Field  Artillery,  and  Corps 
of  Engineers;  battalion  supply  sergeant,  Corps  of  Engineers;  and  assist- 


556  Important  Federal  Laws 

ant  engineer,  Coast  Artillery  Corps,  $45 ;  assistant  band  leader,  Infantry, 
Cavalry,  Artillery,  and  Corps  of  Engineers ;  and  sergeant  bugler,  Infan- 
try, Cavalry,  Artillery,  and  Corps  of  Engineers,  $40;  musicians,  first 
class,  Infantry,  Cavalry,  Artillery,  and  Corps  of  Engineers;  supply  ser- 
geant, mess  sergeant,  and  stable  sergeant.  Corps  of  Engineers ;  sergeant 
Medical  Department,  $36 ;  supply  sergeant,  Infantry,  Cavalry,  and  Ar- 
tillery; mess  sergeant.  Infantry,  Cavalry,  and  Artillery;  cook.  Medical 
Department ;  horseshoer,  Infantry,  Cavalry,  Artillery,  Corps  of  Engi- 
neers, Signal  Corps,  and  Medical  Department ;  stable  sergeant.  Infantry 
and  Cavalry ;  radio  sergeant.  Coast  Artillery  Corps ;  and  musicians,  sec- 
ond class,  Infantry,  Cavalry,  Artillery,  and  Corps  of  Engineers,  $30; 
musician,  third  class.  Infantry,  Cavalry,  Artillery,  and  Corps  of  Engi- 
neers; corporal,  Medical  Department,  $24;  saddler.  Infantry,  Cavalry, 
Field  Artillery,  Corps  of  Engineers,  and  Medical  Department;  mechanic, 
Infantry,  Cavalry,  and  Field  Artillery,  and  Medical  Department ;  farrier, 
Medical  Department ;  and  wagoner,  Infantr}',  Field  Artillery,  and  Corps 
of  Engineers,  $21 ;  private,  first  class,  Infantry,  Cavalry,  Artillery,  and 
Medical  Department,  $18;  private.  Medical  Department,  and  bugler,  $15. 
Nothing  herein  contained  shall  operate  to  reduce  the  pay  or  allowances 
now  authorized  by  law  for  any  grade  of  enlisted  men  of  the  Army. 

Final  Discharge  of  Enlisted  Men. 

Sec.  29.  No  enlisted  man  in  the  Regular  Army  shall  receive  his 
final  discharge  until  the  termination  of  his  seven-year  term  of  enlistment 
except  upon  re-enlistment  as  provided  for  in  this  Act  or  as  provided  by 
law  for  discharge  prior  to  expiration  of  term  of  enlistment,  but  when 
an  enlisted  man  is  furloughed  to  the  Regular  Army  Reserve  his  account 
shall  be  closed  and  he  shall  be  paid  in  full  to  the  date  such  furlough 
becomes  efi^ective,  including  allowances  provided  by  law  for  discharged 
soldiers :  Provided,  That  when  by  reason  of  death  or  disability  of  a 
member  of  the  family  of  an  enlisted  man  occurring  after  his  enlist- 
ment members  of  his  family  become  dependent  upon  him  for  support, 
he  may,  in  the  discretion  of  the  Secretary  of  War,  be  discharged  from 
the  service  of  the  United  States  or  be  furloughed  to  the  Regular  Army 
Reserve,  upon  due  proof  being  made  of  such  condition:  Provided  further, 
That  when  an  enlisted  man  is  discharged  by  purchase  while  in  active 
service  he  shall  be  furloughed  to  the  Regular  Army  Reserve,  unless, 
in  the  discretion  of  the  Secretary  of  War,  he  is  given  a  final  discharge 
from  the  Army. 

Composition  of  the  Regular  Army  Reserve. 

Sec.  30.  The  Regular  Army  Reserve  shall  consist  of,  first,  all  en- 
listed men  now  in  the  Army  Reserve  or  who  shall  hereafter  become 
members  of  the  Army  Reserve  under  the  provisions  of  existing  law; 
second,  all  enlisted  men  furloughed  to  or  enlisted  in  the  Regular  Army 
Reserve  under  the  provisions  of  this  Act ;  and,  third,  any  person  hold- 
ing an   honorable    discharge    from   the   Regular   Army   with   character 


National  Defense  Act  557 

reported  at  least  good  who  is  physically  qualified  for  the  duties  of  a 
soldier  and  not  over  forty-five  years  of  age  who  enlists  in  the  Regular 
Army  Reserve  for  a  period  of  four  years. 

Sec.  31.  The  President  is  authorized  to  assign  members  of  the 
Regular  Army  Reserve  as  reserves  to  particular  organizations  of  the 
Regular  Army,  or  to  organize  the  Regular  Army  Reserve,  or  any  part 
thereof,  into  units  or  detachments  of  any  arm.  corps,  or  department 
in  such  manner  as  he  may  prescribe,  and  to  assign  to  such  units  and 
detachments  ofificers  of  the  Regular  Army  or  of  the  Officers'  Reserve 
Corps  herein  provided  for;  and  he  may  summon  the  Regular  Army 
Reserve  or  any  part  thereof  for  field  training  for  a  period  not  exceed- 
ing fifteen  days  in  each  year,  the  reservists  to  receive  travel  expenses 
and  pay  at  the  rate  of  their  respective  grades  in  the  Regular  Army 
during  such  periods  of  training;  and  in  the  event  of  actual  or  threat- 
ened hostilities  he  may  mobilize  the  Regular  Army  Reserve  in  such 
manner  as  he  may  determine,  and  thereafter  retain  it,  or  any  part 
thereof,  in  actual  service  for  such  period  as  he  may  determine  the 
conditions  demand:  Provided,  That  all  enlistments  in  the  Regular 
Army,  including  those  in  the  Regular  Army  Reserve,  which  are  in 
force  on  the  date  of  the  outbreak  of  war  shall  continue  in  force  for 
one  year,  unless  sooner  terminated  by  order  of  the  Secretary  of  War, 
tut  nothing  herein  shall  be  construed  to  shorten  the  time  of  enlistment 
prescribed :  Provided  further,  That  subject  to  such  regulations  as  the 
President  may  prescribe  for  their  proper  identification,  and  location, 
and  physical  condition,  the  members  of  the  Regular  Army  Reserve 
shall  be  paid  semiannually  at  the  rate  of  $24  a  year  while  in  the 
reserve. 

Regular  Army  Reserve  in  Time  of  War, 

Sec.  32.  When  mobilized  by  order  of  the  President,  the  mem- 
bers of  the  Regular  Army  Reserve  shall,  so  long  as  they  may  remain 
in  active  service,  receive  the  pay  and  allowances  of  enlisted  men  of 
the  Regular  Army  of  like  grades:  Provided.  That  any  enlisted  man 
who  shall  have  re-enlisted  in  the  Regular  Army  Reserve  shall  receive 
during  such  active  service  the  additional  pay  now  provided  by  law  for 
enlisted  men  in  his  arm  of  the  service  in  the  second  enlistment  period: 
Provided  further,  That  upon  reporting  for  duty,  and  being  found  phy- 
sically fit  for  service,  members  of  the  Regular  Reserve  shall  receive  a 
sum  equal  to  $3  per  month  for  each  month  during  which  they  shall  have 
belonged  to  the  reserve,  as  well  as  the  actual  necessary  cost  of  trans- 
portation and  subsistence  from  their  homes  to  the  places  at  which 
they  may  be  ordered  to  report  for  duty  under  such  summons:  And 
provided'  further.  That  service  in  the  Regular  Army  Reserve  shall  con- 
fer no  right  to  retirement  or  retired  pay,  and  members  of  the  Regular 
Army  Reserve  shall  become  entitled  to  pension  only  through  disability 
incurred  while  on  active  duty  in  the  service  of  the  United  States. 


558  Important  Federal  Laws 

Use  of  Other  Departments  of  the  Government. 

Sec.  33.  The  President  may,  subject  to  such  rules  and  regula- 
tions as  in  his  judgment  may  be  necessary,  utilize  the  services  of  mem- 
bers and  employees  of  all  departments  of  the  Government  of  the  United 
States,  without  expense  to  the  individual  reservist,  for  keeping  in  touch 
with,  paying,  and  mobilizing  the  Regular  Army  Reserve,  the  Enlisted 
Reserve  Corps,  and  other  reserve  organizations. 

Re-enlistment  in  Time  of  War. 

Sec.  34.  For  the  purpose  of  utilizing  as  an  auxiliary  to  the  Regu- 
lar Army  Reser^^es  the  services  of  men  who  have  had  experience  and 
training  in  the  Regular  Army,  or  in  the  United  States  Volunteers,  out- 
side of  the  continental  limits  of  the  United  States,  in  time  of  actual  or 
threatened  hostilities,  and  after  the  President  shall,  by  proclamation, 
have  called  upon  honorably  discharged  soldiers  of  the  Regular  Army 
to  present  themselves  for  re-enlistment  therein  within  a  specified  period, 
subject  to  such  conditions  as  may  be  prescribed,  any, person  who  shall 
have  been  discharged  honorably  from  said  Army,  with  character  reported 
as  at  least  good,  and  who,  having  been  found  physically  qualified  for 
the  duties  of  a  soldier,  if  not  over  fifty  years  of  age,  shall  re-enlist  in 
the  line  of  said  Army,  or  in  the  Signal,  Quartermaster,  or  Medical 
Department  thereof,  within  the  period  that  shall  be  specified  in  said 
proclamation,  shall  receive  on  so  re-enlisting  a  bounty  which  shall  be 
computed  at  the  rate  of  $8  for  each  month  for  the  first  year  of  the 
period  that  shall  have  elapsed  since  his  last  discharge  from  the  Regular 
Army  and  the  date  of  his  re-enlistment  therein  under  the  terms  of 
said  proclamation ;  at  the  rate  of  $6  per  month  for  the  second  year 
of  such  period;  at  the  rate  of  $4  per  month  for  the  third  year  of  such 
period ;  and  at  the  rate  of  $2  per  month  for  any  subsequent  year  of 
such  period;  but  no  bounty  in  excess  of  $300  shall  be  paid  to  any 
person  under  the  terms  of  this  section. 

Enlisted  Men  Prohibited  from  Civil  Employment. 

Sec.  35.  Hereafter  no  enlisted  man  in  the  active  service  of  the 
United  States  in  the  Army,  Navy,  and  Marine  Corps,  respectively, 
whether  a  noncommissioned  officer,  musician,  or  private,  shall  be  de- 
tailed, ordered,  or  permitted  to  leave  his  post  to  engage  in  any  pursuit, 
business,  or  performance  in  civil  life,  for  emolument,  hire,  or  other- 
wise, when  the  same  shall  interfere  with  the  customary  emplovment 
and  regular  engagement  of  local  civilians  in  the  respective  arts,  trades, 
or  professions. 

Sergeants  for  Duty  With  the  National  Guard.  v 

Sec.  36.  For  the  purpose  of  assisting  in  the  instruction  of  the  per- 
sonnel and  care  of  property  in  the  hands  of  the  National  Guard  the 
Secretary  of  War  is  authorized  to  detail  from  the  Infantry,  Cavalry, 
Field  Artillery,  Corps  of  Engineers,  Coast  Artillery  Corps,  Medical 
Department,  and  Signal  Corps  of  the  Regular  Army  not  to  exceed  one 


National  Defense  Act  559 

thousand  sergeants  for  duty  with  corresponding  organizations  of  the 
National  Guard  and  not  to  exceed  one  hundred  sergeants  for  duty  with 
the  discipHnary  organizations  at  the  United  States  DiscipHnary  Bar- 
racks, who  shall  be  additional  to  the  sergeants  authorized  by  this  Act 
for  the  corps,  companies,  troops,  batteries,  and  detachments  from  which 
they  may  be  detailed. 

The  Officers'  Reserve  Corps. 

Sec.  Z7 .  For  the  purpose  of  securing  a  reserve  of  officers  available 
for  service  as  temporary  officers  in  the  Regular  Army,  as  provided  for 
in  this  Act  and  in  section  eight  of  the  Act  approved  April  twenty-fifth, 
nineteen  hundred  and  fourteen,  as  officers  of  the  Quartermaster  Corps 
and  other  staff  corps  and  departments,  as  officers  for  recruit  rendezvous 
and  depots,  and  as  officers  of  volunteers,  there  shall  be  organized,  under 
such  rules  and  regulations  as  the  President  may  prescribe  not  incon- 
sistent with  the  provisions  of  this  Act,  an  Officers'  Reserve  Corps  of 
the  Regular  Army.  Said  corps  shall  consist  of  sections  corresponding 
to  the  various  arms,  staff  corps,  and  departments  of  the  Regular  Army. 
Except  as  otherwise  herein  provided,  a  member  of  the  Officers'  Reserve 
Corps  shall  not  be  subject  to  call  for  service  in  time  of  peace,  and 
whenever  called  upon  for  service  shall  not,  without  his  consent,  be 
so  called  in  a  lower  grade  than  that  held  by  him  in  said  reserve  corps. 

The  President  alone  shall  be  authorized  to  appoint  and  commis- 
sion as  reserve  officers  in  the  various  sections  of  the  Officers'  Reserve 
Corps,  in  all  grades  up  to  and  including  that  of  major,  such  citizens 
as,  upon  examination  prescribed  by  the  President,  shall  be  found  phys- 
ically, mentally,  and  morally  qualified  to  hold  such  commissions :  Pro- 
vided, That  the  proportion  of  officers  in  any  section  of  the  Officers' 
Reserve  Corps  shall  not  exceed  the  proportion  for  the  same  grade  in 
the  corresponding  arm,  corps,  or  department  of  the  Regular  Army, 
except  that  the  number  commissioned  in  the  lowest  authorized  grade 
in  any  section  of  the  Officers'  Reserve  Corps  shall  not  be  limited. 

All  persons  now  carried  as  duly  qualified  and  registered  pursuant 
to  section  twenty-three  of  the  Act  of  Congress  approved  January 
twenty-first,  nineteen  hundred  and  three,  shall,  for  a  period  of  three 
years  after  the  passage  of  this  Act,  be  eligible  for  appointment  in  the 
Officers'  Reserve  Corps  in  the  section  corresponding  to  the  arm,  corps 
or  department  for  which  they  have  been  found  qualified,  without  further 
examination,  except  a  physical  examination,  and  subject  to  the  limita- 
tions as  to  age  and  rank  herein  prescribed :  Provided,  That  any  per- 
son carried  as  qualified  and  registered  in  the  grade  of  colonel  or  lieuten- 
ant colonel  pursuant  to  the  provisions  of  said  Act  on  the  date  when  this 
Act  becomes  effective  may  be  commissioned  and  recommissioned  in  the 
Officers'  Reserve  Corps  with  the  rank  for  which  he  has  been  found 
qualified  and  registered,  but  when  such  person  thereafter  shall  become 
separated  from  the  Officers'  Reserve  Corps  for  any  reason  the  vacancy 
so  caused  shall  not  be  filled,  and  such  office  shall  cease  and  determine. 


560  Important  Federal  Laws 

No  person  shall,  except  as  hereinafter  provided,  be  appointed  or 
reappointed  a  second  lieutenant  in  the  Officers'  Reserve  Corps  after 
he  shall  have  reached  the  age  of  thirty-two  years,  a  first  lieutenant  after 
he  shall  have  reached  the  age  of  thirty-six  years,  a  captain  after 
he  shall  have  reached  the  age  of  forty  years,  or  a  major  after  he  shall 
have  reached  the  age  of  forty-five  years.  When  an  officer  of  the 
Reserve  Corps  shall  have  reached  the  age  limit  fixed  for  appointment 
or  reappointment  in  the  grade  in  which  commissioned  he  shall  be 
honorably  discharged  from  the  service  of  the  United  States,  and  be 
entitled  to  retain  his  official  title  and,  on  occasions  of  ceremony,  to 
wear  the  uniform  of  the  highest  grade  he  shall  have  held  in  the  Offi- 
cers' Reserve  Corps :  Provided,  That  nothing  in  the  foregoing  pro- 
visions as  to  the  ages  of  officers  shall  apply  to  the  appointment  or 
reappointment  of  officers  of  the  Quartermaster,  Engineer,  Ordnance, 
Signal,  Judge  Advocate,  and  Medical  sections  of  said  Reserve  Corps. 

One  year  after  the  passage  of  this  Act  the  Medical  Reserve  Corps, 
as  now  constituted  by  law,  shall  cease  to  exist.  Members  thereof 
may  be  commissioned  in  the  Officers'  Reserve  Corps,  subject  to  the 
provisions  of  this  Act,  or  may  be  honorably  discharged  from  the  service. 
The  Secretary  of  War  may,  in  time  of  peace,  order  first  lieutenants 
of  the  medical  section  of  the  Officers'  Reserve  Corps,  with  their  con- 
sent, to  active  duty  in  the  service  of  the  United  States  in  such  numbers 
as  the  public  interests  may  require  and  the  funds  appropriated  may 
permit,  and  may  relieve  them  from  such  duty  when  their  services  are 
no  longer  necessary.  While  on  such  duty  they  shall  receive  the  pay 
and  allowances,  including  pay  for  periods  of  sickness  and  leaves  of 
absence,  of  officers  of  corresponding  rank  and  length  of  active  service 
in  the  Regular  Army. 

The  commissions  of  all  officers  of. the  Officers  Reserve  Corps  shall 
be  in  force  for  a  period  of  five  years  unless  sooner  terminated  in  the 
discretion  of  the  President.  Such  officers  may  be  recommissioned, 
either  in  the  same  or  higher  grades,  for  successive  periods  of  five 
years,  subject  to  such  examinations  and  qualifications  as  the  Presi- 
dent may  prescribe  and  to  the  age  limits  prescribed  herein :  Pro- 
vided, That  officers  of  the  Officers'  Reserve  Corps  shall  have  rank 
therein  in  the  various  sections  of  said  Reserve  Corps  according  to  grades 
and  to  length  of  service  in  their  grades. 

The  Officers'  Reserve  Corps  in  War. 

wSec.  38.  In  time  of  actual  or  threatened  hostilities  the  President 
may  order  officers  of  the  Officers'  Reserve  Corps,  subject  to  such  sub- 
sequent physical  examinations  as  he  may  prescribe,  to  temporary  duty 
with  the  Regular  Army  in  grades  thereof  which  can  not,  for  the  time 
being,  be  filled  by  promotion,  or  as  officers  in  volunteer  or  other  organi- 
zations that  may  be  authorized  by  law,  or  as  officers  at  recruit  ren- 
dezvous and  depots^  or  on  such  other  duty  as  the  President  may  pre- 
scribe.    While  such  reserve  officers  are  on  such  service  they  shall,  by 


National  Defense  Act  561 

virtue  of  their  commissions  as  reserve  officers,  exercise  command  ap- 
propriate to  their  grade  and  rank  in  the  organizations  to  which  they 
may  be  assigned,  and  shall  be  entitled  to  the  pay  and  allowances  of  the 
corresponding  grades  in  the  Regular  Army,  with  increase  of  pay  for 
length  of  active  service,  as  allowed  by  law  for  officers  of  the  Regular 
Army,  from  the  date  upon  which  they  shall  be  required  by  the  terms  of 
their  orders  to  obey  the  same:  Provided,  That  officers  so  ordered  to 
active  service  shall  take  temporary  rank  among  themselves,  and  in  their 
grades  in  the  organizations  to  which  assigned,  according  to  the  dates  of 
orders  placing  them  on  active  service ;  and  they  may  be  promoted,  in 
accordance  with  such  rank,  to  vacancies  in  volunteer  organizations  or  to 
temporary  vacancies  in  the  Regular  Army  thereafter  occurring  in  the 
organizations  in  which  they  shall  be  serving:  Provided  further,  That 
officers  of  the  Officers'  Reserve  Corps  shall  not  be  entitled  to  retirement 
or  retired  pay,  and  shall  be  entitled  to  pension  only  for  disability  incurred 
in  the  line  of  duty  and  while  in  active  service. 

Any  officer  who,  while  holding  a  commission  in  the  Officers'  Re- 
serve Corps,  shall  be  ordered  to  active  service  by  the  Secretary  of  War 
shall,  from  the  time  he  shall  be  required  by  the  terms  of  his  order  to 
obey  the  same,  be  subject  to  the  laws  and  regulations  for  the  govern- 
ment of  the  Army  of  the  United  States,  in  so  far  as  they  are  applicable 
to  officers  whose  permanent  retention  in  the  military  service  is  not  con- 
templated. 

Instructions  of  Officers  of  the  Officers'  Reserve  Corps. 

Sec.  39.  To  the  extent  provided  for  from  time  to  time  by  appro^ 
priations  for  this  specific  purpose,  the  Secretary  of  War  is  authorized  to 
order  reserve  officers  to  duty  with  troops  or  at  field  exercises,  or  for 
instruction,  for  periods  not  to  exceed  fifteen  days  in  any  one  calendar 
year,  and  while  so  serving  such  officers  shall  receive  the  pay  and  allow- 
ances of  their  respective  grades  in  the  Regular  Army :  Provided,  That, 
with  the  consent  of  the  reserve  officers  concerned,  and  within  the  limit 
of  funds  available  for  the  purpose,  such  periods  of  duty  may  be  ex- 
tended for  reserve  officers  as  the  Secretary  of  War  may  direct :  Provided 
further.  That  in  time  of  actual  or  threatened  hostilities,  after  all  avail- 
able officers  of  any  section  of  the  Officers'  Reserve  Corps  corresponding 
to  any  arm,  corps,  or  department  of  the  Regular  Army  shall  have  been 
ordered  into  active  service,  officers  of  Volunteers  may  be  appointed  in 
such  arm,  corps,  or  department  as  may  be  authorized  by  law :  Provided 
further.  That  nothing  herein  shall  operate  to  prevent  the  appointment  of 
any  officer  of  the  Regular  Army  as  an  officer  of  Volunteers  before  all 
the  officers  of  the  Officers'  Reserve  Corps  or  any  section  thereof  shall 
have  been  ordered  into  active  service :  And  provided  further,  That  in 
determining  the  relative  rank  and  tlie  right  to  retirement  of  an  officer 
of  the  Regular  Army,  active  duty  performed  by  him  while  serving  in 
the  Officers'  Reserve  Corps  shall  not  be  reckoned. 

(36) 


562  ,  Important  Federal  Laws 

The  Reserve  Officers'  Training  Corps. 

Sec.  40.  The  President  is  hereby  authorized  to  establish  and  main- 
tain in  civil  educational  institutions  a  Reserve  Officers'  Training  Corps, 
which  shall  consist  of  a  senior  division  organized  at  universities  and 
colleges  requiring  four  years  of  collegiate  study  for  a  degree,  including 
State  universities  and  those  State  institutions  that  are  required  to  pro- 
vide instruction  in  military  tactics  under  the  provisions  of  the  Act  of 
Congress  of  July  second,  eighteen  hundred  and  sixty-two,  donating  lands 
for  the  establishment  of  colleges  where  the  leading  object  shall  be  prac- 
tical instruction  in  agriculture  and  the  mechanic  arts,  including  military 
tactics,  and  a  junior  division  organized  at  all  other  public  or  private 
educational  institutions,  except  that  units  of  the  senior  division  may  be 
organized  at  those  essentially  military  schools  which  do  not  confer  an 
academic  degree,  but  which,  as  a  result  of  the  annual  inspection  of  such 
institutions  by  the  War  Department,  are  specially  designated  by  the 
Secretary  of  War  as  qualified  for  units  of  the  senior  division,  and  each 
division  shall  consist  of  units  of  the  several  arms  or  corps  in  such  num- 
ber and  of  such  strength  as  the  President  may  prescribe. 

Sec.  41.  The  President  may,  upon  the  application  of  any  State 
institution  described  in  section  forty  of  this  Act,  establish  and  maintain 
at  such  institutions  one  or  more  units  of  the  Reserve  Officers'  Training 
Corps :  Provided.  That  no  such  unit  shall  be  established  or  maintained 
at  any  such  institution  until  an  officer  of  the  Army  shall  have  been  de- 
tailed as  professor  of  military  science  and  tactics,  nor  until  such  institu- 
tion shall  maintain  under  military  instruction  at  least  one  hundred  physi- 
cally fit  male  students. 

Sec.  42.  The  President  may,  upon  the  application  of  any  estab- 
lished educational  institution  in  the  United  States  other  than  a  State 
institution  described  in  section  forty  of  this  Act,  the  authorities  of  which 
agree  to  establish  and  maintain  a  two  years'  elective  or  compulsory 
course  of  military  training  as  a  minimum  for  its  physically  fit  male  stu- 
dents, which  course  when  entered  upon  by  any  student  shall,  as  regards 
such  student,  be  a  prerequisite  for  graduation,  establish  and  maintain 
at  such  institution  one  or  more  units  of  the  Reserve  Officers'  Training 
Corps :  Provided,  That  no  such  unit  shall  be  established  or  maintained 
at  any  such  institution  until  an  officer  of  the  Army  shall  have  been  de- 
tailed as  professor  of  military  science  and  tactics,  nor  until  such  insti- 
tution shall  maintain  under  military  instruction  at  least  one  hundred 
physically  fit  male  students. 

Sec.  43.  The  Secretary  of  War  is  hereby  authorized  to  prescribe 
standard  courses  of  theoretical  and  practical  military  training  for  units 
of  the  Reserve  Officers'  Training  Corps,  and  no  unit  of  the  senior  divi- 
sion shall  be  organized  or  maintained  at  any  educational  institution  the 
authorities  of  which  fail  or  neglect  to  adopt  into  their  curriculum  the 
prescribed  courses  of  military  training  for  the  senior  division  or  to 
devote  at  least  an  average  of  three  hours  per  week  per  academic  year 


National  Defense  Act  565 

to  such  military  training;  and  no  unit  of  the  junior  division  shall  be 
organized  or  maintained  at  any  educational  institution  the  authorities 
of  which  fail  or  neglect  to  adopt  into  their  curriculum  the  prescribed 
courses  of  military  training  for  the  junior  division,  or  to  devote  at  least 
an  average  of  three  hours  per  week  per  academic  year  to  such  military 
training. 

Sec.  44.  Eligibility  to  membership  in  the  Reserve  Officers'  Train- 
ing Corps  shall  be  limited  to  students  of  institutions  in  which  units  of 
such  corps  may  be  established  who  are  citizens  of  the  United  States, 
who  are  not  less  than  fourteen  years  of  age,  and  whose  bodily  condition 
indicates  that  they  are  physically  fit  to  perform  military  duty,  or  will 
be  so  upon  arrival  at  military  age. 

Sec.  45.  The  President  is  hereby  authorized  to  detail  such  numbers 
of  officers  of  the  Army,  either  active  or  retired,  not  above  the  grade  of 
colonel,  as  may  be  necessary,  for  duty  as  professors  and  assistant  pro- 
fessors of  military  science  and  tactics  at  institutions  where  one  or  more 
units  of  the  Reserve  Officers'  Training  Corps  are  maintained  ;  but  the 
total  number  of  active  officers  so  detailed  at  educational  institutions  shall 
not  exceed  three  hundred,  and  no  active  officer  shall  be  so  detailed  who 
has  not  had  five  years'  commissioned  service  in  the  Army.  In  time  of 
peace  retired  officers  shall  not  be  detailed  under  the  provisions  of  this 
section  without  their  consent.  Retired  officers  below  the  grade  of  lieu- 
tenant colonel  so  detailed  shall  receive  the  full  pay  and  allowances  of 
their  grade,  and  retired  officers  above  the  grade  of  major  so  detailed 
shall  receive  the  same  pay  and  allowances  as  a  retired  major  would  re- 
ceive under  a  like  detail.  No  detail  of  officers  on  the  active  list  of  the 
Regular  Army  under  the  provisions  of  this  section  shall  extend  for  more 
than  four  years. 

Sec.  46.  The  President  is  hereby  authorized  to  detail  for  duty  at 
institutions  where  one  or  more  units  of  the  Reserve  Officers'  Training 
Corps  are  maintained  such  number  of  enlisted  men,  either  active  or 
retired  or  of  the  Regular  Army  Reserve,  as  he  may  deem  necessary,  but 
the  number  of  active  noncommissioned  officers  so  detailed  shall  not  ex- 
ceed five  hundred,  and  all  active  noncommissioned  officers  so  detailed 
shall  be  additional  in  their  respective  grades  to  those  otherwise  author- 
ized for  the  Army.  Retired  enlisted  men  or  members  of  the  Regular 
Army  Reserve  shall  not  be  detailed  under  the  provisions  of  this  section 
without  their  consent.  While  so  detailed  they  shall  receive  active  pay 
and  allowances. 

Sec.  47.  The  Secretary  of  War,  under  such  regulations  as  he  may 
prescribe,  is  hereby  authorized  to  issue  to  institutions  at  which  one  or 
more  units  of  the  Reserve  Officers'  Training  Corps  are  maintained  such 
public  animals,  arms,  uniforms,  equipment,  and  means  of  transportation 
as  he  may  deem  necessary,  and  to  forage  at  the  expense  of  the  United 
States  public  animals  so  issued.  He  shall  require  from  each  institution 
to  which  property  of  the  United  States  is  issued  a  bond  in  the  value  of 


564  Important  Federal  Laws 

the  property  issued  for  the  care  and  safe-keeping  thereof,  and  for  its 
return  when  required. 

Sec.  48.  The  Secretary  of  War  is  hereby  authorized  to  maintain 
camps  for  the  further  practical  instruction  of  the  members  of  the  Re- 
serve Officers'  Training  Corps,  no  such  camps  to  be  maintained  for  a 
period  longer  than  six  weeks  in  any  one  year,  except  in  time  of  actual 
or  threatened  hostilities ;  to  transport  members  of  such  corps  to  and 
from  such  camps  at  the  expense  of  the  United  States  so  far  as  appro- 
priations will  permit ;  to  subsist  them  at  the  expense  of  the  United  States 
while  traveling  to  and  from  such  camps  and  vv^hile  remaining  therein  so 
far  as  appropriations  will  permit ;  to  use  the  Regular  Army,  such  other 
military  forces  as  Congress  from  time  to  time  authorizes,  and  such  Gov- 
ernment property  as  he  may  deem  necessary  for  the  military  training  of 
the  members  of  such  corps  while  in  attendance  at  such  camps ;  to  pre- 
scribe regulations  for  the  government  of  such  corps;  and  to  authorize, 
in  his  discretion,  the  formation  of  company  units  thereof  into  battalion 
and  regimental  units. 

Sec.  49.  The  President  alone,  under  such  regulations  as  he  may 
prescribe,  is  hereby  authorized  to  appoint  in  the  Officers'  Reserve  Corps 
any  graduate  of  the  senior  division  of  the  Reserve  Officers'  Training 
Corps  who  shall  have  satisfactorily  completed  the  further  training  pro- 
vided for  in  section  fifty  of  this  Act,  or  any  graduate  of  the  junior  divi- 
sion who  shall  have  satisfactorily  completed  the  courses  of  military 
training  prescribed  for  the  senior  division  and  the  further  training  pro- 
vided for  in  section  fifty  of  this  Act,  and  shall  have  participated  in  such 
practical  instruction  subsequent  to  graduation  as  the  Secretary  of  War 
shall  prescribe,  who  shall  have  arrived  at  the  age  of  twenty-one  years 
and  who  shall  agree,  under  oath  in  writing,  to  serve  the  United  States 
in  the  capacity  of  a  reserve  officer  of  the  Army  during  a  period  of  at 
least  ten  years  from  the  date  of  his  appointment  as  such  reserve  officer, 
unless  sooner  discharged  by  proper  authority;  but  the  total  number  of 
reserve  officers  so  appointed  shall  not  exceed  fifty  thousand:  Provided, 
That  any  graduate  qualified  under  the  provisions  of  this  section  under- 
going a  postgraduate  course  at  any  institution  shall  not  be  eligible  for 
ap))ointment  "as  a  reserve  officer  while  undergoing  such  postgraduate 
course,  but  his  ultimate  eligibility  upon  completion  of  such  postgraduate 
course  for  such  appointment  shall  not  be  afifected  because  of  his  having 
undergone  such  postgraduate  course. 

Sec.  50.  When  any  member  of  the  senior  division  of  the  Reserve 
Officers'  Training  Corps  has  completed  two  academic  years  of  service 
in  that  division,  and  has  been  selected  for  further  training  by  the  presi- 
dent of  the  institution  and  by  its  professor  of  military  science  and  tactics, 
and  has  agreed  in  writing  to  continue  in  the  Reserve  Officers'  Training 
Corps  for  the  remainder  of  his  course  in  the  institution,  devoting  five 
hours  per  week  to  the  military  training  prescribed  by  the  Secretary  of 
War,  and  has  agreed  in  writing  to  pursue  the  courses  in  camp  training 


National  Defense  Act  565 

prescribed  by  the  Secretary  of  War,  he  may  be  furnished,  at  the  expense 
of  the  United  States,  with  commutation  of  subsistence  at  such  rate,  not 
exceeding  the  cost  of  the  garrison  ration  prescribed  for  the  Army,  as 
may  be  fixed  by  the  Secretary  of  War,  during  the  remainder  of  his  ser- 
vice in  the  Reserve  Ofificers'  Training  Corps. 

Sec.  51.  Any  physically  fit  male  citizen  of  the  United  States,  be- 
tween the  ages  of  twenty-one  and  twenty-seven  years,  who  shall  have 
graduated  prior  to  the  date  of  this  Act  from  any  educational  institution 
at  which  an  officer  of  the  Army  was  detailed  as  professor  of  military 
science  and  tactics,  and  who,  while  a  student  at  such  institution,  com- 
pleted courses  of  military  training  under  the  direction  of  such  professor 
of  military  science  and  tactics  substantially  equivalent  to  those  pre- 
scribed pursuant  to  this  Act  for  the  senior  division,  shall,  after  satis- 
factorily completing  such  additional  practical  military  training  as  the 
Secretary  of  War  shall  prescribe,  be  eligible  for  appointment  to  the  Offi- 
cers' Reserve  Corps  and  as  a  temporary  additional  second  lieutenant  in 
accordance  with  the  terms  of  this  Act. 

Sec.  52.  The  President  alone  is  hereby  authorized  to  appoint  and 
commission  as  a  temporary  second  lieutenant  of  the  Regular  Army  in 
time  of  peace  for  purposes  of  instruction,  for  a  period  not  exceeding  six 
months,  with  the  allowances  now  provided  by  law  for  that  graded  but 
with  pay  at  the  rate  of  $100  per  month,  any  reserve  officer  appointed 
pursuant  to  sections  forty-nine  and  fifty-one  of  this  Act  and  to  attach 
hirn  to  a  unit  of  the  Regular  Army  for  duty  and  training  during  the 
period  covered  by  his  appointment  as  such  temporary  second  lieutenant, 
and  upon  the  expiration  of  such  service  with  the  Regular  Army  such 
officer  shall  revert  to  his  status  as  a  reserve  officer. 

Sec.  53.  No  reserve  officer  or  temporary  second  lieutenant  ap- 
pointed pursuant  to  this  Act  shall  be  entitled  to  retirment  or  to  retired 
pay  and  shall  be  eligible  for  pension  only  for  disability  incurred  in  line 
of  duty  in  active  service  or  while  serving  with  the  Regular  Army  pur- 
suant to  the  provisions  of  this  Act:  Provided,  That  in  "time  of  war  the 
President  may  order  reserve  officers  appointed  under  the  provisions  of 
this  Act  to  active  duty  with  any  of  the  military  forces  of  the  United 
States  in  any  grades  not  below  that  of  second  lieutenant,  and  while  on 
such  active  duty  they  shall  be  subject  to  the  Rules  and  Articles  of  War: 
And  provided  further,  That  the  Adjutant  General  of  the  Army  shall, 
under  the  direction  and  supervision  of  the  Secretary  of  War,  "obtain, 
compile,  and  keep  continually  up  to  date  all  obtainable  information  as 
to  the  names,  ages,  addresses,  occupations,  and  qualifications  for  appoint- 
ment as  commissioned  officers  of  the  Army,  in  time  of  war  or  other 
emergency,  of  men  of  suitable  ages  who,  by  reason  of  having  received 
military  training  in  civilian  educational  institutions  or  elsewhere,  may  be 
regarded  as  qualified  and  available  for  appointment  as  such  commis- 
sioned officers. 


566  Important  Federal  Laws 

Training  Camps. 

Sec.  54.  The  Secretary  of  War  is  hereby  authorized  to  maintain, 
upon  military  reservations  or  elsewhere,  camps  for  the  military  instruc- 
tion and  training  of  such  citizens  as  may  be  selected  for  such  instruction 
and  training,  upon  their  application  and  under  such  terms  of  enlistment 
and  regulations  as  may  be  prescribed  by  the  Secretary  or  War ;  to  use, 
for  the  purpose  of  maintaining  said  camps  and  imparting  military  in- 
struction and  training  thereat,  such  arms,  ammunition,  accouterments, 
equipments,  tentage,  field  equipage,  and  transportation  belonging  to  the 
United  States  as  he  may  deem  necessary ;  to  furnish,  at  the  expense  of 
the  United  States,  uniforms,  subsistence,  transportation  by  the  most 
usual  and  direct  route  within  such  limits  as  to  territory  as  the  Secretary 
of  War  may  prescribe,  and  medical  supplies  to  persons  receiving  instruc- 
tion at  said  camps  during  the  period  of  their  attendance  thereat,  to 
authorize  such  expenditures,  from  proper  Army  appropriations,  as  he 
may  deem  necessary  for  water,  fuel,  light,  temporary  structures,  not 
including  quarters  for  officers  nor  barracks  for  men,  screening,  and 
damages  resulting  from  field  exercises,  and  other  expenses  incidental  to 
the  maintenance  of  said  camps,  and  the  theoretical  winter  instruction  in 
connection  therewith ;  and  to  sell  to  persons  receiving  instruction  at  said 
camps,  for  cash  and  at  cost  price  plus  ten  per  centum,  quartermaster  and 
ordnance  property,  the  amount  of  such  property  sold  to  any  one  person 
to  be  limited  to  that  which  is  required  for  his  proper  equipment.  All 
moneys  arising  from  such  sales  shall  remain  available  throughout  the 
fiscal  year  following  that  in  which  the  sales  are  made,  for  the  purpose 
of  that  appropriation  from  which  the  property  sold  was  authorized  to  be 
supplied  at  the  time  of  the  sale.  The  Secretary  of  War  is  authorized 
further  to  prescribe  the  courses  of  theoretical  and  practical  instruction 
to  be  pursued  by  persons  attending  the  camps  authorized  by  this  section ; 
to  fix  the  periods  during  which  such  camps  shall  be  maintained ;  to  pre- 
scribe rules  and  regulations  for  the  government  thereof ;  and  to  employ 
thereat  officers  and  enlisted  men  of  the  Regular  Army  in  such  numbers 
and  upon  such  duties  as  he  may  designate. 

The  Enlisted  Reserve  Corps. 

Sec.  55.  For  the  purpose  of  securing  an  additional  reserve  of  en- 
listed men  for  military  service  with  the  Engineer,  Signal,  and  Quarter- 
master Corps  and  the  Ordnance  and  Medical  Departments  of  the  Reg- 
ular Army,  an  Enlisted  Reserve  Corps,  to  consist  of  such  number  of 
enlisted  men  of  such  grade  or  grades  as  may  be  designated  by  the  Presi- 
dent from  time  to  time,  is  hereby  authorized,  such  authorization  to  be 
effective  on  and  after  the  first  day  of  July,  nineteen  hundred  and  sixteen. 

There  may  be  enlisted  in  the  grade  or  grades  hereinbefore  specified, 
for  a  period  of  four  years,  under  such  rules  as  may  be  prescribed  by  the 
President,  citizens  of  the  United  States,  or  persons  who  have  declared 
their  intentions  to  become  citizens  of  the  United  States,  subject  to  such 
physical,  educational,  and  practical  examination  as  may  be  prescribed  in 


National  Defense  Act  567 

said  rules.  For  men  enlisting  in  said  grade  or  grades  certificates  of 
enlistment  in  the  Enlisted  Reserve  Corps  shall  be  issued  by  the  Adjutant 
General  of  the  Army,  but  no  such  man  shall  be  enlisted  in  said  corps 
unless  he  shall  be  found  physically,  mentally,  and  morally  qualified  to 
hold  such  certificate  and  unless  he  shall  be  between  the  ages  of  eighteen 
and  forty-five  years.  The  certificates  so  given  shall  confer  upon  the 
holders  when  called  into  active  service  or  for  purposes  of  instruction 
and  training,  and  duri»g  the  period  of  such  active  service,  instruction, 
or  training,  all  the  authority,  rights,  and  privileges  of  like  grades  of  the 
Regular  Army.  Enlisted  men  of  the  Enlisted  Reserve  Corps  shall  take 
precedence  in  said  corps  according  to  the  dates  of  their  certificates  of 
enlistment  therein  and  when  called  into  active  service  or  when  called 
out  for  purposes  of  instruction  or  training  shall  take  precedence  next 
below  all  other  enlisted  men  of  like  grades  in  the  Regular  Army.  And 
the  Secretary  of  War  is  hereby  authorized  to  issue  to  members  of  the 
Enlisted  Reserve  Corps  and  to  persons  who  have  participated  in  at  least 
one  encampment  for  the  military  instruction  of  citizens,  conducted  under 
the  auspices  of  the  War  Department,  distinctive  rosettes  or  knots  de- 
signed for  wear  with  civilian  clothing,  and  whenever  a  rosette  or  knot 
issued  under  the  provision  of  this  section  shall  have  been  lost,  destroyed, 
or  rendered  unfit  for  use  without  fault  or  neglect  upon  the  part  of  the 
person  to  whom  it  is  issued,  the  Secretary  of  War  shall  cause  a  new 
rosette  or  knot  to  be  issued  to  such  person  without  charge  therefor.  Any 
person  who  is  not  an  enlisted  man  of  the  Enlisted  Reserve  Corps  and 
shall  not  have  participated  in  at  least  one  encampment  for  the  military 
instruction  of  citizens,  conducted  under  the  auspices  of  the  War  De- 
partment, and  who  shall  wear  such  rosette  or  knot  shall  be  guilty  of 
misdemeanor  punishable  by  a  fine  of  not  exceeding  $300,  or  imprison- 
ment not  exceeding  six  months,  or  both. 

The  President  is  authorized  to  assign  members  of  the  Enlisted  Re- 
serve Corps  as  reserves  to  particular  organizations  of  the  Regular  Army, 
or  to  organize  the  Enlisted  Reserve  Corps,  or  any  part  thereof,  into  units 
or  detachments  of  any  arm,  corps,  or  department  in  such  manner  as  he 
may  prescribe,  and  to  assign  to  such  units  and  detachments  officers  of 
the  Regular  Army  or  of  the  Officers'  Reserve  Corps,  herein  provided  for. 

To  the  extent  provided  from  time  to  time  by  appropriations  the 
Secretary  of  War  may  order  enlisted  men  of  the  Enlisted  Reserve 
Corps  to  active  service  for  purposes  of  instruction  or  training  for  periods 
not  to  exceed  fifteen  days  in  any  one  calendar  year:  Provided,  That, 
with  the  consent  of  such  enlisted  men  and  within  the  limits  of  funds 
available  for  such  purposes,  such  periods  of  active  service  may  be  ex- 
tended for  such  number  of  enlisted  men  as  may  be  deemed  necessary. 

Enlisted  men  of  the  Enlisted  Reserve  Corps  shall  receive  the  pay 
and  allowances  of  their  respective  grades,  but  only  when  ordered  into 
active  service,  including  the  time  required  for  actual  travel  from  their 
homes  to  the  places  to  which  ordered  and  return  to  their  homes :  Pro- 


568  Important  Federal  Laws 

vided,  That  said  enlisted  men  shall  not  be  entitled  to  retirement  or  retire- 
ment pay,  nor  shall  they  be  entitled  to  pensions  except  for  physical  dis- 
ability incurred  in  line  of  duty  while  in  active  service  or  while  traveling 
under  orders  of  competent  authority  to  or  from  designated  places  of  duty. 

The  uniform  to  be  worn  by  enlisted  men  of  the  Enlisted  Reserve 
Corps,  except  corps  insignia,  shall  be  the  same  as  prescribed  for  enlisted 
men  of  the  Regular  Army  Reserve,  and  that  in  lieu  of  any  money  allow- 
ance for  clothing  there  shall  be  issued  to  each  enlisted  man  of  the  En- 
listed Reserve  Corps  in  time  of  peace  such  articles  of  clothing  and  equip- 
ment as  the  President  may  direct :  Provided.  That  any  clothing  or  other 
equipment  issued  to  any  enlisted  man  of  the  said  corps  shall  remain  the 
property  of  the  United  States,  and  in  case  of  loss  or  destruction  of  any 
article,  the  article  so  lost  or  destroyed  shall  be  replaced  by  issue  to  the 
enlisted  man  and  the  value  thereof  deducted  from  any  pay  due  or  to 
become  due  him,  unless  it  shall  be  made  to  appear  that  such  loss  or 
destruction  was  not  due  to  neglect  or  other  fault  on  his  part :  Provided 
further.  That  any  clothing  or  other  equipment  issued  to  enlisted  men  of 
the  Enlisted  Reserve  Corps  which  shall  have  become  unserviceable 
through  ordinary  wear  and  tear  in  the  service  of  the  United  States  shall 
be  received  back  by  the  United  States  and  serviceable  like  articles  issued 
in  lieu  thereof :  Provided  further,  That  when  enlisted  men  of  the  En- 
listed Reserve  Corps  shall  be  discharged  or  otherwise  separated  from 
the  service,  all  arms,  equipage,  clothing,  and  other  property  issued  to 
them  shall  be  accounted  for  under  such  regulations  as  may  be  prescribed 
by  the  Secretary  of  War. 

Any  enlisted  man  of  the  Enlisted  Reserve  Corps  ordered  to  active 
service  or  for  purposes  of  instruction  or  training  shall,  from  the  time  he 
is  required  by  the  terms  of  the  order  to  obey  the  same,  be  subject  to 
the  laws  and  regulations  for  the  government  of  the  Army  of  the  United 
States. 

The  Secretary  of  War  is  hereby  authorized  to  discharge  any  enlisted 
member  of  the  Enlisted  Reserve  Corps  when  his  services  shall  be  no 
longer  required,  or  when  he  shall  have  by  misconduct  unfitted  himself 
for  further  service  in  the  said  corps:  Provided,  That  any  enlisted  man 
of  said  corps  who  shall  be  ordered  upon  active  duty  as  herein  provided 
and  who  shall  willfully  fail  to  comply  with  the  terms  of  the  order  so 
given  him  shall,  in  addition  to  any  other  penalty  to  which  he  may  be 
subject,  forfeit  his  certificate  of  enlistment. 

In  time  of  actual  or  threatened  hostilities  the  President  may  order 
the  Enlisted  Reserve  Corps,  in  such  numbers  and  at  such  times  as  may 
be  considered  necessary,  to  active  service  with  the  Regular  Army,  and 
while  on  such  service  members  of  said  corps  shall  exercise  command 
appropriate  to  their  several  grades  and  rank  in  the  organizations  to  which 
they  shall  be  assigned  and  shall  be  entitled  to  the  pay  and  allowances  of 
the  corresponding  grades  in  the  Regular  Army,  with  increase  of  pay  for 
length  of  service  as  now  allowed  by  law  for  the  Regular  Army:  Pro- 


National  Defense  Act  569 

vided,  That  upon  a  call  by  the  President  for  a  volunteer  force  the  mem- 
bers of  the  Enlisted  Reserve  Corps  may  be  mustered  into  the  service 
of  the  United  States  as  volunteers  for  duty  with  the  Army  in  the  grades 
held  by  them  in  the  said  corps,  and  shall  be  entitled  to  the  pay  and 
allowances  of  the  corresponding  grades  in  the  Regular  Army,  with  in- 
crease of  pay  for  length  of  service,  as  now  provided  by  law  for  the 
Regular  Army :  And  provided  further,  That  enlisted  men  of  the  Enlisted 
Reserve  Corps  shall  not  acquire  by  virtue  of  issuance  of  certificates  of 
enlistment  to  them  a  vested  right  to  be  mustered  into  the  volunteer  ser- 
vice of  the  United  States. 

Military  Equipment  and  Instructors  at  Other  Schools  and  Colleges^ 

Sec.  56.  Such  arms,  tentage,  and  equipment  as  the  Secretary  of 
War  shall  deem  necessary  for  proper  military  training  shall  be  supplied 
by  the  Government  to  schools  and  colleges,  other  than  those  provided 
for  in  section  forty-seven  of  this  Act,  having  a  course  of  military  training 
prescribed  by  the  Secretary  of  War  and  having  not  less  than  one  hun- 
dred physically  fit  male  students  above  the  age  of  fourteen  years,  under 
such  rules  and  regulations  as  he  may  prescribe ;  and  the  Secretary  of 
War  is  hereby  authorized  to  detail  such  commissioned  and  noncommis- 
sioned officers  of  the  Army  to  said  schools  and  colleges,  other  than  those 
provided  for  in  section  forty-five  and  forty-six  of  this  Act,  detailing  not 
less  than  one  such  officer  or  noncommissioned  officer  to  each  five  hundred 
students  under  military  instruction. 

Composition  of  the  Militia. 

Sec.  57.  The  militia  of  the  United  States  shall  consist  of  all  able- 
bodied  male  citizens  of  the  United  States  and  all  other  able-bodied  males 
who  have  or  shall  have  declared  their  intention  to  become  citizens  of  the 
United  States,  who  shall  be  more  than  eighteen  years  of  age  and,  except 
as  hereinafter  provided,  not  more  than  forty-five  years  of  age,  and  said 
militia  shall  be  divided  into  three  classes,  the  National  Guard,  the  Naval 
Militia,  and  the  Unorganized  Militia. 

Composition  of  the  National  Guard. 

Sec.  58.  The  National  Guard  shall  consist  of  the  regularly  enlisted 
militia  between  the  ages  of  eighteen  and  forty-five  years  organized, 
armed,  and  equipped  as  hereinafter  provided,  and  of  commissioned  offi- 
cers between  the  ages  of  twenty-one  and  sixty-four  years. 

Exemptions  from  Militia  Duty. 

Sec.  59.  The  Vice  President  of  the  United  States ;  the  officers, 
judicial  and  executive,  of  the  Government  of  the  United  States  and  of 
the  several  States  and  Territories  ;  persons  in  the  military  or  naval  ser- 
vice of  the  United  States ;  customhouse  clerks ;  persons  employed  by  the 
United  States  in  the  transmission  of  the  mail ;  artificers  and  workmen 
employed  in  the  armories,  arsenals,  and  navy  yards  of  the  United  States; 
pilots;  mariners  actually  employed  in  the  sea  service  of  any  citizen  or 


570  Important  Federal  Laws 

merchant  within  the  United  States,  shall  be  exempt  from  militia  duty 
without  regard  to  age,  and  all  persons  who  because  of  religious  belief 
shall  claim  exemption  from  military  service,  if  the  conscientious  holding 
of  such  belief  by  such  persons  shall  be  established  under  such  regula- 
tions as  the  President  shall  prescribe,  shall  be  exempted  from  militia 
service  in  a  combatant  capacity;  but  no  person  so  exempted  shall  be 
exempt  from  militia  service  in  any  capacity  that  the  President  shall 
declare  to  be  noncombatant. 

Organization  of  National  Guard  Units. 

Sec.  60.  Except  as  otherwise  specifically  provided  herein,  the  or- 
ganization of  the  National  Guard,  including  the  composition  of  all  units 
thereof,  shall  be  the  same  as  that  which  is  or  may  hereafter  be  pre- 
scribed for  the  Regular  Army,  subject  in  time  of  peace  to  such  general 
exceptions  as  may  be  authorized  by  the  Secretary  of  War.  And  the 
President  may  prescribe  the  particular  unit  or  units,  as  to  branch  or 
arm  of  service,  to  be  maintained  in  each  State,  Territory,  or  the  District 
of  Columbia  in  order  to  secure  a  force  which,  when  combined,  shall 
form  complete  higher  tactical  units. 

Maintenance  of  Other  Troops  by  the  States. 

Sec.  61.  No  State  shall  maintain  troops  in  time  of  peace  other 
than  as  authorized  in  accordance  with  the  organization  prescribed  under 
this  Act:  Provided,  That  nothing  contained  in  this  Act  shall  be  con- 
strued as  limiting  the  rights  of  the  States  and  Territories  in  the  use  of 
the  National  Guard  within  their  respective  borders  in  time  of  peace: 
Provided  further.  That  nothing  contained  in  this  Act  shall  prevent  the 
organization  and  maintenance  of   State  police  or  constabulary. 

Number  of  the  National  Guard. 

Sec.  62.  The  number  of  enlisted  men  of  the  National  Guard  to  be 
organized  under  this  Act  within  one  year  from  its  passage  shall  be  for 
each  State  in  the  proportion  of  two  hundred  such  men  for  each  Senator 
and  Representative  in  Congress  from  such  State,  and  a  number  to  be 
determined  by  the  President  for  each  Territory  and  the  District  of  Co- 
lumbia, and  shall  be  increased  each  year  thereafter  in  the  proportion  of 
not  less  than  fifty  per  centum  until  a  total  peace  strength  of  not  less  than 
eight  hundred  enlisted  men  for  each  Senator  and  Representative  in  Con- 
gr'ess  shall  have  been  reached :  Provided,  That  in  States  which  have  but 
one  Representative  in  Congress  such  increase  shall  be  at  the  discretion  of 
the  President:  Provided  further,  That  this  shall  not  be  construed  to 
prevent  any  State,  Territory,  or  the  District  of  Columbia  from  organ- 
izing the  full  number  of  troops  required  under  this  section  in  less  time 
than  is  specifiefid  in  this  section,  or  from  maintaining  existing  organi- 
zations if  they  shall  conform  to  such  rules  and  regulations  regarding 
organization,  strength,  and  armament  as  the  President  may  prescribe: 
And  provided  further,  That  nothing  in  this  Act  shall  be  construed  to 
prevent  any  State  with  but  one  Representative  in  Congress  from  organ- 


National  Defense  Act  571 

izing  one  or  more  regiments  of  troops,  with  such  auxiHary  troops  as  the. 
President  may  prescribe ;  such  organizations  and  members  of  such  organ- 
izations to  receive  all  the  benefits  accruing  under  this  Act  under  the 
conditions  set  forth  herein :  Provided  further,  That  the  word  Territory 
as  used  in  this  Act  and  in  all  laws  relating  to  the  land  militia  and  Na- 
tional Guard  shall  include  and  apply  to  Hawaii,  Alaska,  Porto  Rico,  and 
the  Canal  Zone,  and  the  militia  of  the  Canal  Zone  shall  be  organized 
under  such  rules  and  regulations,  not  in  conflict  with  the  provisions  of 
this  Act,  as  the  President  may  prescribe. 

Sec.  63.  Any  corps  of  Artillery,  Cavalry,  or  Infantry  existing  in 
any  of  the  States  on  the  passage  of  the  Act  of  May  eighth,  seventeen 
hundred  and  ninety-two,  which  by  the  laws,  customs,  or  usages  of  said 
States  has  been  in  continuous  existence  since  the  passage  of  said  Act. 
under  its  provisions  and  under  the  provisions  of  section  two  hundred 
and  thirty-two  and  sections  sixteen  hundred  and  twenty-five  to  sixteen 
hundred  and  sixty,  both  inclusive,  of  title  sixteen  of  the  Revised  Statutes 
of  eighteen  hundred  and  seventy-three,  and  the  Act  of  January  twenty- 
first,  nineteen  hundred  and  three,  relating  to  the  militia,  shall  be  allowed 
to  retain  its  ancient  privileges,  subject,  nevertheless,  to  all  duties  re- 
quired by  law  of  militia :  Provided,  That  said  organizations  may  be  a 
part  of  the  National  Guard  and  entitled  to  all  the  privileges  of  this  Act, 
and  shall  conform  in  all  respects  to  the  organization,  discipline,  and 
training  of  the  National  Guard  in  time  of  war:  Provided  further,  That 
for  purposes  of  training  and  Avhen  on  active  duty  in  the  service  of  the 
United  States  they  may  be  assigned  to  higher  units,  as  the  President 
may  direct,  and  shall  be  subject  to  the  orders  of  officers  under  whom 
they  shall  be  serving. 

Assignment  of  National  Guard  to  Brigades  and  Divisions. 

Sec.  64.  For  the  purpose  of  maintaining  appropriate  organization 
and  to  assist  in  instruction  and  training,  the  President  may  assign  the 
National  Guard  of  the  several  States  and  Territories  and  the  District 
of  Columbia  to  divisions,  brigades,  and  other  tactical  units,  and  may  de- 
tail officers  either  from  the  National  Guard  or  the  Regular  Army  to 
command  such  units :  Provided,  That  where  complete  units  are  organ- 
ized within  a  State,  Territory,  or  the  District  of  Columbia  the  com- 
manding officers  thereof  shall  not  be  displaced  under  the  provisions  of 
this  section. 

Chiefs  of  Staff  of  National  Guard  Divisions. 

Sec.  65.  The  President  may  detail  one  officer  of  the  Regular  Army 
as  chief  of  stafif  and  one  officer  of  the  Regular  Army  or  the  National 
Guard  as  assistant  to  the  chief  of  stafif  of  any  division  of  the  National 
Guard  in  the  service  of  the  United  States  as  a  National  Guard  organi- 
zation :  Provided,  That  in  order  to  insure  the  prompt  mobilization  of  the 
National  Guard  in  time  of  war  or  other  emergency,  the  President  may, 
in  time  of  peace,  detail  an  officer  of  the  Regular  Army  to  perform  the 


572  Important  Federal  Laws 

duties  of  chief  of  stafT  for  each  fully  organized  tactical  division  of  the 
National  Guard. 

Adjutants  General  of  States  and  So  Forth, 

Sec.  66.  The  adjutants  general  of  the  States,  Territories,  and  the 
District  of  Columbia  and  the  officers  of  the  National  Guard  shall  make 
such  returns  and  reports  to  the  Secretary  of  War.  or  to  such  officers 
as  he  may  designate,  at  such  times  and  in  such  form  as  the  Secretary 
of  War  may  from  time  to  time  prescribe:  Provided,  That  the  adjutants 
general  of  the  Territories  and  of  the  District  of  Columbia  shall  be  ap- 
pointed by  the  President  with  such  rank  and  qualifications  as  he  may 
prescribe,  and  each  adjutant  general  for  a  Territory  shall  be  a  citizen 
of  the  Territory  for  which  he  is  appointed. 

Appropriation,  Apportionment,  and  Disbursement  of  Funds  for  the 
National   Guard. 

Sec.  67.  A  sum  of  money  shall  hereafter  be  appropriated  an- 
nually, to  be  paid  out  of  any  money  in  the  Treasury  not  otherwise  appro- 
priated, for  the  support  of  the  National  Guard,  including  the  expense  of 
providing  arms,  ordnance  stores,  quartermaster  stores,  and  camp  equip- 
age, and  all  other  military  supplies  for  issue  to  the  National  Guard,  and 
such  other  expenses  pertaining  to  said  guard  as  are  now  or  may  hereafter 
be  authorized  by  law. 

The  appropriation  provided  for  in  this  section  shall  be  apportioned 
among  the  several  States  and  Territories  under  just  and  equitable  pro- 
cedure to  be  prescribed  by  the  Secretary  of  War  and  in  direct  ratio  to 
the  number  of  enlisted  men  in  active  service  in  the  National  Guard 
existing  in  such  States  and  Territories  at  the  date  of  apportionment  of 
said  appropriation,  and  to  the  District  of  Columbia,  under  such  regula- 
tions as  the  President  may  prescribe :  Provided,  That  the  sum  so  appor- 
tioned among  the  several  States,  Territories,  and  the  District  of  Colum- 
bia, shall  be  available  under  such  rules  as  may  be  prescribed  by  the 
Secretary  of  War  for  the  actual  and  necessary  expenses  incurred  by 
officers  and  enlisted  men  of  the  Regular  Army  when  traveling  on  duty 
in  connection  with  the  National  Guard ;  for  the  transportation  of  sup- 
plies furnished  to  the  National  Guard  for  the  permanent  equipment 
thereof ;  for  office  rent  and  necessary  office  expenses  of  officers  of  the 
Regular  Army  on  duty  with  the  National  Guard ;  for  the  expenses  of 
the  Militia  Bureau,  including  clerical  services,  now  authorized  for  the 
Division  of  Militia  Affairs  ;  for  expenses  of  enlisted  men  of  the  Regvilar 
Army  on  duty  with  the  National  Guard,  including  quarters,  fuel,  light, 
medicines,  and  medical  attendance ;  and  such  expenses  shall  constitute  a 
charge  against  the  whole  sum  annually  appropriated  for  the  support  of 
the  National  Guard,  and  shall  be  paid  therefrom  and  not  from  the  allot- 
ment dulv  apportioned  to  any  particular  State,  Territory,  or  the  Dis- 
trict of  Columbia ;  for  the  promotion  of  rifle  practice,  including  the 
acquisition,  construction,  maintenance,  and  equipment  of  shooting  gal- 


National  Defense  Act  573 

leries  and  suitable  target  ranges ;  for  the  hiring  of  horses  and  draft 
animals  for  the  use  of  mounted  troops,  batteries,  and  wagons ;  for  forage 
for  the  same ;  and  for  such  other  incidental  expenses  in  connection  with 
lawfully  authorized  encampments,  maneuvers,  and  field  instruction  as 
the  Secretary  of  War  may  deem  necessary,  and  for  such  other  expenses 
pertaining  to  the  National  Guard  as  are  now  or  may  hereafter  be  author- 
ized by  law. 

The  governor  of  each  State  and  Territory  and  the  commanding  gen- 
eral of  the  National  Guard  of  the  District  of  Columbia  shall  appoint, 
designate,  or  detail,  subject  to  the  approval  of  the  Secretary  of  War, 
an  officer  of  the  National  Guard  of  the  State,  Territory,  or  District  of 
Columbia  who  shall  be  regarded  as  property  and  disbursing  officer  for 
the  United  States.  He  shall  receipt  and  account  for  all  funds  and  prop- 
erty belonging  to  the  United  States  in  possession  of  the  National  Guard 
of  his  State,  Territory,  or  District,  and  shall  make  such  returns  and 
reports  concerning  the  same  as  may  be  required  by  the  Secretary  of 
War.  The  Secretary  of  War  is  authorized,  on  the  requisition  of  the 
governor  of  a  State  or  Territory  or  the  commanding  general  of  the 
National  Guard  of  the  District  of  Columbia,  to  pay  to  the  property  and 
disbursing  officer  thereof  so  much  of  its  allotment  out  of  the  annual 
appropriation  for  the  support  of  the  National  Guard  as  shall,  in  the 
judgment  of  the  Secretary  of  War,  be  necessary  for  the  purposes  enum- 
erated therein.  He  shall  render,  through  the  War  Department,  such 
accounts  of  Federal  funds  intrusted  to  him  for  disbursement  as  may 
he  required  by  the  Treasury  Department.  Before  entering  upon  the 
performance  of  his  duties  as  property  and  disbursing  officer  he  shall 
be  required  to  give  good  and  sufficient  bond  to  the  United  States,  the 
amount  thereof  to  be  determined  by  the  Secretary  of  War,  for  the 
faithful  performance  of  his  duties  and  for  the  safe-keeping  and  proj^er 
disposition  of  the  Federal  property  and  funds  intrusted  to  his  care.  He 
shall,  after  having  qualified  as  property  and  disbursing  officer,  receive 
pay  for  his  services  at  a  rate  to  be  fixed  by  the  Secretary  of  War,  and 
such  compensation  shall  be  a  charge  against  the  whole  sum  annually 
appropriated  for  the  support  of  the  National  Guard :  Provided,  That 
when  traveling  in  the  performance  of  his  official  duties  under  orders 
issued  by  the  proper  authorities  he  shall  be  reimbursed  for  his  actual 
necessary  traveling  expenses,  the  sum  to  be  made  a  charge  against  the 
allotment  of  the  State,  Territory,  or  District  of  Columbia:  Provided 
further.  That  the  Secretary  of  War  shall  cause  an  inspection  of  the 
accounts  and  records  of  the  property  and  disbursing  officer  to  be  made 
by  an  inspector  general  of  the  Army  at  least  once  each  year :  And  pro- 
vided further.  That  the  Secretary  of  War  is  empowered  to  make  all 
rules  and  regulations  necessary  to. carry  into  effect  the  provisions  of 
this  section. 

Location  of  Units. 

Sec.  68.     The  States  and  Territories  shall  have  the  right  to  deter- 


574  Important  Federal  Laws 

mine  and  fix  the  location  of  the  units  and  headquarters  of  the  National 
Guard  wnthin  their  respective  borders :  Provided,  That  no  organization 
of  the  National  Guard,  members  of  which  shall  be  entitled  to  and  shall 
have  received  compensation  under  the  provisions  of  this  Act,  shall  be 
disbanded  without  the  consent  of  the  President,  nor,  without  such  con- 
sent, shall  the  commissioned  or  enlisted  strength  of  any  such  organiza- 
tion be  reduced  below  the  minimum  that  shall  be  prescribed  therefor  by 
the  President. 

Enlistments  in  the  National  Guard. 

Sec.  69.  Hereafter  the  period  of  enlistment  in  the  National  Guard 
shall  be  for  six  years,  the  first  three  years  of  which  shall  be  in  active 
organization  and  the  remaining  three  years  in  the  National  Guard  Re- 
serve, hereinafter  provided  for,  and  the  qualifications  for  enlistment 
shall  be  the  same  as  those  prescribed  for  admission  to  the  Regular 
Army :  Provided,  That  in  the  National  Guard  the  privilege  of  con- 
tinuing in  active  service  during  the  whole  of  an  enlistment  period  and 
of  re-enlisting  in  said  service  shall  not  be  denied  by  reason  of  anything 
contained  in  this  Act. 

Federal  Enlistment  Contract. 

Sec.  70.  Enlisted  men  in  the  National  Guard  of  the  several  States, 
Territories,  and  the  District  of  Columbia  now  serving  under  enlistment 
contracts  which  contain  an  obligation  to  defend  the  Constitution  of  the 
United  States  and  to  obey  the  orders  of  the  President  of  the  United 
States  shall  be  recognized  as  members  of  the  National  Guard  under  the 
provisions  of  this  Act  for  the  unexpired  portion  of  their  present  enlist- 
ment contracts.  When  any  such  enlistment  contract  does  not  contain 
such  obligation,  the  enlisted  man  shall  not  be  recognized  as  a  member 
of  the  National  Guard  until  he  shall  have  signed  an  enlistment  contract 
and  taken  and  subscribed  to  the  following  oath  of  enlistment,  upon 
signing  which  credit  shall  be  given  for  the  period  already  served  under 
the  old  enlistment  contract :  *T  do  hereby  acknowledge  to  have  volun- 
tarily enlisted  this  —  day  of  ,   19 — .  as  a  soldier  in  the   National 

Guard  of  the  United  States  and  of  the  State  of  ,  for  the  period  of 

three  years  in  service  and  three  years  in  the  reserve,  under  the  condi- 
tions prescribed  by  law,  unless  sooner  discharged  by  proper  authority. 
And  I  do  solemnly  swear  that  I  will  bear  true  faith  and  allegiance  to 

the  United  States  of  America  and  to  the  State  of  ,  and  that  I  will 

serve  them  honestly  and  faithfully  against  all  their  enemies  whomso- 
ever, and  that  I  will  obey  the  orders   of  the   President  of  the  United 

States  and   of  the  governor  of  the   State  of  ,  and  of  the  officers 

appointed  over  me  according  to  law  and  the  rules  and  articles  of  war." 

Sec.  71.  Hereafter  all  men  enlisting  for  service  in  the  National 
Guard  shall  sign  an  enlistment  contract  and  take  and  subscribe  to  the 
oath  prescribed  in  the  preceding  section  of  this  Act. 


National  Defense  Act  575 

Discharge  of  Enlisted  Men  From  the  National  Guard. 

Sec.  72.  An  enlisted  man  discharged  from  service  in  the  National 
Guard  shall  receive  a  discharge  in  writing  in  such  form  and  with  such 
classification  as  is  or  shall  be  prescribed  for  the  Regular  Army,  and  in 
time  of  peace  discharges  may  be  given  prior  to  the  expiration  of  terms 
of  enlistment  under  such  regulations  as  the  President  may  prescribe. 

Federal  Oath  for  National  Guard  Officers. 

Sec.  7^.  Commissioned  officers  of  the  National  Guard  of  the  sev- 
eral States,  Territories,  and  the  District  of  Columbia  now  serving  under 
commissions  regularly  issued  shall  continue  in  office,  as  officers  of  the 
National  Guard,  without  the  issuance  of  new  commissions :  Provided, 
That  said  officers  have  taken,  or  shall  take  and  subscribe  to  the  follow- 
ing oath  of  office:    *T,  ,  do  solemnly  swear  that  I  will  support  and 

defend  the  Constitution  of  the  United  States  and  the  constitution  of  the 

State  of ,  against  all  enemies,  foreign  and  domestic;  that  I  will  bear 

true  faith  and  allegiance  to  the  same;  that  I  will  obey  the  orders  of  the 

President  of  the  United  States  and  of  the  governor  of  the  State  of ; 

that   I   make  this  obligation   freely,   without  any  mental   reservation  or 
purpose  of   evasion,  and  that   I  will   well  and   faithfully  discharge  the 

duties  of  the  office  of  in  the  National  Guard  of  the  United  States 

and  of  the  State  of  upon  which  I  am  about  to  enter,  so  help  me 

God." 

Qualifications  for  National  Guard  Officers. 

Sec.  74.  Persons  hereafter  commissioned  as  officers  of  the  National 
Guard  shall  not  be  recognized  as  such  under  any  of  the  provisions  of 
this  Act  unless  they  shall  have  been  selected  from  the  following  classes 
and  shall  have  taken  and  subscribed  to  the  oath  of  office  prescribed  in 
the  preceding  section  of  this  Act :  Officers  or  enlisted  men  of  the  Na- 
tional Guard ;  officers  on  the  reserve  or  unassigned  list  of  the  National 
Guard ;  officers,  active  or  retired,  and  former  officers  of  the  United 
States  Army,  Navy,  and  Marine  Corps ;  graduates  of  the  United  States 
Military  and  Naval  Academies  and  graduates  of  schools,  colleges,  and 
universities  where  military  science  is  taught  under  the  supervision  of  an 
officer  of  the  Regular  Army,  and,  for  the  technical  branches  and  staff 
corps  or  departments,  such  other  civilians  as  may  be  especially  qualified 
for  duty  therein. 

Sec.  75.  The  provisions  of  this  Act  shall  not  apply  to  any  person 
hereafter  appointed  an  officer  of  the  National  Guard  unless  he  first  shall 
have  successfully  passed  such  tests  as  to  his  physical,  moral,  and  pro- 
fessional fitness  as  the  President  shall  prescribe.  The  examination  to 
determine  such  qualifications  for  commission  shall  be  conducted  by  a 
board  of  three  commissioned  officers  appointed  by  the  Secretary  of  War 
from  the  Regular  Army  or  the  National  Guard,  or  both. 

Filling  of  Vacancies  When  Drafted  into  Federal  Service. 

Sec.    76.     All   vacancies   occurring   in   any   grade  of   commissioned 


576  Important  Federal  Laws 

officers  in  any  organization  in  the  military  service  of  the  United  States 
and  composed  of  persons  drafted  from  the  National  Guard  under  the 
provisions  of  this  Act  shall  be  filled  by  the  President,  as  far  as  prac- 
ticable, by  the  appointment  of  persons  similarly  taken  from  said  guard, 
and  in  the  manner  prescribed  by  law  for  filling  similar  vacancies  occur- 
ring in  the  volunteer  forces. 

Elimination  and  Disposition  of  Officers. 

Sec.  77 .  At  any  time  the  moral  character,  capacity,  and  general 
fitness  for  the  service  of  any  National  Guard  officer  may  be  determined 
by  an  efficiency  board  of  three  commissioned  officers,  senior  in  rank  to 
the  officer  whose  fitness  for  service  shall  be  under  investigation,  and  if 
the  findings  of  such  board  be  unfavorable  to  such  officer  and  be  ap-  • 
proved  by  the  official  authorized  to  appoint  such  an  officer,  he  shall  be 
discharged.  Commissions  of  officers  of  the  National  Guard  may  be 
vacated  upon  resignation,  absence  without  leave  for  three  months,  upon 
the  recommendation  of  an  efficiency  board,  or  pursuant  to  sentence  of  a 
court-martial.  Officers  of  said  guard  rendered  surplus  by  the  disband- 
ment  of  their  organizations  shall  be  placed  in  the  National  Guard  Re- 
serve. Officers  may,  upon  their  own  application,  be  placed  in  the  said 
reserve. 

The  National  Guard  Reserve. 

Sec.  7'$>.  Subject  to  such  rules  and  regulations  as  the  President 
may  prescribe,  a  National  Guard  Reserve  shall  be  organized  in  each 
State,  Territory,  and  the  District  of  Columbia,  and  shall  consist  of  such 
organizations,  officers,  and  enlisted  men  as  the  President  may  prescribe, 
or  members  thereof  may  be  assigned  as  reserves  to  an  active  organiza- 
tion of  the  National  Guard :  Provided,  That  members  of  said  reserve, 
when  engaged  in  field  or  coast-defense  training  with  the  active  National 
Guard,  shall  receive  the  same  Federal  pay  and  allowances  as  enlisted 
men  of  like  grade  on  the  active  list  of  said  guard  when  likewise  en- 
gaged :  Provided  further.  That,  except  as  otherwise  specificallv  pro- 
vided in  this  Act,  no  commissioned  or  enlisted  reservist  shall  receive 
any  pay  or  allowances  out  of  any  appropriation  made  by  Congress  for 
National  Guard  purposes. 

Reserve  Battalions  for  Recruit  Training. 

Sec.  79.  When  members  of  the  National  Guard  and  the  enlisted 
reserve  thereof  of  any  State,  Territory,  or  the  District  of  Columbia  shall 
have  been  brought  into  the  service  of  the  United  States  in  time  of  war, 
there  shall  be  immediately  organized,  either  from  such  enlisted  reserve 
or  from  the  unorganized  militia,  in  such  State,  Territory,  or  District, 
one  reserve  battalion  for  each  regiment  of  Infantry  or  Cavalry,  or  each 
nine  batteries  of  Field  Artillery,  or  each  twelve  companies  of  Coast 
Artillery,  brought  into  the  service  of  the  United  States,  and  such  re- 
serve battalion  shall  constitute  the  fourth  battalion  of  any  such  regi- 
ment or  twelve  companies  of  Coast  Artillery.     Reserve  battalions  shall 


National  Defense  Act  577 

consist  of  four  companies  of  such  strength  as  may  be  prescribed  by  the 
President  of  the  United  States.  When  the  members  of  three  or  more 
regiments  of  the  National  Guard  of  any  State,  Territory,  or  District 
shall  have  been  brought  into  the  service  of  the  United  States,  the  reserve 
battalions  of  such  regiments  may  be  organized  into  provisional  regiments 
and  higher  units.  If  for  any  reason  there  shall  not  be  enough  volun- 
tary enlistments  to  keep  the  reserve  battalions  at  the  prescribed  strength, 
a  sufficient  number  of  the  unorganized  militia  shall  be  drafted  into  the 
service  of  the  United  States  to  maintain  each  of  such  battalions  at  the 
proper  strength.  As  vacancies  occur  from  death  or  other  causes  in  any 
organization  in  the  service  of  the  United  States  and  composed  of  men 
taken  from  the  National  Guard,  men  shall  be  transferred  from  the  re- 
serve battalions  to  the  organizations  in  the  field  so  that  such  organiza- 
tions may  be  maintained  at  war  strength.  Officers  for  the  reserve  bat- 
talions provided  for  herein  shall  be  drafted  from  the  National  Guard 
Reserve  or  Coast  Artillery  companies  of  the  National  Guard  or  the 
Officers'  Reserve  Corps,  such  officers  to  be  taken,  if  practicable,  from 
the  States,  respectively,  in  which  the  battalions  shall  be  organized.  Offi- 
cers and  noncommissioned  officers  returned  to  their  home  stations  be- 
cause of  their  inability  to  perform  active  field  service  may  be  assigned 
to  reserve  battalions  for  duty,  and  all  soldiers  invalided  home  shall  be 
assigned  to  and  carried  on  the  rolls  of  reserve  battalions  until  returned 
to  duty  or  until  discharged. 

Leaves  of  Absence  for  Certain  Government  Employees. 

Sec.  80.  All  officers  and  employees  of  the  United  States  and  of  the 
District  of  Columbia  who  shall  be  members  of  the  National  Guard 
shall  be  entitled  to  leave  of  absence  from  their  respective  duties,  without 
loss  of  pay,  time,  or  efficiency  rating,  on  all  days  during  which  they 
shall  be  engaged  in  field  or  coast-defense  training  ordered  or  authorized 
under  the  provisions  of  this  Act. 

Militia  Bureau  of  the  War  Department. 

Sec.  81.  The  National  Militia  Board  created  by  section  eleven  of 
the  Act  of  May  twenty-seventh,  nineteen  hundred  and  eight,  amending 
section  twenty  of  the  Act  of  January  twenty-first,  nineteen  hundred  and 
three,  shall,  from  the  date  of  the  approval  of  this  Act,  be  abolished.  The 
Militia  Division  now  existing  in  the  War  Department  shall  hereafter  be 
known  as  the  Militia  Bureau  of  said  department,  shall,  like  other  bu- 
reaus of  said  department,  be  under  the  immediate  supervision  of  the 
Secretary  of  War,  and  shall  not  form  a  part  of  any  other  bureau,  office, 
or  other  organization,  but  the  Chief  of  the  Militia  Bureau  shall  be  ex 
officio  a  member  of  the  General  Stafif  Corps :  Provided,  That  the  Presi- 
dent may,  in  his  discretion,  assign  to  duty  in  the  T»ililitia  Bureau  as 
assistants  to  the  chief  thereof  not  to  exceed  one  colonel  and  one  lieu- 
tenant colonel  of  the  National  Guard,  for  terms  of  four  years,  and  any 
such  officer  while  so  assigned  shall,  subject  to  such  regulations  as  the 
(37) 


578  •  Important  Federal  Laws 

President  may  prescribe,  receive  out  of  the  whole  fund  appropriated 
for  the  support  of  the  militia  the  pay  and  allowances  of  a  Regular 
Army  officer  having  the  same  rank  and  length  of  service  as  said  Na- 
tional Guard  officer,  whose  prior  service  in  the  Organized  Militia  shall 
be  counted  in  ascertaining  his  rights  under  this  proviso. 

Armament,  Equipment,  and  Uniform  of  the  National  Guard. 

Sec.  82.  The  National  Guard  of  the  United  States  shall,  as  far  as 
practicable,  be  uniformed,  armed,  and  equipped  with  the  same  type  of 
uniforms,  arms,  and  equipments  as  are  or  shall  be  provided  for  the 
Regular  Army. 

Sec.  83.  The  Secretary  of  War  is  hereby  authorized  to  procure, 
under  such  regulations  as  the  President  may  prescribe,  by  purchase  or 
manufacture,  within  the  limits  of  available  appropriations  made  by 
Congress,  and  to  issue  from  time  to  time  to  the  National  Guard,  upon 
requisition  of  the  governors  of  the  several  States  and  Territories  or  the 
commanding  general  of  the  National  Guard  of  the  District  of  Columbia, 
such  number  of  United  States  service  arms,  with  all  accessories,  field- 
artillerv  materiel,  engineer,  coast  artillery,  signal,  and  sanitary  materiel, 
accouterments,  field  uniforms,  clothing,  equipage,  publications,  and  mil- 
itary stores  of  all  kinds,  including  pubhc  animals,  as  are  necessary  to 
arm',  uniform,  and  equip  for  field  service  the  National  Guard  in  the 
several  States,  Territories,  and  the  District  of  Columbia :  Provided,  That 
as  a  condition  precedent  to  the  issue  of  any  property  as  provided  for  by 
this  Act,  the  State.  Territory,  or  the  District  of  Columbia  desiring  such 
issue  shall  make  adequate  provision,  to  the  satisfaction  of  the  Secretary 
of  War,  for  the  protection  and  care  of  such  property:  Provided  further, 
That,  whenever  it  shall  be  shown  to  the  satisfaction  of  the  Secretary  oi 
War  that  the  National  Guard  of  any  State,  Territory,  or  the  District 
of  Columbia,  is  properly  organized,  armed,  and  equipped  for  field  ser- 
vice, funds  allotted  to  that  State,  Territory,  or  District  for  the  support 
of  its  National  Guard  may  be  used  for  the  purchase,  from  the  War 
Department,  of  any  article  issued  by  any  of  the  supply  departments  of 
the  Army. 

Sec.  84.  Under  such  regulations  as  the  President  may  prescribe, 
whenever  a  new  type  of  equipment,  small  arm.  or  field  gun  shall  have 
been  issued  to  the  National  Guard  of  the  several  States,  Territories,  and 
the  District  of  Columbia,  such  equipment,  small  arms,  and  field  guns, 
including  all  accessories,  shall  be  furnished  without  charging  the  cost 
or  value  thereof  or  any  expense  connected  therewith  against  the  appro- 
priations provided  for  the  support  of  the  National  Guard. 

Sec.  85.  Each  State,  Territory,  and  the  District  of  Columbia  shall, 
on  the  receipt  of  new  property  issued  to  replace  obsolete  or  condemned 
prior  issues,  turn  in  to  the  War  Department  or  otherwise  dispose  of, 
in  accordance  with  the  directions  of  the  Secretary  of  War,  all  property 


National  Defense  Act  579 

so  replaced  or  condemned,  and  shall  not  receive  any  money  credit  there- 
for. 

Sec.  86.  Any  State,  Territory,  or  the  District  of  Columbia  may, 
with  the  approval  of  the  Secretary  of  War,  purchase  for  cash  from  the 
War  Department  for  the  use  of  the  National  Guard,  including  the 
officers  thereof,  any  stores,  supplies,  material  of  war,  and  military  pub- 
lications furnished  to  the  Army,  in  addition  to  those  issued  under  the 
provisions  of  this  Act,  at  the  price  at  which  they  shall  be  listed  to  the 
Army,  with  cost  of  transportation  added.  The  funds  received  from 
such  sale  shall  be  credited  to  the  appropriation  to  which  they  shall 
belong,  shall  not  be  covered  into  the  Treasury,  and  shall  be  available 
until  expended  to  replace  therewith  the  supplies  sold  to  the  States  in 
the  manner  herein  authorized:  Provided,  That  stores,  supplies,  and 
materiel  of  war  so  purchased  by  a  State,  Territory,  or  the  District  of 
Columbia  may,  in  time  of  actual  or  threatened  war,  be  requisitioned  by 
the  United  States  for  use  in  the  military  service  thereof,  and  when  so 
requisitioned  by  the  United  States  and  delivered  credit  for  the  ultimate 
return  of  such  property  in  kind  shall  be  allowed  to  such  State,  Territory, 
or  the  District  of  Columbia. 

Disposition  and  Replacement  of  Damaged  Property,  and  So  Forth. 

Sec.   87.     All   military  property   issued   to   the    National   Guard   as 
herein  provided  shall  remain  the  property  of  the  United  States.     When- 
ever any  such  property  issued  to  the  National  Guard  in  any  State  or 
Territory  or  the  District  of  Columbia  shall  have  been  lost,  damaged,  or 
destroyed,  or  become  unserviceable  or  unsuitable  by  use  in  service  or 
from  any  other  cause,  it  shall  be  examined  by  a  disinterested  surveying 
officer  of  the  Regular  Army  or  the  National  Guard,  detailed  by  the  Sec- 
retary of  War,  and  the  report  of  such   surveying  officer   shall  be   for- 
warded to  the  Secretary  of  War.  or  to  such  officer  as  he  shall  designate 
to  receive  such  reports;  and  if  it  shall  appear  to  the  Secretary  of  War 
from  the  record  of  survey  that  the  property  was  lost,  damaged,  or  de- 
stroyed through  unavoidable  causes,  he  is  hereby  authorized  to'  relieve 
the  State  or  Territory  or  the  District  of  Columbia  from  further  account- 
ability therefor.     If  it  shall  appear  that  the  loss,  damage,  or  destruction 
of  property  was  due  to  carelessness  or  neglect,  or  that  its  loss,  damage, 
or   destruction  could  have  been   avoided  by  the  exercise  of  reasonable 
care,  the  money  value  of  such  property  shall  be  charged  to  the  account- 
able State,  Territory,  or  District  of  Columbia,  to  be  paid   from   State, 
Territory,  or  District  funds,  or  any  funds  other  than  Federal.     If  the' 
articles   so   surveyed   are   found   to   be   unserviceable   or  unsuitable,   the 
Secretary  of   War  shall  direct  what   disposition,  by   sale  or  otherwise, 
shall  be  made  of  them  ;  and  if  sold,  the  proceeds  of  such  sale,  as  well 
as  stoppages  against  officers  and  enlisted  men,  and  the  net  proceeds  of 
collections  made  from  any  person  or  from  any  State,  Territory,  or  Dis- 
trict to  reimburse  the  Government  for  the  loss,  damage,  or  destruction 
of  any  property,  shall  be  deposited  in  the  Treasury  of  the  United  States 


580  .  Important  Federal  Laws 

as  a  credit  to  said  State,  Territory,  or  the  District  of  Columbia,  ac- 
countable for  said  property,  and  as  a  part  of  and  in  addition  to  that 
portion  of  its  allotment  set  aside  for  the  purchase  of  similar  supplies, 
stores,  or  material  of  war:  Provided  further,  That  if  any  State,  Terri- 
tory, or  the  District  of  Columbia  shall  neglect  or  refuse  to  pay,  or  to 
cause  to  be  paid,  the  money  equivalent  of  any  loss,  damage,  or  destruc- 
tion of  property  charged  against  such  State,  Territory,  or  the  District 
of  Columbia  by  the  Secretary  of  War  after  survey  by  a  disinterested 
officer  appointed  as  hereinbefore  provided,  the  Secretary  of  War  is 
hereby  authorized  to  debar  such  State,  Territorv,  or  the  District  of 
Columbia  from  further  participation  in  any  and  all  appropriations  for 
the  National  Guard  until  such  payment  shall  have  been  made. 

Sec.  88.  The  net  proceeds  of  the  sale  of  condemned  stores  issued 
to  the  National  Guard  and  not  charged  to  State  allotments  shall  be  cov- 
ered into  the  Treasury  of  the  United  States,  as  shall  also  stoppages 
against  officers  and  enlisted  men,  and  the  net  proceeds  of  collections 
made  from  any  person  to  reimburse  the  Government  for  the  loss,  dam- 
age, or  destruction  of  said  property  not  charged  against  the  State  allot- 
ment issued  for  the  use  of  the  National  Guard. 

Horses  for  Cavalry  and  Field  Artillery  of  National  Guard. 

Sec.  89.  Funds  allotted  by  the  Secretary  of  War  for  the  support 
of  the  National  Guard  shall  be  available  for  the  purchase,  under  such 
regulations  as  the  Secretary  of  War  may  prescribe,  of  horses  conform- 
ing to  the  Regular  Army  standards  for  the  use  of  Field  Artillery  and 
Cavalry  of  the  National  Guard,  said  horses  to  remain  the  property  of 
the  United  States  and  to  be  used  solely  for  military  purposes. 

Horses  so  purchased  may  be  issued  not  to  exceed  thirty-two  to  any 
one  battery  or  troop,  under  such  regulations  as  the  Secretary  of  War 
may  prescribe ;  and  the  Secretary  of  War  is  further  authorized  to  issue, 
in  lieu  of  purchase,  for  the  use  of  such  organizations,  condemned  Army 
horses  which  are  no  longer  fit  for  service,  but  which  may  be  suitable 
for  the  purposes  of  instruction,  such  horses  to  be  sold  as  now  provided 
by  law  when  said  purposes  shall  have  been  served. 

Sec.  90.  Funds  allotted  by  the  Secretary  of  War  for  the  support 
of  the  National  Guard  shall  be  available  for  the  purchase  and  issue  of 
forage,  bedding,  shoeing,  and  veterinary  services,  and  supplies  for  the 
Government  horses  issued  to  any  battery  or  troop,  and  for  the  compen- 
sation of  competent  help  for  the  care  of  the  material,  animals,  and 
equipment  thereof,  under  such  regulations  as  the  Secretary  of  War  may 
prescribe:  Provided,  That  the  men  to  be  compensated,  not  to  exceed 
five  for  each  battery  or  troop,  shall  be  duly  enlisted  therein  and  shall 
be  detailed  by  the  battery  or  troop  commander,  under  such  regulations 
as  the  Secretary  of  War  may  prescribe,  and  shall  be  paid  by  the  United 
States  disbursing  officer  in  each  State,  Territory,  and  the  District  of 
Columbia. 


National  Defense  Act  581 

Discipline  to  Conform  to  That  of  Regular  Army. 

Sec.  91.  The  discipHne  (which  includes  training)  of  the  National 
Guard  shall  conform  to  the  system  which  is  now  or  may  hereafter  be 
prescribed  for  the  Regular  Army,  and  the  training  shall  be  carried  out 
by  the  several  States.  Territories,  and  the  District  of  Columbia  so  as 
to  conform  to  the  provisions  of  this  Act. 

tTraining  of  the  National  Guard. 

Sec.  92.  Each  company,  troop,  battery,  and  detachment  in  the 
National  Guard  shall  assemble  for  drill  and  instruction,  including  indoor 
target  practice,  not  less  than  forty-eight  times  each  year,  and  shall,  in 
addition  thereto,  participate  in  encampments,  maneuvers,  or  other  exer- 
cises, including  outdoor  target  practice,  at  least  fifteen  days  in  training 
each  year,  including  target  practice,  unless  such  company,  troop,  bat- 
tery, or  detachment  shall  have  been  excused  from  participation  in  any 
part  thereof  by  the  Secretary  of  War:  Provided,  That  credit  for  an 
assembly  for  drill  or  for  indoor  target  practice  shall  not  be  given  unless 
the  number  of  officers  and  enlisted  men  present  for  duty  at  such  assem- 
bly shall  equal  or  exceed  a  minimum  to  be  prescribed  by  the  President, 
nor  unless  the  period  of  actual  military  duty  and  instruction  participated 
in  by  each  officer  and  enlisted  man  at  each  such  assembly  at  which  he 
shall  be  credited  as  having  been  present  shall  be  of  at  least  one  and 
one-half  hours'  duration  and  the  character  of  training  such  as  may  be 
prescribed  by  the  Secretary  of  War. 

Inspections  of  the  National  Guard. 

Sec.  93.  The  Secretary  of  War  shall  cause  an  inspection  to  be  made 
at  least  once  each  year  by  inspectors  general,  and  if  necessary  by  other 
officers,  of  the  Regular  Army,  detailed  by  him  for  that  purpose,  to  de- 
termine whether  the  amount  and  condition  of  the  property  in  the  hands 
of  the  National  Guard  is  satisfactory;  whether  the  National  Guard  is 
organized  as  hereinbefore  prescribed :  whether  the  officers  and  enlisted 
men  possess  the  physical  and  other  qualifications  prescribed ;  whether 
the  organization  and  the  officers  and  enlisted  men  thereof  are  suffi- 
ciently armed,  uniformed,  equipped,  and  being  trained  and  instructed  for 
active  duty  in  the  field  or  coast  defense,  and  whether  the  records  are 
being  kept  in  accordance  with  the  requirements  of  this  Act.  The  reports 
of  such  inspections  shall  serve  as  the  basis  for  deciding  as  to  the  issue 
to  and  retention  by  the  National  Guard  of  the  military  property  provided 
for  by  this  Act,  and  for  determining  what  organizations  and  individuals 
shall  be  considered  as  constituting  parts  of  the  National  Guard  within 
the  meaning  of  this  Act. 

Encampment  and  Maneuvers. 

Sec.  94.  Under  such  regulations  as  the  President  may  prescribe 
the  Secretary  of  War  is  authorized  to  provide  for  the  participation  of 
the  whole  or  any  part  of  the  National  Guard  in  encampments,  ma- 
neuvers, or  other  exercises,  including  outdoor  target  practice,  for  field 


582  .  Important  Federal  Laws 

or  coast-defense  instruction,  either  independently  or  in  conjunction  with 
any  part  of  the  Regular  Army,  and  there  may  be  set  aside  from  the 
funds  appropriated  for  that  purpose  and  allotted  to  any  State,  Territory, 
or  the  District  of  Columbia,  such  portion  of  said  funds  as  may  be  neces- 
sary for  the  payment,  subsistence,  transportation,  and  other  proper  ex- 
penses of  such  portion  of  the  National  Guard  of  such  State,  Territory, 
or  the  District  of  Columbia  as  shall  participate  in  such  encampments, 
maneuvers,  or  other  exercises,  including  outdoor  target  practice,  for  field 
and  coast-defense  instruction ;  and  the  officers  and  enlisted  men  of  such 
National  Guard  while  so  engaged  shall  be  entitled  to  the  same  pay, 
subsistence,  and  transportation  as  officers  and  enlisted  men  of  correspond- 
ing grades  of  the  Regular  Army  are  or  hereafter  may  be  entitled  by  law. 

Sec.  95.  When  any  part  of  the  National  Guard  practicipates  in 
encampments,  maneuvers,  or  other  exercises,  including  outdoor  target 
practice,  for  field  or  coast-defense  instruction  at  a  United  States  mili- 
tary post,  or  reservation,  or  elsewhere,  if  in  conjunction  with  troops  of 
the  United  States,  the  command  of  such  military  post  or  reservation  and 
of  the  officers  and  troops  of  the  United  States  on  duty  there  or  else- 
where shall  remain  with  the  commander  of  the  United  States  troops 
Avithout  regard  to  the  rank  of  the  commanding  or  other  officer  of  the 
National  Guard  temporarily  engaged  in  the  encampments,  maneuvers, 
or  other  exercises. 
Use  of  Regular  Army  Personnel. 

Sec.  96.  The  Secretary  of  War  may  detail  one  or  more  officers 
and  enlisted  men  of  the  Regular  Army  to  attend  any  encampment, 
maneuver,  or  other  exercise  for  field  or  coast-defense  instruction  of  the 
National  Guard,  who  shall  give  such  instruction  and  information  to  the 
officers  and  men  assembled  for  such  encampment,  maneuver,  or  other 
exercise  as  may  be  directed  by  the  Secretary  of  War  or  requested  by 
the  governor  or  by  the  commanding  officer  of  the  National  Guard  there 
on  duty. 

Sec.  97.  Under  such  regulations  as  the  President  may  prescribe 
the  Secretary  of  War  may  provide  camps  for  the  instruction  of  officers 
and  enlisted  men  of  the  National  Guard.  Such  camps  shall  be  conducted 
by  officers  of  the  Regular  Army  detailed  by  the  Secretary  of  War  for 
that  purpose,  and  may  be  located  either  within  or  without  the  State, 
Territory,  or  District  of  Columbia  to  which  the  members  of  the  Na- 
tional Guard  designated  to  attend  said  camps  shall  belong.  Officers 
and  enlisted  men  attending  such  camps  shall  be  entitled  to  pay  and  trans- 
portation, and  enlisted  men  to  subsistence  in  addition,  at  the  same  rates 
as  for  encampments  or  maneuvers  for  field  or  coast-defense  instruction. 

Sec.  98.  When  any  portion  of  the  National  Guard  shall  partici- 
pate in  encampments,  maneuvers,  or  other  exercises,  including  outdoor 
target  practice,  for  field  or  coast-defense  instruction,  under  the  provi- 
sions of  this  Act,  it  may,  after  being  duly  mustered,  be  paid  at  any  time 
after  such  muster  for  the  period   from  the  date   of   leaving  the  home 


National  Defense  Act  583 

rendezvous  to  date  of  return  thereto  as  determined  in  advance,  both 
dates  inckisive ;  and  such  payment,  if  otherwise  correct,  shall  pass  to 
the  credit  of  the  disbursing  officer  making  the  same. 

National  Guard  Officers  and  Men  at  Service  Schools,  and  So  Forth. 

Sec.  99.  Under  such  regulations  as  the  President  may  prescribe,  the 
Secretary  of  War  may,  upon  the  recommendation  of  the  governor  of 
any  State  or  Territory  or  the  commanding  general  of  the  National 
Guard  of  the  District  of  Columbia,  authorize  a  limited  number  of  se- 
lected officers  or  enlisted  men  of  the  National  Guard  to  attend  and 
pursue  a  regular  course  of  study  at  any  military  service  school  of  the 
United  States,  except  the  United  States  Military  Academy;  or  to  be 
attached  to  an  organization  of  the  same  arm,  corps,  or  department_  to 
which  such  officer  or  enlisted  man  shall  belong,  for  routine  practical 
instruction  at  or  near  an  Army  post  during  a  period  of  field  training 
or  other  outdoor  exercises ;  and  such  officer  or  enlisted  man  shall  receive, 
out  of  anv  National  Guard  allotment  of  funds  available  for  the  purpose, 
the  same  travel  allowances  and  quarters,  or  commutation  of  quarters, 
and  the  same  pay.  allowances,  and  subsistence  to  which  an  officer  or 
enlisted  man  of  the  Regular  Army  would  be  entitled  for  attending  such 
school,  college,  or  practical  course  of  instruction  under  orders  from 
proper  military  authority,  while  in  actual  attendance  at  such  school, 
college,  or  practical  course  of  instruction:  Provided,  That  in  no  case 
shall  the  pay  and  allowances  authorized  by  this  section  exceed  those  of 
a  captain. 
Detail   of   Officers   of   Regular    Army   to   Duty   With   the    National 

Guard. 

Sec.  100.  The  Secretary  of  War  shall  detail  officers  of  the  active 
list  of  the  Army  to  duty  with  the  National  Guard  in  each  State,  Terri- 
torv,  or  District  of  Columbia,  and  officers  so  detailed  may  accept  com- 
missions in  the  National  Guard,  with  the  permission  of  the  President 
and  terminable  in  his  discretion,  v^ithout  vacating  their  commissions  in 
the  Regular  Army  or  being  prejudiced  in  their  relative  or  lineal  standing 
therein.  The  Secretary  of  War  may,  upon  like  application,  detail  one 
or  more  enlisted  men  of  the  Regular  Army  with  each  State.  Territory, 
or  District  of  Columbia  for  duty  in  connection  with  the  National  Guard. 
But  nothing  in  this  section  shall  be  so  construed  as  to  prevent  the  detail 
of  retired  officers  as  now  provided  by  law. 

National  Guard,  When  Subject  to  Laws  Governing  Regular  Army. 

Sec.  101.  The  National  Guard  when  called  as  such  into  the  service 
of  the  United  States  shall,  from  the  time  they  are  required  by  the  terms 
of  the  call  to  respond  thereto,  be  subject  to  the  laws  and  regulations 
governing  the  Regular  Army,  so  far  as  such  laws  and  regulations  are 
applicable  to  officers  and  enlisted  men  whose  permanent  retention  in  the 
militarv  service,  either  on  the  active  list  or  in  the  retired  list,  is  not 
contemplated  by  existing  law. 


584  Important  Federal  Laws 

System  of  Courts-Martial  for  National  Guard. 

Sec.  102.  Except  in  organizations  in  the  service  of  the  United 
States,  courts-martial  in  the  National  Guard  shall  be  of  three  kinds, 
namely,  general  courts-martial,  special  courts-martial,  and  summary 
courts-martial.  They  shall  be  constituted  like,  and  have  cognizance  of 
the  same  subjects,  and  possess  like  powers,  except  as  to  punishments, 
as  similar  courts  provided  for  by  the  laws  and  regulations  governing  the 
Army  of  the  United  States,  and  the  proceedings  of  courts-martial  of 
the  National  Guard  shall  follow  the  forms  and  modes  of  procedure  pre- 
scribed for  said  similar  courts. 

Sec.  103.  General  courts-martial  of  the  National  Guard  not  in  the 
service  of  the  United  States  may  be  convened  by  orders  of  the  Presi- 
dent, or  of  the  governors  of  the  respective  States  and  Territories,  or 
by  the  commanding  general  of  the  National  Guard  of  the  District  of 
Columbia,  and  such  courts  shall  have  the  power  to  impose  fines  not 
exceeding  $200;  to  sentence  to  forfeiture  of  pay  and  allowances;  to  a 
reprimand ;  to  dismissal  or  dishonorable  discharge  from  the  service ;  to 
reduction  of  noncommissioned  officers  to  the  ranks;  or  any  two  or  more 
of  such  punishments  may  be  combined  in  the  sentences  imposed  by  such 
courts. 

Sec.  104.  In  the  National  Guard,  not  in  the  service  of  the  United 
States,  the  commanding  officer  of  each  garrison,  fort,  post,  camp,  or 
other  place,  brigade,  regiment,  detached  battalion,  or  other  detached 
command,  may  appoint  special  courts-martial  for  his  command ;  but 
such  special  courts-martial  may  in  any  case  be  appointed  by  superior 
authority  when  by  the  latter  seemed  desirable.  Special  courts-martial 
shall  have  power  to  try  any  person  subject  to  military  law,  except  a 
commissioned  officer,  for  any  crime  or  offense  made  punishable  by  the 
military  laws  of  the  United  States,  and  such  special  courts-martial  shall 
have  the  same  powers  of  punishment  as  do  general  courts-martial,  ex- 
cept that  fines  imposed  by  such  courts  shall  not  exceed  $100. 

Sec.  105.  In  the  National  Guard,  not  in  the  service  of  the  United 
States,  the  commanding  officer  of  each  garrison,  fort,  post,  or  other 
place,  regiment  or  corps,  detached  battalion,  company,  or  other  detach- 
ment of  the  National  Guard  may  appoint  for  such  place  or  command  a 
summary  court  to  consist  of  one  officer,  who  shall  have  power  to  admin- 
ister oaths  and  to  try  the  enlisted  men  of  such  place  or  command  for 
breaches  of  discipline  and  violations  of  laws  governing  such  organi- 
zations ;  and  said  court,  when  satisfied  of  the  guilt  of  such  soldier,  may 
impose  fines  not  exceeding  $25  for  any  single  offense ;  may  sentence 
noncommissioned  officer  to  reduction  to  the  ranks ;  may  sentence  to  for- 
feiture of  pay  and  allowances.  The  proceedings  of  such  court  shall  be 
informal,  and  the  minutes  thereof  shall  be  the  same  as  prescribed  for 
summary  courts  of  the  Army  of  the  United  States. 

Sec.  106.  All  courts-martial  of  the  National  Guard,  not  in  the 
service  of  the  United  States,  including  summary  courts,  shall  have  power 


National  Defense  Act  585 

to  sentence  to  confinement  in  lieu  of  fines  authorized  to  be  imposed :  Pro- 
vided, That  such  sentences  of  confinement  shall  not  exceed  one  day  for 
each  dollar  of  fine  authorized. 

Sec.  107.  No  sentence  of  dismissal  from  the  service  or  dishon- 
orable discharge,  imposed  by  a  National  Guard  court-martial,  not  in  the 
service  of  the  United  States,  shall  be  executed  until  approved  by  the 
governor  of  the  State  or  Territory  concerned,  or  by  the  commanding 
general  of  the  National  Guard  of  the  District  of  Columbia. 

Sec.  108.  In  the  National  Guard,  not  in  the  service  of  the  United 
States,  presidents  of  courts-martial  and  summary  court  officers  shall 
have  power  to  issue  warrants  to  arrest  accused  persons  and  to  bring 
them  before  the  court  for  trial  whenever  such  persons  shall  have  dis- 
obeyed an  order  in  writing  from  the  convening  authority  to  appear  be- 
fore such  court,  a  copy  of  the  charge  or  charges  having  been  delivered 
to  the  accused  with  such  order,  and  to  issue  subpoenas  and  subpoenas 
duces  tecum  and  to  enforce  by  attachment  attendance  of  witnesses  and 
the  production  of  books  and  papers,  and  to  sentence  for  a  refusal  to  be 
sworn  or  to  answer  as  provided  in  actions  before  civil  courts. 

xA.ll  processes  and  sentences  of  said  courts  shall  be  executed  by  such 
civil  officers  as  may  be  prescribed  by  the  laws  of  the  several  States  and 
Territories,  and  in  any  State  where  no  provision  shall  have  been  made 
for  such  action,  and  in  the  Territories  and  the  District  of  Columbia, 
such  processes  and  sentences  shall  be  executed  by  a  United  States  mar- 
shal or  his  duly  appointed  deputy,  and  it  shall  be  the  duty  of  any  United 
States  marshal  to  execute  all  such  processes  and  sentences  and  make 
return  thereof  to  the  officer  issuing  or  imposing  the  same. 

Pay  for  National  Guard  Officers. 

Sec.  109.  Certain  commissioned  officers  on  the  active  list  belonging 
to  organizations  of  the  National  Guard  of  each  State,  Territory,  and 
the  District  of  Columbia  participating  in  the  apportionment  of  the  an- 
nual appropriation  for  the  support  of  the  National  Guard  shall  receive 
compensation  for  their  services,  except  during  periods  of  service  for 
which  they  may  become  lawfully  entitled  to  the  same  pay  as  officers  of 
corresponding  grades  of  the  Regular  Army,  as  follows,  not  to  include 
longevity  pay :  A  captain  $500  per  year  and  the  same  pay  shall  be  paid 
to  every  officer  of  higher  rank  than  that  of  captain,  a  first  lieutenant 
$240  per  year,  and  a  second  lieutenant  $200  per  year.  Regulations  to  be 
prescribed  by  the  Secretary  of  War  shall  determine  the  amount  and 
character  of  service  that  must  be  rendered  by  officers  to  entitle  them  to 
the  whole  or  specific  parts  of  the  maximum  pay  hereinbefore  authorized: 
Provided,  That  all  staff  officers,  aids-de-camp,  and  chaplains  shall  re- 
ceive not  to  exceed  one-half  of  the  pay  of  a  captain,  except  that  regi- 
mental adjutants,  and  majors  and  captains  in  command  of  machine-gun 
companies,  ambulance  companies,  field  hospital  companies,  or  sanitary 
troops  shall  receive  the  pay  hereinbefore  authorized  for  a  captain. 


586  Important  Federal  Laws 

Pay  for  National  Guard  Enlisted  Men. 

Sec.  110.  Each  enlisted  man  on  the  active  list  belonging  to  an 
organization  of  the  National  Guard  of  a  State,  Territory,  or  the  District 
of  Columbia,  participating  in  the  apportionment  of  the  annual  appro- 
priation for  the  support  of  the  National  Guard,  shall  receive  compensa- 
tion for  his  services,  except  during  periods  of  service  for  which  he 
may  become  lawfully  entitled  to  the  same  pay  as  an  enlisted  man  of 
corresponding  grade  in  the  Regular  Army,  at  a  rate  equal  to  twenty- 
five  per  centum  of  the  initial  pay  now  provided  by  law  for  enlisted 
men  of  corresponding  grades  of  the  Regular  Army:  Provided,  That  such 
enlisted  man  shall  receive  the  compensation  herein  provided  if  he  shall 
have  attended  not  less  than  forty-eight  regular  drills  during  any  one 
year,  and  a  proportionate  amount  for  attendance  upon  a  lesser  number 
of  such  drills,  not  less  than  twenty-four ;  and  no  such  enlisted  man 
shall  receive  any  part  of  said  compensation  except  as  authorized  by  this 
proviso  and  the  three  provisos  next  following:  Provided  further,  That 
the  compensation  provided  herein  shall  be  computed  for  semiannual 
periods,  beginning  the  first  day  of  January  and  the  first  day  of  July 
of  each  year,  in  proportion  to  the  number  of  drills  attended ;  and  no 
compensation  shall  be  paid  to  any  enlisted  man  for  the  first  semiannual 
period  of  any  year  unless  he  shall  have  attended  during  said  period  at 
least  twenty- four  drills,  but  any  lesser  number  of  drills  attended  during 
said  period  shall  be  reckoned  with  the  drills  attended  during  the  second 
semiannual  period  in  computing  the  compensation,  if  any,  due  him  for 
that  year:  Provided  further,  That  when  any  man  enters  into  an  enlist- 
ment other  than  an  immediate  re-enlistment  he  shall  be  entitled  to  propor- 
tional compensation  for  that  year  if  during  the  remainder  of  the  year 
he  shall  attend  a  number  of  drills  whose  ratio  to  twenty-four  is  not  less 
than  the  ratio  of  the  part  of  the  year  so  served  to  the  whole  year;  and 
when  any  man's  enlistment  shall  expire  the  compensation,  if  any,  to  which 
he  may  be  entitled  shall  be  determined  in  like  manner :  Provided  further, 
That  periods  of  any  actual  military  duty  equivalent  to  the  drills  herein 
prescribed  (except  those  periods  of  service  for  which  members  of  the 
National  Guard  may  become  lawfully  entitled  to  the  same  pay  as 
officers  and  enlisted  men  of  the  corresponding  grades  in  the  Regular 
Army)  may  be  accepted  as  service  in  lieu  of  such  drills  when  so  pro- 
vided by  the  Secretary  of  War. 

All  amounts  appropriated  for  the  purpose  of  this  and  the  last 
preceding  section  shall  be  disbursed  and  accounted  for  by  the  officers 
and  agents  of  the  Quartermaster  Corps  of  the  Army,  and  all  disburse- 
ments under  the  foregoing  provisions  of  this  section  shall  be  made 
as  soon  as  practicable  after  the  thirty-first  day  of  December  and  the 
thirtieth  day  of  June  of  each  year  upon  pay  rolls  prepared  and  authen- 
ticated in  the  manner  to  be  prescribed  by  the  Secretary  of  War :  Pro- 
vided, That  stoppages  may  be  made  against  the  compensation  payable 
to  any  officer  or  enlisted  man   hereunder  to   cover   the   cost   of   public 


National  Defense  Act  587 

property  lost  or  destroyed  by  and  chargeable  to  such  officer  or  enlisted 
man. 

Except  as  otherwise  specifically  provided  herein,  no  money  appro- 
priated under  the  provisions  of  this  or  the  last  preceding  section  shall 
be  paid  to  any  person  not  on  the  active  list,  nor  to  any  person  over 
sixty-four  years  of  age,  nor  to  any  person  who  shall  fail  to  qualify  as 
to  fitness  for  military  service  under  such  regulations  as  the  Secretary 
of  War  shall  prescribe,  nor  to  any  State,  Territory,  or  District,  or 
officer  or  enlisted' man  in  the  National  Guard  thereof,  unless  and  until 
such  State,  Territory,  or  District  provides  by  law  that  stafif  officers, 
including  officers  of  the  Pay,  Inspection,  Subsistence,  and  Medical 
Departments,  hereafter  appointed  shall  have  had  previous  military 
experience  and  shall  hold  their  positions  until  they  shall  have  reached 
the  age  of  sixty-four  years,  unless  retired  prior  to  that  time  by  reason 
of  resignation,  disability,  or  for  cause  to  be  determined  by  a  court- 
martial  legally  convened  for  that  purpose,  and  that  vacancies  among 
said  officers  shall  be  filled  by  appointment  from  the  officers  of  the 
militia  of  such  State,  Territory,  or  District :  Provided  further.  That 
the  preceding  proviso  shall  not  apply  to  any  State.  Territory,  or  Dis- 
trict until  sixty,  days  next  after  the  adjournment  of  the  next  session 
of  its  legislature  held  after  the  approval  of  this  Act. 

National  Guard  When  Drafted  Into  Federal  Service.  ] 

Sec.  111.  When  Congress  shall  have  authorized  the  use  of  the 
armed  land  forces  of  the  United  States,  for  any  purpose  requiring  the 
use  of  troops  in  excess  of  those  of  the  Regular  Army,  th^  President 
may,  under  such  regulations,  including  such  physical  examination,  as  he 
may  prescribe,  draft  into  the  military  service  of  the  United  States,  to 
serve  therein  for  the  period  of  the  war  unless  sooner  discharged,  any 
or  all  members  of  the  National  Guard  and  of  the  National  Guard 
Reserve.  All  persons  so  drafted  shall,  from  the  date  of  their  draft, 
stand  discharged  from  the  militia,  and  shall  from  said  date  be  subject 
to  such  laws  and  regulations  for  the  government  of  the  Army  of  the 
United  States  as  may  be  applicable  to  members  of  the  Volunteer  Army, 
and  shall  be  embodied  in  organizations  corresponding  as  far  as  prac- 
ticable to  those  of  the  Regular  Army  or  shall  be  otherwise  assigned 
as  the  President  may  direct.  The  commissioned  officers  of  said  organi- 
zations shall  be  appointed  from  among  the  members  thereof,  officers 
with  rank  not  above  that  of  colonel  to  be  appointed  by  the  President 
alone,  and  all  other  officers  to  be  appointed  by  the  President  by  and 
with  the  advice  and  consent  of  the  Senate.  Officers  and  enlisted  men 
in  the  service  of  the  United  States  under  the  terms  of  this  section 
shall  have  the  same  pay  and  allowances  as  officers  and  enlisted  men  of 
the  Regular  Army  of  the  same  grades  and  the  same  prior  service. 

Rights  to  Pensions. 

Sec.  112.     When  any  officer  or  enlisted  man  of  the  National  Guard 


588  Important  Federal  Laws 

drafted  into  the  service  of  the  United  States  in  time  of  war  is  dis- 
abled by  reason  of  wounds  or  disability  received  or  incurred  while  in 
the  active  service  of  the  United  States  in  time  of  war,  he  shall  be 
entitled  to  all  the  benefits  of  the  pension  laws  existing  at  the  time  of  his 
service,  and  in  case  such  officer  or  enlisted  man  dies  in  the  active  service 
of  the  United  States  in  time  of  war  or  in  returning  to  his  place  of 
residence  after  being  mustered  out  of  such  service,  or  at  any  other 
time  in  consequence  of  wounds  or  disabilities  received  in  such  active 
service,  his  widow  and  children,  if  any,  shall  be  entitled  to  all  the  bene- 
fits of  such  pension  laws. 

Encouragement  of  Rifle  Practice. 

Sec.  113.  The  Secretary  of  War  shall  annually  submit  to  Con- 
gress recommendations  and  estimates  for  the  establishment  and  main- 
tenance of  indoor  and  outdoor  rifle  ranges,  under  such  a  comprehensive 
plan  as  will  ultimately  result  in  providing  adequate  facilities  for  rifle 
practice  in  all  sections  of  the  country.  And  that  all  ranges  so  established 
and  all  ranges  which  may  have  already  been  constructed,  in  whole  or 
in  part,  with  funds  provided  by  Congress  shall  be  open  for  use  by 
those  in  any  branch  of  the  military  or  naval  service  of  the  United 
States  and  by  all  able-bodied  males  capable  of  bearing  arms,  under  rea- 
sonable regulations  to  be  prescribed  by  the  controlling  authorities  and 
approved  by  the  Secretary  of  War.  That  the  President  may  detail  capa- 
ble officers  and  noncommissioned  officers  of  the  Regular  Army  and 
National  Guard  to  duty  at  such  ranges  as  instructors  for  the  purpose 
of  training  the  citizenry  in  the  use  of  the  military  arm.  Where  rifle 
ranges  sh'hll  have  been  so  established  and  instructors  assigned  to  duty 
thereat,  the  Secretary  of  War  shall  be  authorized  to  provide  for  the  issue 
of  a  reasonable  number  of  standard  military  rifles  and  such  quantities 
of  ammunition  as  may  be  available  for  use  in  conducting  such  rifle 
practice. 

Temporary  Vacancies  in  Regular  Army  Due  to  Details  to  the  Na- 
tional Guard. 

Sec.  114.  In  time  of  war  the  temporary  vacancies  created  in  any 
grade  not  above  that  of  colonel  among  the  commissioned  personnel  of 
any  arm,  stafif  corps,  or  department  of  the  Regular  Army,  through  ap- 
pointments of  officers  thereof  to  higher  rank  in  organizations  composed 
of  members  taken  from  the  National  Guard,  shall  be  filled  by  tem- 
porary promotions  according  to  seniority  in  rank  from  officers  holding 
commissions  in  the  next  lower  grade  in  said  arm,  staflF,  corps,  or  depart- 
ment, and  all  vacancies  created  in  any  grade  by  such  temporary  pro- 
motions shall  be  in  like  manner  filled  from,  and  thus  create  temporary 
vacancies  in,  the  next  lower  grade,  and  the  vacancies  that  shall  remain 
thereafter  in  said  arm,  stafif  corps,  or  department  and  that  can  not  be 
filled  by  temporary  promotions,  as  prescribed  in  this  section,  may  be 
filled  by  the  temporary   appointment   of   officers  of   such   number  and 


National  Defense  Act  589 

grade  or  grades  as  shall  maintain  said  arm,  corps,  or  department  at 
the  full  commissioned  strength  authorized  by  law :  Provided,  That  in 
the  staff  corps  and  departments  subject  to  the  provisions  of  sections 
twenty-six  and  twenty-seven  of  the  Act  of  February  second,  nineteen 
hundred  and  one,  and  Acts  amendatory  thereof,  temporary  vacancies 
that  can  not  be  filled  by  temporary  promotions  as  hereinbefore  pre- 
scribed shall  be  filled  by  temporary  details  in  the  manner  prescribed 
in  said  sections  twenty-six  and  twenty-seven,  and  Acts  amicndatory  there- 
of, and  the  resulting  temporary  vacancies  in  the  branches  of  the  Army 
from  which  the  details  shall  be  so  made  shall  be  filled  as  hereinbefore  in 
this  section  prescribed :  Provided  further,  That  officers  temporarily  pro- 
moted or  appointed  under  the  terms  of  this  section  shall  be  promoted 
or  appointed  by  the  President,  by  and  with  the  advice  and  consent  of 
the  Senate,  for  terms  that  shall  not  extend  beyond  the  war  or  the  pass- 
ing of  the  emergencv  for  which  additional  forces  were  brought  into  the 
military  service  of  the  United  States,  and  at  the  termination  of  the 
war  or  the  passing  of  the  emergency  said  offiicers  shall  be  discharged 
from  the  positions  held  by  them  under  their  temporary  commissions  or 
appointments,  and  officers  detailed  as  herein  authorized  shall  be  relieved 
from  their  temporary  details :  And  provided  further.  That  officers  tem- 
porarily promoted  under  the  provisions  of  this  section  shall  not  vacate 
their  permanent  commissions  nor  be  prejudiced  in  their  relative  or  lineal 
standing  in  the  Regular  Army. 

Physical  Examination. 

Sec.  115.  Every  officer  and  enlisted  man  of  the  National  Guard 
who  shall  be  called  into  the  service  of  the  United  States  as  such  shall 
be  examined  as  to  his  physical  fitness  under  such  regulations  as  the 
President  may  prescribe  without  further  commission  or  enlistment :  Pro- 
vided, That  immediately  preceding  the  muster  out  of  an  officer  or  en- 
listed man  called  into  the  active  service  of  the  United  States  he  shall  be 
physically  examined  under  rules  prescribed  by  the  President  of  the 
United  States,  and  the  record  thereof  shall  be  filed  and  kept  in  the 
War  Department. 

Noncompliance  With  Federal  Act. 

Sec.  116.  Whenever  any  State  shall,  within  a  limit  of  time  to  be 
fixed  by  the  President,  have  failed  or  refused  to  comply  with  or  enforce 
any  requirement  of  this  Act,  or  any  regulation  promulgated  thereunder 
and  in  aid  thereof  by  the  President  or  the  Secretary  of  War,  the  Na- 
tional Guard  of  such  State  shall  be  debarred,  wholly  or  in  part,  as  the 
President  may  direct,  from  receiving  from  the  United  States  any  pe- 
cuniary or  other  aid,  benefit,  or  privilege  authorized  or  provided  by  this 
Act  or  any  other  law. 

Applicable  to  Land  Forces  Only. 

Sec.  117.  The  provisions  of  this  Act  in  respect  to  the  militia  shall 
be  applicable  only  to  militia  organized  as  a  land  force  and  not  to  the 


590  Important  Federal  Laws 

Naval  Militia,  which  shall  consist  of  such  part  of  the  militia  as  may 
be  prescribed  by  the  President  for  each  State,  Territory,  or  District : 
Provided,  That  each  State,  Territory,  or  District  maintaining  a  Naval 
Militia  as  herein  prescribed  may  be  credited  to  the  extent  of  the  number 
thereof  in  the  quota  that  would  otherwise  be  required  by  section  sixty- 
two  of  this  Act. 

Necessary  Rules  and  Regulations. 

Sec.  118.  The  President  shall  make  all  necessary  rules  and  regula- 
tions and  issue  such  orders  as  may  be  necessary  for  the  thorough  organi- 
zation, discipline,  and  government  of  the  militia  provided  for  in  this 
Act. 

Annual  Estimates  Required. 

Sec.  1 19.  The  Secretary  of  War  shall  cause  to  be  estimated  annually 
the  amount  necessary  for  carrying  out  the  provisions  of  so  much  of  this 
Act  as  relates  to  the  militia,  and  no  money  shall  be  expended  under 
said  provisions  except  as  shall  from  time  to  time  be  appropriatted  for 
carrying  them  out. 

Purchase  or  Procurement  of  Military  Supplies  in  Time  of  Actual  or 
Imminent  War. 

Sec.  120.  The  President,  in  time  of  war  or  when  war  is  immi- 
nent, is  empowered,  through  the  head  of  any  department  of  the  govern- 
ment, in  addition  to  the  present  authorized  methods  of  purchase  or  pro- 
curement, to  ])lace  an  order  with  any  individual,  firm,  association,  com- 
pany, corporation,  or  organized  manufacturing  industry  for  such  product 
or  material  as  may  be  rec|uired,  and  which  is  of  the  nature  and  kind 
usually  produced  or  capable  of  being  produced  by  such  individual,  firm, 
company,  association,  corporation,  or  organized  manufacturing  industry. 

Compliance  with  all  such  orders  for  products  or  material  shall  be 
obligatory  on  any  individual,  firm,  association,  company,  corporation, 
or  organized  manufacturing  industry  or  the  responsible  head  or  heads 
thereof  and  shall  take  precedence  over  all  other  orders  and  contracts 
theretofore  placed  with  such  individual,  firm,  company,  association,  cor- 
poration, or  organized  manufacturing  industry,  and  any  individual,  firm, 
association,  company,  corporation,  or  organized  manufacturing  industry 
or  the  responsible  head  or  heads  thereof  owning  or  operating  any  plant 
equipped  for  the  manufacture  of  arms  or  ammunition,  or  parts  of  ammu- 
nition, or  any  necessary  supplies  or  equipment  for  the  Army,  and  any 
individual,  firm,  association,  company,  corporation,  or  organized  manu- 
facturing industry  or  the  responsible  head  or  heads  thereof  owning  or 
operating  any  manufacturing  plant,  which,  in  the  opinion  of  the  Secre- 
tary of  War  shall  be  capable  of  being  readily  transformed  into  a  plant 
for  the  manufacture  of  arms  or  ammunition,  or  parts  thereof,  or  other 
necessary  supplies  or  equipment,  who  shall  refuse  to  give  to  the  United 
States  such  preference  in  the  matter  of  the  execution  of  orders,  or 
who  shall  refuse  to  manufacture  the  kind,  quantity,  or  quality  of  arms 


National  Defense  Act  591 

or  ammunition,  or  the  parts  thereof,  or  any  necessary  supplies  or  equip- 
ment, as  ordered  by  the  Secretary  of  War.  or  who  shall  refuse  to  furnish 
such  arms,  ammunition,  or  parts  of  ammunition,  or  other  supplies  or 
equipment,  at  a  reasonable  price  as  determined  by  the  Secretary  of 
War,  then,  and  in  either  such  case,  the  President,  through  the  head 
of  any  department  of  the  government,  in  addition  to  the  present  author- 
ized methods  of  purchase  or  procurement  herein  provided  for,  is  hereby 
authorized  to  take  immediate  possession  of  any  such  plant  or  plants, 
and  through  the  Ordnance  Department  of  the  United  States  Army,  to 
manufacture  therein  in  time  of  war,  or  when  war  shall  be  imminent, 
such  product  or  material  as  may  be  required,  and  any  individual,  firm, 
company,  association,  or  corporation,  or  organized  manufacturing  indus- 
try, or  the  responsible  head  or  heads  thereof,  failing  to  comply  with 
the  provisions  of  this  section  shall  be  deemed  guilty  of  a  felony,  and 
upon  conviction  shall  be  punished  by  imprisonment  for  not  more  than 
three  years  and  by  a  fine  not  exceed  $50,000. 

The  compensation  to  be  paid  to  any  individual,  firm,  company,  asso- 
ciation, corporation,  or  organized  manufacturing  industry  for  its  prod- 
ucts or  material,  or  as  rental  for  use  of  any  manufacturing  plant  while 
used  by  the  United  States,  shall  be  fair  and  just. 

The  Secretary  of  War  shall  also  make,  or  cause  to  be  made,  a  com- 
plete list  of  all  privately  owned  plants  in  the  United  States  equipped 
to  manufacture  arms  or  ammunition,  or  the  component  parts  thereof. 
He  shall  obtain  full  and  complete  information  regarding  the  kind  of 
arms  or  ammunition,  or  the  component  parts  thereof,  manufactured 
or  that  can  be  manufactured  by  each  such  plant,  the  equipment  in  each 
plant,  and  the  maximum  capacity  thereof.  He  shall  also  prepare,  or 
cause  to  be  prepared,  a  list  of  privately  owned  manufacturing  plants 
in  the  United  States  capable  of  being  readily  transformed  into  ammimi- 
tion  factories,  where  the  capacity  of  the  plant  is  sufficient  to  warrant 
transforming  such  plant  or  plants  into  ammunition  factories  in  time 
of  war  or  when  war  shall  be  imminent ;  and  as  to  all  such  plants  the 
Secretary  of  War  shall  obtain  full  and  complete  information  as  to  the 
equipment  of  each  such  plant,  and  he  shall  prepare  comprehensive  plans 
for  transforming  each  such  plant  into  an  ammunition  factory,  or  a 
factory  in  which  to  manufacture  such  parts  of  ammunition  as  in  the 
opinion  of  the  Secretary  of  War  such  plant  is  best  adapted. 

The  President  is  hereby  authorized,  in  his  discretion,  to  appoint  a 
Board  on  Mobilization  of  Industries  Essential  for  Military  Prepared- 
ness, nonpartisan  in  character,  and  to  take  all  necessary  steps  to  pro- 
vide for  such  clerical  assistance  as  he  may  deem  necessarv  to  organize 
and  co-ordinate  the  work  hereinbefore  described. 
Investigation  As  to  Government  Manufacture  of  Arms,  and  So  Forth. 

Sec.  121.  The  Secretary  of  War  is  hereby  authorized  to  appoint 
a  board  of  five  citizens,  two  of  whom  shall  be  civilians  and  three  of 
whom  shall  be  officers  of  the  Army,  to  investigate  and  report  to  him 


592  Important  Federal  Laws 

the  feasibility,  desirability,  and  practicability  of  the  government  manu- 
facturing arms,  munitions,  and  equipment,  showing  in  said  report  the 
comparative  prices  of  the  arms,  munitions,  and  equipment  manufactured 
in  government  plants  and  those  manufactured  in  private  plants,  the 
amount  of  money  necessary  to  build  and  operate  government  plants  for 
the  manufacture  of  arms,  munitions,  and  equipment ;  showing  also  what 
the  government  plants  and  arsenals  are  now  doing  in  the  way  of  manu- 
facturing arms,  munitions,  and  equipment,  and  what  saving  has  accrued 
to  the  government  by  reason  of  its  having  manufactured  a  large  part  of 
its  own  arms,  munitions,  and  equipment  for  the  last  four  years.  And 
the  Secretar}^  of  War  is  hereby  directed  to  transmit  said  report  to  Con- 
gress on  or  before  January  first  nineteen  hundred  and  seventeen. 

Investigation  Concerning  Medals  of  Honor. 

Sec.  122.  A  board  to  consist  of  five  general  officers  on  the  retired 
list  of  the  Army  shall  be  convened  by  the  Secretary  of  War,  within 
sixty  days  after  the  approval  of  this  Act.  for  the  purpose  of  investigat- 
ing and  reporting  upon  past  awards  or  issues  of  the  so-called  congres- 
sional medal  of  honor  by  or  through  the  War  Department;  this  with 
a  view  to  ascertain  what  medals  of  honor,  if  any,  have  been  awarded 
or  issued  for  any  cause  other  than  distinguished  conduct  by  an  officer 
or  enlisted  man  in  action  involving  actual  conflict  with  an  enemy  by 
such  officer  or  enlisted  man  or  by  troops  with  which  he  was  serving 
at  the  time  of  such  action.  And  in  any  case  in  which  said  board  shall 
find  and  report  that  said  medal  was  issued  for  any  cause  other  than 
that  hereinbefore  specified  the  name  of  the  recipient  of  the  medal  so 
issued  shall  be  stricken  permanently  from  the  official  medal  of  honor 
list.  It  shall  be  a  misdemeanor  for  him  to  wear  or  publicly  display  said 
medal,  and,  if  he  shall  still  be  in  the  Army,  he  shall  be  required  to 
return  said  medal  to  the  War  Department  for  cancellation.  Said  board 
shall  have  full  and  free  access  to  and  use  of  all  records  pertaining  to 
the  award  or  issue  of  medals  of  honor  by  or  through  the  War  Depart- 
ment. The  actual  and  necessary  expenses  of  said  board  and  its  mem- 
bers shall  be  paid  out  of  any  appropriations  available  for  contingent 
expenses  of  the  Army  of  the  War  Department. 

Procurement   of   Gauges,   Dies,   Jigs,   and    So   Forth,    Necessary   for 

Manufacture  of  Arms,  and  So  Forth. 

Sec.  123.  The  Secretary  of  War  be.  and  he  is  hereby,  authorized 
to  prepare  or  cause  to  be  prepared,  to  purchase  or  otherwise  procure,  such 
gauges,  dies,  jigs,  tools,  fixtures,  and  other  special  aids  and  appliances, 
including  specifications  and  detailed  drawings,  as  may  be  necessary  for 
the  immediate  manufacture,  by  the  government  and  by  private  manufac- 
turers, of  arms,  ammunition,  and  special  equipment  necessary  to  arm  and 
equip  the  land  forces  likely  to  be  required  by  the  United  States  in  time 
of  war :   Provided,  That  in  the  expenditure  of  any  sums  appropriated 


National  Defense  Act  593 

to  carry  out  the  purposes  of  this  section  the  existing  laws  prescribing 
competition  in  the  procurement  of  suppHes  by  purchase  shall  not  govern, 
whenever  in  the  opinion  of  the  Secretary  of  War  such  action  will 
be  for  the  best  interest  of  the  public  service. 

Nitrate  Supply. 

Sec.  124.  The  President  of  the  United  States  is  hereby  author- 
ized and  empowered  to  make,  or  cause  to  be  made,  such  investigation 
as  in  his  judgment  is  necessary  to  determine  the  best,  cheapest,  and 
most  available  means  for  the  production  of  nitrates  and  other  products 
for  munitions  of  war  and  useful  in  the  manufacture  of  fertilizers  and 
other  useful  products  by  water  power  or  any  other  power  as  in  his 
judgment  is  the  best  and  cheapest  to  use ;  and  is  also  hereby  authorized 
and  empowered  to  designate  for  the  exclusive  use  of  the  United  States, 
if  in  his  judgment  such  means  is  best  and  cheapest,  such  site  or  sites, 
upon  any  navigable  or  nonnavigable  river  or  rivers  or  upon  the  public 
lands,  as  in  his  opinion  will  be  necessary  for  carrying  out  the  purposes 
of  this  Act ;  and  is  further  authorized  to  construct,  maintain,  and 
operate,  at  or  on  any  site  or  sites  so  designated,  dams,  locks,  improve- 
ments to  navigation,  power  houses,  and  other  plants  and  equipment  or 
other  means  than  water  power  as  in  his  judgment  is  the  best  and 
cheapest,  necessary  or  convenient  for  the  generation  of  electrical  or 
other  power  and  for  the  production  of  nitrates  or  other  products 
needed  for  munitions  of  war  and  useful  in  the  manufacture  of  fertil- 
izers and  other  useful  products. 

The  President  is  authorized  to  lease,  purchase,  or  acquire,  by  con- 
demnation, gift,  grant,  or  devise,  such  lands  and  rights  of  way  as 
may  be  necessary  for  the  construction  and  operation  of  such  plants, 
and  to  take  from  any  lands  of  the  United  States,  or  to  purchase  or 
acquire  by  condemnation  materials,  minerals,  and  processes,  patented 
or  otherwise,  necessary  for  the  construction  and  operation  of  such 
plants  and  for  the  manufacture  of  such  products. 

The  products  of  such  plants  shall  be  used  by  the  President  for 
military  and  naval  purposes  to  the  extent  that  he  may  deem  necessary, 
and  any  surplus  which  he  shall  determine  is  not  required  shall  be 
sold  and  disposed  or  by  him  under  such  regulations  as  he  may  prescribe. 

The  President  is  hereby  authorized  and  empowered  to  employ  such 
officers,  agents,  or  agencies  as  may  in  his  discretion  be  necessary  to 
enable  him  to  carry  out  the  purposes  herein  specified,  and  to  authorize 
and  require  such  officers,  agents,  or  agencies  to  perform  any  and  all 
of  the  duties  imposed  upon  him  by  the  provisions  hereof. 

The  sum  of  $20,000,000  is  hereby  appropriated,  out  of  any  moneys 
in  the  Treasury  not  otherwise  appropriated,  available  until  expended, 
to  enable  the  President  of  the  United  States  to  carry  out  the  purposes 
herein  provided  for. 

The   plant   or   plants   provided    for   under   this    Act    shall    be    con- 
OS) 


594  Important  Federal  Laws 

structed  and  operated  solely  by  the  government  and  not  in  conjunc- 
tion with  any  other  industry  or  enterprise  carried  on  by  private  capital. 
In  order  to  raise  the  money  appropriated  by  this  Act  and  necessary 
to  carry  its  provisions  into  effect,  the  Secretary  of  the  Treasury,  upon 
the  request  of  the  President  of  the  United  States,  may  issue  and  sell, 
or  use  for  such  purpose  or  construction  hereinabove  authorized,  any 
of  the  bonds  of  the  United  States  now  available  in  the  Treasury  of  the 
United  States  under  the  Act  of  August  fifth,  nineteen  hundred  and 
nine,  the  Act  of  February  fourth,  nineteen  hundred  and  ten,  and  the 
Act  of  March  second,  nineteen  hundred  and  eleven,  relating  to  the 
issue  of  bonds  for  the  construction  of  the  Panama  Canal,  to  a  total 
amount  not  to  exceed  $20,000,000:  Provided,  That  any  Panama  Canal 
bonds  issued  and  sold  or  used  under  the  provisions  of  this  section  may 
be  made  payable  at  such  time  after  issue  as  the  Secretary  of  the  Treas- 
ury, in  his  discretion,  may  deem  advisable,  and  fix,  instead  of  fifty 
years  after  date  of  issue,  as  in  said  Act  of  August  fifth,  nineteen  hun- 
dred and  nine,  not  exceeding  fifty  years. 

Protection  of  the  Uniform. 

Sec.  125.  It  shall  be  unlawful  for  any  person  not  an  officer  or 
enlisted  man  of  the  United  States  Army,  Navy,  or  Tvlarine  Corps,  to 
wear  the  duly  prescribed  uniform  of  the  United  States  Army,  Navy, 
or  Marine  Corps,  or  any  distinctive  part  of  such  uniform,  or  a  uniform 
any  part  of  which  is  similar  to  a  distinctive  part  of  the  duly  prescribed 
uniform  of  the  United  States  Army,  Navy,  or  Marine  Corps:  Provided, 
That  the  foregoing  provision  shall  not  be  construed  so  as  to  prevent 
officers  or  enlisted  men  of  the  National  Guard  from  wearing,  in  pur- 
suance of  law  and  regulations,  the  uniform  lawfully  prescribed  to  be 
worn  bv  such  officers  or  enlisted  men  of  the  National  Guard ;  nor  to 
prevent  members  of  the  organization  known  as  the  Boy  Scouts  of 
America,  or  the  Naval  Militia,  or  such  other  organizations  as  the 
Secretary  of  War  may  designate,  from  wearing  their  prescribed  uni- 
forms ;  nor  to  prevent  persons  who  in  time  of  war  have  served  hon- 
orably as  officers  of  the  United  States  Army,  Navy,  or  Marine  Corps, 
Regular  or  Volunteer,  and  whose  most  recent  service  was  terminated  by 
an  honorable  discharge,  muster  out,  or  resignation,  from  wearing,  upon 
occasions  of  ceremony,  the  uniform  of  the  highest  grade  they  have 
held  by  brevet  or  other  commission  in  such  Regular  or  Volunteer 
service ;  nor  to  prevent  any  person  who  has  been  honorably  discharged 
from  the  United  States  Army,  Navy,  or  Marine  Corps,  Regular  or 
Volunteer,  from  wearing  his  uniform  from  the  place  of  his  discharge  to 
his  home,  within  three  months  after  the  date  of  such  discharge;  nor  to 
prevent  the  members  of  military  societies  composed  entirely  of  hon- 
orably discharged  officers  or  enlisted  men,  or  both,  of  the  United 
States  Army,  Navy,  or  Marine  Corps,  Regular  or  Volunteer,  from 
wearing,  upon  occasions  of  ceremony,  the  uniform  duly  prescribed  by 
such   societies   to   be   worn   by  the   members   thereof ;   nor   to   prevent 


National  Defense  Act  595 

the  instructors  and  members  of  the  duly  organized  cadet  corps  of  a 
State  university,  State  college,  or  public  high  school  offering  a  regular 
course  in  military  instruction  from  wearing  the  uniform  duly  pre- 
scribed by  the  authorities  of  such  university,  college,  or  public  high 
school  for  wear  by  the  instructors  and  members  of  such  cadet  corps ;  nor 
to  prevent  the  instructors  and  members  of  the  duly  organized  cadet 
corps  of  any  other  institution  of  learning  offering  a  regular  course 
in  military  instruction,  and  at  which  an  officer  or  enlisted  man  of  the 
United  States  Army,  Navy,  or  Marine  Corps  is  lawfully  detailed  for 
duty  as  instructor  in  military  science  and  tactics,  from  wearing  the 
uniform  duly  prescribed  by  the  authorities  of  such  institution  of  learn- 
ing for  wear  by  the  instructors  and  members  of  such  cadet  corps ;  nor 
to  prevent  civilians  attendant  upon  a  course  of  military  or  naval  instruc- 
tion authorized  and  conducted  by  the  military  or  naval  authorities  of 
the  United  States  from  wearing,  while  in  attendance  upon  such  course 
of  instruction,  the  uniform  authorized  and  prescribed  by  such  mili- 
tary or  naval  authorities  for  wear  during  such  course  of  instruction ; 
or  to  prevent  any  person  from  wearing  the  uniform  of  the  United 
States  Army,  Navy,  or  Marine  Corps  in  any  playhouse  or  theater  or  in 
moving-picture  films  while  actually  engaged  in  representing  therein  a 
military  or  naval  character  not  tending  to  bring  discredit  or  reproach 
upon  the  United  States  Army.  Navy,  or  Marine  Corps :  Provided 
further,  That  the  uniforms  worn  by  officers  or  enlisted  men  of  the 
National  Guard,  or  by  the  members  of  the  military  societies  or  the 
instructors  and  members  of  the  cadet  corps  referred  to  in  the  pre- 
ceding proviso  shall  include  some  distinctive  mark  or  insignia  to  be 
prescribed  by  the  Secretary  of  War  to  distinguish  such  uniforms  from 
the  uniforms  of  the  United  States  Army,  Navy,  and  Marine  Corps: 
And  provided  further,  That  the  members  of  the  military  societies  and 
the  instructors  and  members  of  the  cadet  corps  hereinbefore  men- 
tioned shall  not  wear  the  insignia  of  rank  prescribed  to  be  worn  by 
officers  of  the  United  States  Army,  Navy,  or  Marine  Corps,  or  any 
insignia  of  rank  similar  thereto. 

Any  person  who  offends  against  the  provisions  of  this  section  shall, 
on  conviction,  be  punished  by  a  fine  not  exceeding  $300,  or  by  impris- 
onment not  exceeding  six  months,  or  by  both  such  fine  and  impris- 
onment. 

Sec.  126.  On  and  after  July  first,  nineteen  hundred  and  sixteen, 
an  enlisted  man  when  discharged  from  the  service,  except  by  way  of 
punishment  for  an  offense,  shall  receive  3i^  cents  per  mile  from  the 
place  of  his  discharge  to  the  place  of  his  acceptance  for  enlistment, 
enrollment,  or  original  muster  into  the  service,  at  his  option :  Provided, 
That  for  sea  travel  on  discharge  transportation  and  subsistence  only 
shall  be  furnished  to  enlisted  men. 

Sec.  127.     Nothing  in  this  Act  shall  be  held  or  construed  so  as  to 


596  Important  Federal  Laws 

discharge  any  officer  from  the  Regular  Army  or  to  deprive  him  of  the 
commission  which  he  now  holds  therein. 

Sec.  128.     All  laws  and  parts  of  laws  in  so  far  as  they  are  incon- 
sistent with  this  Act  are  hereby  repealed. 


THE  CONSCRIPTION  ACT. 

Approved  May  IS.  1017. 
An  Act  to  authorize  the  President  to  increase  temporarily  the  Military  Estab- 
lishment of  the  United  States. 

Powers  Conferred  Upon  the  President. 

That  in  view  of  the  existing  emergency,  which  demands  the  raising 
of  troops  in  addition  to  those  now  available,  the  President  be,  and  he 
is  hereby,  authorized — 

First.  Immediately  to  raise,  organize,  officer,  and  equip  all  or  such 
number  of  increments  of  the  Regular  Army  provided  by  the  national 
defense  Act  approved  June  third,  nineteen  hundred  and  sixteen,  or  such 
part  thereof  as  he  may  deem  necessary  ;  to  raise  all  organizations  of  the 
Regular  Army,  including  those  added  by  such  increments,  to  the  maxi- 
mum enlisted  strength  authorized  by  law.  Vacancies  in  the  Regular  Army 
created  or  caused  by  the  addition  of  increments  as  herein  authorized 
which  can  not  be  filled  by  promotion  may  be  filled  by  temporary  ap- 
pointment for  the  period  of  the  emergency  or  until  replaced  by  per- 
manent appointments  or  by  provisional  appointments  made  under  the 
provisions  of  section  twenty-three  of  the  national  defense  Act  approved 
June  third,  nineteen  hundred  and  sixteen,  and  hereafter  provisional  ap- 
pointments under  said  section  may  be  terminated  whenever  it  is  deter- 
mined, in  the  manner  prescribed  by  the  President,  that  the  officer  has 
not  the  suitability  aiid  fitness  requisite  for  permanent  appointment. 

Second.  To  draft  into  the  military  service  of  the  United  States, 
organize,  and  officer,  in  accordance  with  the  provisions  of  section  one 
hundred  and  eleven  of  said  national  defense  Act,  so  far  as  the  provi- 
sions of  said  section  may  be  applicable  and  not  inconsistent  with  the 
terms  of  this  Act,  any  or  all  members  of  the  National  Guard  and  of 
the  National  Guard  Reserves,  and  said  members  so  drafted  into  the 
military  service  of  the  United  States  shall  serve  therein  for  the  period 
of  the  existing  emergency  unless  sooner  discharged :  Provided,  That 
when  so  drafted  the  organizations  or  units  of  the  National  Guard  shall, 
so  far  as  practicable,  retain  the  State  designations  of  their  respective 
organizations. 

Third.  To  raise  by  draft  as  herein  provided,  organize  and  equip 
an  additional  force  of  five  hundred  thousand  enlisted  men,  or  such  part 
or  parts  thereof  as  he  may  at  any  time  deem  necessary,  and  to  provide  the 
necessary  officers,  line  and  stafif,  for  said  force  and  for  organizations 
of  the  other  forces  hereby  authorized,  or  by  combining  organizations  of 
said  other  forces,  by  ordering  members  of  the  Officers'  Reserve  Corps  to 


Conscription  Act  597 

temporary  duty  in  accordance  with  the  provisions  of  section  thirty- 
eight  of  the  national  defense  Act  approved  June  third,  nineteen  hundred 
and  sixteen  ;  by  appointment  from  the  Regular  Army,  the  Officers  Re- 
serve Corps,  from  those  duly  qualified  and  registered  pursuant  to  sec- 
tion twenty-three  of  the  Act  of  Congress  approved  January  twenty-first, 
nineteen  hundred  and  three  (Thirty-second  Statutes  at  Large,  page 
seven  hundred  and  seventy-five),  from  the  members  of  the  National 
Guard  drafted  into  the  service  of  the  United  States,  from  those  who 
have  been  graduated  from  edutational  institutions  at  which  military 
instruction  is  compulsory,  or  from  those  who  have  had  honorable  serv- 
ice in  the  Regular  Army,  the  National  Guard,  or  in  the  volunteer  forces, 
or  from  the  country  at  large;  by  assigning  retired  officers  of  the  Regular 
Army  to  active  duty  with  such  force  with  their  rank  on  the  retired 
list  and  the  full  pay  and  allowances  of  their  grade;  or  by  the  appoint- 
ment of  retired  officers  and  enlisted  men,  active  or  retired,  of  the  Regu- 
lar Army  as  commissioned  officers  in  such  forces :  Provided,  That  the 
organization  of  said  force  shall  be  the  same  as  that  of  the  correspond- 
ing organizations  of  the  Regular  Army :  Provided  further,  That  the 
President  is  authorized  to  increase  or  decrease  the  number  of  organiza- 
tions prescribed  for  the  typical  brigades,  divisions,  or  army  corps  of 
the  Regular  x\rmy.  and  to  prescribe  such  new  and  different  organiza- 
tions and  personnel  for  army  corps,  divisions,  brigades,  regiments, 
battalions,  squadrons,  companies,  troops,  and  batteries  as  the  efficiency 
of  the  service  may  require :  Provided  further,  That  the  number  of  or- 
ganizations in  a  regiment  shall  not  be  increased  nor  shall  the  number 
of  regiments  be  decreased :  Provided  further,  That  the  President  in 
his  discretion  may  organize,  officer,  and  equip  for  each  Infantry  and 
Cavalry  brigade  three  machine-gun  companies,  and  for  each  Infantry 
and  Cavalry  division  four  machine-gun  companies,  all  in  addition  to 
the  machine-gun  companies  comprised  in  organizations  included  in  such 
brigades  and  divisions :  Provided  further,  That  the  President  in  his 
discretion  mav  organize  for  each  division  one  armored  motor-car  ma- 
chine-gun company.  The  machine-gun  companies  organized  under  this 
section  shall  consist  of  such  commissioned  and  enlisted  personnel  and  be 
equipped  in  such  manner  as  the  President  may  prescribe :  And  provided 
further.  That  officers  with  rank  not  above  that  of  colonel  shall  be  ap- 
pointed by  the  President  alone,  and  officers  above  that  grade  by  the 
President  by  and  with  the  advice  and  consent  of  the  Senate :  Provided 
further.  That  the  President  may  in  his  discretion  recommission  in  the 
Coast  Guard  persons  who  have  heretofore  held  commissions  in  the 
Revenue-Cutter  Service  or  the  Coast  Guard  and  have  left  the  service 
honorably,  after  ascertaining  that  they  are  qualified  for  service  physically, 
morally,  and  as  to  age  and  military  fitness. 

Fourth.  The  President  is  further  authorized,  in  his  discretion  and 
at  such  time  as  he  mav  determine,  to  raise  and  begin  the  training-  of 
an  additional  force  of  five  hundred  thousand  men  organized,  officered, 


598  Important  Federal  Laws 

and  equipped,  as  provided  for  the  force  first  mentioned  in  the  preceding 
paragraph  of  this  section. 

Fifth.  To  raise  by  draft,  organize,  equip,  and  officer,  as  provided 
in  the  third  paragraph  of  this  section,  in  addition  to  and  for  each  of 
the  above  forces,  such  recruit  training  units  as  he  may  deem  necessary 
for  the  maintenance  of  such  forces  at  the  maximum  strength. 

Sixth.  To  raise,  organize,  officer,  and  maintain  during  the  emer- 
gency such  number  of  ammunition  batteries  and  battaHons,  depot  bat- 
teries and  battaHons,  and  such  artillery  parks,  with  such  numbers  and 
grades  of  personnel  as  he  may  deem  necessary.  Such  organizations 
shall  be  officered  in  the  manner  provided  in  the  third  paragraph  of  this 
section,  and  enlisted  men  may  be  assigned  to  said  organizations  from  any 
of  the  forces  herein  provided  for  or  raised  by  selective  draft  as  by  this 
Act  provided/ 

Seventh.  The  President  is  further  authorized  to  raise  and  main- 
tain by  voluntary  enlistment,  to  organize,  and  equip,  not  to  exceed  four 
infantry  divisions,  the  officers  of  which  shall  be  selected  in  the  manner 
provided  by  paragraph  three  of  section  one  of  this  Act:  Provided,  That 
the  organization  of  said  force  shall  be  the  same  as  that  of  the  corre- 
sponding organization  of  the  Regular  Army :  And  provided  further, 
That  there  shall  be  no  enlistments  in  said  force  of  men  under  twenty- 
five  years  of  age  at  time  of  enlisting:  And  provided  further.  That  no 
such  volunteer  force  shall  be  accepted  in  any  unit  smaller  than  a  division. 

Selective  Draft. 

Sec.  2.     That  the  enlisted  men  required  to  raise  and  maintain  the 
organizations  of  the  Regular  Army  and  to  complete  and  maintain  the 
organizations  embodying  the  members  of  the  National  Guard  drafted 
into  the  service  of  the  United  States,  at  the  maximum  legal  strength 
as  by  this  Act  provided,  shall  be  raised  by  voluntary  enlistment,  or  if 
and  whenever  the  President  decides  that  they  can  not  eflfectually  be  so 
raised  or  maintained,  then  by  selective  draft ;  and  all  other  forces  hereby 
authorized,  except  as  provided  in  the  seventh  paragraph  of  section  one, 
shall  be  raised  and  maintained  by   selective  draft  exclusively ;  but  this 
provision  shall  not  prevent  the  transfer  to  any  force  of  training  cadres 
from  other  forces.     Such  draft  as  herein  provided  shall  be  based  upon 
liability   to   military   service   of   all   male  citizens,   or   male   persons   not 
alien    enemies    who    have    declared    their   intention    to    become    citizens, 
between   the  ages  of  twenty-one   and  thirty  years,  both   inclusive,  and 
shall  take  place  and  be  maintained  under  such  regulations  as  the  Presi- 
dent may  prescribe  not  inconsistent  with  the  terms  of  this  Act.     Quotas 
for  the  several  States,  Territories,  and  the  District  of  Columbia,  or  sub- 
divisions thereof,   shall  be   determined  in  proportion  to  the  population 
thereof,  and  credit  shall  be  given  to  any  State,  Territory,   District,   or 
subdivision  thereof,   for  the  number  of  men  who  were  in  the  military 
service  of  the  United  States  as  members  of  the  National  Guard  on  April 
first,  nineteen  hundred  and  seventeen,  or  who  have  since  said  date  en- 


Conscription  Act  ,  599 

tered  the  military  service  of  the  United  States  from  any  such  State, 
Territory,  District,  or  subdivision,  either  as  members  of  the  Regular 
Army  or  the  National  Guard.  All  persons  drafted  into  the  service  of  the 
United  States  and  all  officers  accepting  commissions  in  the  forces  herein 
provided  for  shall,  from  the  date  of  said  draft  or  acceptance,  be  subject 
to  the  laws  and  regulations  governing  the  Regular  Army,  except  as  to 
promotions,  so  far  as  such  laws  and  regulations  are  applicable  to  per- 
sons whose  permanent  retention  in  the  military  service  on  the  active 
or  retired  list  is  not  contemplated  by  existing  law,  and  those  drafted 
shall  be  required  to  serve  for  the  period  of  the  existing  emergency  un- 
less sooner  discharged:  Provided,  That  the  President  is  authorized  to 
raise  and  maintain  by  voluntary  enlistment  or  draft,  as  herein  pro- 
vided, special  and  technical  troops  as  he  may  deem  necessary,  and  to 
embodv  them  into  organizations  and  to  officer  them  as  provided  in  the 
third  paragraph  of  section  one  and  section  nine  of  this  Act.  Organiza- 
tions of  the  forces  herein  provided  for,  except  the  Regular  Army  and 
the  divisions  authorized  in  the  seventh  paragraph  of  section  one,  shall, 
as  far  as  the  interests  of  the  service  permit,  be  composed  of  men  who 
come,  and  of  officers  who  are  appointed  from,  the  same  State  or  locality. 

Bounties  and  Substitutes  Prohibited. 

Sec.  3.  No  bounty  shall  be  paid  to  induce  any  person  to  enlist  in 
the  military  service  of  the  United  States;  and  no  person  liable  to  mili- 
tary service  shall  hereafter  be  permitted  or  allowed  to  furnish  a  substi- 
tute for  such  service ;  nor  shall  any  substitute  be  received,  enlisted,  or 
enrolled  in  the  military  service  of  the  United  States;  and  no  such  per- 
son shall  be  permitted  to  escape  such  serA'ice  or  to  be  discharged  there- 
from prior  to  the  expiration  of  his  term  of  service  by  the  payment  of 
money  or  any  other  valuable  thing  whatsoever  as  consideration  for  his 
release  from  military  service  or  liability  thereto. 

Exemptions. 

Sec.  4.  That  the  Vice-President  of  the  United  States,  the  officers, 
legislative,  executive,  and  judicial,  of  the  United  States  and  of  the  sev- 
eral States,  Territories,  and  the  District  of  Columbia,  regular  or  duly 
ordained  ministers  of  religion,  students  who  at  the  time  of  the 
approval  of  this  Act  are  preparing  for  the  ministry  in  recognized  theo- 
logical or  divinity  schools,  and  all  persons  in  the  military  and  naval  serv- 
ice of  the  United  States  shall  be  exempt  from  the  selective  draft  herein 
prescribed ;  and  nothing  in  this  Act  contained  shall  be  construed  to  re- 
quire or  compel  any  person  to  serve  in  any  of  the  forces  herein  pro- 
vided for  who  is  found  to  be  a  member  of  any  well-recognized  religious 
sect  or  organization  at  present  organized  and  existing  and  whose  exist- 
ing creed  or  principles  forbid  its  members  to  participate  in  war  in  any 
form  and  whose  religious  convictions  are  against  war  or  participation 
therein  in  accordance  with  the  creed  or  principles  of  said  religious 
organizations,  but  no  person  so  exempted  shall  be  exempted  from  serv- 
ice in  any  capacity  that  the  President  shall  declare  to  be  noncombatant ; 


600  Important  Federal  Laws 

and  the  President  is  hereby  authorized  to  exck:de  or  discharge  from  said 
selective  draft  and  from  the  draft  under  the  second  paragraph  of  sec- 
tion one  hereof,  or  to  draft  for  partial  military  service  only  from 
those  liable  to  draft  as  in  this  Act  provided,  persons  of  the  following 
classes  :  County  and  municipal  officials  ;  customhouse  clerks  ;  persons  em- 
ployed by  the  United  States  in  the  transmission  of  the  mail ;  artificers 
and  workmen  employed  in  the  armories,  arsenals,  and  navy  yards  of 
the  United  States,  and  such  other  persons  employed  in  the  service  of  the 
United  States  as  the  President  may  designate ;  pilots  ;  mariners  actually 
employed  in  the  sea  service  of  any  citizen  or  merchant  within  the  United 
States ;  persons  engaged  in  industries,  including  agriculture,  found  to  be 
necessary  to  the  maintenance  of  the  Military  Establishment  or  the  efifect- 
ive  operation  of  the  military  forces  or  the  maintenance  of  national 
interest  during  the  emergency :  those  in  a  status  with  respect  to  persons 
dependent  upon  them  for  support  which  renders  their  exclusion  or 
discharge  advisable ;  and  those  found  to  be  physically  or  morally  de- 
ficient. No  exemption  or  exclusion  shall  continue  when  a  cause  there- 
for no  longer  exists :  Provided,  That  notwithstanding  the  exemptions 
enumerated  herein,  each  State,  Territory,  and  the  District  of  Columbia 
shall  be  required  to  supply  its  quota  in  the  proportion  that  its  population 
bears  to  the  total  population  of  the  United  States. 

The  President  is  hereby  authorized,  in  his  discretion,  to  create  and 
establish  throughout  the  several  States  and  subdivisions  thereof  and  in 
the  Territories  and  the  District  of  Columbia  local  boards,  and  where,  in 
his  discretion,  practicable  and  desirable,  there  shall  be  created  and  estab- 
lished one  such  local  board  in  each  county  or  similar  subdivision  in  each 
State,   and  one    for  approximately   each   thirty   thousand   of   population 
in  each  city  of  thirty  thousand  population  or  over,  according  to  the  last 
census  taken   or  estimates   furnished  by   the   Bureau  of   Census   of   the 
Department  of  Cominerce.     Such  boards  shall  be  appointed  by  the  Presi- 
dent, and  shall  consist  of  three  or  more  members,  none  of  whom  shall 
be  connected  with  the  IVIilitary  Establishment,  to  be  chosen  from  among- 
the  local  authorities  of  such  subdivisions  or  from  other  citizens  resid- 
ing in^  the  subdivision  or  area  in  which  the  respective  boards  will  have 
jurisdiction   under  the   rules   and    regulations   prescribed   by   the    Presi- 
dent.    Such  boards  shall  have  power  within  their  respective  jurisdiction 
to  hear  and   determine,   subject  to  review   as   hereinafter  provided,   all 
questions  of  exemption  under  this  Act,  and  all  questions  of  or  claims 
for  including  or  discharging  individuals  or  classes  of  individuals   from 
the   selective   draft,   which   shall   be   made   under   rules   and   regulations 
prescribed   by  the   President,   except   any   and   every   question   or   claim 
for  including  or  excluding  or  discharging  persons  or  classes  of  persons 
from  the  selective  draft  under  the  provisions  of  this  Act   authorizing 
the  President  to  exclude  or  discharge  from  the  selective  draft  "Persons 
engaged  in  industries,   including  agriculture,    found  to  be   necessary  to 
the  maintenance  of  the  Military  Establishment,   or  the  effective  opera- 


Conscription  Act  601 

tion  of  the  military  forces,  or  the  maintenance  of  national  interest  dur- 
ing the  emergency." 

The  President  is  hereby  authorized  to  estabHsh  additional  boards, 
one  in  each  Federal  judicial  district  of  the  United  States,  consisting  of 
such  number  of  citizens,  not  connected  with  the  Military  Establishment, 
as  the  President  may  determine,  who  shall  be  appointed  by  the  Presi- 
dent. The  President  is  hereby  authorized,  in  his  discretion,  to  establish 
more  than  one  such  board  in  any  Federal  judicial  district  of  the  United 
States,  or  to  establish  one  such  board  having  jurisdiction  of  an  area 
extending  into  more  than  one  Federal  judicial  district. 

Such  district  boards  shall  review  on  appeal  and  affirm,  modify,  or 
reverse  any  decision  of  any  local  board  having  jurisdiction  in  the  area 
in  which  any  such  district  board  has  jurisdiction  under  the  rules  and 
regulations  prescribed  by  the  President.  Such  district  boards  shall  have 
exclusive  original  jurisdiction  within  their  respective  areas  to  hear  and 
determine  all  questions  or  claims  for  including  or  excluding  or  discharg- 
ing persons  or  classes  of  persons  from  the  selective  draft,  under  the 
provisions  of  this  Act,  not  included  within  the  original  jurisdiction  of 
such  local  boards. 

The  decisions  of  such  district  boards  shall  be  final  except  that, 
in  accordance  with  such  rules  and  regulations  as  the  President  may 
prescribe,  he  may  affirm,  modify  or  reverse  any  such  decision. 

Any  vacancy  in  any  such  local  board  or  district  board  shall  be 
filled  by  the  President,  and  any  member  of  any  such  local  board  or 
district  board  may  be  removed  and  another  appointed  in  his  place  by 
the  President,  whenever  he  considers  that  the  interest  of  the  nation  de- 
mands it. 

The  President  shall  make  rules  and  regulations  governing  the  organ- 
ization and  procedure  of  such  local  boards  and  district  boards,  and  pro- 
viding for  and  governing  appeals  from  such  local  boards  to  such  district 
boards,  and  reviews  of  the  decisions  of  any  local  board  by  the  district 
board  having  jurisdiction,  and  determining  and  prescribing  the  several 
areas  in  which  the  respective  local  boards  and  district  boards  shall  have 
jurisdiction,  and  all  other  rules  and  regulations  necessary  to  carry  out 
the  terms  and  provisions  of  this  section,  and  shall  provide  for  the  issu- 
ance of  certificates  of  exemption,  or  partial  or  limited  exemptions,  and 
for  a  system  to  exclude  and  discharge  individuals  from  selective  draft. 

Registration. 

Sec.  5.  That  all  male  persons  between  the  ages  of  twenty-one  and 
thirty,  both  inclusive,  shall  be  subject  to  registration  in  accordance  with 
regulations  to  be  prescribed  by  the  President ;  and  upon  proclamation 
by  the  President  or  other  public  notice  given  by  him  or  by  his  direction 
stating  the  time  and  place  of  such  registration  it  shall  be  the  duty  of 
all  persons  of  the  designated  ages,  except  officers  and  enlisted  men 
of  the  Regular  Army,  the  Navy,  and  the  National  Guard  and  Naval 
Militia  while  in  the  service  of  the  United  States,  to  present  themselves 


602  Important  Federal  Laws 

for  and  submit  to  registration  under  the  provisions  of  this   Act;   and 
every  such  person  shall  be  deemed  to  have  notice  of  the  requirements 
of  this  Act  upon  the  publication  of   said  proclamation  or  other  notice 
as  aforesaid  given  by  the  President  or  by  his  direction ;  and  any  person 
who  shall  willfully  fail  or  refuse  to  present  himself  for  registration  or 
to  submit  thereto  as  herein  provided,  shall  be  guilty  of  a  misdemeanor 
and   shall,   upon   conviction   in  the   district   court   of   the   United   States 
having  jurisdiction  thereof,  be  punished  by  imprisonment  for  not  more 
than  one  year,  and  shall  thereupon  be  duly  registered:  Provided,  That 
in  the  call  of  the  docket  precedence  shall  be  given,  in  courts  trying  the 
same,  to  the  trial  of  criminal  proceedings  under  this  Act :    Provided  fur- 
ther.  That  persons  shall  be  subject  to   registration   as  herein   provided 
who  shall  have  attained  their  twenty-first  birthday  and  who   shall  not 
have  attained  their  thirty-first  birthday  on  or  before  the  day  set  for  the 
registration,  and  all  persons  so  registered  shall  be  and  remain  subject  to 
draft   into  the    forces   hereby   authorized,   unless   exempted   or   excused 
therefrom  as  in  this  Act  pro'vided :     Provided  further,  That  in  the  case 
of  temporary  absence  from  actual  place  of  legal  residence  of  any  person 
liable  to  registration  as  provided  herein  such  registration  may  be  made 
by  mail  under  regulations  to  be  prescribed  by  the  President. 

Use  of  State  and  National  Officers. 

Sec.  6.  That  the  President  is  hereby  authorized  to  utilize  the  ser- 
vice of  any  or  all  departments  and  any  or  all  officers  or  agents  of  the 
United  States  and  of  the  several  States,  Territories,  and  the  District  of 
Columbia,  and  subdivisions  thereof,  in  the  execution  of  this  Act,  and  all 
officers  and  agents  of  the  United  States  and  of  the  several  States,  Ter- 
ritories, and  subdivisions  thereof,  and  of  the  District  of  Columbia,  and 
all  persons  designated  or  appointed  under  regulations  prescribed  by  the 
President  whether  such  appointments  are  made  by  the  President  him- 
self or  by  the  governor  or  other  officer  of  any  State  or  Territory  to 
perform  any  dutv  in  the  execution  of  this  Act,  are  hereby  required  to 
perform  such  duty  as  the  President  shall  order  or  direct,  and  all  such 
officers  and  agents  and  persons  so  designated  or  appointed  shall  hereby 
have  full  authority  for  all  acts  done  by  them  in  the  execution  of  this 
Act  by  the  direction  of  the  President.  Correspondence  in  the  execution 
of  this  Act  may  be  carried  in  penalty  envelopes  bearing  the  frank  of 
the  War  Department.  Any  person  charged  as  herein  provided  with  the 
duty  of  carrying  into  effect  any  of  the  provisions  of  this  Act  or  the 
regulations  made  or  directions  given  thereunder  who  shall  fail  or  neglect 
to  perform  such  duty ;  and  any  person  charged  with  such  duty  or  having 
and  exercising  any  authoritv  under  said  Act,  regulations,  or  directions, 
who  shall  knowingly  make  or  be  a  party  to  the  making  of  any  false  or 
incorrect  registration,  physical  examination,  exemption,  enlistment,  en- 
rollment, or  muster;  and  any  person  who  shall  make  or  be  a  party  to 
the  making  of  any  false  statement  or  certificate  as  to  the  fitness  or 
liability  of'himself  or  any  other  person  for  service  under  the  provisions 


Conscription  Act  603 

of  this  Act,  or  regulations  made  by  the  President  thereunder,  or  other- 
wise evades  or  aids  another  to  evade  the  requirements  of  this  Act  or  of 
said  regulations,  or  who,  in  any  manner,  shall  fail  or  neglect  fully  to 
perform  any  duty  required  of  him  in  the  execution  of  this  Act,  shall, 
if  not  subject  to  military  law,  be  guilty  of  a  misdemeanor,  and  upon  con- 
viction in  the  district  court  of  the  United  States  having  jurisdiction 
thereof,  be  punished  by  imprisonment  for  not  more  than  one  year,  or, 
if  subject  to  military  law,  shall  be  tried  by  court-martial  and  suffer  such 
punishment  as  a  court-martial  may  direct. 

Voluntary  Enlistments. 

Sec.  7.  That  the  qualifications  and  conditions  for  voluntary  en- 
listment as  herein  provided  shall  be  the  same  as  those  prescribed  by  ex- 
isting law  for  enlistments  in  the  Regular  Army,  except  that  recruits 
must  be  between  the  ages  of  eighteen  and  forty  years,  both  inclusive, 
at  the  time  of  their  enlistment ;  and  such  enlistments  shall  be  for  the 
period  of  the  emergency  unless  sooner  discharged.  All  enlistments, 
including  those  in  the  Regular  Army  Reserve,  which  are  in  force  on 
the  date  of  the  approval  of  this  Act  and  which  would  terminate  during 
the  emergency  shall  continue  in  force  during  the  emergency  unless 
sooner  discharged  ;  but  nothing  herein  contained  shall  be  construed  to 
shorten  the  period  of  any  existing  enlistment :  Provided,  That  all  per- 
sons enlisted  or  drafted  under  any  of  the  provisions  of  this  Act  shall  as 
far  as  practicable  be  grouped  into  units  by  States  and  the  political  sub- 
divisions of  the  same :  Provided  further,  That  all  persons  who  have 
enlisted  since  April  first,  nineteen  hundred  and  seventeen,  either  in  the 
Regular  Army  or  in  the  National  Guard,  and  all  persons  who  have 
enlisted  in  the  National  Guard  since  June  third,  nineteen  hundred  and 
sixteen,  upon  their  application,  shall  be  discharged  upon  the  termina- 
tion of  the  existing  emergency. 

The  President  may  provide  for  the  discharge  of  any  or  all  enlisted 
men  whose  status  with  respect  to  dependents  renders  such  discharge 
advisable ;  and  he  may  also  authorize  the  employment  on  any  active  duty 
of  retired  enlisted  men  of  the  Regular  Army,  either  with  their  rank  on 
the  retired  list  or  in  higher  enlisted  grades,  and  such  retired  enlisted 
men  shall  receive  the  full  pay  and  allowances  of  the  grades  in  which 
they  are  actively  employed. 

Appointment  of  General  Officers  of  the  Nevv^  Army. 

Sec.  8.  That  the  President,  by  and  with,  the  advice  and  consent 
of  the  Senate,  is  authorized  to  appoint  for  the  period  of  the  existing 
emergency  such  general  officers  of  appropriate  grades  as  may  be  neces- 
sary for  duty  with  brigades,  divisions,  and  higher  units  in  which  the 
forces  provided  for  herein  may  be  organized  by  the  President,  and  gen- 
eral officers  of  appropriate  grade  for  the  several  Coast  Artillery  dis- 
tricts. In  so  far  as  such  appointments  may  be  made  from  any  of  the 
forces  herein  provided  for,  the  appointees  may  be  selected  irrespective 
of  the  grades  held  by  them  in  such  forces.     Vacancies  in  all  grades  in 


604  Important  Federal  Laws 

the  Regular  Army  resulting  from  the  appointment  of  officers  thereof  to 
higher  grades  in  the  forces  other  than  the  Regular  Army  herein  pro- 
vided for  shall  be  filled  by  temporary  promotions  and  appointments  in 
the  manner  prescribed  for  filling  temporary  vacancies  by  section  one 
hundred  and  fourteen  of  the  national  defense  Act  approved  June  third, 
nineteen  hundred  and  sixteen ;  and  officers  appointed  under  the  pro- 
visions of  this  Act  to  higher  grades  in  the  forces  other  than  the  Regular 
Army  herein  provided  for  shall  not  vacate  their  permanent  commissions 
nor  be  prejudiced  in  their  relative  or  lineal  standing  in  the  Regular 
Army. 

Appointment  for  Period  of  War. 

Sec.  9.  That  the  appointments  authorized  and  made  as  provided  by 
the  second,  third,  fourth,  fifth,  sixth,  and  seventh  paragraphs  of  section 
one  and  by  section  eight  of  this  Act,  and  the  temporary  appointments  in 
the  Regular  Army  authorized  by  the  first  paragraph  of  section  one  of 
this  Act,  shall  be  for  the  period  of  the  emergency,  unless  sooner  termi- 
nated bv  discharge  or  otherwise.  The  President  is  hereby  authorized 
to  discharge  any  officer  from  the  office  held  by  him  under  such  appoint- 
ment for  any  cause  which,  in  the  judgment  of  the  President,  would 
promote  the  public  service  ;  and  the  general  commanding  any  division 
and  higher  tactical  organization  or  territorial  department  is  authorized 
to  appoint  from  time  to  time  military  boards  of  not  less  than  three  nor 
more  than  five  officers  of  the  forces  herein  provided  for  to  examine  into 
and  report  upon  the  capacity,  qualification,  conduct,  and  efficiency  of  any 
commissioned  officer  within  his  command  other  than  officers  of  the 
Reo-ular  Army  holding  permanent  or  provisional  commissions  therein. 
Each  member  of  such  board  shall  be  superior  in  rank  to  the  officer 
whose  qualifications  are  to  be  inquired  into,  and  if  the  report  of  such 
board  be  adverse  to  the  continuance  of  any  such  officer  and  be  approved 
by  the  President,  such  officer  shall  be  discharged  from  the  service  at 
the  discretion  of  the  President  with  one  month's  pay  and  allowances. 

Pay  of  Officers  and  Enlisted  Men. 

Sec.  10.  That  all  officers  and  enlisted  men  of  the  forces  herein 
provided  for  other  than  the  Regular  Army  shall  be  in  all  respects  on  the 
same  footing  as  to  pay,  allowances,  and  pensions  as  officers  and  enlisted 
men  of  corresponding  grades  and  length  of  service  in  the  Regular 
Army ;  and  commencing  June  one.  nineteen  hundred  and  seventeen,  and 
continuing  until  the  termination  of  the  emergency,  all  enlisted  men  of 
the  Army  of  the  United  States  in  active  service  whose  base  pay  does 
not  exceed  $21  per  month  shall  receive  an  increase  of  $15  per  month; 
those  whose  base  pay  is  $24,  an  increase  of  $12  per  month ;  those  whose 
base  pav  is  $30,  $36,  or  $40,  an  increase  of  $8  per  month  ;  and  those 
whose  base  pay  in  $45  or  more,  an  increase  of  $6  per  month :  Provided, 
That  the  increases  of  pay  herein  authorized  shall  not  enter  into  the  com- 
putation of  the  continuous-service  pay. 


Conscription  Act  605 

Restrictions  Suspended. 

Sec.  11.  That  all  existing  restrictions  upon  the  detail,  detachment, 
and  employment  of  officers  and  enlisted  men  of  the  Regular  Army  are 
hereby  suspended  for  the  period  of  the  present  emergency. 

Prohibition  of  Intoxicating  Liquors. 

Sec.  12.  That  the  President  of  the  United  States,  as  Commander 
in  Chief  of  the  Army,  is  authorized  to  make  such  regulations  governing 
the  prohibition  of  alcoholic  liquors  in  or  near  military  camps  and  to  the 
officers  and  enlisted  men  of  the  Army  as  he  may  from  time  to  time  deem 
necessary  or  advisable :  Provided,  That  no  person,  corporation,  partner- 
ship, or  association  shall  sell,  supply,  or  have  in  his  or  its  possession 
any  intoxicating  or  spirituous  liquors  at  any  military  station,  canton- 
ment, camp,  fort,  post,  officers  or  enlisted  men's  club,  which  is  being  used 
at  the  time  for  military  purposes  under  this  Act,  but  the  Secretary  of 
War  may  make  regulations  permitting  the  sale  and  use  of  intoxicating 
liquors  for  medicinal  purposes.  It  shall  be  unlawful  to  sell  any  intoxi- 
cating liquor,  including  beer,  ale,  or  wine,  to  any  officer  or  member  of 
the  military  forces  while  in  uniform,  except  as  herein  provided.  Any 
person,  corporation,  partnership,  or  association  violating  the  provisions 
of  this  section  or  the  regulations  made  thereunder  shall,  unless  other- 
wise punishable  under  the  Articles  of  War,  be  deemed  guilty  of  a  mis- 
demeanor and  be  punished  by  a  fine  of  not  more  than  $1,000  or  impris- 
onment for  not  more  than  twelve  months,  or  both. 

Prohibition  of  Houses  of  Prostitution. 

Sec.  13.  That  the  Secretary  of  War  is  hereby  authorized,  em- 
powered, and  directed  during  the  present  war  to  do  everything  by  him 
deemed  necessary  to  suppress  and  prevent  the  keeping  or  setting  up  of 
houses  of  ill  fame,  brothels,  or  bawdy  houses  within  such  distance  as 
he  may  deem  needful  of  any  military  camp,  station,  fort,  post,  canton- 
ment, training,  or  mobilization  place,  and  any  person,  corporation,  part- 
nership, or  association  receiving  or  permitting  to  be  received  for  im- 
moral purposes  any  person  into  any  place,  structure,  or  building  used 
for  the  purpose  of  lewdness,  assignation,  or  prostitution  within  such 
distance  of  said  places  as  may  be  designated,  or  shall  permit  any  such 
person  to  remain  for  immoral  purposes  in  any  such  place,  structure,  or 
building  as  aforesaid,  or  who  shall  violate  any  order,  rule,  or  regulation 
issued  to  carry  out  the  object  and  purpose  of  this  section  shall,  unless 
otherwise  punishable  under  the  Articles  of  War,  be  deemed  guilty  of  a 
misdemeanor  and  be  punished  by  a  fine  of  not  more  than  $1,000,  or 
imprisonment  for  not  more  than  twelve  months,  or  both. 

Repeal. 

Sec.  14.  That  all  laws  and  parts  of  laws  in  conflict  with  the  pro- 
visions of  this  Act  are  hereby  suspended  during  the  period  of  this 
emergency. 


606  Important  Federal  Laws 

SHIPPING  BOARD  ACT. 

Act  of  September  7,  1916. 
An  Act  to  establish  a  United  States  Shipping  Board  for  the  purpose  of  encour- 
aging, developing,  and  creating  a  naval  auxiliary  and  naval  reserve  and  a 
merchant  marine  to  meet  the  requirements  of  the  commerce  of  the  United 
States  with  its  Territories  and  possessions  and  with  foreign  countries;  to 
regulate  carriers  by  water  engaged  in  the  foreign  and  interstate  commerce 
of  the  United  States;   and  for  other  purposes. 

Meaning  of  Terms. 

Sec.  1.  That  when  used  in  this  Act  the  term  "common  carrier 
by  water  in  foreign  commerce"  means  a  common  carrier,  except  ferry- 
boats running  on  regular  routes,  engaged  in  the  transportation  by  wateX 
of  passengers  or  property  between  the  United  States  or  any  of  its 
Districts,  Territories,  or  possessions  and  a  foreign  country,  whether 
in  the  import  or  export  trade :  Provided,  That  a  cargo  boat  commonly 
called  an  ocean  tramp  shall  not  be  deemed  such  "common  carrier  by 
water  in  foreign  commerce." 

The  term  "common  carrier  by  water  in  interstate  commerce" 
means  a  common  carrier  engaged  in  the  transportation  by  water  of 
passengers  or  property  on  the  high  seas  or  the  Great  Lakes  on  regular 
routes  from  port  to  port  between  one  State,  Territory,  District,  or 
possession  of  the  United  States  and  any  other  State,  Territory,  Dis- 
trict, or  possession  of  the  United  States,  or  between  places  in  the 
same  Territory,  District,  or  Possession. 

The  term  "common  carrier  by  water"  means  a  common  carrier  by 
water  in  foreign  commerce  or  a  common  carrier  by  water  in  inter- 
state commerce  on  the  high  seas  or  the  Great  Lakes  on  regular  routes 
from  port  to  port. 

The  term  "other  person  subject  to  this  Act"  means  any  person  not 
included  in  the  term  "common  carrier  by  water,"  carrying  on  the 
business  of  forwarding  or  furnishing  wharfage,  dock,  warehouse,  or 
other  terminal  facilities  in  connection  with  a  common  carrier  by  water. 

The  term  "person"  includes  corporations,  partnerships,  and  asso- 
ciations, existing  under  or  authorized  by  the  laws  of  the  United 
States,  or  any  State,  Territory,  District,  or  possession  thereof,  or  of 
any  foreign  country. 

Citizenship  Requirement. 

Sec.  2.  That  within  the  meaning  of  this  Act  no  corporation,  part- 
nership, or  association  shall  be  deemed  a  citizen  of  the  United  States 
unless  the  controlling  interest  therein  is  owned  by  citizens  oi  the 
United  States,  and,  in  the  case  of  a  corporation,  unless  its  president 
and  managing  directors  are  citizens  of  the  United  States  and  the  cor- 
poration itself  is  organized  under  the  laws  of  the  United  States  or  of 
a  State,  Territory,  District,  or  possession  thereof. 

The  provisions  of  this  Act  shall  apply  to  receivers  and  trustees  of 


Shipping  Board  Act  607 

all  persons  to  whom  the  Act  applies,  and  to  the  successors  or  assignees 
of  such  persons. 

United  States  Shipping  Board. 

Sec.  3.  That  a  board  is  hereby  created,  to  be  known  as  the  United 
States  Shipping  Board,  and  hereinafter  referred  to  as  the  board. 
The  board  shall  be  composed  of  five  commissioners,  to  be  appointed 
by  the  President,  by  and  with  the  advice  and  consent  of  the  Senate ; 
said  board  shall  annually  elect  one  of  its  members  as  chairman  and 
one  as  vice  chairman. 

The  first  commissioners  appointed  shall  continue  in  office  for  terms 
of  two,  three,  four,  five,  and  six  years,  respectively,  from  the  date  of 
their  appointment,  the  term  of  each  to  be  designated  by  the  Presi- 
dent, but  their  successors  shall  be  appointed  for  terms  of  six  years, 
except  that  any  person  chosen  to  fill  a  vacancy  shall  be  appointed 
only  for  the  unexpired  term  of  the  commissioner  whom  he  succeeds. 

The  commissioners  shall  be  appointed  with  due  regard  to  their 
fitness  for  the  efficient  discharge  of  the  duties  imposed  on  them  by 
this  Act.  and  to  a  fair  representation  of  the  geographical  divisions  of 
the  country.  Xot  more  than  three  of  the  commissioners  shall  be  ap- 
pointed from  the  same  political  party.  No  commissioner  shall  be  in  the 
employ  of  or  hold  any  official  relation  to  any  common  carrier  bv  water 
or  other  person  subject  to  this  Act,  or  own  any  stocks  or  bonds  thereof, 
or  be  pecuniarily  interested  therein.  No  commissioner  shall  actively 
engage  in  any  other  business,  vocation,  or  employment.  Any  commis- 
sioner may  be  removed  by  the  President  for  inefficiency,  neglect  of  duty, 
or  malfeasance  in  office.  A  vacancy  in  the  board  shall  not  impair  the 
right  of  the  remaining  members  of  the  board  to  exercise  all  its  powers. 
The  board  shall  have  an  official  seal,  which  shall  be  judicially  noticed. 

The  board  may  adopt  rules  and  regulations  in  regard  to  its  proce- 
dure and  the  conduct  of  its  business. 

Salaries  of  Officials ;  Organization. 

Sec.  4.  That  each  member  of  the  board  shall  receive  a  salary  of 
$7,500  per  annum.  The  board  shall  appoint  a  secretary,  at  a  salary  of 
$5,000  per  annum,  and  employ  and  fix  the  compensation  of  such  attor- 
neys, officers,  naval  architects,  special  experts,  examiners,  clerks,  and 
other  employees  as  it  may  find  necessary  for  the  proper  performance  of 
its  duties  and  as  may  be  appropriated  for  by  the  Congress.  The  Presi- 
dent, upon  the  request  of  the  board,  may  authorize  the  detail  of  officers 
of  the  military,  naval,  or  other  services  of  the  United  States  for  such 
duties  as  the  board  may  deem  necessary  in  connection  with  its  business. 

With  the  exception  of  the  secretary,  a  clerk  to  each  commissioner, 
the  attorneys,  naval  architects,  and  such  special  experts  and  examiners 
as  the  board  may  from  time  to  time  find  necessary  to  employ  for  the 
conduct  of  its  work,  all  employees  of  the  board  shall  be  appointed  from 


608  Important  Federal  Laws 

lists  of  eligibles  to  be  supplied  by  the  Civil  Service  Commission  and  in 
accordance  with  the  civil-service  law. 

The  expenses  of  the  board,  including  necessary  expenses  for  trans- 
portation, incurred  by  the  members  of  the  board  or  by  its  employees 
under  its  orders,  in  making  any  investigation,  or  upon  official  business 
in  any  other  place  than  in  the  city  of  Washington,  shall  be  allowed  and 
paid  on  the  presentation  of  itemized  vouchers  therefor  approved  by  the 
chairman  of  the  board. 

Until  otherwise  provided  by  law  the  board  may  rent  suitable  offices 

for  its  use. 

The  Auditor  for  the  State  and  other  Departments  shall  receive  and 
examine  all  accounts  of  expenditures  of  the  board. 

Authority  to  Build,  Charter  or  Buy  Vessel. 

Sec.  5.  That  the  board,  with  the  approval  of  the  President,  is 
authorized  to  have  constructed  and  equipped  in  American  shipyards  and 
navy  yards  or  elsewhere,  giving  preference,  other  things  being  equal,  to 
domestic  yards,  or  to  purchase,  lease,  or  charter,  vessels  suitable,  as  far 
as  the  commercial  requirements  of  the  marine  trade  of  the  United  States 
may  permit,  for  use  as  naval  auxiliaries  or  Army  transports,  or  for  other 
naval  or  military  purposes,  and  to  make  necessary  repairs  on  and  altera- 
tions of  such  vessels :  Provided,  That  neither  the  board  nor  any  corpo- 
ration formed  under  section  eleven  in  which  the  United  States  is  then  a 
stockholder  shall  purchase,  lease,  or  charter  any  vessel — 

(a)  Which  is  then  engaged  in  the  foreign  or  domestic  commerce  of 
the  United  States,  unless  it  is  about  to  be  withdrawn  from  such  com- 
merce without  any  intention  on  the  part  of  the  owner  to  return  it  thereto 
within  a  reasonable  time  ; 

(b)  Which  is  under  the  registry  or  flag  of  a  foreign  country  which 

is  then  engaged  in  war; 

(c)  Which  is  not  adapted,  or  can  not  by  reasonable  alterations  and 
repairs  be  adapted,  to  the  purposes  specified  in  this  section;  ^ 

(d)  Which,  upon  expert  examination  made  under  the  direction  of 
the  board,  a  written  report  of  such  examination  being  filed  as  a  public 
record,  is  not  without  alteration  or  repair  found  to  be  at  least  seventy- 
five  per  centum  as  efficient  as  at  the  time  it  was  originally  put  in  com- 
mission as  a  seaworthy  vessel. 

Transfers  of  Government  Owned  Vessels  to  Board. 

Sec.  6.  That  the  President  may  transfer  either  permanently  or  for 
limited  periods  to  the  board  such  vessels  belonging  to  the  War  or  Navy 
Department  as  are  suitable  for  commercial  uses  and  not  required  for 
military  or  naval  use  in  time  of  peace,  and  cause  to  be  transferred  to  the 
board  vessels  owned  by  the  Panama  Railroad  Company  and  not  re- 
quired in  its  business. 

Charters  to  Citizens. 

Sec.  7.     That  the  board,  upon  terms  and  conditions  prescribed  by  it 


Shipping  Board  Act  609 

and  approved  by  the  President,  may  charter,  lease,  or  sell  to  any  person, 
a  citizen  of  the  United  States,  any  vessel  so  purchased,  constructed,  or 
transferred. 

Sale  of  Unserviceable  Vessels. 

Sec.  8.  That  when  any  vessel  purchased  or  constructed  by  or  trans- 
ferred to  the  board  as  herein  provided,  and  owned  by  the  United  States, 
becomes,  in  the  opinion  of  the  board,  unfit  for  the  purposes  of  this  Act, 
it  shall  be  appraised  and  sold  at  public  or  private  competitive  sale  after 
due  advertisement  free  from  the  conditions  and  restrictions  of  this  Act. 

American  Registry  and  Enrollment  Allowed. 

Sec.  9.  That  any  vessel  purchased,  chartered,  or  leased  from  the 
board  may  be  registered  or  enrolled  and  licensed,  or  both  registered  and 
enrolled  and  licensed,  as  a  vessel  of  the  United  States  and  entitled  to  the 
benefits  and  privileges  appertaining  thereto:  Provided,  That  foreign- 
built  vessels  admitted  to  American  registry  or  enrollment  and  license 
under  this  Act,  and  vessels  owned,  chartered,  or  leased  by  any  corpo- 
ration in  which  the  United  States  is  a  stockholder,  and  vessels  sold, 
leased,  or  chartered  to  any  person  a  citizen  of  the  United  States,  as  pro- 
vided in  this  Act,  may  engage  in  the  coastwise  trade  of  the  United  States. 

Every  vessel  purchased,  chartered,  or  leased  from  the  board  shall, 
unless  otherwise  authorized  by  the  board,  be  operated  only  under  such 
registry  or  enrollment  and  license.  Such  vessels  while  employed  solely 
as  merchant  vessels  shall  be  subject  to  all  laws,  regulations,  and  liabili- 
ties governing  merchant  vessels,  whether  the  United  States  be  interested 
therein  as  owner,  in  whole  or  in  part,  or  hold  any  mortgap-e.  lien,  or 
other  interest  therein.  No  such  vessel,  without  the  approval  of  the  board, 
shall  be  transferred  to  a  foreign  registry  or  flag,  or  sold  ;  nor,  except 
under  regulations  prescribed  by  the  board,  be  chartered  or  leased. 

When  the  United  States  is  at  war,  or  during  any  national  emergency 
the  existence  of  which  is  declared  by  proclamation  of  the  President,  no 
vessel  registered  or  enrolled  and  licensed  under  the  laws  of  the  United 
States  shall,  without  the  approval  of  the  board,  be  sold,  leased,  or  char- 
tered to  any  person  not  a  citizen  of  the  United  States,  or  transferred  to 
a  foreign  registry  or  flag.  No  vessel  registered  or  enrolled  and  licensed 
under  the  laws  of  the  United  States,  or  owned  by  any  person  a  citizen  of 
the  United  States,  except  one  which  the  board  is  prohibited  from  pur- 
chasing, shall  be  sold  tO'  any  person  not  a  citizen  of  the  United  States 
or  transferred  to  a  foreign  registry  or  flag,  unless  such  vessel  is  first 
tendered  to  the  board  at  the  price  in  good  faith  offered  by  others,  or, 
if  no  such  offer,  at  a  fair  price  to  be  determined  in  the  manner  provided 
in  section  ten. 

Any  vessel  sold,  chartered,  leased,  transferred,  or  operated  in  viola- 
tion of  this  section  shall  be  forfeited  to  the  United  States,  and  whoever 
violates  any  provision  of  this  section  shall  be  giiilty  of  a  misdemeanor 
and  subject  to  a  fine  of  not  more  than  $5,000  or  to  imprisonment  of  not 
more  than  five  years,  or  both  such  fine  and  imprisonment. 

(39) 


610  Important  Federal  Laws 

Possession  by  the  President  for  Military  or  Naval  Use. 

Sec.  10.  That  the  President,  upon  giving  to  the  person  interested 
such  reasonable  notice  in  writing  as  in  his  judgment  the  circumstances 
permit,  may  take  possession,  absohitely  or  temporarily,  for  any  naval  or 
miHtarv  purpose,  of  any  vessel  purchased,  leased,  or  chartered  from  the 
board :' Provided,  That  if,  in  the  judgment  of  the  President,  an  emer- 
gency exists  requiring  such  action  he  may  take  possession  of  any  such 
vessel  without  notice. 

Thereafter,  upon  ascertainment  by  agreement  or  otherwise ,  the 
United  States  shall  pay  the  person  interested  the  fair  actual  value  based 
upon  normal  conditions  at  the  time  of  taking  of  the  interest  of  such  per- 
son in  every  vessel  taken  absolutely,  or  if  taken  for  a  limited  period, 
the  fair  charter  value  under  normal  conditions  for  such  period.  In  case 
of  disagreement  as  to  such  fair  value  it  shall  be  determined  by  appraisers, 
one  to  be  appointed  by  the  board,  one  by  the  person  interested,  and  a 
third  by  the  two  so  appointed.  The  finding  of  such  appraisers  shall  be 
final  and  binding  upon  both  parties. 

Shipping  Corporation — Charter  and  Purposes. 

Sec.  11.  That  the  board,  if  in  its  judgment  such  action  is  necessary 
to  carry  out  the  purposes  of  this  Act,  may  form  under  the  laws  of  the 
District  of  Columbia  one  or  more  corporations  for  the  purchase,  con- 
struction, equipment,  lease,  charter,  maintenance,  and  operation  of  mer- 
chant vessels  in  the  commerce  of  the  United  States.  The  total  capital 
stock  thereof  shall  not  exceed  $50,000,000.  The  board  may,  for  and  on 
behalf  of  the  United  States,  subscribe  to,  purchase,  and  vote  not  less 
than  a  majority  of  the  capital  stock  of  any  such  corporation,  and  do  all 
other  things  in  regard  thereto  necessary  to  protect  the  interests  of  the 
United  States  and  to  carry  out  the  purposes  of  this  Act.  The  board, 
with  the  approval  of  the  President,  may  sell  any  or  all  of  the  stock  of 
the  United  States  in  such  corporation,  but  at  no  time  shall  it  be  a  minority 
stockholder  therein :  Provided,  That  no  corporation  in  which  the  United 
States  is  a  stockholder,  formed  under  the  authority  of  this  section,  shall 
engage  in  the  operation  of  any  vessel  constructed,  purchased,  leased, 
chartered,  or  transferred  under  the  authority  of  this  Act  unless  the 
board  shall  be  unable,  after  a  bona  fide  effort,  to  contract  with  any  person 
a  citizen  of  the  United  States  for  the  purchase,  lease,  or  charter  of  such 
vessel  under  such  terms  and  conditions  as  may  be  prescribed  by  the  board. 

The  board  shall  give  public  notice  of  the  fact  that  vessels  are  offered 
and  the  terms  and  conditions  upon  which  a  contract  will  be  made,  and 
shall  invite  competitive  offerings.  In  the  event  the  board  shall,  after  full 
compliance  with  the  terms  of  this  proviso,  determine  that  it  is  unable  to 
enter  into  a  contract  with  such  private  parties  for  the  purchase,  lease,  or 
charter  of  such  vessel,  it  shall  make  a  full  report  to  the  President,  who 
shall  examine  such  report,  and  if  he  shall  approve  the  same  he  shall 
make  an  order  declaring  that  the  conditions  have  been   found  to  exist 


Shipping  Board  x\ct  611 

which  justify  the  operation  of  such  vessel  by  a  corporation  formed  under 
the  provisions  of  this  section. 

At  the  expiration  of  five  years  from  the  conclusion  of  the  present 
European  war  the  operation  of  vessels  on  the  part  of  any  such  corpora- 
tion in  which  the  United  States  is  then  a  stockholder  shall  cease  and  the 
said  corporation  stand  dissolved.  The  date  of  the  conclusion  of  the  war 
shall  be  declared  by  proclamation  of  the  President.  The  vessels  and 
other  property  of  any  such  corporation  shall  revert  to  the  board.  The 
board  may  sell,  lease,  or  charter  such  vessels  as  provided  in  section  seven 
and  shall  dispose  of  the  property  other  than  vessels  on  the  best  available 
terms  and,  after  payment  of  all  debts  and  obligations,  deposit  the  pro- 
ceeds thereof  in  the  Treasury  to  its  credit.  All  stock  in  such  corpora- 
tions owned  by  others  than  the  United  States  at  the  time  of  dissolution 
shall  be  taken  over  by  the  board  at  a  fair  and  reasonable  value  and  paid 
for  with  funds  to  the  credit  of  the  board.  In  case  of  disagreement,  such 
value  shall  be  determined  in  the  manner  provided  in  section  ten. 

Investigations  by  the  Board — Reports. 

Sf.c.  12.  That  the  board  shall  investigate  the  relative  cost  of  build- 
ing merchant  vessels  in  the  United  States  and  in  foreign  maritime  coun- 
tries, and  the  relative  cost,  advantages,  and  disadvantages  of  operating 
in  the  foreign  trade  vessels  under  United  States  registry  and  under 
foreign  registry.  It  shall  examine  the  rules  under  which  vessels  are 
constructed  abroad  and  in  the  United  States,  and  the  methods  of  classi- 
fying and  rating  same,  and  it  shall  examine  into  the  subject  of  marine 
insurance,  the  number  of  companies  in  the  United  States,  domestic  and 
foreign,  engaging  in  marine  insurance,  the  extent  of  the  insurance  on 
hulls  and  cargoes  placed  or  written  in  the  United  States,  and  the  extent 
of  reinsurance  of  American  maritime  risks  in  foreign  companies,  and 
ascertain  what  steps  may  be  necessary  to  develop  an  ample  marine  in.?ur- 
ance  system  as  an  aid  in  the  development  of  an  American  merchant 
marine.  It  shall  examine  the  navigation  laws  of  the  United  States  and 
the  rules  and  regulations  thereunder,  and  make  such  recommendations 
to  the  Congress  as  it  deems  proper  for  the  amendment,  improvement, 
and  revision  of  such  laws,  and  for  the  development  of  the  American 
merchant  marine.  It  shall  investigate  the  legal  status  of  mortgage  loans 
en  vessel  property,  with  a  view  to  means  of  improving  the  security  of 
such  loans  and  of  encouraging  investment  in  American  shipping. 

It  shall,  on  or  before  the  first  day  of  December  in  each  year,  make 
a  report  to  the  Congress,  which  shall  include  its  recommendations  and 
the  results  of  its  investigations,  a  summary  of  its  transactions,  and  a 
statement  of  all  expenditures  and  receipts  under  this  Act,  and  of  the 
operations  of  any  corporation  in  which  the  United  States  is  a  stock- 
holder, and  the  names  and  compensation  of  all  persons  employed  by 
the  board. 
Bond  Issue  Authorized. 

Sec.  13.     That  for  the  purpose  of  carrying  out  the  provisions  of  sec- 


612  Important  Federal  Laws 

tions  five  and  eleven  no  liability  shall  be  incurred  exceeding  a  total  of 
$50,000,000  and  the  Secretary  of  the  Treasury,  upon  the  request  of  the 
board,  approved  by  the  President,  shall  from  time  to  time  issue  and  sell 
or  use  any  of  the  bonds  of  the  United  States  now  available  in  the 
Treasury  under  the  Acts  of  August  fifth,  nineteen  hundred  and  nine, 
February  fourth,  nineteen  hundred  and  ten,  and  March  second,  nineteen 
hundred  and  eleven,  relating  to  the  issue  of  bonds  for  the  construction 
of  the  Panama  Canal,  to  a  total  amount  not  to  exceed  $50,000,000: 
Provided,  That  any  bonds  issued  and  sold  or  used  under  the  provisions 
of  this  section  may  be  made  payable  at  such  time  within  fifty  years  after 
issue  as  the  Secretary  of  the  Treasury  may  fix,  instead  of  fiftv  years 
after  the  date  of  issue,  as  prescribed  in  the  Act  of  August  fifth,  nineteen 
hundred  and  nine. 

The  proceeds  of  such  bonds  and  the  net  proceeds  of  all  sales,  char- 
ters and  leases  of  vessels  and  of  sales  of  stock  made  by  the  board,  and 
all  other  moneys  received  by  it  from  any  source,  shall  be  covered  into 
the  Treasury  to  the  credit  of  the  board,  and  are  hereby  permanently 
appropriated  for  the  purpose  of  carrying  out  the  provisions  of  sections 
five  and  eleven. 

Common  Carriers  by  Water — Restrictions. 

Sec.  14.  That  no  common  carrier  by  water  shall  directly  or  indi- 
rectly— 

First.  Pay,  or  allow,  or  enter  into  any  combination,  agreement,  or 
understanding,  express  or  implied,  to  pay  or  allow,  a  deferred  rebate  to 
any  shipper.  The  term  "deferred  rebate"  in  this  Act  means  a  return 
of  any  portion  of  the  freight  money  by  a  carrier  to  any  shipper  as  a 
consideration  for  the  giving  of  all  or  any  portion  of  his  shipments  to 
the  same  or  any  other  carrier,  or  for  any  other  purpose,  the  payment  of 
which  is  deferred  beyond  the  completion  of  the  service  for  which  it  is 
paid,  and  is  made  onlv  if,  during  both  the  period  for  which  computed 
and  the  period  of  deferment,  the  shipper  has  complied  with  the  terms 
of  the  rebate  agreement  or  arrangement. 

Second.  Use  a  fighting  ship  either  separately  or  in  conjunction 
with  any  other  carrier,  through  agreement  or  otherwise.  The  term 
"fighting  ship"  in  this  Act  means  a  vessel  used  in  a  particular  trade  by 
a  carrier  or  group  of  carriers  for  the  purpose  of  excluding,  preventing, 
or  reducing  competition  by  driving  another  carrier  out  of  said  trade. 

Third.  Retaliate  against  any  shipper  by  refusing,  or  threatening 
to  refuse,  space  accommodations  when  such  are  available,  or  resort  to 
other  discriminating  or  unfair  methods,  because  such  shipper  has  pat- 
ronized any  other  carrier  or  has  filed  a  complaint  charging  unfair  treat- 
ment, or  for  any  other  reason. 

Fourth.  Make  any  unfair  or  unjustlv  discriminatory  contract  with 
any  shipper  based  on  the  volume  of  freight  offered,  or  unfairly  treat 
or  unjustly  discriminate  against  any  shipper  in  the  matter  of  (a)  cargo 
space  accommodations  or  other  facilities,  due  regard  being  had  for  the 


Shipping  Board  Act  613 

proper  loading  of  the  vessel  and  the  available  tonnage;  (b)  the  loading 
and  landing  of  freight  in  proper  condition;  or  (c)  the  adjustment  and 
settlement  of  claims. 

Any  carrier  who  violates  any  provision  of  this  section  shall  be 
guilty  of  a  misdemeanor  punishable  by  a  fine  of  not  more  than  $25,000 
for  each  ofifense. 

Statement  of  All  Rate  Agreements  to  be  Filed  With  Board. 

Sec.  15.  That  every  common  carrier  by  water,  or  other  person  sub- 
ject to  this  Act,  shall  file  immediately  with  the  board  a  true  copy,  or, 
if  oral,  a  true  and  complete  memorandum,  of  every  agreement  with 
another  such  carrier  or  other  person  subject  to  this  Act,  or  modifica- 
tion or  cancellation  thereof,  to  which  it  may  be  a  party  or  conform  in 
whole  or  in  part,  fixing  or  regulating  transportation  rates  or  fares  ;  giving 
or  receiving  special  rates,  accommodations,  or  other  special  privileges 
or  advantages ;  controlling,  regulating,  preventing,  or  destroying  compe- 
tition ;  pooling  or  apportioning  earnings,  losses,  or  traffic ;  allotting  ports 
or  restricting  or  otherwise  regulating  the  number  and  character  of  sail- 
ings between  ports ;  limiting  or  regulating  in  any  way  the  volume  or 
character  of  freight  or  passenger  traffic  to  be  carried ;  or  in  any  manner 
providing  for  an  exclusive,  preferential,  or  co-operative  working  ar- 
rangement. The  term  "agreement"  in  this  section  includes  understand- 
ings, conferences,  and  other  arrangements. 

The  board  may  by  order  disapprove,  cancel,  or  modify  any  agree- 
ment, or  any  modification  or  cancellation  thereof,  whether  or  not  pre- 
viously approved  by  it,  that  it  finds  to  be  unjustly  discriminatory  or 
unfair  as  between  carriers,  shippers,  exporters,  importers,  or  ports,  or 
between  exporters  from  the  United  States  and  their  foreign  competitors, 
or  to  operate  to  the  detriment  of  the  commerce  of  the  United  States,  or 
to  be  in  violation  of  this  Act,  and  shall  approve  all  other  agreements, 
modifications,  or  cancellations. 

Agreements  existing  at  the  time  of  the  organization  of  the  board 
shall  be  lawful  until  disapproved  by  the  board.  It  shall  be  unlawful  to 
carry  out  any  agreement  or  any  portion  thereof  disapproved  by  the  board. 

All  agreements,  modifications,  or  cancellations  made  after  the  organ- 
ization of  the  board  shall  be  lawful  only  when  and  as  long  as  approved 
by  the  board,  and  before  approval  or  after  disapproval  it  shall  be  unlaw- 
ful to  carr}^  out  in  whole  or  in  part,  directly  or  indirectly,  any  such 
agreement,  modification,  or  cancellation. 

Every  agreement,  modification,  or  cancellation  lawful  under  this 
section  shall  be  excepted  from  the  provisions  of  the  Act  approved  July 
second,  eighteen  hundred  and  ninety,  entitled  "An  Act  to  protect  trade 
and  commerce  against  unlawful  restraints  and  monopolies,"  and  amend- 
ments and  Acts  supplementary  thereto,  and  the  provisions  of  sections 
seventy-three  to  seventy-seven,  both  inclusive,  of  the  Act  approved 
August  twenty-seventh,  eighteen  hundred  and  ninety-four,  entitled  "An 


614  Important  Federal  Laws 

Act  to  reduce  taxation,  to  provide  revenue  for  the  Government,  and  for 
other  purposes,"  and  amendments  and  Acts  supplementary  thereto. 

Whoever  violates  any  provision  of  this  section  shall  be  liable  to  a 
penalty  of  $1,0(X)  for  each  day  such  violation  continues,  to  be  recov- 
ered by  the  United  States  in  a  civil  action. 

Preferences  Forbidden. 

Sec.  16.  That  it  shall  be  unlawful  for  any  common  carrier  by 
water,  or  other  person  subject  to  this  Act,  either  alone  or  in  conjunction 
with  any  other  person,  directly  or  indirectly — 

First.  To  make  or  give  any  undue  or  unreasonable  preference  or 
advantage  to  any  particular  person,  locality,  or  description  of  traffic  in 
any  respect  whatsoever,  or  to  subject  any  particular  person,  locality, 
or  description  of  traffic  to  any  undue  or  unreasonable  prejudice  or  dis- 
advantage in  any  respect  whatsoever. 

Second.  To  allow  any  person  to  obtain  transportation  for  property 
at  less  than  the  regular  rates  then  established  and  enforced  on  the  line 
of  such  carrier,  by  means  of  false  billing,  false  classification,  false  weigh- 
ing, false  report  of  weight,  or  by  any  other  unjust  or  unfair  device  or 
means. 

Third.  To  induce,  persuade,  or  otherwise  influence  any  marine 
insurance  company  or  underwriter,  or  agent  thereof,  not  to  give  a  com- 
peting carrier  by  water  as  favorable  a  rate  of  insurance  on  vessel  or 
cargo,  having  due  regard  to  the  class  of  vessel  or  cargo,  as  is  granted  to 
such  carrier  or  other  person  subject  to  this  Act. 

Common  Carriers  in  Foreign  Commerce — Unjust  Rates  bv.  Forbidden. 

Sec.  17.  That  no  common  carrier  by  water  in  foreign  commerce 
shall  demand,  charge,  or  collect  any  rate,  fare,  or  charge  which  is  un- 
justly discriminatory  between  shippers  or  ports,  or  unjustly  prejudicial 
to  exporters  of  the  United  States  as  compared  with  their  foreign  com- 
petitors. Whenever  the  board  finds  that  any  such  rate,  fare,  or  charge 
is  demanded,  charged,  or  collected  it  may  alter  the  same  to  the  extent 
necessary  to  correct  such  unjust  discrimination  or  prejudice  and  make 
an  order  that  the  carrier  shall  discontinue  demanding,  charging,  or  col- 
lecting any  such  unjustly  discriminatory  or  prejudicial  rate,  fare,  or 
charge. 

Every  such  carrier  and  every  other  person  subject  to  this  Act  shall 
establish,  observe,  and  enforce  just  and  reasonable  regulations  and  prac- 
tices relating  to  or  connected  with  the  receiving,  handling,  storing,  or 
delivery  of  property.  Whenever  the  board  finds  that  anv  such  regu- 
lation or  practice  is  unjust  or  unreasonable  it  mav  determine,  prescribe, 
and  order  enforced  a  just  and  reasonable  regulation  or  practice. 

Just  and  Reasonable  Rates  Required  in  Interstate  Commerce. 

Sec.  18.  That  every  common  carrier  by  water  in  interstate  com- 
merce shall  establish,  observe,  and  enforce  just  and  reasonable  rates, 
fares,  charges,  classifications,  and  tariffs,  and  just  and  reasonable  regu- 


Shipping  Board  Act  615 

lations  and  practices  relating  thereto  and  to  the  issuance,  form,  and 
substance  of  tickets,  receipts,  and  bills  of  lading,  the  manner  and  method 
of  presenting,  marking,  packing,  and  delivering  property  for  transporta- 
tion, the  carrying  of  personal,  sample,  and  excess  baggage,  the  facilities 
for  transportation,  and  all  other  matters  relating  to  or  connected  with 
the  receiving,  handling,  transporting,  storing,  or  delivering  of  property. 

Every  such  carrier  shall  file  with  the  board  and  keep  open  to  public 
inspection,  in  the  form  and  manner  and  within  the  time  prescribed  by 
the  board,  the  maximum  rates,  fares,  and  charges  for  or  in  connection 
wath  transportation  between  points  on  its  own  route;  and  if  a  through 
route  has  been  established,  the  maximum  rates,  fares,  and  charges  for 
or  in  connection  with  transportation  between  points  on  its  own  route 
and  points  on  the  route  of  any  other  carrier  by  water. 

No  such  carrier  shall  demand,  charge,  or  collect  a  greater  compen- 
sation for  such  transportation  than  the  rates,  fares,  and  charges  filed 
in  compliance  wnth  this  section,  except  with  the  approval  of  the  board 
and  after  ten  davs'  public  notice  in  the  form  and  manner  prescribed  by 
the  board,  stating  the  increase  proposed  to  be  made ;  but  the  board  for 
good  cause  shown  may  waive  such  notice. 

Whenever  the  board  finds  that  any  rate,  fare,  charge,  classification, 
tarifif,  regulation,  or  practice,  demanded,  charged,  collected,  or  observed 
by  such  carrier  is  unjust  or  unreasonable,  it  may  determine,  prescribe, 
and  order  enforced  a  just  and  reasonable  maximum  rate,  fare,  or  charge, 
or  a  just  and  reasonable  classification,  tarifif,  regulation,  or  practice. 

Restriction  on  Increasing  Reduced  Rates. 

Sec.  19.  That  whenever  a  common  carrier  by  water  in  interstate 
commerce  reduces  its  rates  on  the  carriage  of  any  spedes  of ^  freight  to 
or  from  competitive  points  below  a  fair  and  remunerative  basis  with  the 
intent  of  driving  out  or  otherwise  injuring  a  competitive  carrier  by  water, 
it  shall  not  increase  such  rates  unless  after  hearing  the  board  finds  that 
such  proposed  increase  rests  upon  changed  conditions  other  than  the 
elimination  of  said  competition. 

Unauthorized  Giving  or  Receiving  Information  of  Shipments  Unlaw- 
ful. 

Sec.  20.  That  it  shall  be  unlawful  for  any  common  carrier  by 
.  water  or  other  person  subject  to  this  Act,  or  any  officer,  receiver,  trustee, 
lessee,  agent,  or  employee  of  such  carrier  or  person,  or  for  any  other 
person  authorized  by  such  carrier  or  person  to  receive  information, 
knowingly  to  disclose  to  or  permit  to  be  acquired  by  any  person  other 
than  the  shipper  or  consignee,  without  the  consent  of  such  shipper  or 
consignee, '  any  information  concerning  the  nature,  kind,  quantity,  desti- 
nation, consignee,  or  routing  of  any  property  tendered  or  delivered  to 
such  common  carrier  or  other  person  subject  to  this  Act  for  transporta- 
tion in  interstate  or  foreign  commerce,  which  information  may  be  used 
to  the  detriment  or  prejudice  of  such  shipper  or  consignee,  or  which 


616  Important  Federal  Laws 

may  improperly  disclose  his  business  transactions  to  a  competitor,  or 
which  may  be  used  to  the  detriment  or  prejudice  of  any  carrier;  and  it 
shall  also  be  unlawful  for  any  person  to  solicit  or  knowingly  receive 
any  such  information  which  may  be  so  used. 

Nothing  in  this  Act  shall  be  construed  to  prevent  the  giving  of  such 
information  in  response  to  any  legal  process  issued  under  the  authority 
of  any  court,  or  to  any  officer  or  agent  of  the  Government  of  the  United 
States,  or  of  any  State,  Territory,  District,  or  possession  thereof,  in  the 
exercise  of  his  powers,  or  to  any  officer  or  other  duly  authorized  person 
seeking  such  information  for  the  prosecution  of  persons  charged  with 
or  suspected  of  crime,  or  to  another  carrier,  or  its  duly  authorized  agent, 
for  the  purpose  of  adjusting  mutual  traffic  accounts  in  the  ordinary 
course  of  business  of  such  carriers. 

Reports  to  be  Filed  With  Board. 

Sec.  21.  That  the  board  may  require  any  common  carrier  by  water, 
or  other  person  subject  to  this  Act,  or  any  officer,  receiver,  trustee,  lessee, 
agent,  or  employee  therof,  to  file  with  it  any  periodical  or  special  report, 
or  any  account,  record,  rate,  or  charge,  or  any  memorandum  of  any  facts 
and  transactions  appertaining  to  the  business  of  such  carrier  or  other 
person  subject  to  this  Act.  Such  report,  account,  record,  rate,  charge, 
or  memorandum  shall  be  under  oath  whenever  the  board  so  requires, 
and  shall  be  furnished  in  the  form  and  within  the  time  prescribed  by 
the  board.  Whoever  fails  to  file  any  report,  account,  record,  rate,  charge, 
or  memorandum  as  required  by  this  section  shall  forfeit  to  the  United 
States  the  sum  of  $100  for  each  day  of  such  default. 

Whoever  willfully  falsifies,  destroys,  mutilates,  or  alters  any  such 
report,  account,  record,  rate,  charge,  or  memorandum,  or  willfully  files 
a  false  report,  account,  record,  rate,  charge,  or  memorandum  shall  be 
guilty  of  a  misdemeanor,  and  subject  upon  conviction  to  a  fine  of  not 
more  than  $1,000,  or  imprisonment  for  not  more  than  one  year,  or  to 
both  such  fine  and  imprisonment. 

Complaints  of  Violation — Investigation. 

Sec.  22.  That  any  person  may  file  with  the  board  a  sworn  com- 
plaint setting  forth  any  violation  of  this  Act  by  a  common  carrier  by 
water,  or  other  person  subject  to  this  Act,  and  asking  repaartion  for  the 
injury,  if  any,  caused  thereby.  The  board  shall  furnish  a  copy  of  the 
complaint  to  such  carrier  or  other  person,  who  shall,  within  a  reason- 
able time  specified  by  the  board,  satisfy  the  complaint  or  answer  it  in 
writing.  If  the  complaint  is  not  satisfied  the  board  shall,  except  as 
otherwise  provided  in  this  Act.  investigate  it  in  such  manner  and  by 
such  means,  and  make  such  order  as  it  deems  proper.  The  board,  if 
the  complaint  is  filed  within  two  years  after  the  cause  of  action  accrued, 
mav  direct  the  payment,  on  or  before  a  day  named,  of  full  reparation 
to  the  complainant  for  the  injury  caused  by  such  violation. 

The  board,  upon  its  own  motion,  may  in  like  manner  and,  except 


Shipping  Board  Act  617 

as  to  orders  for  the  payment  of  money,  with  the  same  powers,  inves- 
tigate any  violation  of  this  Act. 

Orders  of  the  Board — Full  Hearing,  etc. 

Sec.  23.  Orders  of  the  board  relating  to  any  violation  of  this  Act 
shall  be  made  only  after  full  hearing,  and  upon  a  sworn  complaint  or 
in  proceedings  instituted  of  its  own  motion. 

All  orders  of  the  board  other  than  for  the  payment  of  money  made 
under  this  Act  shall  continue  in  force  for  such  time,  not  exceeding  two 
years,  as  shall  be  prescribed  therein  by  the  board,  unless  suspended,  mod- 
ified, or  set  aside  by  the  board  or  any  court  of  competent  jurisdiction. 

Record  of  Investigations. 

Sec.  24.  That  the  board  shall  enter  of  record  a  written  report  of 
every  investigation  made  under  this  Act  in  which  a  hearing  has  been 
held,  stating  its  conclusions,  decision,  and  order,  and,  if  reparation  is 
awarded,  the  findings  of  fact  on  which  the  award  is  made,  and  shall 
furnish  a  copy  of  such  report  to  all  parties  to  the  investigation. 

The  board  may  publish  such  reports  in  the  form  best  adapted  for 
public  information  and  use,  and  such  authorized  publications  shall,  with- 
out further  proof  or  authentication,  be  competent  evidence  of  such  re- 
ports in  all  courts  of  the  United  States  and  of  the  States,  Territories, 
Districts,  and  possessions  thereof. 

Rehearings. 

Sec.  25.  That  the  board  may  reverse,  suspend,  or  modify,  upon 
such  notice  and  in  such  manner  as  it  deems  proper,  any  order  made  by 
it.  Upon  application  of  any  party  to  a  decision  or  order  it  may  grant  a 
rehearing  of  the  same  or  any  matter  determined  therein,  but  no  such 
application  for  or  allowance  of  a  rehearing  shall,  except  by  special  order 
of  the  board,  operate  as  a  stay  of  such  order. 

Investigations  of  Unequal  Treatment  of  American  Vessel  by  Foreign 
Government. 

Sec.  26.  The  board  shall  have  power,  and  it  shall  be  its  duty 
whenever  complaint  shall  be  made  to  it,  to  investigate  the  action  of  any 
foreign  Government  with  respect  to  the  privileges  afiforded  and  burdens 
imposed  upon  vessels  of  the  United  States  engaged  in  foreign  trade 
whenever  it  shall  appear  that  the  laws,  regulations,  or  practices  of  any 
foreign  Government  operate  in  such  a  manner  that  vessels  of  the  United 
States  are  not  accorded  equal  privileges  in  foreign  trade  with  vessels 
of  such  foreign  countries  or  vessels  of  other  foreign  countries,  either 
in  trade  to  or  from  the  ports  of  such  foreign  country  or  in  respect  of 
the  passage  or  transportation  through  such  foreign  country  of  passen- 
gers or  goods  intended  for  shipment  or  transportation  in  such  vessels 
of  the  United  States,  either  to  or  from  ports  of  such  foreign  country 
or  to  or  from  ports  of  other  foreign  countries.  It  shall  be  the  duty  of 
the  board  to  report  the  results  of  its  investigation  to  the  President  with 
its  recommendations  and   the   President   is   hereby   authorized   and   em- 


618  Important  Federal  Laws 

powered  to  secure  by  diplomatic  action  equal  privileges  for  vessels  of 
the  United  States  engaged  in  such  foreign  trade.  And  if  by  such  dip- 
lomatic action  the  President  shall  be  unable  to  secure  such  equal  privi- 
leges then  the  President  shall  advise  Congress  as  to  the  facts  and  his 
conclusions  by  special  message,  if  deemed  important  in  the  public  in- 
terest, in  order  that  proper  action  may  be  taken  thereon. 

Authority  to  Secure  Testimony,  etc. 

Sec.  27.  That  for  the  purpose  of  investigating  alleged  violations 
of  this  Act,  the  board  may  by  subpoena  compel  the  attendance  of  wit- 
nesses and  the  production  of  books,  papers,  documents,  and  other  evi- 
dence from  any  place  in  the  United  States  at  any  designated  place  of 
hearing.  Subpoenas  may  be  signed  by  any  commissioner,  and  oaths  or 
affirmations  may  be  administered,  witnesses  examined,  and  evidence  re- 
ceived bv  any  commissioner  or  examiner,  or,  under  the  direction  of  the 
board,  by  anv  person  authorized  under  the  laws  of  the  United  States 
or  of  any  State,  Territory,  District,  or  possession  thereof  to  administer 
oaths.  Persons  so  acting  under  the  direction  of  the  board  and  wit- 
nesses shall,  unless  employees  of  the  board,  be  entitled  to  the  same  fees 
and  mileage  as  in  the  courts  of  the  United  States.  Obedience  to  any 
such  subpcena  shall,  on  application  by  the  board,  be  enforced  as  are 
orders  of  the  board  other  than  for  the  payment  of  money. 

Testimony,  Compulsory. 

Sec.  28.  That  no  person  shall  be  excused,  on  the  ground  that  it 
may  tend  to  incriminate  him  or  subject  him  to  a  penalty  or  forfeiture, 
from  attending  and  testifying,  or  producing  books,  papers,  documents, 
and  other  evidence,  in  obedience  to  the  subpoena  of  the  board  or  of  any 
court  in  any  proceeding  based  upon  or  growing  out  of  any  alleged  viola- 
tion of  this  Act;  but  no  natural  person  shall  be  prosecuted  or  subjected 
to  any  penalty  or  forfeiture  for  or  on  account  of  any  transaction,  mat- 
ter, or  thing  as  to  which,  in  obedience  to  a  subpoena  and  under  oath,  he 
may  so  testify  or  produce  evidence,  except  that  no  person  shall  be  ex- 
empt from  prosecution  and  punishment  for  perjury  committed  in  so 
testifying. 

Jurisdiction  of  District  Courts. 

Sec.  29.  That  in  case  of  violation  of  any  order  of  the  board,  other 
than  an  order  for  the  payment  of  money,  the  board,  or  any  party  in- 
jured by  such  violation,  or  the  Attorney  General,  may  apply  to  a  district 
court  having  jurisdiction  of  the  parties ;  and  if,  after  hearing,  the  court 
determines  that  the  order  was  regularly  made  and  duly  issued,  it  shall 
enforce  obedience  thereto  by  a  writ  of  injunction  or  other  proper  pro- 
cess, mandatory  or  otherwise. 

Sec.  30.  That  in  case  of  violation  of  any  order  of  the  board  for 
the  payment  of  money  the  person  to  whom  such  award  was  made  may 
file  in  the  district  court  for  the  district  in  which  such  person  resides, 
or  in  which  is  located  any  office  of  the  carrier  or  other  person  to  whom 


Shipping  Board  Act  619 

the  order  was  directed,  or  in  which  is  located  any  point  of  call  on  a 
regular  route  operated  by  the  carrier,  or  in  any  court  of  general  juris- 
diction of  a  State,  Territory,  District,  or  possession  of  the  United  States 
having  jurisdiction  of  the  parties,  a  petition  or  suit  setting  forth  briefly 
the  causes  for  which  he  claims  damages  and  the  order  of  the  board  in 
the  premises. 

In  the  district  court  the  findings  and  order  of  the  board  shall  be 
prima  facie  evidence  of  the  facts  therein  stated,  and  the  petitioner  shall 
not  be  liable  for  costs,  nor  shall  he  be  liable  for  costs  at  any  subse- 
quent stage  of  the  proceedings  unless  they  accrue  upon  his  appeal.  If 
a  petitioner  in  a  district  court  finally  prevails,  he  shall  be  allowed  a 
reasonable  attorney's  fee,  to  be  taxed  and  collected  as  part  of  the  costs 
of  the  suit. 

All  parties  in  whose  favor  the  board  has  made  an  award  of  repara- 
tion by  a  single  order  may  be  joined  as  plaintiffs,  and  all  other  parties 
to  such  order  may  be  joined  as  defendants,  in  a  single  suit  in  any  dis- 
trict in  which  any  one  such  plaintifif  could  maintain  a  suit  against  any 
one  such  defendant.  Service  of  process  against  any  such  defendant  not 
found  in  that  district  may  be  made  in  any  district  in  which  is  located 
anv  office  of,  or  point  of  call  on  a  regular  route  operated  by,  such 
defendant.  Judgment  may  be  entered  in  favor  of  any  plaintiff  against 
the  defendant  liable  to  that  plaintifif. 

No  petition  or  suit  for  the  enforcement  of  an  order  for  the  pay- 
ment of  money  shall  be  maintained  unless  filed  within  one  year  from 
the  date  of  the  order. 

Venue  and  Procedure. 

Sec.  31.  That  the  venue  and  procedure  in  the  courts  of  the  United 
States  in  suits  brought  to  enforce,  suspend,  or  set  aside,  in  whole  or 
in  part,  any  order  of  the  board  shall,  except  as  herein  otherwise  pro- 
vided, be  the  same  as  in  similar  suits  in  regard  to  orders  of  the  Inter- 
state Commerce  Commission,  but  such  suits  may  also  be  maintained  in 
any  district  court  having  jurisdiction  of  the  parties. 

General  Penalty  for  Violations. 

Sec.  32.  That  whoever  violates  any  provision  of  this  Act,  except 
where  a  dififerent  penalty  is  provided,  shall  be  guilty  of  a  misdemeanor, 
punishable  by  fine  of  not  to  exceed  $5,000. 

Interstate  Commerce  Commission  Powers  Not  Affected. 

Sec.  33.  That  this  Act  shall  not  be  construed  to  affect  the  power 
or  jurisdiction  of  the  Interstate  Commerce  Commission,  nor  to  confer 
upon  the  board  concurrent  power  or  jurisdiction  over  any  matter  within 
the  power  or  jurisdiction  of  such  commission ;  nor  shall  this  Act  be 
construed  to  apply  to  intrastate  commerce. 

Invalidity  of  Any  Provision  Not  to  Affect  Remainder  of  Act. 

Sec.  34.  That  if  any  provision  of  this  Act,  or  the  application  of 
such    provision    to   certain   circumstances,    is    held   unconstitutional,    the 


620  Important  Federal  Laws 

remainder  of  the  Act,  and  the  appHcation  of  such  provision  to  circum- 
stances other  than  those  as  to  which  it  is  held  unconstitutional,  shall 
not  be  affected  thereby. 

Appropriation  for  Expenses. 

Sec.  35.  That  for  the  fiscal  year  ending  June  thirtieth,  nineteen 
hundred  and  seventeen,  the  sum  of  $100,000  is  hereby  appropriated, 
out  of  any  moneys  in  the  Treasury  of  the  United  States  not  otherwise 
appropriated,  for  the  purpose  of  defraying  the  expenses  of  the  estab- 
lishment and  maintenance  of  the  board,  including  the  payment  of  sal- 
aries herein  authorized. 

Clearance  to  be  Refused  Vessel  Declining  Freight  From  Any  Citizen. 
Sec.  36.  The  Secretary  of  the  Treasury  is  authorized  to  refuse  a 
clearance  to  any  vessel  or  other  vehicle  laden  with  merchandise  destined 
for  a  foreign  or  domestic  port  whenever  he  shall  have  satisfactory 
reason  to  believe  that  the  master,  owner,  or  other  officer  of  such  vessel  or 
other  vehicle  refuses  or  declines  to  accept  or  receive  freight  or  cargo 
in  good  condition  tendered  for  such  port  of  destination  or  for  some 
intermediate  port  of  call,  together  with  the  proper  freight  or  transporta- 
tion charges  therefor,  by  any  citizen  of  the  United  States,  unless  the 
same  is  fully  laden  and  has  no  space  accommodations  for  the  freight  or 
cargo  so  tendered,  due  regard  being  had  for  the  proper  loading  of  such 
vessel  or  vehicle,  or  unless  such  freight  or  cargo  consists  of  merchandise 
for  which  such  vessel  or  vehicle  is  not  adaptable. 


WAR  RISK  INSURANCE. 

Act  of  September  2,  1914. 
An  Act  to  authorize  the  establishment  of  a  Bureau  of  War  Risk  Insurance  in 
the  Treasury  Department. 

Whereas  the  foreign  commerce  of  the  United  States  is  now  greatly 
impeded  and  endangered  through  the  absence  of  adequate  facilities  for  the 
insurance  of  American  vessels  and  their  cargoes  against  the  risks  of  war ; 
and. 

Whereas  it  is  deemed  necessary  and  expedient  that  the  United  States 
shall  temporarily  provide  for  the  export  shipping  trade  of  the  United 
States  adequate  facilities  for  the  insurance  of  its  commerce  against  the 
risks  of  war  :     Therefore, 

Section  1.  That  there  is  established  in  the  Treasury  Department  a 
bureau  to  be  known  as  the  Bureau  of  War  Risk  Instirance,  the  director 
of  which  shall  be  entitled  to  a  salary  at  the  rate  of  $5,000  per  annum. 

Sec.  2.  That  the  said  Bureau  of  War  Risk  Insurance,  subject  to 
the  general  direction  of  the  Secretary  of  the  Treasury,  shall,  as  soon  as 
practicable,  make  provisions  for  the  insurance  by  the  United  States  of 
American  vessels,  their  freight  and  passage  moneys,  and  cargoes  shipped 


War  Risk  Insurance  621 

or  to  be  shipped  therein,  against  loss  or  damage  by  the  risks  of  war, 
whenever  it  shall  appear  to  the  Secretary  that  American  vessels,  shippers, 
or  importers  in  American  vessels  are  unable  in  any  trade  to  secure  ade- 
quate war  risk  insurance  on  reasonable  terms. 

Sec.  3.  That  the  Bureau  of  War  Risk  Insurance,  with  the  approval 
of  the  Secretary  of  the  Treasury,  is  hereby  authorized  to  adopt  and  pub- 
lish a  form  of  war  risk  policy,  and  to  fix  reasonable  rates  of  premium 
for  the  insurance  of  American  vessels,  their  freight  and  passage  moneys 
and  cargoes  against  war  risks,  which  rates  shall  be  subject  to  such  change, 
to  each  port  and  for  each  class,  as  the  Secretary  shall  find  may  be 
required  by  the  circumstances.  The  proceeds  of  the  aforesaid  premiums 
when  received  shall  be  covered  into  the  Treasury  of  the  United  States. 

Sec.  4.  That  the  Bureau  of  War  Risk  Insurance,  with  the  approval 
of  the  Secretary  of  the  Treasury,  shall  have  power  to  make  any  and  all 
rules  and  regulations  necessary  for  carrying  out  the  purposes  of  this  Act. 

Sec.  5.  That  the  Secretary  of  the  Treasury  is  authorized  to  estab- 
lish an  advisory  board,  to  consist  of  three  members  skilled  in  the  practices 
of  war  risk  insurance,  for  the  purpose  of  assisting  the  Bureau  of  War 
Risk  Insurance  in  fixing  rates  of  premium  and  in  adjustment  of  claims 
for  losses,  and  generally  in  carrying  out  the  purposes  of  this  Act ;  the 
compensation  of  the  members  of  said  board  to  be  determined  by  the 
Secretary  of  the  Treasury,  but  not  to  exceed  $25  a  day  each,  while 
actually  employed.  In  the  event  of  disagreement  as  to  the  claim  for 
losses,  or  amount  thereof,  between  the  said  bureau  and  the  parties  to  such 
contract  of  insurance,  an  action  on  the  claim  may  be  brought  against  the 
United  States  in  the  District  Court  of  the  United  States,  sitting  in 
admiralty,  in  the  district  in  which  the  claimant  or  his  agent  may  reside. 

Sec.  6.  That  the  Director  of  the  Bureau  of  War  Risk  Insurance, 
upon  the  adjustment  of  any  claims  for  losses  in  respect  of  which  no 
action  shall  have  been  begun,  shall,  on  approval  of  the  Secretary  of  the 
Treasury,  promptly  pay  such  claim  for  losses  to  the  party  in  interest ; 
and  the  Secretary  of  the  Treasury  is  directed  to  make  provision  for  the 
speedy  adjustment  of  claims  for  losses  and  also  for  the  prompt  notifica- 
tion of  parties  in  interest  of  the  decisions  of  the  bureau  on  their  claims. 

Sec.  7 .  That  for  the  purpose  of  paying  losses  accruing  under  the 
provisions  of  this  Act  there  is  hereby  appropriated,  out  of  any  money  in 
the  Treasurv  of  the  United  States  not  otherwise  appropriated  the  sum 
of  $15,000,000.     (As  amended  March  3.  1917.) 

Sec.  8.  That  there  is  hereby  appropriated,  for  the  purpose  of 
defraying  the  expenses  of  the  establishment  and  maintenance  of  the 
Bureau  of  War  Risk  Insurance,  including  the  payment  of  salaries  herein 
authorized  and  other  personal  services  in  the  District  of  Columbia,  out 
of  anv  monev  in  the  Treasurv  of  the  United  States  not  otherwise  appro- 
priated, the  sum  of  $100,000! 

Sec.  9.  That  the  President  is  authorized  whenever,  in  his  judgment, 
the  necessity  of  further  war  insurance  by  the  United  States  shall  have 


622  Important  Federal  Laws 

ceased  to  exist,  to  suspend  the  operations  of  this  Act  in  so  far  as  it 
authorizes  insurance  by  the  United  States  against  loss  or  damage  by  risks 
of  war,  which  suspension  shall  be  made,  at  any  event,  within  four  years 
after  the  passage  of  this  Act,  but  shall  not  affect  any  insurance  outstand- 
ing at  the  time  or  any  claims  pending  adjustment.  For  the  purpose  of 
the  final  adjustment  of  any  such  outstanding  insurance  or  claims,  the 
Bureau  of  War  Risk  Insurance  may,  in  the  discretion  of  the  President, 
be  continued  in  existence  a  further  period  not  exceeding  one  year.  (As 
amended  March  3,  1917.) 

Sec.  10.  That  a  detailed  statement  of  all  expenditures  under  this 
Act  and  of  all  receipts  hereunder  shall  be  submitted  to  Congress  at  the 
beginning  of  each  regular  session. 

Sec.  11.     That  this  Act  shall  take  effect  from  and  after  its  passage. 

Act  of  March  3,  1917.     Supplemental  section. 
That  all  moneys  received  from  premiums  and  from  salvage  shall  be 
covered  into  the  Treasury  to  the  credit  of  the  appropriation  made  for 
the  payment  of  losses  and  be  available  for  the  purposes  thereof. 


TRADEMARKS  AND  COPYRIGHT. 


TRADE-MARK  LAWS. 

Act  of  February  20,  1905  as  Amended. 

An  Act  to  authorize  the  registration  of  trade-marks  used  in  commerce  with 
foreign  nations  or  among  the  several  States  or  with  Indian  tribes,  and  to 
protect  the  same. 

Registration  of  Trade-Marks. 

Sec.  1.  That  the  owner  of  a  trade-mark  tised  in  commerce  with  for- 
eign nations,  or  among  the  several  States,  or  with  Indian  tribes,  provided 
such  owner  shall  be  domiciled  within  the  territory  of  the  United  States, 
or  resides  in  or  is  located  in  any  foreign  country  which,  by  treaty,  con- 
vention, or  law,  affords  similar  privileges  to  the  citizens  of  the  United 
States,  may  obtain  registration  for  such  trade-mark  by  complying  with 
the  following  requirements :  First,  by  filing  in  the  Patent  Office  an 
application  therefor,  in  writing,  addressed  to  the  Commissioner  of  Pat- 
ents, signed  by  the  applicant,  specifying  his  name,  domicile,  location,  and 
citizenship;  the  class  of  merchandise  and  the  particular  description  of 
goods  comprised  in  such  class  to  which  the  trade-mark  is  appropriated; 
a  statement  of  the  mode  in  which  the  same  is  applied  and  affixed  to 
goods,  and  the  length  of  time  during  which  the  trade-mark  has  been 
used  ;  a  description  of  the  trade-mark  itself  shall  be  included,  if  desired 
by  the  applicant  or  required  by  the  commissioner,  provided  such  de- 
scription is  of  a  character  to  meet  the  approval  of  the  commissioner. 
With  this  statement  shall  be  filed  a  drawing  of  the  trade-mark,  signed 
by  the  applicant,  or  his  attorney,  and  such  number  of  specimens  of  the 
trade-mark  as  actually  used  as  may  be  required  by  the  Commissioner  of 
Patents.  Second,  by  paying  into  the  Treasury  of  the  United  States  the 
sum  of  ten  dollars,  and  otherwise  complying  with  the  requirements  of 
this  act  and  such  regulations  as  may  be  prescribed  by  the  Commissioner 
of  Patents.     (As  amended  by  Act  of  Feb.  18,  1909.) 

Written  Declaration. 

Sec.  2.  That  the  application  prescribed  in  the  foregoing  section,  in 
order  to  create  any  right  whatever  in  favor  of  the  party  filing  it,  must 
be  accompanied  by  a  written  declaration  verified  by  the  applicant,  or 
by  a  member  of  the  firm  or  an  officer  of  the  corporation  or  association 
applying,  to  the  effect  that  the  applicant  believes  himself  or  the  firm, 
corporation,  or  association  in  whose  behalf  he  makes  the  application 
to  be  the  owner  of  the  trade-mark  sought  to  be  registered,  and  that  no 
other  person,  firm,  corporation,  or  association,  to  the  best  of  the  appli- 
cant's knowledge  and  belief,   has  the  right  to  use  such  trade-mark   in 


624  Important  Federal  Laws 

the  United  States,  either  in  the  identical  form  or  in  such  near  resem- 
blance thereto  as  might  be  calculated  to  deceive ;  that  such  trade-mark  is 
used  in  commerce  among-  the  several  States,  or  with  foreign  nations,  or 
with  Indian  tribes,  and  that  the  description  and  drawing  presented  truly 
represent  the  trade-mark  sought  to  be  registered.  If  the  applicant  resides 
or  is  located  in  a  foreign  country,  the  statement  required  shall,  in  addi- 
tion to  the  foregoing,  set  forth  that  the  trade-mark  has  been  registered 
by  the  applicant,  or  that  an  application  for  the  registration  thereof  has 
been  filed  by  him  in  the  foreign  country  in  which  he  resides  or  is  located, 
and  shall  give  the  date  of  such  registration,  or  the  application  therefor, 
as  the  case  may  be,  except  that  in  the  application  in  such  cases  it  shall 
not  be  necessary  to  state  that  the  mark  has  been  used  in  commerce 
with  the  United  States  or  among  the  States  thereof.  The  verification 
required  by  this  section  may  be  made  before  any  person  within  the 
United  States  authorized  by  law  to  administer  oaths,  or,  when  the  appli- 
cant resides  in  a  foreign  country,  before  any  minister,  charge  d'  affaires, 
consul,  or  commercial  agent  holding  commission  under  the  Government 
of  the  United  States,  or  before  any  notary  public,  judge,  or  magistrate 
having  an  official  seal  and  authorized  to  administer  oaths  in  the  foreign 
country  in  which  the  applicant  may  be  whose  authority  shall  be  proved 
by  a  certificate  of  a  diplomatic  or  consular  officer  of  the  United  States. 
(As  amended  by  Act  of  February  18,  1909.) 

Nonresident  to  Designate  Representative. 

Sec.  3.  That  every  applicant  for  registration  of  a  trade-mark,  or 
for  renewal  of  registration  of  a  trade-mark,  who  is  not  domiciled  within 
the  United  States,  shall,  before  the  issuance  of  the  certificate  of  regis- 
tration, as  hereinafter  provided  for,  designate,  by  a  notice  in  writing, 
filed  in  the  Patent  Office,  some  person  residing  within  the  United  States 
on  whom  process  or  notice  of  proceedings  affecting  the  right  of  owner- 
ship of  the  trade-mark  of  which  such  applicant  may  claim  to  be  the 
owner,  brought  under  the  provisions  of  this  act  or  under  other  laws  of 
the  United  State§.,  may  be  served,  with  the  same  force  and  effect  as  if 
served  upon  the  applicant  or  registrant  in  person.  For  the  purposes  of 
this  act  it  shall  be  deemed  sufficient  to  serve  such  notice  upon  such 
applicant,  registrant,  or  representative  by  leaving  a  copy  of  such  process 
or  notice  addressed  to  him  at  the  last  address  of  which  the  Commis- 
sioner of  Patents  has  been  notified. 

Applications  Previously  Filed  in  Foreign  Country. 

Sec.  4.  That  an  application  for  registration  of  a  trade-mark  filed 
in  this  country  by  any  person  who  has  previously  regularly  filed  in  any 
foreign  country  which,  by  treaty,  convention,  or  law,  affords  similar 
privileges  to  citizens  of  the  United  States  an  application  for  registration 
of  the  same  trade-mark  shall  be  accorded  the  same  force  and  effect  as 
would  be  accorded  to  the  same  application  if  filed  in  this  country  on  the 
date  on  which  application  for  registration  of  the  same  trade-mark  was 


Trade-Marks  625 

first  filed  in  such  foreign  country:  Provided,  That  such  application  is 
filed  in  this  country  within  four  months  from  the  date  on  which  the  ap- 
plication was  first  filed  in  such  foreign  country:  And  provided,  That 
certificate  of  registration  shall  not  be  issued  for  any  mark  for  registra- 
tion of  which  application  has  been  filed  by  an  applicant  located  in  a 
foreign  country  until  such  mark  has  been  actually  registered  by  the 
applicant  in  the  country  in  which  he  is  located. 

When  Trade-Mark  Not  to  be  Granted. 

Sec.  5.  That  no  mark  by  which  the  goods  of  the  owner  of  the  mark 
may  be  distinguished  from  other  goods  of  the  same  class  shall  be  refused 
registration  as  a  trade-mark  on  account  of  the  nature  of  such  mark 
unless  such  mark — 

(a)  Consists  of  or  comprises  immoral  or  scandalous  matter. 

(b)  Consists   of   or  comprises  the   flag  or  coat   of   arms   or  other 
insignia  of  the  United  States  or  any  simulation  thereof,  or  of  any  State 
or  municipality  or  of  any  foreign  nation,  or  of  any  design  or  picture  that 
has  been  or  may  hereafter  be  adopted  by  any   fraternal   society  as  its 
emblem,  or  of  any  name,  distinguishing  mark,  character,  emblem,  colors, 
flag  or  banner  adopted  by  any  institution,  organization,  club,  or  society 
which  was  incorporated  in  any  State  in  the  United  States  prior  to  the 
date  of  the  adoption  and  use  by  the  applicant :  Provided,  That  said  name, 
distinguishing    mark,    character,    emblem,    colors,    flag,    or   banner    was 
adopted    and    publicly   used   by    said    institution,    organization,    club,    or 
society  prior  to  the  date  of  adoption  and  use  by  the  applicant:  Provided, 
That  trade-marks  which  are  identical  with  a  registered  or  known  trade- 
mark owned  and  in  use  by  another  and  appropriated  to  merchandise  of 
the  same  descriptive  properties,  or  which  so  nearly  resemble  a  registered 
or  known  trade-mark  owned  and  in  use  by     another  and  appropriated 
to  merchandise  of  the  same  descriptive  properties  as  to  be  likely  to  cause 
confusion  pr  mistake  in  the  mind  of  the  public  or  to  deceive  purchasers 
shall  not  be  registered :  Provided,  That  no  mark  which  consists  merely 
in  the  name  of  an  individual,  firm,  corporation,  or  association  not  written, 
printed,  impressed,  or  woven  in  some  particular  or  distinctive  manner, 
or  in  association  with  a  portrait  of  the  individual,  or  merely  in  words 
or  devices  which  are  descriptive  of  the  goods  w^ith  which  they  are  used, 
or  of  the  character  or  quality  of  such  goods,  or  merely  a  geographical 
name  or  term,  shall  be  registered  under  the  terms  of  this  Act:  Provided 
further,  That  no  portrait  of  a  living  individual  may  be  registered  as  a 
trade-mark  except  by  the  consent  of  such  individual,   evidenced  by  an 
instrument  in  writing :  And  provided  further,  That  nothing  herein  shall 
prevent  the  registration  of  any  mark  used  by  the  applicant  or  his  pred- 
ecessors, or  by  those  from  whom  title  to  the  mark  is  derived,  in  com- 
merce with  foreign  nations  or  among  the  several  States  or  with  Indian 
tribes  which  was  in  actual  and  exclusive  use  as  a  trade-mark   of  the 
applicant,  or  his  predecessors  from  whom  he  derived  title,  for  ten  years 
next   preceding   February   twentieth,   nineteen   hundred   and   five:    Pro- 

(40) 


626  Important  Federal  Laws 

vided  further,  That  nothing  herein  shall  prevent  the  registration  of  a 
trade-mark  otherwise  registrable  because  of  its  being  the  name  of  the 
applicant  or  a  portion  thereof.     (As  amended  by  act  of  January  8,  1913.) 

Examination  by  Commissioner  of  Patents. 

Sec.  6.     That  on  the  filing  of  an  application  for  registration  of  a 
trade-mark  which  complies  with  the  requirements  of  this  Act,  and  the 
payment  of  the  fees  herein  provided  for,  the  Commissioner  of  Patents 
shall  cause  an  examination  thereof  to  be  made;  and  if  on  such  exami- 
nation it  shall  appear  that  the  applicant  is  entitled  to  have  his  trade-mark 
registered  under  the  provisions  of  this  Act,  the  commissioner  shall  cause 
the  mark  to  be  published  at   least  once  in  the  Official   Gazette  of  the 
Patent  Office.   Any  person  who  believes  he  would  be  damaged  by  the 
registration  of  a  mark  may  oppose  the  same  by  filing  notice  of  opposi- 
tion,  stating  the  grounds   therefor,   in   the    Patent   Office   within   thirty 
days  after  the  publication  of  the  mark   sought  to  be  registered,  which 
said  notice  of  opposition  shall  be  verified  by  the  person  filing  the  same 
before  one  of  the  officers  mentioned  in  section  two  of  this  act.    An  oppo- 
sition may  be  filed  by  a  duly  authorized  attorney,  but  such  opposition 
shall  be  null  and  void  unless  verified  by  the  opposer  within  a  reasonable 
time  after  such  filing.     If   no  notice  of   opposition  is  filed   within   said 
time,  the  commissioner  shall  issue  a  certificate  of  registration  therefor, 
as  hereinafter  provided   for.     If   on   examination   an  application  is   re- 
fused, the  commissioner  shall  notify  the  applicant,  giving  him  his  reasons 
therefor.     (As  amended  by  Act  of  March  2,  1907.) 

Interference. 

Sec.  7.  That  in  all  cases  where  notice  of  opposition  has  been  filed 
the  Commissioner  of  Patents  shall  notify  the  applicant  thereof  and  the 
grounds  therefor. 

Whenever  application  is  made  for  the  registration  of  a  trade-mark 
which  is  substantially  identical  with  a  trade-mark  appropriated  to  goods 
of  the  same  descriptive  properties,  for  which  a  certificate  of  registra- 
tion has  been  previously  issued  to  another,  or  for  registration  of  which 
another  has  previously  made  application,  or  which  so  nearly  resembles 
such  trade-mark,  or  a  known  trade-mark  owned  and  used  by  another, 
as,  in  the  opinion  of  the  commissioner,  to  be  likely  to  be  mistaken  there- 
for by  the  public,  he  may  declare  that  an  interference  exists  as  to  such 
trade-mark,  and  in  every  case  of  interference  or  opposition  to  registra- 
tion he  shall  direct  the  examiner  in  charge  of  interferences  to  determine 
the  question  of  the  right  of  registration  to  such  trade-mark,  and  of  the 
sufficiency  of  objections  to  registration,  in  such  manner  and  upon  such 
notice  to  those  interested  as  the  commissioner  may  by  rules  prescribe. 

The  commissioner  may  refuse  to  register  the  mark  against  the  reg- 
istration of  which  objection  is  filed,  or  may  refuse  to  register  both  of  two 
interfering  marks,  or  may  register  the  mark,  as  a  trade-mark,  for  the 
person  first  to  adopt  and  use  the  mark,  if  otherwise  entitled  to  register 


Trade-Marks  627 

the  same,  unless  an  appeal  is  taken,  as  hereinafter  provided  for,  from  his 
decision,  by  a  party  interested  in  the  proceeding,  within  such  time  (not 
less  than  twenty  days)  as  the  commissioner  may  prescribe. 

Appeals  to  Commissioner. 

Sec.  8.  That  every  applicant  for  the  registration  of  a  trade-mark, 
or  for  the  renewal  of  the  registration  of  a  trade-mark,  which  applica- 
tion is  refused,  or  a  party  to  an  interference  against  whom  a  decision 
has  been  rendered,  or  a  party  who  has  filed  a  notice  of  opposition  as  to 
a  trade-mark,  may  appeal  from  the  decision  of  the  examiner  in  charge 
of  trade-marks,  or  the  examiner  in  charge  of  interferences,  as  the  case 
may  be,  to  the  commissioner  in  person,  having  once  paid  the  fee  for 
such  appeal.  ; 

Appeals  to  Court. 

Sec.  9.  That  if  an  applicant  for  registration  of  a  trade-mark,  or  a 
party  to  an  interference  as  to  a  trade-mark,  or  a  party  who  has  filed 
opposition  to  the  registration  of  a  trade-mark,  or  party  to  an  application 
for  the  cancelation  of  the  registration  of  a  trade-mark,  is  dissatisfied 
with  the  decision  of  the  Commissioner  of  Patents,  he  may  appeal  to  the 
court  of  appeals  of  the  District  of  Columbia,  on  complying  with  the 
conditions  required  in  case  of  an  appeal  from  the  decision  of  the  com- 
missioner by  an  applicant  for  a  patent,  or  a  party  to  an  interference  as 
to  an  invention,  and  the  same  rules  of  practice  and  procedure  shall  gov- 
ern in  every  stage  of  such  proceedings,  as  far  as  the  same  may  be 
applicable.  .  •        ■    , 

Trade-Mark  Assignable. 

Sec.  10.  That  every  registered  trade-mark,  and  every  mark  for  the 
registration  of  which  application  has  been  made,  together  with  the  appli- 
cation for  registration  of  the  same,  shall  be  assignable  in  connection  with 
the  good  will  of  the  business  in  which  the  mark  is  used.  Such  assignment 
must  be  by  an  instrument  in  writing  and  duly  acknowledged  according  to 
the  laws  of  the  country  or  State  in  which  the  same  is  executed ;  any 
such  assignment  shall  be  void  as  against  any  subsequent  purchaser  for  a 
valuable  consideration,  without  notice,  unless  it  is  recorded  in  the  Patent 
Office  within  three  months  from  date  thereof.  The  commissioner  shall 
keep  a  record  of  such  assignments. 

Certificates,  Records,  Books,  Etc. 

Sec.  11.  That  certificates  of  registration  of  trade-marks  shall  be 
issued  in  the  name  of  the  United  States  of  America,  under  the  seal  of 
the  Patent  Office,  and  shall  be  signed  by  the  Commissioner  of  Patents, 
and  a  record  thereof,  together  with  printed  copies  of  the  drawing  and 
statement  of  the  applicant,  shall  be  kept  in  books  for  that  purpose.  The 
certificate  shall  state  the  date  on  which  the  application  for  registration 
was  received  in  the  Patent  Office.  Certificates  of  registration  of  trade- 
marks may  be  issued  to  the  assignee  of  the  applicant,  but  the  assignment 
must  first  be  entered  of  record  in  the  Patent  Office. 


628  Important  Federal  Laws 

Written  or  printed  copies  of  any  records,  books,  papers,  or  drawings 
relating  to  trade-marks  belonging  to  the  Patent  Office,  and  of  certificates 
of  registration,  authenticated  by  the  seal  of  the  Patent  office  and  certified 
by  the  commissioner  thereof,  shall  be  evidence  in  all  cases  wherein  the 
originals  could  be  evidence  ;  and  any  person  making  application  therefor 
and  paying  the  fee  required  by  law  shall  have  certified  copies  thereof. 

Certificates  in  Force  Twenty  Years. 

Sec.  12.  That  a  certificate  of  registration  shall  remain  in  force  for 
twenty  years,  except  that  in  the  case  of  trade-marks  previously  registered 
in  a  foreign  country  such  certificates  shall  cease  to  be  in  force  on  the 
day  on  which  the  trade-mark  ceases  to  be  protected  in  such  foreign 
country,  and  shall  in  no  case  rernain  in  force  more  than  twenty  years, 
unless  renewed.  Certificates  of  registration  may  be  from  time  to  time 
renewed  for  like  periods  on  payment  of  the  renewal  fees  required  by 
this  act.  upon  request  by  the  registrant,  his  legal  representatives,  or 
transferees  of  record  in  the  Patent  Office,  and  such  request  may  be  made 
at  any  time  not  more  than  six  months  prior  to  the  expiration  of  the 
period  for  which  the  certificates  of  registration  were  issued  or  renewed. 
Certificates  of  registration  in  force  at  the  date  at  which  this  act  takes 
effect  shall  remain  in  force  for  the  period  for  which  they  were  issued, 
but  shall  be  renewable  on  the  same  conditions  and  for  the  same  periods 
as  certificates  issued  under  the  provisions  of  this  Act,  and  when  so 
renewed  shall  have  the  same  force  and  effect  as  certificates  issued  under 
this  act. 

Application  by  Person  Injured  by  Trade-Mark. 

Sec.  13.  That  whenever  any  person  shall  deem  himself  injured  by 
the  registration  of  a  trade-mark  in  the  Patent  Office  he  may  at  any  time 
apply  to  the  Commissioner  of  Patents  to  cancel  the  registration  thereof. 
The  commissioner  shall  refer  such  application  to  the  examiner  in  charge 
of  interferences,  who  is  empowered  to  hear  and  determine  this  question 
and  who  shall  give  notice  thereof  to  the  registrant.  If  it  appear  after  a 
hearing  before  the  examiner  that  the  registrant  was  not  entitled  to  the 
use  of  the  mark  at  the_  date  of  his  application  for  registration  thereof, 
or  that  the  mark  is  not  used  by  the  registrant,  or  has  been  abandoned, 
and  the  examiner  shall  so  decide,  the  commissioner  shall  cancel  the  regis- 
tration. Appeal  may  be  taken  to  the  commissioner  in  person  from  the 
decision  of  examiner  of  interferences. 

Fees. 

Sec.  14.  That  the  following  shall  be  the  rates  for  trade-mark  fees: 
On  filing  each  original  application  for  registration  of  a  trade-mark, 
ten  dollars :  Provided,  That  an  application  for  registration  of  a  trade- 
mark pending  at  the  date  of  the  passage  of  this  act,  and  on  which  cer- 
tificate of  registration  shall  not  have  issued  at  such  date,  may,  at  the 
option  of  the  applicant,  be  proceeded  with  and  registered  under  the 
provisions  of  this  act  without  the  payment  of  further  fee. 


Trade-Marks  629 

On  filing  each  application  for  renewal  of  the  registration  of  a  trade- 
mark, ten  dollars. 

On  filing  notice  of  opposition  to  the  registration  of  a  trade-mark, 
ten  dollars. 

On  an  appeal  from  the  examiner  in  charge  of  trade-marks  to  the 
Commissioner  of  Patents,  fifteen  dollars. 

On  an  appeal  from  the  decision  of  the  examiner  in  charge  of  inter- 
ferences, awarding  ownership  of  a  trade-mark  or  canceling  the  registra- 
tion of  a  trade-mark,  to  the  Commissioner  of  Patents,  fifteen  dollars. 

For  certified  and  uncertified  copies  of  certificates  of  registration  and 
other  papers,  and  for  recording  transfers  and  other  papers,  the  same 
fees  as  required  by  law  for  such  copies  of  patents  and  for  recording 
assignments  and  other  papers  relating  to  patents. 

Laws  Applicable. 

Sec.  15.  That  sections  forty-nine  hundred  and  thirty-five  and  forty- 
nine  hundred  and  thirty-six  of  the  Revised  Statutes,  relating  to  the  pay- 
ment of  patent  fees  and  to  the  repayment  of  fees  paid  by  mistake,  are 
hereby  made  applicable  to  trade-mark  fees. 

Registration  Prima  Facie  Evidence  of  Ownership. 

Sec.  16.  That  the  registration  of  a  trade-mark  under  the  provision 
of  this  act  shall  be  prima  facie  evidence  of  ownership.  Any  person  who 
shall,  without  the  consent  of  the  owner  thereof,  reproduce,  counterfeit, 
copy,  or  colorably  imitate  any  such  trade-mark  and  affix  the  same  to  mer- 
chandise of  substantially  the  same  descriptive  properties  as  those  set 
forth  in  the  registration,  or  to  labels,  signs,  prints,  packages,  wrappers, 
or  receptacles  intended  to  be  used  upon  or  in  connection  with  the  sale  of 
merchandise  of  substantially  the  same  descriptive  properties  as  those  set 
forth  in  such  registration,  and  shall  use,  or  shall  have  used,  such  repro- 
duction, counterfeit,  copy,  or  colorable  imitation  in  commerce  among  the 
several  States,  or  with  a  foreign  nation,  or  with  the  Indian  tribes,  shall 
be  liable  to  an  action  for  damages  therefor  at  the  suit  of  the  owner  there- 
of ;  and  whenever  in  any  such  action  a  verdict  is  rendered  for  the  plain- 
tifif,  the  court  may  enter  judgment  therein  for  any  sum  above  the  amount 
found  by  the  verdict  as  the  actual  damages,  according  to  the  circum- 
stances of  the  case,  not  exceeding  three  times  the  amount  of  such  ver- 
dict, together  with  the  costs. 

Jurisdiction  of  Courts. 

Sec.  17.  That  the  circuit  and  territorial  courts  of  the  United  States 
and  the  supreme  court  of  the  District  of  Columbia  shall  have  original 
jurisdiction,  and  the  circuit  courts  of  appeal  of  the  United  States  and 
the  court  of  appeals  of  the  District  of  Columbia  shall  have  appellate 
jurisdiction  of  all  suits  at  law  or  in  equity  respecting  trade-marks  regis- 
tered in  accordance  with  the  provisions  of  this  act,  arising  under  the 
present  act,  without  regard  to  the  amount  in  controversy. 


630  Important  Federal  Laws 

Supreme  Court  Writs  of  Certiorari. 

Sec.  18.  That  writs  of  certiorari  may  be  granted  by  the  Supreme 
Court  of  the  United  States  for  the  review  of  cases  arising  under  this 
act  in  the  same  manner  as  provided  for  patent  cases  by  the  act  creatmg 
the  circuit  court  of  appeals. 

Injunctions. 

Sec.  19.  That  the  several  courts  vested  with  jurisdiction  of  cases 
arising  under  the  present  act  shall  have  power  to  grant  injunctions, 
according  to  the  course  and  principles  of  equity,  to  prevent  the  violation 
of  any  right  of  the  owner  of  a  trade-mark  registered  under  this  act, 
on  such  terms  as  the  court  may  deem  reasonable ;  and  upon  a  decree  being 
rendered  in  any  such  case  for  wrongful  use  of  a  trade-mark  the  com- 
plainant shall  be  entitled  to  recover,  in  addition  to  the  profits  to  be 
accounted  for  by  the  defendant,  the  damages  the  complainant  has  sus- 
tained thereby,  and  the  court  shall  assess  the  same  or  cause  the  same  to 
be  assessed  under  its  direction.  The  court  shall  have  the  same  power  to 
increase  such  damages,  in  its  discretion,  as  is  given  by  section  sixteen  of 
this  act  for  increasing  damages  found  by  verdict  in  actions  of  law ;  and 
in  assessing  profits  the  plaintiff  shall  be  required  to  prove  defendant's 
sales  only ;  defendant  must  prove  all  elements  of  cost  which  are  claimed. 

Orders  of  Court  in  Injunction  Cases. 

Sec.  20.     That  in  any  case  involving  the  right  to  a  trade-mark  regis- 
tered in  accordance  with  the  provisions  of  this  act,  in  which  the  verdict 
has  been  found  for  the  plaintiflf,  or  an  injunction  issued,  the  court  may 
order  that  all  labels,  signs,  prints,  packages,  wrappers,  or  receptacles  in 
the  possession  of  the  defendant,  bearing  the  trade-mark  of  the  plaintiff 
or  complainant,  or  anv  reproduction,  counterfeit,  copy,  or  colorable  imi- 
tation thereof,  shall  be  delivered  up  and  destroyed.     Any  injunction  that 
may  be  granted  upon  hearing,  after  notice  to  the  defendant,  to  prevent 
the  violation  of  any  right  of  the  owner  of  a  trade-mark  registered  in 
accordance  with  the  provisions  of  this  act,  by  any  circuit  court  of  the 
United  States,  or  by  a  judge  thereof,  may  be  served  on  the  parties  against 
whom  such  injunction  may  be  granted  anywhere  in  the  United  States 
where  they  may  be  found,' and  shall  be  operative,  and  may  be  enforced 
by  proceedings  to  punish   for  contempt,  or  otherwise,  by  the  court  by 
which  such  injunction  was  granted,  or  by  any  other  circuit  court,   or 
judge  thereof,  in  the  United  States,  or  by  the   Supreme   Court  of  the 
District  of  Columbia,  or  a  judge  thereof.     The  said  courts,  or  judges 
thereof,  shall  have  jurisdiction  to  enforce  said  injunction,  as  herein  pro- 
vided, as  fully  as  if  the  injunction  had  been  granted  by  the  circuit  court 
in  which  it  is  sought  to  be  enforced.     The  clerk  of  the  court  or  judge 
granting  the  injunction  shall,  when  required  to  do  so  by  the  court  or  judge 
which  application  to  enforce  said  injunction  is  made,  transfer  without 
delay  to  said  court  a  certified  copy  of  all  the  papers  on  which  the  said 
injunction  was  granted  that  are  on  file  in  his  office. 


Trade-Marks  63 1 

No  Relief  in  Case  of  Unlawful  Business. 

Sec.  21.  That  no  action  or  suit  shall  be  maintained  under  the  pro- 
visions of  this  act  in  any  case  when  the  trade-mark  is  used  in  unlawful 
business,  or  upon  any  article  injurious  in  itself,  or  which  mark  has  been 
used  with  the  resign  of  deceiving  the  public  in  the  purchase  of  merchan- 
dise, or  has  been  abandoned,  or  upon  any  certificate  of  registration  fraud- 
ulently obtained. 

Suits  in  Equity  for  Damages. 

Sec.  22.  That  whenever  there  are  interfering  registered  trade- 
marks, any  person  interested  in  any  one  of  them  may  have  relief  against 
the  interfering  registrant,  and  all  persons  interested  under  him,  by  suit 
in  equity  against  the  said  registrant ;  and  the  court,  on  notice  to  adverse 
parties  and  other  due  proceedings  had  according  to  the  course  of  equity, 
may  adjudge  and  declare  either  of  the  registrations  void  in  whole  or  in 
part  according  to  the  interest  of  the  parties  in  the  trade-mark,  and  may 
order  the  certificate  of  registration  to  be  delivered  up  to  the  Commis- 
sioner of  Patents  for  cancellation. 

Not  to  Affect  Other  Remedies. 

_  Sec.  23.  That  nothing  in  this  act  shall  prevent,  lessen,  impeach,  or 
avoid  any  remedy  at  law  or  in  equity  which  any  party  aggrieved  by  any 
wrongful  use  of  any  trade-mark  might  have  had  if  the  provisions  of  this 
act  had  not  been  passed. 

Pending  Cases. 

Sec.  24.  That  all  applications  for  registration  pending  in  the  office 
of  the  Commissioner  of  Patents  at  the  time  of  the  passage  of  this  act 
may  be  amended  with  a  view  to  bringing  them,  and  the  certificate  issued 
upon  such  applications,  under  its  provisions,  and  the  prosecution  of  such 
applications  may  be  proceeded  with  under  the  provisions  of  this  act. 

Fraudulent  Registration. 

Sec.  25.  That  any  person  who  shall  procure  registration  of  a  trade- 
mark, or  entry  thereof,  in  the  office  of  the  Commissioner  of  Patents 
by  a  false  or  fraudulent  declaration  or  representation,  oral  or  in  writing, 
or  by  any  false  means,  shall  be  liable  to  pay  any  damages  sustained  in 
consequence  thereof  to  the  injured  party,  to  be  recovered  by  an  action 
on  the  case. 

Rules  and  Regulations. 

Sec.  26.  That  the  Commissioner  of  Patents  is  authorized  to  make 
rules  and  regulations,  not  inconsistent  with  law,  for  the  conduct  of  pro- 
ceedings in  reference  to  the  registration  of  trade-marks  provided  for  by 
this  act. 

Articles  Imported  Not  to  Imitate  Name  of  Domestic  Product. 

Sec.  27.  That  no  article  of  imported  merchandise  which  shall  copy 
or  simulate  the  name  of  any  domestic  manufacture,  or  manufacturer 
or  trader    or    of    any    manufacturer    or    trader  located  in  any   foreign 


632  Important  Federal  Laws 

country  which,  by  treaty,  convention,  or  law  affords  similar  privileges 
to  citizens  of  the  United  States,  or  which  shall  copy  or  simulate  a  trade- 
mark registered  in  accordance  with'  the  provisions  of  this  act  or  shall 
bear  a  name  or  mark  calculated  to  induce  the  public  to  believe  that  the 
article  is  manufactured  in  the  United  States,  or  that  it  is  manufactured 
in  any  foreign  country  or  locality  other  than  the  country  or  locality  in 
which  it  is  in  fact  manufactured,  shall  be  admitted  to  entry  at  any  custom- 
house of  the  United  States ;  and,  in  order  to  aid  the  officers  of  the  customs 
in  enforcing  this  prohibition,  any  domestic  manufacturer  or  trader,  and 
any  foreign  manufacturer  or  trader,  who  is  entitled  under  the  provisions 
of  a  treaty,  convention,  declaration,  or  agreement  between  the  United 
States  and  any  foreign  country  to  the  advantages  afforded  by  law  to  citi- 
zens of  the  United  States  in  respect  to  trade-marks  and  commercial  names, 
may  require  his  name  and  residence,  and  the  name  of  the  locality  in  which 
his  goods  are  manufactured,  and  a  copy  of  the  certificate  of  registration 
of  his  trade-mark,  issued  in  accordance  with  the  provisions  of  this  act, 
to  be   recorded  in  books   which   shall  be  kept   for  this   purpose  in  the 
Department  of  the  Treasury,  under  such   regulations  as  the   Secretary 
of   the   Treasury   shall   prescribe,   and   may    furnish   to  the   department 
facsimiles  of  his  name,  the  name  of  the  locality  in  which  his  goods  are 
manufactured,  or  of  his  registered  trade-mark  ;  and  thereupon  the  Secre- 
tary of  the  Treasury  shall  cause  one  or  more  copies  of  the  same  to  be 
transmitted  to  each  collector  or  other  proper  officer  of  customs. 

Notice  of  Trade-Mark. 

Sec.  28.  That  it  shall  be  the  duty  of  the  registrant  to  give  notice 
to  the  public  that  a  trade-mark  is  registered,  either  by  affixing  thereon 
the  words  "Registered  in  U.  S.  Patent  Office,"  or  abbreviated  thus,  "Reg. 
U.  S.  Pat.  Off.,"  or  when,  from  the  character  or  size  of  the  trade-mark^ 
or  from  its  manner  of  attachment  to  the  article  to  which  it  is  appro- 
priated, this  can  not  be  done,  then  by  affixing  a  label  containing  a  like 
notice  to  the  package  or  receptacle  wherein  the  article  or  articles  are 
inclosed ;  and  in  any  suit  for  infringement  by  a  party  failing  so  to  give 
notice  of  registration  no  damages  shall  be  recovered,  except  on  proof 
that  the  defendant  was  duly  notified  of  infringement  and  continued  the 
same  after  such  notice. 

Definitions. 

Sec.  29.  That  in  construing  this  act  the  following  rules  must  be 
observed,  except  where  the  contrary  intent  is  plainly  apparent  from  the 
context  thereof:  The  United  States  includes  and  embraces  all  terri- 
tory which  is  under  the  .jurisdiction  and  control  of  the  United  States. 
The  word  "States"  includes  and  embraces  the  District  of  Columbia,  the 
Territories  of  the  United  States,  and  such  other  territory  as  shall  be 
vmder  the  jurisdiction  and  control  of  the  United  States.  The  terms 
"person"  and  "owner,"  and  any  other  word  or  term  used  to  designate  the 


Trade-Marks  633 

applicant  or  other  entitled  to  a  benefit  or  privilege  or  rendered  liable 
under  the  provisions  of  this  act,  include  a  firm,  corporation,  or  association 
as  well  as  a  natural  person.  The  term  ''applicant"  and  "registrant" 
embrace  the  successors  and  assigns  of  such  applicant  or  registrant.  The 
term  "trade-mark"  includes  any  mark  which  is  entitled  to  registration 
under  the  terms  of  this  act,  and  whether  registered  or  not,  and  a  trade- 
mark shall  be  deemed  to  be  "affixed"  to  an  article  when  it  is  placed  in 
any  manner  in  or  upon  either  the  article  itself  or  the  receptacle  or  pack- 
age or  upon  the  envelope  or  other  thing  in,  by,  or  with  which  the  goods 
are  packed  or  inclosed  or  otherwise  prepared  for  sale  or  distribution. 

Date  of  Effect. 

Sec.  30.  That  this  act  shall  be  in  force  and  take  eflfect  April  first, 
nineteen  hundred  and  five.  All  acts  and  parts  of  acts  inconsistent  with 
this  act  are  hereby  repealed  except  so  far  as  the  same  may  apply  to 
certificates  of  registration  issued  under  the  act  of  Congress  approved 
March  third,  eighteen  hundred  and  eighty-one,  entitled  "An  act  to  auth- 
orize the  registration  of  trade-marks  and  protect  the  same,"  or  under  the 
act  approved  August  fifth,  eighteen  hundred  and  eighty-two,  entitled 
"An  act  relating  to  the  registration  of  trade-marks." 

Act  of  May  4.  1906. 

An  Act  to  amend  the  laws  of  the  United  States  relating  to  the  registration  of 
trade-marks. 

******* 

Classes  of  Merchandise. 

Sec.  2.  That  the  Commissioner  of  Patents  shall  establish  classes  of 
merchandise  for  the  purpose  of  trade-mark  registration,  and  shall  deter- 
mine the  particular  descriptions  of  goods  comprised  in  each  class.  On  a 
single  application  for  registration  of  a  trade-mark  the  trade-mark  maybe 
registered  at  the  option  of  the  applicant  for  any  or  all  goods  upon  which 
the  mark  has  actually  been  used  comprised  in  a  single  class  of  merchan- 
dise, provided  the  particular  descriptions  of  goods  be  stated. 

Owners  of  Trade-Mark  Having  Plant  in  This  Country. 

Sec.  3.  That  any  owner  of  a  trade-mark  who  shall  have  a  manu- 
facturing establishment  within  the  territory  of  the  United  States  shall 
be  accorded,  so  far  as  the  registration  and  protection  of  trade-marks 
used  on  the  products  of  such  establishment  are  concerned,  the  same  rights 
and  privileges  that  are  accorded  to  owners  of  trade-marks  domiciled 
within  the  territory  of  the  United  States  by  the  act  entitled  "An  act  to 
authorize  the  registration  of  trade-marks  used  in  commerce  with  foreign 
nations  or  among  the  several  States  or  with  Indian  tribes,  and  to  protect 
the  same,"  approved  February  twentieth,  nineteen  hundred  and  five. 

Sec.  4.  That  this  act  shall  take  effect  July  first,  nineteen  hundred 
and  six. 


634  Important  Federal  Laws 

COPYRIGHT  LAW. 

Act  of  March  4,  1909,  as  Amended. 
An  Act  to  amend  and  consolidate  the  acts  respecting  copyright. 

Exclusive  Rights. 

Sec.  1.  That  any  person  entitled  thereto,  upon  complying  with  the 
provisions  of  this  Act,  shall  have  the  exclusive  right : 

(a)  To  print,  reprint,  publish,  copy,  and  vend  the  copyrighted  work ; 

(b)  To  translate  the  copyrighted  work  into  other  languages  or  dia- 
lects, or  make  any  other  version  thereof,  if  it  be  a  literary  work  ;  to 
dramatize  it  if  it  be  a  nondramatic  work;  to  convert  it  into  a  novel  or 
other  nondramatic  work  if  it  be  a  drama;  to  arrange  or  adapt  it  if  it  be  a 
musical  work;  to  complete,  execute,  and  finish  it  if  it  be  a  model  or 
design  for  a  work  of  art ; 

(c)  To  deliver  or  authorize  the  delivery  of  the  copyrighted  work 
in  public  for  profit  if  it  be  a  lecture,  sermon,  address,  or  similar  produc- 
tion; 

(d)  To  perform  or  represent  the  copyrighted  work  publicly  if  it  be 
a  drama  or,  if  it  be  a  dramatic  work  and  not  reproduced  in  copies  for 
sale,  to  vend  any  manuscript  or  any  record  whatsoever  thereof ;  to  make 
or  to  procure  the  making  of  any  transcription  or  record  thereof  by  or 
from  which,  in  whole  or  in  part,  it  may  in  any  manner  or  by  any  method 
be  exhibited,  performed,  represented,  produced,  or  reproduced ;  and  to 
exhibit,  perform,  represent,  produce,  or  reproduce  it  in  any  manner  or 
by  any  method  whatsoever; 

(e)  To  perform  the  copyrighted  work  publicly  for  profit  if  it  be  a 
musical  composition  and  for  the  purpose  of  public  performance  for 
profit;  and  for  the  purposes  set  forth  in  subsection  (a)  hereof,  to  make 
any  arrangement  or  setting  of  it  or  of  the  melody  of  it  in  any  system 
of  notation  or  any  form  of  record  in  which  the  thought  of  an  author 
may  be  recorded  and  from  which  it  may  be  read  or  reproduced :  Pro- 
vided, That  the  provisions  of  this  Act,  so  far  as  they  secure  copyright 
controlling  the  parts  of  instruments  serving  to  reproduce  mechanically 
the  musical  work,  shall  include  only  compositions  published  and  copy- 
righted after  this  Act  goes  into  efifect,  and  shall  not  include  the  works 
of  a  foreign  author  or  composer  unless  the  foreign  state  or  nation  of 
which  such  author  or  composer  is  a  citizen  or  subject  grants,  either  by 
treaty,  convention,  agreement,  or  law,  to  citizens  of  the  United  States 
similar  rights:  And  provided  further,  and  as  a  condition  of  extending 
the  copyright  control  to  such  mechanical  reproductions.  That  whenever 
the  owner  of  a  musical  copyright  has  used  or  pemiitted  or  knowingly 
acquiesced  in  the  use  of  the  copyrighted  work  upon  the  parts  of  instru- 
ments serving  to  reproduce  mechanically  the  musical  work,  any  other 
person  may  make  similar  use  of  the  copyrighted  work  upon  the  payment 
to  the  copyright  proprietor  of  a  royalty  of  two  cents  on  each  such  part 
manufactured,  to  be  paid  by  the  manufacturer  thereof;  and  the  copyright 


Copyright  Laws  635 

proprietor  may  require,  and  if  so  the  manufacturer  shall  furnish  a  report 
under  oath  on  the  twentieth  day  of  each  month  on  the  number  of  parts 
of  instruments  manufactured  during  the  previous  month  serving  to 
reproduce  mechanically  said  musical  work,  and  royalties  shall  be  due  on 
the  parts  manufactured  during  any  month  upon  the  twentieth  of  the  next 
succeeding  month.  The  payment  of  the  royalty  provided  for  by  this  sec- 
tion shall  free  the  articles  or  devices  for  which  such  royalty  has  been 
paid  from  further  contribution  to  the  copyright  except  in  case  of  public 
performance  for  profit :  And  provided  further,  That  it  shall  be  the  duty 
of  the  copyright  owner,  if  he  uses  the  musical  composition  himself  for 
the  manufacture  of  parts  of  instruments  serving  to  reproduce  mechan- 
ically the  musical  work,  or  licenses  others  to  do  so,  to  file  notice  thereof, 
accompanied  by  a  recording  fee,  in  the  copyright  office,  and  any  failure  to 
file  such  notice  shall  be  a  complete  defense  to  any  suit,  action,  or  pro- 
ceeding for  any  infringement  of  such  copyright. 

In  case  of  the  failure  of  such  manufacturer  to  pay  to  the  copyright 
proprietor  within  thirty  days  after  demand  in  writing  the  full  sum  of 
royalties  due  at  said  rate  at  the  date  of  such  demand  the  court  may  award 
taxable  costs  to  the  plaintiff  and  a  reasonable  counsel  fee,  and  the  court 
may,  in  its  discretion,  enter  judgment  therein  for  any  sum  in  addition 
over  the  amount  found  to  be  due  as  royalty  in  accordance  with  the  terms 
of  this  Act,  not  exceeding  three  times  such  amount. 

The  reproduction  or  rendition  of  a  musical  composition  by  or  upon 
coin-operated  machines  shall  not  be  deemed  a  public  performance  for 
profit  unless  a  fee  is  charged  for  admission  to  the  place  where  such 
reproduction  or  rendition  occurs. 

Right  of  Common  Law  or  in  Equity. 

Sec.  2.  That  nothing  in  this  Act  shall  be  construed  to  annul  or 
limit  the  right  of  the  author  or  proprietor  of  an  unpublished  work,  at 
common  law  or  in  equity,  to  prevent  the  copying,  publication,  or  use  of 
such  unpublished  work  without  his  consent,  and  to  obtain  damages  there- 
for. 

Component  Parts  of  Copyrightable  Work, 

Sec.  3.  That  the  copyright  provided  by  this  Act  shall  protect  all 
the  copyrightable  component  parts  of  the  work  copyrighted,  and  all  mat- 
ter therein  in  which  copyright  is  already  subsisting,  but  without  extend- 
ing the  duration  or  scope  of  such  copyright.  The  copyright  upon  com- 
posite works  or  periodicals  shall  give  to  the  proprietor  thereof  all  the 
rights  in  respect  thereto  which  he  would  have  if  each  part  were  individ- 
ually copyrighted  under  this  Act. 

Works  Protected. 

Sec.  4.  That  the  works  for  which  copyright  may  be  secured  under 
this  Act  shall  include  all  the  writings  of  an  author. 


636  Important  Federal  Laws 

Classification  of  Copyright  Works. 

Sec.  5.  That  the  apphcation  for  registration  shall  specify  to  which 
of  the  following  classes  the  work  in  which  copyright  is  claimed  belongs : 

(a)  Books,  including  composite  and  cyclopaedic  works,  directories, 
gazetteers,  and  other  compilations ; 

(b)  Periodicals,  including  newspapers; 

(c)  Lectures,  sermons,  addresses   (prepared  for  oral  delivery)  ; 

(d)  Dramatic  or  dramatico-musical  compositions; 

(e)  Musical  compositions; 

(f)  Maps; 

(g)  Works  of  art;  models  or  designs  for  works  of  art; 
(h)   Reproductions  of  a  work  of  art; 

(i)   Drawings  or  plastic  works  of  a  scientific  or  technical  character; 

(j)   Photographs; 

(k)    Prints  and  pictorial  illustrations; 

(1)   Motion-picture  photoplays ; 

(m)   Motion-pictures  other  than  photoplays: 

Provided,  nevertheless,  That  the  above  specifications  shall  not  be 
held  to  limit  the  subject-matter  of  copyright  as  defined  in  section  four  of 
this  Act,  nor  shall  any  error  in  classification  invalidate  or  impair  the 
copyright  protection  secured  under  this  Act. 

New  Editions. 

Sec.  6.  That  compilations  or  abridgements,  adaptations,  arrange- 
ments, dramatizations,  translations,  or  other  versions  of  works  in  the 
public  domain,  or  of  copyrighted  works  when  produced  with  the  consent 
of  the  proprietor  of  the  copyright  in  such  works,  or  works  republished 
with  new  matter,  shall  be  regarded  as  new  works  subject  to  copyright 
under  the  provisions  of  this  Act;  but  the  publication  of  any  such  new 
works  shall  not  affect  the  force  or  validity  of  any  subsisting  copyright 
upon  the  matter  employed  or  any  part  thereof,  or  be  construed  to  imply 
an  exclusive  right  to  such  use  of  the  original  works,  or  to  secure  or 
extend  copyright  in  such  original  works. 

Not  Subject  to  Copyright. 

Sec.  7.  That  no  copyright  shall  subsist  in  tbe  original  text  of  any 
work  which  is  in  the  public  domain,  or  in  any  work  which  was  published 
in  this  country  or  any  foreign  country  prior  to  the  going  into  eflfect  of 
ths  Act  and  has  not  been  already  copyrighted  in  the  United  States,  or  in 
any  publication  of  the  United  States  Government,  or  any  reprint,  in  whole 
or  in  part,  thereof:  Provided,  however,  That  the  publication  or  repub- 
lication by  the  Government,  either  separately  or  in  a  public  document, 
of  any  material  in  which  copyright  is  subsisting  shall  not  be  taken  to 
cause  any  abridgement  or  annulment  of  the  copyright  or  to  authorize  any 
use  or  appropriation  of  such  copyright  material  without  the  consent  of 
the  copyright  proprietor. 


Copyright  Laws  637 

Terms  of  Copyright. 

Sec.  8.  That  the  author  or  proprietor  of  any  work  made  the  subject 
of  copyright  by  this  Act,  or  his  executors,  administrators,  or  assigns, 
shall  have  copyright  for  such  work  under  the  conditions  and  for  the 
terms  specified  in  this  xA.ct :  Provided,  however.  That  the  copyright 
secured  by  this  Act  shall  extend  to  the  work  of  an  author  or  proprietor 
who  is  a  citizen  or  subject  of  a  foreign  state  or  nation,  only: 

(a)  When  an  alien  author  or  proprietor  shall  be  domiciled  within 
the  United  States  at  the  time  of  the  first  publication  of  his  work  ;  or 

(b)  When  the  foreign  state  or  nation  of  which  such  author  or  pro- 
prietor is  a  citizen  or  subject  grants,  either  by  treaty,  convention,  agree- 
ment, or  law,  to  citizens  of  the  United  States  the  benefit  of  copyright  on 
substantially  the  same  basis  as  to  its  own  citizens,  or  copyright  protection 
substantially  equal  to  the  protection  secured  to  such  foreign  author  under 
this  Act  or  by  treaty ;  or  when  such  foreign  state  or  nation  is  a  party 
to  an  international  agreement  which  provides  for  reciprocity  in  the  grant- 
ing of  copyright,  by  the  terms  of  which  agreement  the  United  States  may, 
at  its  pleasure,  become  a  party  thereto. 

The  existence  of  the  reciprocal  conditions  aforesaid  shall  be  deter- 
mined by  the  President  of  the  United  States,  by  proclamation  made  from 
time  to  time,  as  the  purposes  of  this  Act  may  require. 

Publication  With  Notice  Imitates  Copyright. 

Sec.  9.  That  any  person  entitled  thereto  by  this  Act  may  secure 
copyright  for  his  work  by  publication  thereof  with  the  notice  of  copy- 
right required  by  this  Act ;  and  such  notice  shall  be  affixed  to  each  copy 
thereof  published  or  offered  for  sale  in  the  United  States  by  authority  of 
the  copyright  proprietor,  except  in  the  case  of  books  seeking  ad  interim 
protection  under  section  twenty-one  of  this  Act. 

Registration  of  Copyright. 

Sec.  10.  That  such  person  may  obtain  registration  of  his  claim 
to  copyright  by  complying  with  the  provisions  of  this  Act,  including  the 
deposit  of  copies,  and  upon  such  compliance  the  register  of  copyrights 
shall  issue  to  him  the  certificate  provided  for  in  section  fifty-five  of  this 
Act. 

Copyright  Protection  of  Unpublished  Works. 

Sec.  11.  That  copyright  may  also  be  had  of  the  works  of  an 
author  of  which  copies  are  not  reproduced  for  sale,  by  the  deposit,  with 
claim  of  copyright,  of  one  complete  copy  of  such  work  if  it  be  a  lecture  or 
similar  production  or  a  dramatic  musical,  or  dramatico-musicai  compo- 
sition ;  of  a  title  and  description,  with  one  print  taken  from  each  scene 
or  act,  if  the  work  be  a  motion-picture  photoplay ;  or  a  photographic 
print  if  the  work  be  a  photograph  ;  of  a  title  and  description,  with  not 
less  than  two  prints  taken  from  diiTerent  sections  of  a  complete  motion 
picture,  if  the  work  be  a  motion  picture  other  than  a  photoplay ;  or  of  a 
photograph  or  other  identifying  reproduction  thereof,  if  it  be  a  work  of 


638  Important  Federal  Laws 

art  or  a  plastic  work  or  drawing.  But  the  privilege  of  registration  of 
copyright  secured  hereunder  shall  not  exempt  the  copyright  proprietor 
from  the  deposit  of  copies,  under  sections  twelve  and  thirteen  of  this 
Act,  where  the  work  is  later  reproduced  in  copies  for  sale. 

Two  Copies  of  Edition  Deposited. 

Sec.  12.  That  after  copyright  has  been  secured  by  publication  of  the 
work  with. the  notice  of  copyright  as  provided  in  section  nine  of  this 
Act,  there  shall  be  promptly  deposited  in  the  copyright  office  or  in  the 
mail  addressed  to  the  register  of  copyrights,  Washington,  District  of 
Columbia,  two  complete  copies  of  the  best  edition  thereof  then  published, 
or  if  the  work  is  by  an  author  who  is  a  citizen  or  subject  of  a  foreign 
state  or  nation  and  has  been  published  in  a  foreign  country,  one  complete 
copy  of  the  best  edition  then  published  in  such  foreign  country,  which 
copies  or  copy,  if  the  work  be  a  book  or  periodical,  shall  have  been  pro- 
duced in  accordance  with  the  manufacturing  provisions  specified  in  sec- 
tion fifteen  of  this  Act;  or  if  such  work  be  a  contribution  to  a  periodical, 
for  which  contribution  special  registration  is  requested,  one  copy  of  the 
issue  or  issues  containing  such  contribution ;  or  if  the  work  is  not  repro- 
duced in  copies  for  sale,  there  shall  be  deposited  the  copy,  print,  photo- 
graph, or  other  identifying  reproduction  provided  by  section  eleven  of 
this  Act,  such  copies  or  copy,  print,  photograph,  or  other  reproduction  to 
be  accompanied  in  each  case  by  a  claim  of  copyright.  No  action  or  pro- 
ceeding shall  be  maintained  for  infringement  of  copyright  in  any  work 
until  the  provisions  of  this  Act  with  respect  to  the  deposit  of  copies  and 
registration  of  such  work  shall  have  been  complied  with. 

Failure  to  Deposit  Copies. 

Sec.  13.  That  should  the  copies  called  for  by  section  twelve  of  this 
Act  not  be  promptly  deposited  as  herein  provided,  the  register  of  copy- 
rights may  at  any  time  after  the  publication  of  the  work,  upon  actual 
notice,  require  the  proprietor  of  the  copyright  to  deposit  them,  and  after 
the  said  demand  shall  have  been  made,  in  default  of  the  deposit  of  copies 
of  the  work  within  three  months  from  any  part  of  the  United  States, 
except  an  outlying  territorial  possession  of  the  United  States,  or  within 
six  months  from  any  outlying  territorial  possession  of  the  United  States, 
or  from  any  foreign  country,  the  proprietor  of  the  copyright  shall  be 
liable  to  a  fine  of  one  hundred  dollars  and  to  pay  to  the  Library  of  Con- 
gress twice  the  amount  of  the  retail  price  of  the  best  edition  of  the  work, 
and  the  copyright  shall  become  void. 

Postmaster's  Receipt. 

Sec.  14.  That  the  postmaster  to  whom  are  delivered  the  articles 
deposited  as  provided  in  sections  eleven  and  twelve  of  this  Act  shall,  if 
requested,  give  a  receipt  therefor  and  shall  mail  them  to  their  destination 
without  cost  to  the  copyright  claimant. 


Copyright  Laws  639 

Character  of  Printing. 

Sec.  15.  That  of  the  printed  book  or  periodical  specified  in  section 
five,  subsections  (a)  and  (b)  of  this  Act,  except  the  original  text  of  a 
book  of  foreign  origin  in  a  language  or  languages  other  than  English, 
the  text  of  all  copies  accorded  protection  under  this  act,  except  as  below 
provided,  shall  be  printed  from  type  set  within  the  limits  of  the  United 
States,  either  by  hand  or  by  the  aid  of  any  kind  of  typesetting  machine, 
or  frorn  plates  made  within  the  limits  of  the  United  States  from  type  set 
therein,  or.  if  the  text  be  produced  by  lithographic  process,  or  photo- 
engraving process,  then  by  a  process  wholly  performed  within  the  limits 
of  the  United  States,  and  the  printing  of  the  text  and  binding  of  the  said 
book  shall  be  performed  within  the  limits  of  the  United  States;  which 
requirements  shall  extend  also  to  the  illustrations  within  a  book  consisting 
of  printed  text  and  illustrations  produced  by  lithographic  process,  or 
photo-engraving  process,  and  also  to  separate  lithographs  or  photo- 
engravings, except  where  in  either  case  the  subjects  represented  are 
located  in  a  foreign  country  and  illustrate  a  scientific  work  or  reproduce 
a  work  of  art ;  but  they  shall  not  apply  to  works  in  raised  characters  for 
the  use  of  the  blind,  or  to  books  of  foreign  origin  in  a  language  or  lan- 
guages other  than  English,  or  to  books  published  abroad  in  the  English 
language  seeking  ad  interim  protection  under  this  Act. 

Affidavits. 

Sec.  16.  That  in  the  case  of  the  book  the  copies  so  deposited  shall 
be  accompanied  by  an  affidavit,  under  the  official  seal  of  any  officer  auth- 
orized to  administer  oaths  within  the  United  States,  duly  made  by  the 
person  claiming  copyright  or  by  his  duly  authorized  agent  or  representa- 
tive residing  in  the  United  States,  or  by  the  printer  who  has  printed  the 
book,  setting  forth  that  the  copies  deposited  have  been  printed  from  type 
set  within  the  limits  of  the  United  States  or  from  plates  made  within  the 
limits  of  the  United  States  from  type  set  therein  ;  or,  if  the  text  be  pro- 
duced by  lithographic  process,  or  photo-engraving  process,  that  such 
process  was  wholly  performed  within  the  limits  of  the  United  States, 
and  that  the  printing  of  the  text  and  binding  of  the  said  book  have 
also  been  performed  within  the  limits  of  the  United  States.  Such  affi- 
davit shall  state  also  the  place  where  and  the  establishment  or  establish- 
ments in  which  such  type  was  set  or  plates  were  made  or  lithographic 
process,  or  photo-engraving  process  or  printing  and  binding  were  per- 
formed and  the  date  of  the  completion  of  the  printing  of  the  book  or  the 
date  of  publication. 

False  Affidavits. 

Sec.  17.  That  any  person  who,  for  the  purpose  of  obtaining  regis- 
tration of  a  claim  to  copyright,  shall  knowingly  make  a  false  affidavit  as 
to  his  having  complied  with  the  above'  conditions  shall  be  deemed  guilty 
of  a  misdemeanor,  and  upon  conviction  thereof  shall  be  punished  by  a 


640  Important  Federal  Laws 

fine  of  not  more  than  one  thousand  dollars,  and  all  of  his  rights  and 
privileges  under  said  copyright  shall  thereafter  be  forfeited. 

Notice  of  Copyright. 

Sec.  18.  That  the  notice  of  copyright  required  by  section  nine  of 
this  act  shall  consist  either  of  the  word  "Copyright"  or  the  abbreviation 
"Copr."  accompanied  by  the  name  of  the  copyright  proprietor,  and  if  the 
work  be  a  printed  literary,  musical,  or  dramatic  work,  the  notice  shall 
include  also  the  year  in  which  the  copyright  was  secured  by  publication. 
In  the  case,  however,  of  copies  of  works  specified  in  subsections  (f)  to 
(k),  inclusive,  of  section  five  of  this  act,  the  notice  may  consist  of  the 
letter  C  inclosed  with  a  circle,  thus:  (C),  accompanied  by  the  initials, 
monogram,  mark,  or  symbol  of  the  copyright  proprietor :  Provided,  That 
on  some  accessible  })ortion  of  such  copies  or  of  the  margin,  back,  perma- 
nent base,  or  pedestal,  or  of  the  substance  on  which  such  copies  shall  be 
mounted,  his  name  shall  appear.  But  in  the  case  of  works  in  which 
copyright  is  subsisting  when  this  act  shall  go  into  effect,  the  notice  of 
copyright  may  be  either  in  one  of  the  forms  prescribed  herein  or  in  one 
of  those  prescribed  by  the  Act  of  June  eighteenth,  eighteen  hundred  and 
seventy-four. 

Same. 

Sec.  19.  That  the  notice  of  copyright  shall  be  applied,  in  the  case 
of  a  book  or  other  printed  publication,  upon  its  title-page  or  the  page 
immediately  following,  or  if  a  periodical  either  upon  the  title-page  or 
upon  the  first  page  of  text  of  each  separate  numl)er  or  under  the  title 
heading,  or  if  a  musical  work  either  upon  its  title-page  or  the  first  page 
of  music :  Provided,  That  one  notice  of  copyright  in  each  volume  or  in 
each  number  of  a  newspaper  or  periodical  published  shall  suffice. 

Omission  of  Notice. 

Sec.  20.  That  where  the  copyright  proprietor  has  sought  to  comply 
with  the  provisions  of  this  Act  with  respect  to  notice,  the  omission  bv 
accident  or  mistake  of  the  prescribed  notice  from  a  particular  copy  or 
copies  shall  not  invalidate  the  copyright  or  prevent  recovery  for  infringe- 
ment against  any  person  who,  after  actual  notice  of  the  copyright,  begins 
an  undertaking  to  infringe  it,  but  shall  prevent  the  recovery  of  damages 
against  an  innocent  infringer  who  has  been  misled  by  the  omission  of 
the  notice;  and  in  a  suit  for  infringement  no  permanent  injunction  shall 
be  had  unless  the  copyright  proprietor  shall  reimburse  to  the  innocent 
infringer  his  reasonable  outlay  innocently  incurred  if  the  court,  in  its 
discretion,  shall  so  direct. 

Ad  Interim  Copyright. 

Sec.  21.  That  in  the  case  of  a  book  published  abroad  in  the  English 
language  before  publication  in  this  country,  the  deposit  in  the  copyright 
office,  not  later  than  thirty  days  after  its  publication  abroad,  of  one  com- 


Copyright  Laws  641 

plete  copy  of  the  foreign  edition,  with  a  request  for  the  reservation  of 
the  copyright  and  a  statement  of  the  name  and  nationality  of  the  author 
and  of  the  copyright  proprietor  and  of  the  date  of  pubUcation  of  the  said 
book,  shall  secure  to  the  author  or  proprietor  an  ad  interim  copyright, 
which  shall  have  all  the  force  and  effect  given  to  copyright  by  this  Act, 
and  shall  endure  until  the  expiration  of  thirty  days  after  such  deposit 
in  the  copyright  office. 

Extension  to  Full  Term. 

Sec.  22.  That  whenever  within  the  period  of  such  ad  interim  pro- 
tection an  authorized  edition  of  such  book  shall  be  published  within  the 
United  States,  in  accordance  with  the  manufacturing  provisions  specified 
in  section  fifteen  of  this  Act,  and  whenever  the  provisions  of  this  Act 
as  to  deposit  of  copies,  registration,  filing  of  affidavit,  and  the  printing 
of  the  copyright  notice  shall  have  been  duly  complied  with,  the  copyright 
shall  be  extended  to  endure  in  such  book  for  the  full  term  elsewhere 
provided  in  this  Act. 

Duration  of  Copyright. 

Sec.  23.  That  the  copyright  secured  by  this  Act  shall  endure  for 
twenty-eight  years  from  the  date  of  first  publication,  whether  the  copy- 
righted work  bears  the  author's  true  name  or  is  published  anonymously 
or  under  an  assumed  name :  Provided,  That  in  the  case  of  any  posthu- 
mous work  or  of  any  periodical,  cyclopedic,  or  other  composite  work 
upon  which  the  copyright  was  originally  secured  by  the  proprietor  thereof, 
or  of  any  work  copyrighted  by  a  corporate  body  (otherwise  than  as 
assignee  or  licensee  of  the  individual  author)  or  by  an  employer  for  whom 
such  work  is  made  for  hire,  the  proprietor  of  such  copyright  shall  be 
entitled  to  a  renewal  and  extension  of  the  copyright  in  such  work  for 
the  further  term  of  twenty-eight  years  when  application  for  such  renewal 
and  extension  shall  have  been  made  to  the  copyright  office  and  duly  regis- 
tered therein  within  one  year  prior  to  the  expiration  of  the  original  term 
of  copyright :  And  provided  further,  That  in  the  case  of  any  other  copy- 
righted work,  including  a  contribution  by  an  individual  author  to  a  peri- 
odical or  to  a  cyclopaedic  or  other  composite  work  when  such  contribu- 
tion has  been  separately  registered,  the  author  of  such  work,  if  still  living, 
or  the  widow,  widower,  or  children  of  the  author,  if  the  author  be  not 
living,  or  if  such  author,  widow,  widower,  or  children  be  not  living,  then 
the  author's  executors,  or  in  the  absence  of  a  will,  his  next  of  kin  shall 
be  entitled  to  a  renewal  and  extension  of  the  copyright  in  such  work  for 
a  further  term  of  twenty-eight  years  when  application  for  such  renewal 
and  extension  shall  have  been  made  to  the  copyright  office  and  duly  regis- 
tered therein  within  one  year  prior  to  the  expiration  of  the  original  term 
of  copyright :  And  provided  further,  That  in  default  of  the  registration 
of  such  application  for  renewal  and  extension,  the  copyright  in  any  work 
shall  determine  at  the  expiration  of  twenty-eight  years  from  first  publi- 
cation. 

(41) 


642  Important  Federal  Laws 

Extension  of  Subsisting  Copyrights. 

Sec.  24.  That  the  copyright  subsisting  in  any  work  at  the  time 
when  this  Act  goes  into  effect  may,  at  the  expiration  of  the  term  provided 
for  under  existing  law,  be  renewed  and  extended  by  the  author  of  such 
work  if  still  living,  or  the  widow,  widower,  or  children  of  the  author, 
if  the  author  be  not  living,  or  if  such  author,  widow,  widower,  or  children 
be  not  living,  then  by  the  author's  executors,  or  in  the  absence  of  a  will, 
his  next  of  kin,  for  a  further  period  such  that  the  entire  term  shall  be 
equal  to  that  secured  by  this  Act,  including  the  renewal  period  :  Provided, 
however.  That  if  the  work  be  a  composite  work  upon  which  copyright 
was  originally  secured  by  the  proprietor  thereof,  then  such  proprietor 
shall  be  entitled  to  the  privilege  of  renewal  and  extension  granted  under 
this  section :  Provided,  That  application  for  such  renewal  and  extension 
shall  be  made  to  the  copyright  office  and  duly  registered  therein  within 
one  year  prior  to  the  expiration  of  the  existing  term. 

Infringement  of  Copyright. 

Sec.  25.  That  if  any  person  shall  infringe  the  copyright  in  any 
work  protected  under  the  copyright  laws  of  the  United  States  such  per- 
son shall  be  liable : 

(a)  To  an  injunction  restraining  such  infringement; 

(b)  To  pay  to  the  copyright  proprietor  such  damages  as  the  copy- 
right proprietor  may  have  suft'ered  due  to  the  infringement,  as  well  as 
all  the  profits  which  the  infringer  shall  have  made  from  such  infringement, 
and  in  proving  profits  the  plaintiff'  shall  be  required  to  prove  sales  only 
and  the  defendant  shall  be  required  to  prove  every  element  of  cost  which 
he  claims,  or  in  lieu  of  actual  damages  and  profits  such  damages  as  to 
the  court  shall  appear  to  be  just,  and  in  assessing  such  damages  the  court 
may,  in  its  discretion,  allow  the  amounts  as  hereinafter  stated,  but  in  case 
of  a' newspaper  reproduction  of  a  copyrighted  photograph  such  damages 
shall  not  exceed  the  sum  of  two  hundred  dollars  nor  be  less  than  the 
sum  of  fiftv  dollars,  and  in  the  case  of  the  infringement  of  an  undram- 
atized  or  nondramatic  work  by  means  of  motion  pictures,  where  the 
infringer  shall  show  that  he  was  not  aware  that  he  was  infringing,  and 
that  such  infringement  could  not  have  been  reasonably  foreseen,  such 
damages  shall  not  exceed  the  sum  of  one  hundred  dollars  ;  and  in  the  case 
of  an  infringement  of  a  copyrighted  dramatic  or  dramatico-musical  work 
by  a  maker  of  motion  pictures  and  his  agencies  for  distribution  thereof 
to  exhibitors,  where  such  infringer  shows  that  he  was  not  aware  that  he 
was  infringing  a  copyrighted  work,  and  that  such  infringements  could 
not  reasonably  have  been  foreseen,  the  entire  sum  of  such  damages  recov- 
erable bv  the  copyright  proprietor  from  such  infringing  maker  and  his 
agencies'  for  the  distribution  to  exhibitors  of  such  infringing  motion- 
picture  shall  not  exceed  the  sum  of  five  thousand  dollars  nor  be  less  than 
two  hundred  and  fifty  dollars,  and  such  damages  shall  in  no  other  case 
exceed  the  sum  of  five  thousand  dollars  nor  be  less  than  the  sum  of  two 


Copyright  Laws  643 

hundred  and  fifty  dollars,  and  shall  not  be  regarded  as  a  penalty.  But 
the  foregoing  exceptions  shall  not  deprive  the  copyright  proprietor  of 
any  other  remedy  given  him  under  this  law,  nor  shall  the  limitation  as 
to  the  amount  of  recovery  apply  to  infringements  occurring  after  the 
actual  notice  to  a  defendant,  either  by  service  of  process  in  a  suit  or 
other  written  notice  served  upon  him. 

First.  In  the  case  of  a  painting,  statue,  or  sculpture,  ten  dollars  for 
every  infringing  copy  made  or  sold  by  or  found  in  the  possession  of  the 
infringer  or  his  agents  or  employees; 

Second.  In  the  case  of  any  work  enumerated  in  section  five  of  this 
Act,  except  a  painting,  statue,  or  sculpture,  one  dollar  for  every  infringing 
copy  made  or  sold  by  or  found  in  the  possession  of  the  infringer  or  his 
agents  or  employees ; 

Third.  In  the  case  of  a  lecture,  sermon,  or  address,  fifty  dollars 
for  every  infringing  delivery; 

Fourth.  In  the  case  of  a  dramatic  or  dramatico-musical  or  a  choral 
or  orchestral  composition,  one  hundred  dollars  for  the  first  and  fifty  dol- 
lars for  every  subsequent  infringing  performance ;  in  the  case  of  other 
musical  compositions,  ten  dollars  for  every  infringing  performance ; 

(c)  To  deliver  up  on  oath,  to  be  impounded  during  the  pendency 
of  the  action,  upon  such  terms  and  conditions  as  the  court  may  prescribe, 
all  articles  alleged  to  infringe  a  copyright; 

(d)  To  deliver  up  on  oath  for  destruction  all  the  infringing  copies 
or  devices,  as  well  as  all  plates,  molds,  matrices,  or  other  means  for 
making  such  infringing  copies  as  the  court  may  order; 

(e)  Whenever  the  owner  of  a  musical  copyright  has  used  or 
permitted  the  use  of  the  copyrighted  work  upon  the  parts  of  musical 
instruments  serving  to  reproduce  mechanically  the  musical  work,  then  in 
case  of  infringement  of  such  copyright  by  the  unauthorized  manufacture, 
use.  or  sale  of  interchangeable  parts,  such  as  disks,  rolls,  bands,  or  cylin- 
ders for  use  in  mechanical  music-producing  machines  adapted  to  repro- 
duce the  copyrighted  music,  no  criminal  action  shall  be  brought,  but  in  a 
civil  action  an  injunction  may  be  granted  upon  such  terms  as  the  court 
may  impose,  and  the  plaintiff  shall  be  entitled  to  recover  in  lieu  of  profits 
and  damages  a  royalty  as  provided  in  section  one,  subsection  (e),  of  this 
Act :  Provided,  also,  That  whenever  any  person,  in  the  absence  of  a 
license  agreement,  intends  to  use  a  copyrighted  musical  composition  upon 
the  parts  of  instruments  serving  to  reproduce  mechanically  the  musical 
work,  relying  upon  the  compulsory  license  provision  of  this  Act,  he  shall 
serve  notice  of  such  intention,  by  registered  mail,  upon  the  copyright  pro- 
prietor at  his  last  address  disclosed  by  the  records  of  the  copyright  office, 
sending  to  the  copyright  office  a  duplicate  of  such  notice ;  and  in  case  of 
his  failure  so  to  do  the  court  may,  in  its  discretion,  in  addition  to  sums 
hexeinabove  mentioned,  award  the  complainant  a  further  sum,  not  to 
exceed  three  times  the  amount  provided  by  section  one,  subsection   (e), 


644  Important  Federal  Laws 

by  way  of  damages,  and  not  as  a  penalty,  and  also  a  temporary  injunction 
until  the  full  award  is  paid. 

Rules  and  regoilations  for  practice  and  procedure  under  this  section 
shall  be  prescribed  by  the  Supreme  Court  of  the  United  States. 

Judgment  Enforcing  Remedies. 

Sec.  26.  That  any  court  given  jurisdiction  under  section  thirty-four 
of  this  Act  may  proceed  in  any  action,  suit,  or  proceeding  instituted  for 
violation  of  any  provision  hereof  to  enter  a  judgment  or  decree  enforcing 
the  remedies  herein  provided. 

Different  Proceedings  United  in  One  Action. 

Sec.  27.  That  the  proceeding  for  an  injunction,  damages,  and 
profits,  and  those  for  the  seizure  of  infringing  copies,  plates,  molds, 
matrices,  and  so  forth,  aforementioned,  may  be  united  in  one  action. 

Penalty  for  Wilful  Infringement. 

Se6.  28.  That  any  person  who  willfully  and  for  profit  shall  infringe 
any  copyright  secured  by  this  Act,  or  who  shall  knowingly  and  willfully 
aid  or  abet  such  infringement,  shall  be  deemed  guilty  of  a  misdemeanor, 
and  upon  conviction  thereof  shall  be  punished  by  imprisonment  for  not 
exceeding  one  year  or  by  a  fine  of  not  less  than  one  hundred  dollars  nor 
more  than  one  thousand  dollars,  or  both,  in  the  discretion  of  the  court ; 
Provided,  however,  That  nothing  in  this  Act  shall  be  so  construed  as  to 
prevent  the  performance  of  religious  or  secular  works,  such  as  oratorios, 
cantatas,  masses,  or  octavo  choruses  by  public  schools,  church  choirs,  or 
vocal  societies,  rented,  borrowed,  or  obtained  from  some  public  library, 
public  school,  church  choir,  school  choir,  or  vocal  society,  provided  the 
performance  is  given  for  charitable  or  educational  purposes  and  not  for 
profit. 

False  Notice  of  Copyright. 

Sec.  29.  That  any  person  who,  with  fraudulent  intent,  shall  insert 
or  impress  any  notice  of  copyright  required  by  this  Act,  or  words  of  the 
same  purport,  in  or  upon  any  uncopyrighted  article,  or  with  fraudulent 
intent  shall  remove  or  alter  the  copyright  notice  upon  any  article  duly 
copyrighted  shall  be  guilty  of  a  misdemeanor,  punishable  by  a  fine  of  not 
less  than  one  hundred  dollars  and  not  more  than  one  thousand  dollars. 
Any  person  who  shall  knowingly  issue  or  sell  any  article  bearing  a  notice 
of  United  States  copyright  which  has  not  been  copyrighted  in  this  coun- 
try, or  who  shall  knowingly  import  any  article  bearing  such  notice  or 
words  of  the  same  purport,  which  has  not  been  copyrighted  in  this  coun- 
try, shall  be  liable  to  a  fine  of  one  hundred  dollars. 

Prohibition  of  Importation  of  Articles  With  False  Notice  of  Copyright. 

Sec.  30.  That  the  importation  into  the  United  States  of  any  article 
bearing  a  false  notice  of  copyright  when  there  is  no  existing  copyright 
thereon  in  the  United  States,  or  any  piratical  copies  of  any  work  copy- 
righted in  the  United  States,  is  prohibited. 


Copyright  Laws  645 

Prohibition  of  Importation  of  Books. 

Sec.  31.  That  during  the  existence  of  the  American  copyright  in 
any  book  the  importation  into  the  United  States  of  any  piratical  copies 
thereof  or  of  any  copies  thereof  (although  authorized  by  the  author  or 
proprietor)  which  have  not  been  produced  in  accordance  with  the  manu- 
facturing provisions  specified  in  section  fifteen  of  this  Act,  or  any  plates 
of  the  same  not  made  from  type  set  within  the  limits  of  the  United  States, 
or  any  copies  thereof  produced  by  lithographic  or  photo-engraving  pro- 
cess not  performed  within  the  limits  of  the  United  States,  in  accordance 
with  the  provisions  of  section  fifteen  of  this  Act,  shall  be,  and  is  hereby, 
prohibited :  Provided,  however,  That,  except  as  regards  piratical  copies, 
such  prohibition  shall  not  apply : 

(a)  To  works  in  raised  characters  for  the  use  of  the  blind; 

(b)  To  a  foreign  newspaper  or  magazine,  although  containing  mat- 
ter copyrighted  in  the  United  States  printed  or  reprinted  by  authority  of 
the  copyright  proprietor,  unless  such  newspaper  or  magazine  contains  also 
copyright  matter  printed  or  reprinted  without  such  authorization ; 

(c)  To  the  authorized  edition  of  a  book  in  a  foreign  language  or 
languages  of  which  only  a  translation  into  English  has  been  copyrighted 
in  this  country ; 

(d)  To  any  book  published  abroad  with  the  authorization  of  the 
author  or  copyright  proprietor  when  imported  under  the  circumstances 
stated  in  one  of  the  four  subdivisions  following,  that  is  to  say: 

First.  When  imported,  not  more  than  one  copy  at  one  time,  for 
individual  use  and  not  for  sale ;  but  such  privilege  of  importation  shall 
not  extend  to  a  foreign  reprint  of  a  book  by  an  American  author  copy- 
righted in  the  United  States ; 

Second.  When  imported  by  the  authority  or  for  the  use  of  the 
United  States ; 

Third.  When  imported,  for  use  and  not  for  sale,  not  more  than 
one  copy  of  any  such  book  in  any  one  invoice,  in  good  faith,  by  or  for 
any  society  or  institution  incorporated  for  educational,  literary,  philo- 
sophical, scientific,  or  religious  purposes,  or  for  the  encouragement  of  the 
fine  arts,  or  for  any  college,  academy,  school,  or  seminary  of  learning, 
or  for  any  State,  school,  college,  university,  or  free  public  library  in  the 
United  States : 

Fourth.  When  such  books  form  parts  of  libraries  or  collections 
purchased  en  bloc  for  the  use  of  societies,  institutions,  or  libraries  desig- 
nated in  the  foregoing  paragraph,  or  form  parts  of  the  libraries  or  per- 
sonal baggage  belonging  to  persons  or  families  arriving  from  foreign 
countries  and  are  not  intended  for  sale : 

Provided,  That  copies  imported  as  above  may  not  lawfully  be  used  in 
any  way  to  violate  the  rights  of  the  proprietor  of  the  American  copyright 
or  annul  or  limit  the  copyright  protection  secured  by  this  Act,  and  such 
unlawful  use  shall  be  deemed  an  infringement  of  copyright. 


646  Important  Federal  Laws 

Seizure  of  Unlawfully  Imported  Copies. 

Sec.  32.  That  any  and  all  articles  prohibited  importation  by  this 
Act  which  are  brought  into  the  United  States  from  any  foreign  country 
(except  in  the  mails)  shall  be  seized  and  forfeited  by  like  proceedings  as 
those  provided  by  law  for  the  seizure  and  condemnation  of  property 
imported  into  the  United  States  in  violation  of  the  customs  revenue 
laws.  Such  articles  when  forfeited  shall  be  destroyed  in  such  manner 
as  the  Secretary  of  the  Treasury  or  the  court,  as  the  case  may  be,  shall 
direct:  Provided,  however,  That  all  copies  of  authorized  editions  of 
copyright  books  imported  in  the  mails  or  otherwise  in  violation  of  the 
provisions  of  this  Act  may  be  exported  and  returned  to  the  country  of 
export  whenever  it  is  shown  to  the  satisfaction  of  the  Secretary  of  the 
Treasury,  in  a  written  application,  that  such  importation  does  not  involve 
willful  negligence  or  fraud. 

Authority  for  Rules  and  Regulations. 

Sec.  33.  That  the  Secretary  of  the  Treasury  and  the  Postmaster- 
General  are  hereby  empowered  and  required  to  make  and  enforce  such 
joint  rules  and  regulations  as  shall  prevent  the  importation  into  the  United 
States  in  the  mails  of  articles  prohibited  importation  by  this  Act,  and  may 
require  notice  to  be  given  to  the  Treasury  Department  or  Post  Office 
Department,  as  the  case  may  be,  by  copyright  proprietors  or  injured 
parties,  of  the  actual  or  contemplated  importation  or  articles  prohibited 
importation  by  this  Act,  and  which  infringe  the  rights  of  such  copyright 
proprietors  or  injured  parties. 

Jurisdiction  of  Courts. 

Sec.  34.  That  all  actions,  suits,  or  proceedings  arising  under  the 
copyright  laws  of  the  United  States  shall  be  originally  cognizable  by  the 
circuit  courts  of  the  United  States,  the  district  court  of  any  Territory, 
the  supreme  court  of  the  District  of  Columbia,  the  district  courts  of 
Alaska,  Hawaii,  and  Porto  Rico,  and  the  courts  of  first  instance  of  the 
Philippine  Islands. 

District  in  Which  Suit  May  be  Brought. 

Sec.  35.  That  civil  actions,  suits,  or  proceedings  arising  under  this 
Act  may  be  instituted  in  the  district  of  which  the  defendant  or  his  agent 
is  an  inhabitant,  or  in  which  he  may  be  found. 

Injunctions  May  be  Granted. 

Sec.  36.  That  any  such  court  or  judge  thereof  shall  have  power, 
upon  bill  in  equity  filed  by  any  party  aggrieved,  to  grant  injunctions  to 
prevent  and  restrain  the  violation  of  any  right  secured  by  said  laws, 
according  to  the  course  and  principles  of  courts  of  equity,  on  such  terms 
as  said  court  or  judge  may  deem  reasonable.  Any  injunction  that  may 
be  granted  restraining  and  enjoining  the  doing  of  anything  forbidden  by 
this  Act  may  be  served  on  the  parties  against  whom  such  injunction  mav 
be  granted  anywhere  in  the  United  States,  and  shall  be  operative  through- 


Copyright  Laws  647 

out  the  United  States  and  be  enforceable  by  proceedings  in  contempt  or 
otherwise  by  any  other  court  or  judge  possessing  jurisdiction  of  the 
defendants. 

Certified  Copy  of  Papers  Filed. 

Sec.  Z7.  That  the  clerk  of  the  court,  or  judge  granting  the  injunc- 
tion, shall,  when  required  so  to  do  by  the  court  hearing  the  application 
to  enforce  said  injunction,  transmit  without  delay  to  said  court  a  certified 
copy  of  all  the  papers  in  said  cause  that  are  on  file  in  his  office. 

Judgments  Reviewed. 

Sec.  38.  That  the  orders,  judgments,  or  decrees  of  any  court  men- 
tioned in  section  thirty-four  of  this  Act  arising  under  the  copyright  laws 
of  the  United  States  may  be  reviewed  on  appeal  or  writ  of  error  in  the 
manner  and  to  the  extent  now  provided  by  law  for  the  review  of  cases 
determined  in  said  courts,  respectively. 

Limitation  of  Criminal  Proceedings. 

Sec.  39.  That  no  criminal  proceeding  shall  be  maintained  under  the 
provisions  of  this  Act  unless  the  same  is  commenced  within  three  years 
after  the  cause  of  action  arose. 

Full  Costs  Allowed. 

Sec.  40.  That  in  all  actions,  suits,  or  proceedings  under  this  Act, 
except  when  brought  by  or  against  the  United  States  or  any  officer  there- 
of, full  costs  shall  be  allowed,  and  the  court  may  award  to  the  prevailing 
party  a  reasonable  attorney's  fee  as  part  of  the  costs. 

Copyright  District  from  Property  Interest. 

Sec.  41.  That  the  copyright  is  distinct  from  the  property  in  the 
material  object  copyrighted,  and  the  sale  or  conveyance,  by  gift  or  other- 
wise, of  the  material  object  .shall  not  of  itself  constitute  a  transfer  of 
the  copyright,  nor  shall  the  assignment  of  the  copyright  constitute  a  trans- 
fer of  the  title  to  the  material  object ;  but  nothing  in  this  Act  shall  be 
deemed  to  forbid,  prevent,  or  restrict  the  transfer  of  any  copy  of  a  copy- 
righted work  the  possession  of  which  has  been  lawfully  obtained. 

Copyright  May  be  Disposed  of. 

Sec.  42.  That  copyright  secured  under  this  or  previous  Acts  of 
the  United  States  may  be  assigned,  granted,  or  mortgaged  by  an  instru- 
ment in  writing  signed  by  the  proprietor  of  the  copyright,  or  may  be 
bequeathed  by  will. 

Foreign  Assignment  to  be  Acknowledged. 

Sec.  43.  That  every  assignment  of  copyright  executed  in  a  foreign 
country  shall  be  acknowledged  by  the  assignor  before  a  consular  officer  or 
secretary  of  legation  of  the  United  States  authorized  by  law  to  administer 
oaths  or  perform  notarial  acts.  The  certificate  of  such  acknowledgment 
under  the  hand  and  official  seal  of  such  consular  officer  or  secretary  of 
legation  shall  be  prima  facie  evidence  of  the  execution  of  the  instrument. 


648  Important  Federal  Laws 

Assignments  to  be  Recorded. 

Sec.  44.  That  every  assignment  of  copyright  shall  be  recorded  in 
the  copyright  office  within  three  calendar  months  after  its  execution  in 
the  United  States  or  within  six  calendar  months  after  its  execution  with- 
out the  limits  of  the  United  States,  in  default  of  which  it  shall  be  void 
as  against  any  subsequent  purchaser  or  mortgagee  for  a  valuable  consid- 
eration, without  notice,  whose  assignment  has  been  duly  recorded. 

Register  of  Copyrights  to  Record  Assignments. 

Sec.  45.  That  the  register  of  copyrights  shall,  upon  payment  of  the 
prescribed  fee,  record  such  assignment,  and  shall  return  it  to  the  sender 
with  a  certificate  of  record  attached  under  seal  of  the  copyright  office, 
and  upon  the  payment  of  the  fee  prescribed  by  this  Act  he  shall  furnish 
to  any  person  requesting  the  same  a  certified  copy  thereof  under  the  said 
seal. 

Substitution  of  Assignee's  Name. 

Sec.  46.  That  when  an  assignment  of  the  copyright  in  a  specified 
book  or  other  work  has  been  recorded  the  assignee  may  substitute  his 
name  for  that  of  the  assignor  in  the  statutory  notice  of  copyright  pre- 
scribed by  this  Act. 

Copyright  Records. 

Sec.  47.  That  all  records  and  other  things  relating  to  copyrights 
required  by  law  to  be  preserved  shall  be  kept  and  preserved  in  the  copy- 
right office.  Library  of  Congress,  District  of  Columbia,  and  shall  be 
under  the  control  of  the  register  of  copyrights,  who  shall,  under  the 
direction  and  supervision  of  the  Librarian  of  Congress,  perform  all  the 
duties  relating  to  the  registration  of  copyrights. 

Register  of  Copyrights  and  Assistant. 

Sec.  48.  That  there  shall  be  appointed  by  the  Librarian  of  Congress 
a  register  of  copyrights,  at  a  salary  of  four  thousand  dollars  per  annum, 
and  one  assistant  register  of  copyrights,  at  a  salary  of  three  thousand 
dollars  per  annum,  who  shall  have  authority  during  the  absence  of  the 
register  of  copyrights  to  attach  the  copyright  office  seal  to  all  papers  issued 
from  the  said  office  and  to  sign  such  certificates  and  other  papers  as  may 
be  necessary.  There  shall  also  be  appointed  by  the  Librarian  such  sub- 
ordinate assistants  to  the  register  as  may  from  time  to  time  be  authorized 
by  law. 

Handling  of  Fees. 

Sec.  49.  That  the  register  of  copyrights  shall  make  daily  deposits 
in  some  bank  in  the  District  of  Columbia,  designated  for  this  purpose  by 
the  Secretary  of  the  Treasury  as  a  national  depository,  of  all  moneys 
received  to  be  applied  as  copyright  fees,  and  shall  make  weekly  deposits 
with  the  Secretary  of  the  Treasury  in  such  manner  as  the  latter  shall 
direct,  of  all  copyright  fees  actually  applied  under  the  provisions  of  this 
Act,  and  annual  deposits  of  sums  received  which  it  has  not  been  possible 


Copyright  Laws  649 

to  apply  as  copyright  fees  or  to  return  to  the  remitters,  and  shall  also 
make  monthly  reports  to  the  Secretary  of  the  Treasury  and  to  the 
Librarian  of  Congress  of  the  applied  copyright  fees  for  each  calendar 
month,  together  with  a  statement  of  all  remittances  received,  trust  funds 
on  hands,  moneys  refunded,  and  unpaid  balances. 

Bond  of  Register  of  Copyrights. 

Sec.  50.  That  the  register  of  copyrights  shall  give  bond  to  the 
United  States  in  the  sum  of  twenty  thousand  dollars,  in  form  to  be 
approved  by  the  Solicitor  of  the  Treasury  and  with  sureties  satisfactory  to 
the  Secretary  of  the  Treasury,  for  the  faithful  discharge  of  his  duties. 

Annual  Report. 

Sec.  51.  That  the  register  of  copyrights  shall  make  an  annual  re- 
port to  the  Librarian  of  Congress,  to  be  printed  in  the  annual  report  on 
the  Library  of  Congress,  of  all  copyright  business  for  the  previous  fiscal 
year,  including  the  number  and  kind  of  works  which  have  been  deposited 
in  the  copyright  office  during  the  fiscal  year,  under  the  provisions  of  this 
Act. 

Seal  of  Copyright  Office. 

Sec.  52.  That  the  seal  provided  under  the  Act  of  July  eighth, 
eighteen  hundred  and  seventy,  and  at  present  used  in  the  copyright  office, 
shall  continue  to  be  the  seal  thereof,  and  by  it  all  papers  issued  from  the 
copyright  office  requiring  authentication  shall  be  authenticated. 

Rules  for  the  Registration  of  Copyrights. 

Sec.  53.  That,  subject  to  the  approval  of  the  Librarian  of  Congress, 
the  register  of  copyrights  shall  be  authorized  to  make  rules  and  regula- 
tions for  the  registration  of  claims  to  copyright  as  provided  by  this  Act. 

Records. 

Sec.  54.  That  the  register  of  copyrights  shall  provide  and  keep 
such  record  books  in  the  copyright  office  as  are  required  to  carry  out  the 
provisions  of  this  Act,  and  whenever  deposit  has  been  made  in  the  copy- 
right office  of  a  copy  of  any  work  under  the  provisions  of  this  Act  he 
shall  make  entry  thereof. 

Certificate  of  Registration. 

Sec.  55.  That  in  the  case  of  each  entry  the  person  recorded  as  the 
claimant  of  the  copyright  shall  be  entitled  to  a  certificate  of  registration 
under  seal  of  the  copyright  office,  to  contain  the  name  and  address  of  said 
claimant,  the  name  of  the  country  of  which  the  author  of  the  work  is  a 
citizen  or  subject,  and  when  an  alien  author  domiciled  in  the  United 
States  at  the  time  of  said  registration,  then  a  statement  of  that  fact,  in- 
cluding his  place  of  domicile,  the  name  of  the  author  (when  the  records 
of  the  copyright  office  shall  show  the  same),  the  title  of  the  work  which 
is  registered  for  which  copyright  is  claimed,  the  date  of  the  deposit  of  the 
copies  of  such  work,  the  date  of  publication  if  the  work  has  been  repro- 
duced in  copies  for  sale,  or  publicly  distributed,  and  such  marks  as  to 


650  Important  Federal  Laws 

class  designation  and  entry  number  as  shall  fully  identify  the  entry.  In 
the  case  of  a  book  the  certificate  shall  also  state  the  receipt  of  the  affidavit, 
as  provided  by  section  sixteen  of  this  Act,  and  the  date  of  the  completion 
of  the  printing,  or  the  date  of  the  publication  of  the  book,  as  stated  in  the 
said  affidavit.  The  register  of  copyrights  shall  prepare  a  printed  form 
for  the  said  certificate,  to  be  filled  out  in  each  case  as  above  provided  for 
in  the  case  of  all  registrations  made  after  this  Act  goes  into  eifect,  and 
in  the  case  of  all  previous  registrations  so  far  as  the  copyright  office  record 
books  shall  show  such  facts,  which  certificate,  sealed  with  the  seal  of  the 
copyright  office,  shall,  upon  payment  of  the  prescribed  fee,  be  given  to 
any  person  making  application  for  the  same.  Said  certificate  shall  be 
admitted  in  any  court  as  prima  facie  evidence  of  the  facts  stated  therein. 
In  addition  to  such  certificate  the  register  of  copyrights  shall  furnish, 
upon  request,  without  additional  fee,  a  receipt  for  the  copies  of  the  work 
deposited  to  complete  the  registration. 

Index  to  Registrations. 

Six.  56.  That  the  register  of  copyrights  shall  fully  index  all  copy- 
right registrations  and  assignments  and  shall  print  at  periodic  intervals 
a  catalogue  of  the  titles  of  articles  deposited  and  registered  for  copy- 
right, together  with  suitable  indexes,  and  at  stated  intervals  shall  print 
complete  and  indexed  catalogues  for  each  class  of  copyright  entries,  and 
may  thereupon,  if  expedient,  destroy  the  original  manuscript  catalogue 
cards  containing  the  titles  included  in  such  printed  volumes  and  represent- 
ing the  entries  made  during  such  intervals.  The  current  catalogues  of 
copyright  entries  and  the  index  volumes  herein  provided  for  shall  be  ad- 
mitted in  any  court  as  prima  facie  evidence  of  the  facts  stated  therein  as 
regards  any  copyright  registration. 

Distribution  of  Catalogues  of  Copyright  Entries. 

Sec.  57.  That  the  said  printed  current  catalogues  as  they  are  issued 
shall  be  promptly  distributed  by  the  copyright  office  to  the  collectors  of 
customs  of  the  United  States  and  to  the  postmasters  of  all  exchange 
offices  of  receipt  of  foreign  mails,  in  accordance  with  revised  lists  of 
such  collectors  of  customs  and  postmasters  prepared  by  the  Secretary 
of  the  Treasury  and  the  Postmaster-General,  and  they  shall  also  be  fur- 
nished to  all  parties  desiring  them  at  a  price  to  be  determined  by  the 
register  of  copyrights,  not  exceeding  five  dollars  per  annum  for  the  com- 
plete catalogue  of  copyright  entries  and  not  exceeding  one  dollar  per 
annum  for  the  catalogues  issued  during  the  year  for  any  one  class  of  sub- 
jects. The  consolidated  catalogues  and  indexes  shall  also  be  supplied  to 
all  persons  ordering  them  at  such  prices  as  may  be  determined  to  be 
reasonable,  and  all  subscriptions  for  the  catalogues  shall  be  received  by 
the  Superintendent  of  Public  Documents,  who  shall  forward  the  said 
publications ;  and  the  moneys  thus  received  shall  be  paid  into  the  Treas- 
ury of  the  United  States  and  accounted  for  under  such  laws  and  Treasury 
regulations  as  shall  be  in  force  at  the  time. 


Copyright  Laws  651 

Record  Books,  Etc.,  Open  to  Inspectors. 

Sec.  58.  That  the  record  books  of  the  copyright  ofiice,  together 
with  the  indexes  to  such  record  books,  and  all  works  deposited  and 
retained  in  the  copyright  office,  shall  be  open  to  public  inspection ;  and 
copies  may  be  taken  of  the  copyright  entries  actually  made  in  such 
record  books,  subject  to  such  safeguards  and  regulations  as  shall  be  pre- 
scribed by  the  register  of  copyrights  and  approved  by  the  Librarian  of 
Congress. 

Disposition  of  Copyright  Deposits. 

Sec.  59.  That  of  the  articles  deposited  in  the  copyright  office  under 
the  provisions  of  the  copyright  laws  of  the  LTnited  States  or  of  this  Act, 
the  Librarian  of  Congress  shall  determine  what  books  and  other  articles 
shall  be  transferred  to  the  permanent  collections  of  the  Library  of  Con- 
gress, including  the  law  library,  and  what  other  books  or  articles  shall  be 
placed  in  the  reserve  collections  of  the  Library  of  Congress  for  sale  or 
exchange,  or  be  transferred  to  other  governmental  libraries  in  the  Dis- 
trict of  Columbia  for  use  therein. 

Same. 

Sec.  60.  That  of  any  articles  undisposed  of  as  above  provided, 
together  with  all  titles  and  correspondence  relating  thereto,  the  Librarian 
of  Congress  and  the  register  of  copyrights  jointly  shall,  at  suitable  inter- 
vals, determine  what  of  these  received  during  any  period  of  years  it  is 
desirable  or  useful  to  preserve  in  the  permanent  files  of  the  copyright 
office,  and,  after  due  notice  as  hereinafter  provided,  may  within  their 
discretion  cause  the  remaining  articles  and  other  things  to  be  destroyed : 
Provided,  That  there  shall  be  printed  in  the  Catalogue  of  Copyright 
Entries  from  February  to  November,  inclusive,  a  statement  of  the  years 
of  receipt  of  such  articles  and  a  notice  to  permit  any  author,  copyright 
proprietor,  or  other  lawful  claimant  to  claim  and  remove  before  the 
expiration  of  the  month  of  December  of  that  year  anything  found  which 
relates  to  any  of  his  productions  deposited  or  registered  for  copyright 
within  the  period  of  years  stated,  not  reserved  or  disposed  of  as  pro- 
vided for  in  this  Act :  And  provided  further.  That  no  manuscript  of  an 
unpublished  work  shall  be  destroyed  during  its  term  of  copyright  without 
specific  notice  to  the  copyright  proprietor  of  record,  permitting  him  to 
claim  and  remove  it. 

Fees. 

Sec.  6L  That  the  register  of  copyrights  shall  receive,  and  the 
persons  to  whom  the  services  designated  are  rendered  shall  pay,  the  fol- 
lowing fees:  For  the  registration  of  any  work  subject  to  copyright, 
deposited  under  the  provisions  of  this  Act,  one  dollar,  which  sum  is  to 
include  a  certificate  of  registration  under  seal :  Provided,  That  in  the  case 
of  photographs  the  fee  shall  be  fifty  cents  where  a  certificate  is  not  de- 
manded. For  every  additional  certificate  of  registration  made,  fifty  cents. 
For  recording  and  certifying  any  instrument  of  writing  for  the  assignment 


652  Important  Federal  Laws 

of  copyright,  or  any  such  Hcense  specified  in  section  one,  subsection  (e), 
or  for  any  copy  of  such  assignment  or  Hcense,  duly  certified,  if  not  over 
three  hundred  words  in  length,  one  dollar ;  if  more  than  three  hundred 
and  less  than  one  thousand  words  in  length,  two  dollars ;  if  more  than 
one  thousand  words  in  length,  one  dollar  additional  for  each  one  thou- 
sand words  or  fraction  thereof  over  three  hundred  words.  For  recording 
the  notice  of  user  or  acquiescence  specified  in  section  one,  subsection  (e), 
twenty-five  cents  for  each  notice  if  not  over  fifty  words,  and  an  addi- 
tional twenty-five  cents  for  each  additional  one  hundred  words.  For 
comparing  any  copy  of  an  assignment  with  the  record  of  such  document 
in  the  copyright  office  and  certifying  the  same  under  seal,  one  dollar. 
For  recording  the  extension  or  renewal  of  copyright  provided  for  in 
sections  twenty-three  and  twenty-four  of  this  Act,  fifty  cents.  For 
recording  the  transfer  of  the  proprietorship  of  copyrighted  articles,  ten 
cents  for  each  title  of  a  book  or  other  article,  in  addition  to  the  fee 
prescribed  for  recording  the  instrument  of  assignment.  For  any  re- 
quested search  of  copyright  office  records,  indexes,  or  deposits,  fifty 
cents  for  each  full  hour  of  time  consumed  in  making  such  search :  Pro- 
vided, That  only  one  registration  at  one  fee  shall  be  required  in  the 
case  of  several  volumes  of  the  same  book  deposited  at  the  same  time. 

Definitions. 

Sec.  62.  That  in  the  interpretation  and  construction  of  this  Act 
"the  date  of  publication"  shall  in  the  case  of  a  work  of  which  copies 
are  reproduced  for  sale  or  distribution  be  held  to  be  the  earliest  date 
when  copies  of  the  first  authorized  edition  were  placed  on  sale,  sold,  or 
publicly  distributed  by  the  proprietor  of  the  copyright  or  under  his  author- 
ity, and  the  word  "author"  shall  include  an  employer  in  the  case  of  works 
made  for  hire. 

Repealing  Clause. 

Sec.  63.  That  all  laws  or  parts  of  laws  in  conflict  with  the  provi- 
sions of  this  Act  are  hereby  repealed,  but  nothing  in  this  Act  shall 
afifect  causes  of  action  for  infringement  of  copyright  heretofore  committed 
now  pending  in  courts  of  the  United  States,  or  which  may  hereafter  be 
instituted ;  but  such  causes  shall  be  prosecuted  to  a  conclusion  in  the 
manner  heretofore  provided  by  law. 

Date  of  Enforcement. 

Sec.  64.  That  this  Act  shall  go  into  efifect  on  the  first  day  of  July, 
nineteen  hundred  and  nine. 


MORAL  REFORM. 


TRANSPORTATION  OF  PRIZE-FIGHT  PICTURES. 

Act  of  July  31,  1912. 

An  Act  to  prohibit  the  importation  and  the  interstate  transportation  of  films  or 
other  pictorial  representations  of  prize  fights,  and  for  other  purposes. 

Prize-fight  Films — Sending  by  Mail  or  Express  Unlawful. 

Sec.  1.  That  it  shall  be  unlawful  for  any  person  to  deposit  or 
cause  to  be  deposited  in  the  United  States  mails  for  mailing  or  delivery, 
or  to  deposit  or  cause  to  be  deposited  with  any  express  company  or 
other  common  carrier  for  carriage,  or  to  send  or  carry  from  one  State 
or  Territory  of  the  United  States  or  the  District  of  Columbia  to  any 
other  State  or  Territory  of  the  United  States  or  the  District  of  Colum- 
bia, or  to  bring  or  to  cause  to  be  brought  into  the  United  States  from 
abroad,  any  film  or  other  pictorial  representation  of  any  prize  fight  or 
encounter  of  pugilists,  under  whatever  name,  which  is  designed  to  be 
used  or  may  be  used  for  purposes  of  public  exhibition. 

Receiving,  Etc.,  Unlawful. 

Sec.  2.  That  it  shall  be  unlawful  for  any  person  to  take  or  receive 
from  the  mails,  or  any  express  company  or  other  common  carrier, 
with  intent  to  sell,  distribute,  circulate,  or  exhibit  any  matter  or  thing 
herein  forbidden  to  be  deposited  for  mailing,  delivery,  or  carriage  in 
interstate  commerce. 

Penalty. 

Sec.  3.  That  any  person  violating  any  of  the  provisions  of  this 
Act  shall  for  each  offense,  upon  conviction  thereof,  be  fined  not  more 
than  one  thousand  dollars  or  sentenced  to  imprisonment  at  hard  labor 
for  not  more  than  one  year,  or  both,  at  the  discretion  of  the  court. 


THE  WHITE  SLAVE  ACT. 
Act  of  June  25,  1910. 

An  Act  to  further  regulate  interstate  and  foreign  commerce  by  prohibiting  the 
transportation  therein  for  immoral  purposes  of  women  and  girls,  and  for 
other  purposes. 

Definitions. 

Section  1.  That  the  term  "interstate  commerce,"  as  used  in  this 
Act,  shall  include  transportation  from  any  State  or  Territory  or  the 
District  of  Columbia  to  any  other  State  or  Territory  or  the  District  of 
Columbia,  and  the  term  "foreign  commerce,"  as  used  in  this  Act,  shall 
include  transportation   from  any  State  or  Territory  or  the  District  of 


654  Important  Federal  Laws 

Columbia  to  any  foreign  country  and  from  any  foreign  country  to  any 
State  or  Territory  or  the  District  of  Columbia. 

Transportation  of  Females  for  Immoral  Purposes  Prohibited. 

Sec.  2.  That  any  person  who  shall  knowingly  transport  or  cause  to 
be  transported,  or  aid  or  assist  in  obtaining  transportation  for,  or  in 
transporting,  in  interstate  or  foreign  commerce,  or  in  any  Territory  or  in 
the  District  of  Columbia,  any  woman  or  girl  for  the  purpose  of  prostitu- 
tion or  debauchery,  or  for  any  other  immoral  purpose,  or  with  the  intent 
and  purpose  to  induce,  entice,  or  compel  such  woman  or  girl  to  become  a 
prostitute  or  to  give  herself  up  to  debauchery,  or  to  engage  in  any  other 
immoral  practice  ;  or  who  shall  knowingly  procure  or  obtain,  or  cause  to 
be  procured  or  obtained,  or  aid  or  assist  in  procuring  or  obtaining,  any 
ticket  or  tickets,  or  any  form  of  transportation  or  evidence  of  the  right 
thereto,  to  be  used  by  any  woman  or  girl  in  interstate  or  foreign  com- 
merce, or  in  any  Territory  or  the  District  of  Columbia,  in  going  to  any 
place  for  the  purpose  of  prostitution  or  debauchery,  or  for  any  other 
immoral  purpose,  or  with  the  intent  or  purpose  on  the  part  of  such  person 
to  induce,  entice,  or  compel  her  to  give  herself  up  to  debauchery,  or  any 
other  immoral  practice,  whereby  any  such  woman  or  girl  shall  be  trans- 
ported in  interstate  or  foreign  commerce,  or  in  any  Territory  or  the 
District  of  Columbia,  shall  be  deemed  guilty  of  a  felony,  and  upon  con- 
viction thereof  shall  be  punished  by  a  fine  not  exceeding  five  thousand 
dollars,  or  by  imprisonment  of  not  more  than  five  years,  or  by  both  such 
fine  and  imprisonment,  in  the  discretion  of  the  court. 

Inducing   Female   to   Travel   Interstate   for   Immoral   Purposes   Pro- 
hibited. 

Sec.  3.  That  any  person  who  shall  knowingly  persuade,  induce, 
entice,  or  coerce,  or  cause  to  be  persuaded,  induced,  enticed,  or  coerced, 
or  aid  or  assist  in  persuading,  inducing,  enticing,  or  coercing  any  woman 
or  girl  to  go  from  one  place  to  another  in  interstate  or  foreign  commerce, 
or  in  any  Territory  or  the  District  of  Columbia,  for  the  purpose  of  pros- 
titution or  debauchery,  or  for  any  other  immoral  purpose,  or  with  the 
intent  and  purpose  on  the  part  of  such  person  that  such  woman  or  girl 
shall  engage  in  the  practice  of  prostitution  or  debauchery,  or  any  other 
immoral  practice,  whether  with  or  without  her  consent,  and  who  shall 
thereby  knowingly  cause  or  aid  or  assist  in  causing  such  woman  or  girl 
to  go  and  to  be  carried  or  transported  as  a  passenger  upon  the  line  or 
route  of  any  common  carrier  or  carriers  in  interstate  or  foreign  com- 
merce, or  any  Territory  or  the  District  of  Columbia,  shall  be  deemed 
guilty  of  a  felony  and  on  conviction  thereof  shall  be  punished  by  a  fine 
of  not  more  than  five  thousand  dollars,  or  by  imprisonment  for  a  term 
not  exceeding  five  years,  or  by  both  such  fine  and  imprisonment,  in  the 
discretion  of  the  court. 

Same — Female  Under  Eighteen  Years  of  Age. 

Sec.   4.     That   any   person   who   shall   knowingly   persuade,   induce, 


White  Slave  Act  655 

entice,  or  coerce  any  woman  or  girl  under  the  age  of  eighteen  years  fronj 
any  State  or  Territory  or  the  District  of  Columbia  to  any  other  State  or 
Territory  or  the  District  of  Columbia,  with  the  purpose  and  intent  to 
induce  or  coerce  her,  or  that  she  shall  be  induced  or  coerced  to  engage 
in  prostitution  or  debauchery,  or  any  other  immoral  practice,  and  shall 
in  furtherance  of  such  purpose  knowingly  induce  or  cause  her  to  go 
and  to  be  carried  or  transported  as  a  passenger  in  interstate  commerce 
upon  the  line  or  route  of  any  common  carrier  or  carriers,  shall  be  deemed 
guilty  of  a  felony,  and  on  conviction  thereof  shall  be  punished  by  a  fine 
of  not  more  than  ten  thousand  dollars,  or  by  imprisonment  for  a  term 
not  exceeding  ten  years,  or  by  both  such  fine  and  imprisonment,  in  the 
discretion  of  the  court. 

Court  Jurisdiction. 

Sec.  5.  That  any  violation  of  any  of  the  above  sections  two,  three, 
and  four  shall  be  prosecuted  in  any  court  having  jurisdiction  of  crimes 
within  the  district  in  which  said  violation  was  committed,  or  from, 
through,  or  into  which  any  such  woman  or  girl  may  have  been  carried  or 
transported  as  a  passenger  in  interstate  or  foreign  commerce,  or  in  any 
Territory  or  the  District  of  Columbia,  contrary  to  the  provisions  of  anv  of 
said  sections. 

International  Agreement — Foreign  Females,  etc. 

Sec.  6.  That  for  the  purpose  of  regulating  and  preventing  the  trans- 
portation in  foreign  commerce  of  alien  women  and  girls  for  purposes  of 
prostitution  and  debauchery,  and  in  pursuance  of  and  for  the  purpose  of 
carrying  out  the  terms  of  the  agreement  or  project  of  arrangement  for 
the  suppression  of  the  white-slave  traffic,  adopted  July  twenty-fifth,  nine- 
teen hundred  and  two,  for  submission  to  their  respective  governments 
by  the  delegates  of  various  powers  represented  at  the  Paris  conference 
and  confirmed  by  a  formal  agreement  signed  at  Paris  on  May  eighteenth, 
nineteen  hundred  and  four,  and  adhered  to  by  the  United  States  on  June 
sixth,  nineteen  hundred  and  eight,  as  shown  by  the  proclamation  of  the 
President  of  the  United  States,  dated  June  fifteenth,  nineteen  hundred 
and  eight,  the  Commissioner-General  of  Immigration  is  hereby  designated 
as  the  authority  of  the  United  States  to  receive  and  centralize  information 
concerning  the  procuration  of  alien  women  and  girls  with  a  view  to  their 
debauchery,  and  to  exercise  supervision  over  such  alien  women  and  girls, 
receive  their  declarations,  establish  their  identity,  and  ascertain  from 
them  who  induced  them  to  leave  their  native  countries,  respectively  ;  and 
it  shall  be  the  duty  of  said  Commissioner-General  of  Immigration  to 
receive  and  keep  on  file  in  his  office  the  statements  and  declarations  which 
may  be  made  by  such  alien  women  and  girls,  and  those  which  are  herein- 
after required  pertaining  to  such  alien  women  and  girls  engaged  in  pros- 
titution or  debauchery  in  this  country,  and  to  furnish  receipts  for  such 
statements  and  declarations  provided  for  in  this  act  to  the  persons, 
respectively,  making  and  filing  them. 


656  Important  Federal  Laws 

Every  person  who  shall  keep,  maintain,  control,  support  or  harbor 
in  any  house  or  place  for  the  purpose  of  prostitution,  or  for  any  other 
immoral  purpose,  any  alien  woman  or  girl  within  three  years  after  she 
shall  have  entered  the  United  States  from  any  country,  party  to  the  said 
arrangement  for  the  suppression  of  the  white-slave  traffic,  shall  file  with 
the  Commissioner-General  of  Immigration  a  statement  in  writing  setting 
forth  the  name  of  such  alien  woman  or  girl,  the  place  at  which  she  is 
kept,  and  all  facts  as  to  the  date  of  her  entry  into  the  United  States,  the 
port  through  which  she  entered,  her  age,  nationality,  and  parentage,  and 
concerning  her  procuration  to  come  to  this  country  within  the  knowledge 
of  such  person,  and  any  person  who  shall  fail  within  thirty  days  after 
such  person  shall  commence  to  keep,  maintain,  control,  support,  or  harbor 
in  any  house  or  place  for  the  purpose  of  prostitution,  or  for  any  other 
immoral  purpose,  any  alien  woman  or  girl  within  three  years  after  she 
shall  have  entered  the  United  States  from  any  of  the  countries,  party  to 
the  said  arrangement  for  the  suppression  of  the  white-slave  traffic,  to  file 
such  statement  concerning  such  alien  woman  or  girl  with  the  Commis- 
sioper-General  of  Immigration,  or  who  shall  knowingly  and  wilfully  state 
falsely  or  fail  to  disclose  in  such  statement  any  fact  within  his  knowledge 
or  belief  with  reference  to  the  age,  nationality,  or  parentage  of  any  such 
alien  woman  or  girl,  or  concerning  her  procuration  to  come  to  this  coun- 
try, shall  be  deemed  guilty  of  a  misdemeanor,  and  on  conviction  shall  be 
punished  by  a  fine  of  not  more  than  two  thousand  dollars,  or  by  impris- 
onment for  a  term  not  exceeding  two  years,  or  by  both  such  fine  and 
imprisonment,  in  the  discretion  of  the  court. 

In  any  prosecution  brought  under  this  section,  if  it  appear  that  any 
such  statement  required  is  not  on  file  in  the  office  of  the  Commissioner- 
General  of  Immigration,  the  person  whose  duty  it  shall  be  to  file  such 
statement  shall  be  presumed  to  have  failed  to  file  said  statement,  as  herein 
required,  unless  such  person  or  persons  shall  prove  otherwise.  No  per- 
son shall  be  excused  from  furnishing  the  statement,  as  required  by  this 
section,  on  the  ground  or  for  the  reason  that  the  statement  so  required  by 
him,  or  the  information  therein  contained,  might  tend  to  criminate  him 
or  subject  him  to  a  penalty  or  forfeiture,  but  no  person  shall  be  prose- 
cuted or  subjected  to  any  penalty  or  forfeiture,  under  any  law  of  the 
United  States  for  or  on  account  of  any  transaction,  matter,  or  thing, 
concerning  which  he  may  truthfully  report  in  such  statement,  as  required 
bv  the  provisions  of  this  section. 

Definitions. 

Sec.  7.  That  the  term  "Territory,"  as  used  in  this  Act,  shall  include 
the  district  of  Alaska,  the  insular  possessions  of  the  United  States,  and 
the  Canal  Zone.  The  word  "person,"  as  used  in  this  Act,  shall  be  con- 
strued to  import  both  the  plural  and  the  sigular,  as  the  case  demands, 
and  shall  include  corporations,  companies,  societies,  and  associations. 
When  construing  and  enforcing  the  provisions  of  this  Act,  the  act,  omis- 
sion, or   failure  of  any  officer,   agent,  or  other  person,   acting   for  or 


Liquor  Shipments  657 

employed  by  any  other  person  or  by  any  corporation,  company,  society,  or 
association  within  the  scope  of  his  employment  or  office,  shall  in  every 
case  be  also  deemed  to  be  the  act,  omission,  or  failure  of  such  other 
person,  or  of  such  company,  corporation,  society,  or  association,  as  well 
as  that  of  the  person  himself. 

Sec.    8.     That    this    Act    shall    be    known    and    referred    to    as    the 
White-slave  traffic  Act. 


LIQUOR   SHIPMENTS   IN   INTERSTATE   COMMERCE. 

Act  of  March  1,  1913. 

The  Webb-Kenyon  Act. 

An   Act   divesting  intoxicating  liquors  of  their    interstate   character   in   certain 


cases. 


That  the  shipment  or  transportation,  in  any  manner  or  by  any 
means  whatsoever,  of  any  spirituous,  vinous,  malted,  fermented,  or  other 
intoxicating  liquor  of  any  kind,  from  one  State,  Territory,  or  District  of 
the  United  States,  or  place  noncontiguous  to  but  subject  to  the  jurisdic- 
tion thereof,  or  from  any  foreign  country  into  any  State,  Territory,  or 
District  of  the  United  States,  or  place  noncontiguous  to  but  subject  to 
the  jurisdiction  thereof,  which  said  spirituous,  vinous,  malted,  fermented, 
or  other  intoxicating  liquor  is  intended,  by  any  person  interested  therein, 
to  be  received,  possessed,  sold,  or  in  any  manner  used,  either  in  the  orig- 
inal package  or  otherwise,  in  violation  of  any  law  of  such  State,  Terri- 
tory, or  District  of  the  United  States,  or  place  noncontiguous  to  but 
subject  to  the  jurisdiction  thereof,  is  hereby  prohibited. 

Advertisement  in  and  Shipment  Into  Dry  Territory  Prohibited.  (Act 
of  March  3,  1917.) 

Sec.  5.  That  no  letter,  postal  card,  circular,  newspaper,  pamphlet, 
or  publication  of  any  kind  containing  any  advertisement  of  spirituous, 
vinous,  malted,  fermented,  or  other  intoxicating  liquors  of  any  kind,  or 
containing  a  solicitation  of  an  order  or  orders  for  said  liquors,  or  any 
of  them,  shall  be  deposited  in  or  carried  by  the  mails  of  the  United  States, 
or  be  delivered  by  any  postmaster  or  letter  carrier,  when  addressed  or 
directed  to  any  person,  firm,  corporation,  or  association,  or  other  ad- 
dressee, at  any  place  or  point  in  any  State  or  Territory  of  the  United 
States  at  which  it  is  by  the  law  in  force  in  the  State  or  Territory  at  that 
time  unlawful  to  advertise  or  solicit  orders  for  such  liquors,  or  any  of 
them,  respectively. 

If  the  publisher  of  any  newspaper  or  other  publication  or  the  agent 
of  such  publisher,  or  if  any  dealer  in  such  liquors  or  his  agent,  shall 
knowingly  deposit  or  cause  to  be  deposited,  or  shall  knowingly  send  or 
cause  to  be  sent,  anything  to  be  conveyed  or  delivered  by  mail  in  violation 
of  the  provisions  of  this  section,  or  shall  knowingly  deliver  or  cause  to 
be  delivered  by  mail  anything  herein   forbidden  to  be  carried  by  mail, 

(42) 


658  Important  Federal  Laws 

shall  be  fined  not  more  than  $1,000  or  imprisoned  not  more  than  six 
months,  or  both ;  and  for  any  subsequent  offense  shall  be  imprisoned  not 
more  than  one  year.  Any  person  violating  any  provision  of  this  section 
may  be  tried  and  punished,  either  in  the  district  in  which  the  unlawful 
matter  or  publication  was  mailed  or  to  which  it  was  carried  by  mail  for 
delivery,  according  to  direction  thereon,  or  in  which  it  was  caused  to  be 
delivered  by  mail  to  the  person  to  whom  it  was  addressed.  Whoever 
shall  order,  purchase,  or  cause  intoxicating  liquors  to  be  transported  in 
interstate  commerce,  except  for  scientific,  sacramental,  medicinal,  and 
mechanical  purposes,  into  any  State  or  Territory  the  laws  of  which  State 
or  Territory  prohibit  the  manufacture  or  sale  therein  of  intoxicating 
liquors  for  beverage  purposes  shall  be  punished  as  aforesaid :  Provided, 
That  nothing  herein  shall  authorize  the  shipment  of  liquor  into  any 
State  contrary  to  the  laws  of  such  State :  Provided  further,  That  the 
Postmaster  General  is  hereby  authorized  and  directed  to  make  public 
from  time  to  time  in  suitable  bulletins  or  public  notices  the  names  of 
States  in  which  it  is  unlawful  to  advertise  or  solicit  orders  for  such 
liquors. 


BANKRUPTCY  ACT. 

Act  of  July  1,  1808,  as  amended. 

An  Act  to   establish  a  uniform   system  of  bankruptcy  throughout  the  United 
States. 

CHAPTER  I. 

Definitions. 

Meaning  of  Words  and  Phrases. 

Sec.  1.  a  The  words  and  phrases  used  in  this  Act  and  in  pro- 
ceedings pursuant  hereto  shall,  unless  the  same  be  inconsistent  with  the 
context,  be  construed  as  follows:  (1)  "A  person  against  whom  a 
petition  has  been  filed"  shall  include  a  person  who  has  filed  a  volun- 
tary petition;  (2)  "adjudication"  shall  mean  the  date  of  the  entry 
of  a  decree  that  the  defendant,  in  a  bankruptcy  proceeding,  is  a  bank- 
rupt, or  if  such  decree  is  appealed  from,  then  the  date  when  such 
decree  is  finally  confirmed;  (3)  "appellate  courts"  shall  include  the 
circuit  courts  of  appeals  of  the  United  States,  the  supreme  courts  of 
the  Territories,  and  the  Supreme  Court  of  the  United  States;  (4)  "bank- 
rupt" shall  include  a  person  against  whom  an  involuntary  petition  or 
an  application  to  set  a  composition  aside  or  to  revoke  a  discharge 
has  been  filed,  or  who  has  filed  a  voluntary  petition,  or  who  has  been 
adjudged  a  bankrupt;  (5)  "clerk"  shall  mean  the  clerk  of  a  court  of 
bankruptcy;  (6)  "corporations"  shall  mean  all  bodies  having  any  of 
the  powers  and  privileges  of  private  corporations  not  possessed  by  indi- 
viduals or  partnerships,  and  shall  include  limited  or  other  partner- 
ship associations  organized  under  laws  making  the  capital  subscribed 
alone  responsible  for  the  debts  of  the  association;  (7)  "court"  shall 
mean  the  court  of  bankruptcy  in  which  the  proceedings  are  pend- 
ing, and  may  include  the  referee;  (8)  "courts  of  bankruptcy"  shall  in- 
clude the  district  courts  of  the  United  States  and  of  the  Territories, 
the  supreme  court  of  the  District  of  Columbia,  and  the  United  States 
court  of  the  Indian  Territory,  and  of  Alaska ;  (9)  "creditor"  shall 
include  anyone  who  owns  a  demand  or  claim  provable  in  bankruptcy, 
and  may  include  his  duly  authorized  agent,  attorney,  or  proxy;  (10) 
"date  of  bankruptcy,"  or  "time  of  bankruptcy,"  or  "commencement  of 
proceedings,"  or  "bankruptcy,"  with  reference  to  time,  shall  mean  the 
date  when  the  petition  was  filed;  (11)  "debt"  shall  include  any  debt, 
demand,  or  claim  provable  in  bankruptcy;  (12)  "discharge"  shall  mean 
the   release   of   a   bankrupt    from   all   of   his   debts   which   are   provable 


660  Important  Federal  Laws 

in  bankruptcy,  except  such  as  are  excepted  by  this  Act;  (13)  "docu- 
ment" shall  include  any  book,  deed,  or  instrument  in  writing;  (14) 
"holiday"  shall  include  Christmas,  the  Fourth  of  July,  the  Twenty- 
second  of  February,  and  any  day  appointed  by  the  President  of  the 
United  States  or  the  Congress  of  the  United  States  as  a  holiday  or 
as  a  day  of  public  fasting  or  thanksgiving;  (15)  a  person  shall  be 
deemed  insolvent  within  the  provisions  of  this  Act  whenever  the  aggre- 
gate of  his  property,  exclusive  of  any  property  which  he  may  have 
conveyed,  transferred,  concealed,  or  removed,  or  permitted  to  be  con- 
cealed or  removed,  with  intent  to  defraud,  hinder  or  delay  his  creditors, 
shall  not,  at  a  fair  valuation,  be  sufficient  in  amount  to  pay  his  debts ; 
(16)  "judge"  shall  mean  a  judge  of  a  court  of  bankruptcy,  not  includ- 
ing the  referee;  (17)  '"oath"  shall  include  affirmation;  (18)  "officer" 
shall  include  clerk,  marshal,  receiver,  referee,  and  trustee,  and  the 
imposing  of  a  duty  upon  or  the  forbidding  of  an  act  by  any  officer 
shall  include  his  successor  and  any  person  authorized  by  law  to  perform 
the  duties  of  such  officer;  (19)  "persons"  shall  include  corporations, 
except  where  otherwise  specified,  and  officers,  partnerships,  and  women, 
and  when  used  with  reference  to  the  commission  of  acts  which  are 
herein  forbidden  shall  include  persons  who  are  participants  in  the  for- 
bidden acts,  and  the  agents,  officers,  and  members  of  the  board  of  di- 
rectors or  trustees,  or  other  similar  controlling  bodies  of  corporations ; 
(20)  "petition"  shall  mean  a  paper  filed  in  a  court  of  bankruptcy  or 
with  a  clerk  or  deputy  clerk  by  a  debtor  praying  for  the  benefits  of 
this  Act,  or  by  creditors  alleging  the  commission  of  an  act  of  bank- 
ruptcy by  a  debtor  therein  named;  (21)  "referee"  shall  mean  the  ref- 
eree who  has  jurisdiction  of  the  case  or  to  whom  the  case  has  been 
referred,  or  any  one  acting  in  his  stead;  (22)  "conceal"  shall  include 
secrete,  falsify,  and  mutilate;  (23)  "secured  creditor"  shall  include  a 
creditor  who  has  security  for  his  debt  upon  the  property  of  the  bank- 
rupt of  a  nature  to  be  assignable  under  this  Act.  or  who  owns  such  a 
debt  for  which  some  indorser.  surety,  or  other  persons  secondarily 
liable  for  the  bankrupt  has  such  security  upon  the  bankrupt's  assets ; 
(24)  "States"  shall  include  the  Territories,  the  Indian  Territory,  Alaska, 
and  the  District  of  Columbia;  (25)  "transfer"  shall  include  the  sale 
and  every  other  and  different  mode  of  disposing  of  or  parting  with 
property,  or  the  possession  of  property,  absolutely  or  conditionally,  as 
a  payment,  pledge,  mortgage,  gift,  or  security;  (26)  "trustee"  shall 
include  all  of  the  trustees  of  an  estate ;  (27)  "wage-earner"  shall  mean 
an  individual  who  works  for  wages,  salary,  or  hire,  at  a  rate  of  com- 
pensation not  exceeding  one  thousand  five  hundred  dollars  per  year ; 
(28)  words  importing  the  masculine  gender  may  be  applied  to  and 
include  corporations,  partnerships,  and  women ;  (29)  words  importing 
the  plural  number  may  be  applied  to  and  mean  only  a  single  person  or 
thing;  (30)  words  importing  the  singular  number  may  be  applied  to 
and  mean  several  persons  or  things. 


Bankruptcy  661 

CHAPTER  II. 

Creation  of  Courts  of  Bankruptcy  and  Their  Jurisdiction. 

Sec.  2.  That  the  courts  of  bankruptcy,  as  hereinbefore  defined, 
viz,  the  district  courts  of  the  United  States  in  the  several  States,  the 
supreme  court  of  the  District  of  Cokimbia,  the  district  courts  of  the 
several  Territories,  and  the  United  States  courts  in  the  Indian  Terri- 
tory and  the  District  of  Alaska,  are  hereby  made  courts  of  bankruptcy, 
and  are  hereby  invested,  within  their  respective  territorial  limits  as 
now  established,  or  they  may  be  hereafter  changed,  with  such  jurisdic- 
tion at  law  and  in  equity  as  will  enable  them  to  exercise  original  jurisdic- 
tion in  bankruptcy  proceedings,  in  vacation  in  chambers  and  during  their 
respective  terms,  as  they  are  now  or  may  be  hereafter  held,  to  (1)  ad- 
judge persons  bankrupt  who  have  had  their  principal  place,  of  business, 
resided,  or  had  their  domicile  within  their  respective  territorial  juris- 
dictions for  the  preceding  six  months,  or  the  greater  portion  thereof, 
or  who  do  not  have  their  principal  place  of  business,  reside,  or  have 
their  domicile  within  the  United  States,  but  have  property  within  their 
jurisdictions,  or  who  have  been  adjudged  bankrupts  by  courts  of  com- 
petent jurisdiction  without  the  United  States,  and  have  property  withiru 
their  jurisdictions;  (2)  allow  claims,  disallow  claims,  reconsider  allowed 
or  disallowed  claims,  and  allow  or  disallow  them  against  bankrupt  es- 
tates;  (3)  appoint  receivers  or  the  marshals,  upon  application  of  parties 
in  interest,  in  case  the  courts  shall  find  it  absolutely  necessary,  for  the 
preservation  of  estates,  to  take  charge  of  the  property  of  bankrupts 
after  the  filing  of  the  petition  and  until  it  is  dismissed  or  the  trustee 
is  qualified ;  (4)  arraign,  try,  and  punish  bankrupts,  officers,  and  other 
persons,  and  the  agents,  officers,  members  of  the  board  of  directors  or 
trustees,  or  other  similar  controlling  bodies,  of  corporations  for  viola- 
tions of  this  Act,  in  accordance  with  the  laws  of  procedure  of  the 
United  States  now  in  force,  or  such  as  may  be  hereafter  enacted,  regu- 
lating trials    for   the    alleged   violation    of   laws   of   the   United    States; 

(5)  authorize  the  business  of  bankrupts  to  be  conducted  for  limited 
periods  by  receivers,  the  marshals,  or  trustees,  if  necessary  in  the  best 
interests  of  the  estates,  and  allow  such  officers  additional  compensa- 
tion  for  such  services,  as  provided  in  section   forty-eight  of  this  Act ; 

(6)  bring  in  and  substitute  additional  persons  or  parties  in  proceed- 
ings in  bankruptcy  when  necessary  for  the  complete  determination  of 
a  matter  in  controversy;  (7)  cause  the  estates  of  bankrupts  to  be 
collected,  reduced  to  money  and  distributed,  and  determine  controver- 
sies in  relation  thereto,  except  as  herein  otherwise  provided;  (8)  close 
estates,  whenever  it  appears  that  they  have  been  fully  administered, 
by  approving  the  final  accounts  and  discharging  the  trustees,  and  re- 
open them  whenever  it  appears  they  were  closed  before  being  fully 
administered;  (9)  confirm  or  reject  compositions  between  debtors  and 
their  creditors,  and  set  aside  compositions  and  reinstate  the  cases; 
(10)  consider  and  confirm,  modify  or  overrule,  or  return,  Ayith  instruc- 


662  Important  Federal  Laws 

tions  for  further  proceedings,  records  and  findings  certified  to  them 
by  referees;  (11)  determine  all  claims  of  bankrupts  to  their  exemptions; 
(12)  discharge  or  refuse  to  discharge  bankrupts  and  set  aside  dis- 
charges and  reinstate  the  cases;  (13)  enforce  obedience  by  bankrupts, 
officers,  and  other  persons  to  all  lawful  orders,  by  fine  or  imprisonment 
or  fine  and  imprisonment;  (14)  extradite  bankrupts  from  their  respec- 
tive districts  to  other  districts;  (15)  make  such  orders,  issue  such 
process,  and  enter  such  judgments  in  additions  to  those  specifically 
provided  for  as  may  be  necessary  for  the  enforcement  of  the  provi- 
sions of  this  Act;  (16)  punish  persons  for  contempts  committed  before 
referees;  (17)  pursuant  to  the  recommendation  of  creditors,  or  when 
they  neglect  to  recommend  the  appointment  of  trustees,  appoint  trustees, 
and  upon  complaints  of  creditors,  remove  trustees  for  cause  upon  hear- 
ings and  after  notices  to  them;  (18)  tax  costs,  whenever  they  are 
allowed  by  law,  and  render  judgments  therefor  against  the  unsuccess- 
-ful  party,  or  the  successful  party  for  cause,  or  in  part  against  each  of 
ithe  parties,  and  against  estates,  in  proceedings  in  bankruptcy;  (19) 
transfer  cases  to  other  courts  of  bankruptcy  ;  and  (20)  exercise  ancil- 
lary jurisdiction  over  persons  or  property  within  their  respective  terri- 
torial limits  in  aid  of  a  receiver  or  trustee  appointed  in  any  bankruptcy 
proceedings  pending  in  any  other  court  of  bankruptcy. 

Nothing  in  this  section  contained  shall  be  construed  to  deprive 
a  court  of  bankruptcy  of  any  power  it  would  possess  were  certain 
specific  powers  not  herein  emmierated.    (Ac  amended  June  25,  1910.) 

CHAPTER  III. 
Bankrupt. 
Acts  of  Bankruptcy. 

Sec.  3.  a  Acts  of  bankruptcy  by  a  person  shall  consist  of^  his 
having  (1)  conveyed,  transferred,  concealed,  or  removed,  or  permitted 
to  be  concealed  or  removed,  any  part  of  his  property  with  intent  to  hinder, 
delay,  or  defraud  his  creditors,  or  any  of  them ;  or  (2)  transferred,  while 
insolvent,  any  portion  of  his  property  to  one  or  more  of  his  creditors  with 
intent  to  prefer  such  creditors  over  his  other  creditors ;  or  (3)  sufifered  or 
permitted,  while  insolvent,  any  creditor  to  obtain  a  preference  through 
legal  proceedings,  and  not  having  at  least  five  days  before  a  sale  or  final 
disposition  of  anv  property  afifected  by  such  preference  vacated  or  dis- 
charged such  preference;  or  (4)  made  a  general  assignment  for  the 
benefit  of  his  creditors,  or,  being  insolvent,  applied  for_  a  receiver  or 
trustee  for  his  property  or  because  of  insolvency  a  receiver  or  trustee 
has  been  put  in  charge'  of  his  property  under  the  laws  of  a  State,  of  a 
Territory,  or  of  the  United  States;  or  (5)  admitted  in  writing  his  in- 
ability to  pay  his  debts  and  his  willingness  to  be  adjudged  a  bank- 
rupt on  that  ground. 

b  A  petition  may  be  filed  against  a  person  who  is  insolvent  and 
who   has   committed    an   act   of    bankruptcy   within    four   months    after 


Bankruptcy  663 

the  commission  of  such  act.  Such  time  shall  not  expire  until  four 
months  after  (1)  the  date  of  the  recording  or  registering  of  the  trans- 
fer or  assignment  when  the  act  consists  in  having  made  a  transfer  of 
any  of  his  property  with  intent  to  hinder,  delay,  or  defraud  his  creditors 
or  for  the  purpose  of  giving  a  preference  as  hereinbefore  provided,  or 
a  general  assignment  for  the  benefit  of  his  creditors,  if  by  law  such 
recording  or  registering  is  required  or  permitted,  or,  if  it  is  not,  from 
the  date  when  the  beneficiary  takes  notorious,  exclusive,  or  continuous 
possession  of  the  property  unless  the  petitioning  creditors  have  received 
actual  notice  of  such  transfer  or  assignment. 

c  It  shall  be  a  complete  defense  to  any  proceedings  in  bankruptcy 
instituted  under  the  first  subdivision  of  this  section  to  allege  and  prove 
that  the  party  proceeded  against  was  not  insolvent  as  defined  in  this 
Act  at  the  time  of  the  filing  the  petition  against  him,  and  if  solvency 
at  such  date  is  proved  by  the  alleged  bankrupt  the  proceedings  shall 
be  dismissed,  and  under  said  subdivision  one  the  burden  of  proving 
solvency  shall  be  on  the  alleged  bankrupt. 

d  Whenever  a  person  against  whom  a  petition  has  been  filed  as 
hereinbefore  provided  under  the  second  and  third  subdivisions  of  this 
section  takes  issue  with  and  denies  the  allegation  of  his  insolvency,  it 
shall  be  his  duty  to  appear  in  court  on  the  hearing,  with  his  books, 
papers,  and  accounts,  and  submit  to  an  examination,  and  give  testimony 
as  to  all  matters  tending  to  establish  solvency  or  insolvency,  and  in 
case  of  his  failure  to  so  attend  and  submit  to  examination  the  burden 
of  proving  his  solvency  shall  rest  upon  him. 

e  Whenever  a  petition  is  filed  by  any  person  for  the  purpose  of 
having  another  adjudged  a  bankrupt,  and  an  application  is  made  to  take 
charge  of  and  hold  the  property  of  the  alleged  bankrupt,  or  any  part 
of  tiie  same,  prior  to  the  adjudication  and  pending  a  hearing  on  the 
petition,  the  petitioner  or  applicant  shall  file  in  the  same  court  a  bond 
with  at  least  two  good  and  suf^cient  sureties  wdio  shall  reside  within 
the  jurisdiction  of  said  court,  to  be  approved  by  the  court  or  a  judge 
thereof,  in  such  sum  as  the  court  shall  direct,  conditioned  for  the  pay- 
ment, in  case  such  petition  is  dismissed,  to  the  respondent,  his  or 
her  personal  representatives,  all  costs,  expenses,  and  damages  occa- 
sioned by  such  seizure,  taking,  and  detention  of  the  property  of  the 
alleged  bankrupt. 

If  such  petition  be  dismissed  by  the  court  or  withdrawn  by  the 
petitioner,  the  respondent  or  respondents  shall  be  allowed  all  costs, 
counsel  fees,  expenses,  and  damages  occasioned  by  such  seizure,  taking, 
or  detention  of  such  property.  Counsel  fees,  costs,  expenses,  and  dam- 
ages shall  be  fixed  and  allowed  by  the  court,  and  paid  by  the  obligors 
in  such  bond. 

Who  May  Become  Bankrupts. 

Sec.  4.     a  Any  person  except  a  municipal,  railroad,  insurance,  or 


664  Important  Federal  Laws 

banking  cor'-nrition    ^hnll   he  entitled  to  the  benefits  of   this   Act   as  a 
voluntary  bankrupt. 

b  Any  natural  person,  except  a  wage-earner,  or  a  person  engaged 
chiefly  in  farming  or  the  tillage  of  the  soil,  any  unincorporated  com- 
pany, and  any  moneyed,  business  or  commercial  corporation,  except  a 
municipal,  railroad,  insurance,  or  banking  corporation,  owing  debts  to 
the  amount  of  one  thousand  dollars  or  over,  may  be  adjudged  an  in- 
voluntary bankrupt  upon  default  or  an  impartial  trial,  and  shall  be 
subject  to  the  provisions  and  entitled  to  the  benefits  of  this  Act. 

The  bankruptcy  of  a  corporation  shall  not  release  its  officers,  di- 
rectors, or  stockholders,  as  such,  from  any  liability  under  the  laws  of 
a  State  or  Territory  or  of  the  United  States.    (As  amended  June  25,  1910.) 

Partners.  '; 

Sec.  5.  a  a  partnership,  during  the  continuation  of  the  partner- 
ship business,  or  after  its  dissolution  and  before  the  final  settlement 
thereof,  may  be  adjudged  a  bankrupt. 

b  The  creditors  of  the  partnership  shall  appoint  the  trustee ;  in 
other  respects  so  far  as  possible  the  estate  shall  be  administered  as  here- 
in provided  for  other  estates. 

c  The  court  of  bankruptcy  which  has  jurisdiction  of  one  of  the 
partners  may  have  jurisdiction  of  all  the  partners  and  of  the  adminis- 
tration of  the  partnership  and  individual  property. 

d  The  trustee  shall  keep  separate  accounts  of  the  partnership  prop- 
erty and  of  the  property  belonging  to  the  individual  partners. 

e  The  expenses  shall  be  paid  from  the  partnership  property  and 
the  individual  property  in  such  proportions  as  the  court  shall  deter- 
mine. 

f  The  net  proceeds  of  the  partnership  shall  be  appropriated  to  the 
payment  of  the  partnership  debts,  and  the  net  proceeds  of  the  individual 
estate  of  each  partner  to  the  payment  of  his  individual  debts.  Should 
any  surplus  remain  of  the  property  of  any  partner  after  paying  his' 
individual  debts,  such  surplus  shall  be  added  to  the  partnership  assets 
and  be  applied  to  the  payment  of  the  partnership  debts.  Should  any 
surplus  of  the  partnership  property  remain  after  paying  the  partnership 
debts,  such  surplus  shall  be  added  to  the  assets  of  the  individual  part- 
ners in  the  proportion  of  their  respective  interests  in  the  partnership. 

g  The  court  may  permit  the  proof  of  the  claim  of  the  partnership 
estate  against  the  individual  estates,  and  vice  versa,  and  may  marshal 
the  assets  of  the  partnership  estate  and  individual  estates  so  as  to  pre- 
vent preferences  and  secure  the  equitable  distribution  of  the  property  of 
the  several  estates. 

h  In  the  event  of  one  or  more  but  not  all  of  the  members  of  a 
partnership  being  adjudged  bankrupt,  the  partnership  propertv  shall 
not  be  administered  in  bankruptcy,  unless  by  consent  of  the  partner 
or  partners  not  adjudged  bankrupt ;  but  such  partner  or  partners  not 


Bankruptcy  665 

adjudged  bankrupt  shall  settle  the  partnership  business  as  expeditiously 
as  its  nature  will  permit,  and  account  for  the  interest  of  the  partner 
or  partners  adjudged  bankrupt. 

Exemption  of  Bankrupts. 

Sec.  6.  a  This  Act  shall  not  afifect  the  allowance  to  bankrupts 
of  the  exemptions  which  are  prescribed  by  the  State  laws  in  force  at 
the  time  of  the  filing  of  the  petition  in  the  State  wherein  they  have 
had  their  domicile  for  the  six  months  or  the  greater  portion  thereof 
immediately  preceding  the  filing  of  the  petition. 

Duties  of  Bankrupts. 

Sec.  7.  a  The  bankrupt  shall  (1)  attend  the  first  meeting  of  his 
creditors,  if  directed  by  the  court  or  a  judge  thereof  to  do  so,  and 
the  hearing  upon  his  application  for  a  discharge,  if  filed ;  (2)  com- 
ply with  all  lawful  orders  of  the  court;  (3)  examine  the  correctness  of 
all  proofs  of  claims  filed  against  his  estate;  (4)  execute  and  deliver 
such  papers  as  shall  be  ordered  by  the  court;  (5)  execute  to  his  trus- 
tee transfers  of  all  his  property  in  foreign  countries  ;  (6)  immediately 
inform  his  trustee  of  any  attempt,  by  his  creditors  or  other  persons, 
to  evade  the  provisions  of  this  Act,  coming  to  his  knowledge;  (7)  in 
case  of  any  person  having  to  his  knowledge  proved  a  false  claim  against 
his  estate,  disclose  that  fact  immediately  to  his  trustee ;  (8)  prepare, 
make  oath  to.  and  file  in  court  within  ten  days,  unless  further  time 
is  granted,  after  the  adjudication,  if  an  involuntary  bankrupt,  and  with 
the  petition  if  a  voluntary  bankrupt,  a  schedule  of  his  property,  show- 
ing the  amount  and  kind  of  property,  the  location  thereof,  its  money 
value  in  detail,  and  a  list  of  his  creditors,  showing  their  residences,  if 
known,  if  unknown,  that  fact  to  be  stated,  the  amount  due  each  of 
them,  the  consideration  thereof,  the  security  held  by  them,  if  any.  and 
a  claim  for  such  exemptions  as  he  may  be  entitled  to,  all  in  triplicate, 
one  copy  of  each  for  the  clerk,  one  for  the  referee,  and  one  for  the 
trustee;  and  (9)  wdien  present  at  the  first  meeting  of  his  creditors,  and 
at  such  other  times  as  the  court  shall  order,  submit  to  an  examination  con- 
cerning the  conducting  of  his  business,  the  cause  of  his  bankruptcy, 
his  dealings  with  his  creditors  and  other  persons,  the  amount,  kind,  and 
whereabouts  of  his  property,  and,  in  addition,  all  matters  which  may 
afTect  the  administration  and  settlement  of  his  estate ;  but  no  testimony 
given  by  him  shall  be  oft'ered  in  evidence  against  him  in  any  criminal 
proceeding :  Provided,  however.  That  he  shall  not  be  required  to  attend 
a  meeting  of  his  creditors,  or  at  or  for  an  examination  at  a  place  more 
than  one  hundred  and  fifty  miles  distant  from  his  home  or  principal 
place  of  business,  or  to  examine  claims  except  when  presented  to  him, 
unless  ordered  by  the  court,  or  a  judge  thereof,  for  cause  shown,  and 
the  bankrupt  shall  be  paid  his  actual  expenses  from  the  estate  when 
examined  or  required  to  attend  at  any  place  other  than  the  city,  town, 
or  village  of  his  residence. 


666  Important  Federal  Laws 

Death  or  Insanity  of  Bankrupts. 

Sec.  8.  a  The  death  or  insanity  of  a  bankrupt  shall  not  abate 
the  proceedings,  but  the  same  shall  be  conducted  and  concluded  in 
the  same  manner,  so  far  as  possible,  as  though  he  had  not  died  or 
become  insane :  Provided,  That  in  case  of  death  the  widow  and  chil- 
dren shall  be  entitled  to  all  rights  of  dower  and  allowance  fixed  by 
the  laws  of  the  State  of  the  bankrupt's  residence. 

Protection  and  Detention  of  Bankrupts. 

Sec.  9.  a  A  bankrupt  shall  be  exempt  from  arrest  upon  civil 
process  except  in  the  following  cases:  (T)  When  issued  from  a  court 
of  bankruptcy  for  contempt  or  disobedience  of  its  lawful  orders;  (2) 
when  issued  from  a  State  court  having  jurisdiction,  and  served  within 
such  State,  upon  a  debt  or  claim  from  which  his  discharge  in  bank- 
ruptcy would  not  be  a  release,  and  in  such  case  he  shall  be  exempt 
from  such  arrest  when  in  attendance  upon  a  court  of  bankruptcy  or 
engaged  in  the  performance  of  a  duty  imposed  by  this  Act. 

b  The  judge  may,  at  any  time  after  the  filing  of  a  petition  by  or 
against  a  person,  and  before  the  expiration  of  one  month  after  the 
qualification  of  the  trustee,  upon  satisfactory  proof  by  the  affidavits 
of  at  least  two  persons  that  such  bankrupt  is  about  to  leave  the  district 
in  which  he  resides  or  has  his  principal  place  of  business  to  avoid  ex- 
amination, and  that  his  departure  will  defeat  the  proceedings  in  bank- 
ruptcv,  issue  a  warrant  to  the  marshal,  directing  him  to  bring  such 
bankrupt  forthwith  before  the  court  for  examination.  If  upon  hearing 
the  evidence  of  the  parties  it  shall  appear  to  the  court  or  a  judge  there- 
of that  the  allegations  are  true  and  that  it  is  necessary,  he  shall  order 
such  marshal  to  keep  such  bankrupt  in  custody  not  exceeding  ten  days, 
but  not  imprison  him,  until  he  shall  be  examined  and  released  or  give 
bail  conditioned  for  his  appearance  for  examination,  from  time  to  time, 
not  exceeding  in  all  ten  days,  as  required  by  the  court,  and  for  his 
obedience  to  all  lawful  orders  made  in  reference  thereto. 

Extradition  of  Bankrupts. 

Sec.  10.  a  Whenever  a  warrant  for  the  apprehension  of  a  bank- 
rupt shall  have  been  issued,  and  he  shall  have  been  found  within  the 
jurisdiction  of  a  court  other  than  the  one  issuing  the  warrant,  he  may 
be  extradited  in  the  same  manner  in  which  persons  under  indictment  are 
now  extradited  from  one  district  within  which  a  district  court  has  juris- 
diction to  another. 

Suits  By  and  Against  Bankrupts. 

Sec.  11.  a  A  suit  which  is  founded  upon  a  claim  from  which  a 
discharge  would  be  a  release,  and  which  is  pending  against  a  person 
at  the  time  of  the  filing  of  a  petition  against  him,  shall  be  stayed  until 
after  an  adjudication  or  the  dismissal  of  the  petition;  if  such  person 
is  adjudged  a  bankrupt,  such  action  may  be  further  stayed  until  twelve 
months   after   the   date   of    such   adjudication,    or,    if    within   that   time 


Bankruptcy  667 

such  person   applies    for   a   discharge,   then   until   the   question   of    such 
discharge  is  determined. 

b  The  court  may  order  the  trustee  to  enter  his  appearance  and  de- 
fend any  pending  suit  against  the  bankrupt. 

c  A  trustee  may,  with  the  approval  of  the  court,  be  permitted  to 
prosecute  as  trustee  any  suit  commenced  by  the  bankrupt  prior  to  the 
adjudication,  with  like  force  and  effect  as  though  it  had  been  com- 
menced by  him. 

d  Suits  shall  not  be  brought  by  or  against  a  trustee  of  a  bank- 
rupt estate  subsequent  to  two  years  after  the  estate  has  been  closed. 

Compositions,  When  Confirmed. 

Sec.  12.  a  A  bankrupt  may  ofifer,  either  before  or  after  adjudica- 
tion, terms  of  composition  to  his  creditors  after,  but  not  before,  he  has 
been  examined  in  open  court  or  at  a  meeting  of  his  creditors,  and 
has  filed  in  court  the  schedule  of  his  property  and  the  list  of  his  cred- 
itors required  to  be  filed  by  bankrupts.  In  compositions  before  adjudi- 
cation the  bankrupt  shall  file  the  required  schedules,  and  thereupon 
the  court  shall  call  a  meeting  of  creditors  for  the  allowance  of  claims, 
examination  of  the  bankrupt,  and  preservation  or  conduct  of  estates, 
at  which  meeting  the  judge  or  referee  shall  preside;  and  action  upon 
the  petition  for  adjudication  shall  be  delayed  until  it  shall  be  deter- 
mined whether  such  composition  shall  be  confirmed. 

b  An  application  for  the  confirmation  of  a  composition  may  be  filed 
in  the  court  of  bankruptcy  after,  but  not  before,  it  has  been  accepted 
in  writing  by  a  majority  in  number  of  all  creditors  whose  claims 
have  been  allowed,  which  number  must  represent  a  majority  in  amount 
of  such  claims,  and  the  consideration  to  be  paid  by  the  bankrupt  to  his 
creditors,  and  the  money  necessary  to  pay  all  debts  which  have  priority 
and  the  cost  of  the  proceedings,  have  been  deposited  in  such  place  as 
shall  be  designated  by  and  subject  to  the  order  of  the  judge. 

c  A  date  and  place,  with  reference  to  the  convenience  of  the  parties 
in  interest,  shall  be  fixed  for  the  hearing  upon  each  application  for  the 
confirmation  of  a  composition,  and  such  objections  as  may  be  made 
to  its  confirmation. 

d  The  judge  shall  confirm  a  composition  if  satisfied  that  (1)  it  is 
for  the  best  interests  of  the  creditors;  (2)  the  bankrupt  has  not  been 
guilty  of  any  of  the  acts  or  failed  to  perform  any  of  the  duties  which 
would  be  a  bar  to  his  discharge;  and  (3)  the  offer  and  its  acceptance 
are  in  good  faith  and  have  not  been  made  or  procured  except  as  herein 
provided,  or  by  any  means,  promises,  or  acts  herein  forbidden. 

e  Upon  the  confirmation  of  a  composition,  the  consideration  shall 
be  distributed  as  the  judge  shall  direct,  and  the  case  dismissed.  When- 
ever a  composition  is  not  confirmed,  the  estate  shall  be  administered  in 
bankruptcy  as  herein  provided.     (As  amended  June  25.  1910.) 


668  Important  Federal  Laws 

Compositions,  When  Set  Aside. 

Sec.  13.  a  The  judge  may,  upon  the  appHcation  of  parties  in 
interest  filed  at  any  time  within  six  months  after  a  composition  has 
been  confirmed,  set  the  same  aside  and  reinstate  the  case  if  it  shall  be 
made  to  appear  upon  a  trial  that  fraud  was  practiced  in  the  procuring 
of  such  composition,  and  that  the  knowledge  thereof  has  come  to  the 
petitioners  since  the  confirmation  of  such  composition. 

Discharges,  When  Granted. 

Sec.  14.  a  Any  person  may,  after  the  expiration  of  one  month  and 
within  the  next  twelve  months  subsequent  to  being  adjudged  a  bank- 
rupt, file  an  application  for  a  discharge  in  the  court  of  bankruptcy  in 
which  the  proceedings  are  pending ;  if  it  shall  be  made  to  appear  to  the 
judge  that  the  bankrupt  was  unavoidably  prevented  from  filing  it  with- 
in such  time,  it  may  be  filed  within  but  not  after  the  expiration  of  the 
next  six  months. 

b  The  judge  shall  hear  the  application  for  a  discharge  and  such 
proofs  and  pleas  as  may  be  made  in  opposition  thereto  by  the  trustee 
or  other  j^arties  in  interest,  at  such  time  as  will  give  the  trustee  or 
parties  in  interest  a  reasonable  opportunity  to  be  fully  heard,  and  in- 
vestigate the  merits  of  the  application  and  discharge  the  applicant 
unless  he  has  ( 1 )  committed  an  ofTense  punishable  by  imprisonment  as 
herein  provided;  or  (2)  with  intent  to  conceal  his  financial  condition, 
destroyed,  concealed,  or  failed  to  keep  books  of  account  or  records 
from  which  such  condition  might  be  ascertained;  or  (3)  obtained  money 
or  property  on  credit  upon  a  materially  false  statement  in  writing,  made 
by  him  to  any  person  or  his  representative  for  the  purpose  of  obtaining 
credit  from  such  person;  or  (4)  at  any  time  subsequent  to  the  first 
day  of  the  four  months  immediately  preceding  the  filing  of  the  peti- 
tion transferred,  removed,  destroyed,  or  concealed,  or  permitted  to  be 
removed,  destroyed,  or  concealed,  any  of  his  property,  with  intent  to 
hinder,  delay,  or  defraud  his  creditors;  or  (5)  in  voluntary  proceed- 
ings been  granted  a  discharge  in  bankruptcy  within  six  years;  or  (6) 
in  the  course  of  the  proceedings  in  bankruptcy  refused  to  obey  any  law- 
ful order  of,  or  to  answer  any  material  question  approved  by  the 
court:  Provided.  That  a  trustee  shall  not  interpose  objections  to  a  bank- 
rupt's discharge  until  he  shall  be  authorized  so  to  do  at  a  meeting  of 
creditors  called  for  that  purpose. 

c  The  confirmation  of  a  composition  shall  discharge  the  bankrupt 
from  his  debts,  other  than  those  agreed  to  be  paid  by  the  terms  of  the 
composition  and  those  not  affected  by  a  discharge.     (As  amended   June 
25,  1910.) 
Discnarges,  When  Revoked. 

Sec.  15.  a  The  judge  may,  upon  the  application  of  parties  in  in- 
terest who  have  not  been  guilty  of  undue  laches,  filed  at  any  time  within 
one  year  after  a  discharge  shall  have  been  granted,  revoke  it  upon  a 
trial  if  it  shall  be  made  to  appear  that   it  was  obtained  through  the 


Bankruptcy  o69 

fraud  of  the  bankrupt,  and  that  the  knowledge  of  the  fraud  has  come 
to  the  petitioners  since  the  granting  of  the  discharge,  and  that  the 
actual  facts  did  not  warrant  the  discharge. 

Co-Debtors  of  Bankrupts. 

Sec.  16.  a  The  liability  of  a  person  who  is  a  co-debtor  with,  or 
guarantor  or  in  any  manner  a  surety  for,  a  bankrupt  shall  not  be  altered 
by  the  discharge  of  such  a  bankrupt. 

Debts  Not  Affected  by  a  Discharge. 

Sec.  17.  a  A  discharge  in  bankruptcy  shall  reiease  a  bankrupt 
from  all  of  his  provable  debts,  except  such  as  (1)  are  due  as  a  tax 
levied  by  the  United  States,  the  State,  county,  district,  or  municipality 
in  which  he  resides:  (2)  are  liabilities  for  obtaining  property  by  false 
pretenses  or  false  representations,  or  for  willful  and  malicious  injuries 
to  the  person  or  property  of  another,  or  for  alimony  due  or  to  become 
due,  or  for  maintenance  or  support  of  wife  or  child,  or  for  seduction 
of  an  unmarried  female,  or  for  breach  of  promise  of  marriage,  accom- 
panied by  seduction,  or  for  criminal  conversation;  (3)  have  not  been 
duly  scheduled  in  time  for  proof  and  allowance,  with  the  name 
of  the  creditor  if  known  to  the  bankrupt,  unless  such  creditor  had 
notice  or  actual  knowledge  of  the  proceedings  in  bankruptcy ;  or  (4) 
were  created  by  his  fraud,  embezzlement,  misappropriation,  or  defalca- 
tion while  acting  as  an  officer  or  in  anv  fiduciary  capacity.  (As  amended 
March  2,   1917.) 

CHAPTER  IV. 

Courts  and  Procedure  Therein. 

Process,  Pleadings,  and  Adjudications. 

Sec.  18.  a  Upon  the  filing  of  a  petition  for  involuntary  bankruptcy, 
service  thereof,  with  a  writ  of  subpoena,  shall  be  made  upon  the  per- 
son therein  named  as  defendant  in  the  same  manner  that  service  of  such 
process  is  now  had  upon  the  commencement  of  a  suit  in  equity  in  the 
courts  of  the  United  States,  except  that  it  shall  be  returnable  within 
fifteen  days,  unless  the  judge  shall  for  cause  fix  a  longer  time;  but  in 
case  personal  service  can  not  be  made,  then  notice  shall  be  given  by 
publication  in  the  same  manner  and  for  the  same  time  as  provided 
lay  law  for  notice  by  publication  in  suits  to  enforce  a  legal  or  equitable 
lien  in  courts  of  the  United  States,  except  that,  unless  the  judge  shall 
otherwise  direct,  the  order  shall  be  published  not  more  than  once  a 
w-eek  for  two  consecutive  weeks,  and  the  return  day  shall  be  ten  days 
after  the  last  publication  unless  the  judge  shall  for  cause  fix  a  longer 
time. 

b  The  bankrupt,  or  any  creditor,  may  appear  and  plead  to  the 
petition  within  five  days  after  the  return  day,  or  within  such  further 
time  as  the  court  may  allow. 

c  All  pleadings  setting  up  matters  of  fact  shall  be  verified  under 
oath. 


670  Important  Federal  Laws 

d  If  the  bankrupt,  or  any  of  his  creditors,  shall  appear,  within  the 
time  limited,  and  controvert  the  facts  alleged  in  the  petition,  the  judge 
shall  determine,  as  soon  as  may  be,  the  issues  presented  by  the  plead- 
ings, without  the  intervention  of  a  jury,  except  in  cases  where  a  jury 
trial  is  given  by  this  Act,  and  makes  the  adjudication  or  dismiss  the 
petition. 

e  If  on  the  last  day  within  which  pleadings  may  be  filed  none  are 
filed  by  the  bankrupt  or  any  of  his  creditors,  the  judge  shall  on  the 
next  day,  if  present,  or  as  soon  thereafter  as  practicable,  make  the 
adjudication  or  dismiss  the  petition. 

f  If  the  judge  is  absent  from  the  district,  or  the  division  of  the 
district  in  which  the  petition  is  pending,  on  the  next  day  after  the 
last  day  on  which  pleadings  may  be  filed,  and  none  have  been  filed  by 
the  bankrupt  or  any  of  his  creditors,  the  clerk  shall  forthwith  refer  the 
case  to  the  referee. 

g  Upon  the  filing  of  a  voluntary  petition  the  judge  shall  hear  the 
petition  and  make  the  adjudication  or  dismiss  the  petition.  If  the 
judge  is  absent  from  the  district,  or  the  division  of  the  district  in  which 
the  petition  is  filed  at  the  time  of  the  filing,  the  clerk  shall  forthwith 
refer  the  case  to  the  referee. 

Jury  Trials. 

Sec.  19.  a  A  person  against  whom  an  involuntary  petition  has 
been  filed  shall  be  entitled  to  have  a  trial  by  jury,  in  respect  to  the 
question  of  his  insolvency,  except  as  herein  otherwise  provided,  and 
any  act  of  bankruptcy  alleged  in  such  petition  to  have  been  committed, 
upon  filing  a  written  application  therefor  at  or  before  the  time  within 
which  an  answer  may  be  filed.  If  such  application  is  not  filed  within 
such  time,  a  trial  by  jury  shall  be  deemed  to  have  been  waived. 

b  If  a  jury  is  not  in  attendance  upon  the  court,  one  may  be  specially 
summoned  for  the  trial,  or  the  case  may  be  postponed,  or,  if  the  case 
is  pending  in  one  of  the  district  courts  within  the  jurisdiction  of  a 
circuit  court  of  the  United  States,  it  may  be  certified  for  trial  to  the 
circuit  court  sitting  at  the  same  place,  or  by  consent  of  parties  when 
sitting  at  any  other  place  in  the  same  district,  if  such  circuit  court  has 
or  is  to  have  a  jury  first  in  attendance. 

c  The  right  to  submit  matters  in  controversy,  or  an  alleged  oft'ense 
under  this  Act,  to  a  jury  shall  be  determined  and  enjoyed,  except  as 
provided  by  this  Act.  according  to  the  United  States  laws  now  in  force 
or  such  as  may  be  hereafter  enacted  in  relation  to  trials  by  jury. 

Oaths,  Affirmations. 

Sec.  20.  a  Oaths  required  by  this  Act,  except  upon  hearings  in 
court,  may  be  administered  by  (1)  referees;  (2)  officers  authorized  to 
administer  oaths  in  proceedings  before  the  courts  of  the  United  States, 
or  under  the  laws  of   the  State  where  the  same  are  to  be  taken;  and 


Bankruptcy  671 

(3)   diplomatic  or  consular  officers  of  the  United  States  in  any  foreign 
country. 

b  Any  person  conscientiously  opposed  to  taking  an  oath  may,  in 
lieu  thereof,  affirm.  Any  person  who  shall  affirm  falsely  shall  be  pun- 
ished as  for  the  making  of  a  false  oath. 

Evidence. 

Sec.  21.  a  A  court  of  bankruptcy  may,  upon  application  of  any 
officer,  bankrupt,  or  creditor,  by  order  require  any  designated  person, 
including  the  bankrupt  and  his  wife,  to  appear  in  court  or  before  a 
referee  or  the  judge  of  any  State  court,  to  be  examined  concerning  the 
acts,  conduct,  or  property  of  a  bankrupt  whose  estate  is  in  process  of 
administration  under  this  Act :  Provided,  That  the  wife  may  be  exam- 
ined only  touching  business  transacted  by  her  or  to  wdiich  she  is  a 
party,  and  to  determine  the  fact  whether  she  has  transacted  or  been  a 
party   to   any  business  of   the  bankrupt. 

b  The  right  to  take  depositions  in  proceedings  under  this  Act 
shall  be  determined  and  enjoyed  according  to  the  United  States  laws 
now  in  force,  or  such  as  may  be  hereafter  enacted  relating  to  the 
taking  of  depositions,  except  as  herein  provided. 

c  Notice  of  the  taking  of  depositions  shall  be  filed  with  the  ref- 
eree in  every  case.  When  depositions  are  to  be  taken  in  opposition 
to  the  allowance  of  a  claim  notice  shall  also  be  served  upon  the  claim- 
ant, and  when  in  opposition  to  a  discharge  notice  shall  also  be  served 
upon  the  bankrupt. 

d  Certified  copies  of  proceedings  before  a  referee,  or  of  papers, 
when  issued  by  the  clerk  or  referee,  shall  be  admitted  as  evidence  with 
like  force  and  efifect  as  certified  copies  of  the  records  of  district  courts 
of  the  United  States  are  now  or  may  hereafter  be  admitted  as  evi- 
dence. 

e  A  certified  copy  of  the  order  approving  the  bond  of  a  trustee 
shall  constitute  conclusive  evidence  of  the  vesting  in  him  of  the  title 
to  the  property  of  the  bankrupt,  and  if  recorded  shall  impart  the  same 
notice  that  a  deed  from  the  bankrupt  to  the  trustee  if  recorded  would 
have   imparted   had   not  bankruptcy   proceedings   intervened. 

f  A  certified  copy  of  an  order  confirming  or  setting  aside  a  com- 
position, or  granting  or  setting  aside  a  discharge,  not  revoked,  shall 
be  evidence  of  the  jurisdiction  of  the  court,  the  regularity  of  the  pro- 
ceedings, and  of  the   fact  that  the  order  was  made. 

g  A  certified  copy  of  an  order  confirming  a  composition  shall  con- 
stitute   evidence   of   the    revesting   of   the   title   of    his    property    in    the 
bankrupt,  and  if  recorded  shall  impart  the  same  notice  that  a  deed  from 
the  trustee  to  the  bankrupt  if  recorded  would  impart. 
Reference  of  Cases  After  Adjudication, 

Sec.  22.  a  After  a  person  has  been  adjudged  a  bankrupt  the  judge 
may  cause  the  trustee  to  proceed  with  the  administration  of  the  estate, 
or  refer  it   (1)   generally  to  the  referee  or  specially  with  only  limited 


672  Important  Federal  Laws 

authority  to  act  in  the  premises  or  to  consider  and  report  upon  spec- 
ified issues;  or  (2)  to  any  referee  within  the  territorial  jurisdiction  of 
the  court,  if  the  convenience  of  parties  in  interest  will  be  served 
thereby,  or  for  cause,  or  if  the  bankrupt  does  not  do  business,  reside, 
or  have  his  domicile  in  the  district. 

b  The  judge  may,  at  any  time,  for  the  convenience  of  parties  or 
for  cause,  transfer  a  case  from  one  referee  to  another. 

Jurisdiction  of  United  States  and  State  Courts. 

Sec.  23.  a  The  United  States  circuit  courts  shall  have  jurisdic- 
tion of  all  controversies  at  law  and  in  equity,  as  distinguished  from 
proceedings  in  bankruptcy,  between  trustees  as  such  and  adverse  claim- 
ants concerning  the  property  acquired  or  claimed  by  the  trustees,  in 
the  same  manner  and  to  the  same  extent  only  as  though  bankruptcy 
proceedings  had  not  been  instituted  and  such  controversies  had  been 
between  the  bankrupts  and  such  adverse  claimants. 

b  Suits  by  the  trustee  shall  only  be  brought  or  prosecuted  in  the 
courts  where  the  bankrupt,  whose  estate  is  being  administered  by  such 
trustee,  might  have  brought  or  prosecuted  them  if  proceedings  in 
bankruptcy  had  not  been  instituted,  unless  by  consent  of  the  proposed 
defendant,  except  suits  for  the  recovery  of  property  under  section  sixty, 
subdivision  b ;  section  sixty-seven,  subdivision  e ;  and  section  seventy, 
subdivision  e. 

c  The  United  States  circuit  courts  shall  have  concurrent  jurisdic- 
tion with  the  courts  of  bankruptcy,  within  their  respective  territorial 
limits,  of  the  offenses  enumerated  in  this  Act. 

Jurisdiction  of  Appellate  Courts. 

Sec.  24.  a  The  Supreme  Court  of  the  United  States,  the  circuit 
courts  of  appeals  of  the  United  States,  and  the  supreme  courts  of  the 
Territories,  in  vacation  in  chambers  and  during  their  respective  terms, 
as  now  or  as  they  may  be  hereafter  held,  are  hereby  invested  with 
appellate  jurisdiction  of  controversies  arising  in  bankruptcy  proceed- 
ings from  the  courts  of  bankruptcy  from  which  they  have  appellate 
jurisdiction  in  other  cases.  The  Supreme  Court  of  the  United  States 
shall  exercise  a  like  jurisdiction  from  courts  of  bankruptcy  not  within 
any  organized  circuit  of  the  United  States  and  from  the  supreme  court 
of  the  District  of  Columbia. 

b  The  several  circuit  courts  of  appeal  shall  have  jvirisdiction  in 
equity,  either  interlocutory  or  final,  to  superintend  and  revise  in  mat- 
ter of  law  the  proceedings  of  the  several  inferior  courts  of  bankruptcy 
within  their  jurisdiction.  Such  power  shall  be  exercised  on  due  notice 
and  petition  by  any  party  aggrieved. 

Appeals  and  Writs  of  Error. 

Sec.  25.  a  That  appeals,  as  in  equity  cases,  may  be  taken  in  bank- 
ruptcy proceedings  from  the  courts  of  bankruptcy  to  the  circuit  court 
of   appeals   of   the   United    States,    and   to   the    supreme   court    of   the 


Bankruptcy  673 

Territories,  in  the  following  cases,  to  wit,  (1)  from  a  judgment  ad- 
judging or  refusing  to  adjudge  the  defendant  a  bankrupt;  (2)  from  a 
judgment  granting  or  denying  a  discharge;  and  (3)  from  a  judgment 
allowing  or  rejecting  a  debt  or  claim  of  five  hundred  dollars  or  over. 
Such  appeal  shall  be  taken  within  ten  days  after  the  judgment  appealed 
from  has  been  rendered,  and  may  be  heard  and  determined  by  the 
appellate  court  in  term  or  vacation,  as  the  case  may  be. 

b  From  any  final  decision  of  a  court  of  appeals,  allowing  or  re- 
jecting a  claim  under  this  Act,  an  appeal  may  be  had  under  such  rules 
and  within  such  time  as  may  be  prescribed  by  the  Supreme  Court  of 
the  United  States,  in  the  following  cases  and  no  other: 

1.  Where  the  amount  in  controversy  exceeds  the  sum  of  two  thou- 
sand dollars,  and  the"  question  involved  is  one  which  might  have  been 
taken  on  appeal  or  writ  of  error  from  the  highest  court  of  a  State  to 
the  Supreme  Court  of  the  United  States ;  or 

2.  Where  some  Justice  of  the  Supreme  Court  of  the  United  States 
shall  certify  that  in  his  opinion  the  determination  of  the  question  or 
questions  involved  in  the  allowance  or  rejection  of  such  claim  is  essen- 
tial to  a  uniform  construction  of  this  Act  throughout  the  United  States. 

c  Trustees  shall  not  be  required  to  give  bond  when  they  take 
appeals  or  sue  out  writs  of  error. 

d  Controversies  may  be  certified  to  the  Supreme  Court  of  the 
United  States  from  other  courts  of  the  United  States,  and  the  former 
court  may  exercise  jurisdiction  thereof  and  issue  writs  of  certiorari 
pursuant  to  the  provisions  of  the  United  States  laws  now  in  force  or 
such  as  may  be  hereafter  enacted. 

Arbitration  of  Controversies. 

Sec.  26.  a  The  trustee  may,  pursuant  to  the  direction  of  the  court, 
submit  to  arbitration  any  controversy  arising  in  the  settlement  of  the 
estate. 

b  Three  arbitrators  shall  be  chosen  by  mutual  consent,  or  one  by 
the  trustee,  one  by  the  other  party  to  the  controversy,  and  the  third 
by  the  two  so  chosen,  or  if  they  fail  to  agree  in  five  days  after  their 
appointment  the  court  shall  appoint  the  third  arbitrator. 

c  The  written  finding  of  the  arbitrators,  or  a  majority  of  them, 
as  to  the  issues  presented,  may  be  filed  in  court  and  shall  have  like 
force  and  effect  as  the  verdict  of  a  jury. 

Compromises. 

Sec.  27.  a  The  trustee  may,  with  the  approval  of  the  court,  com- 
promise any  controversy  arising  in  the  administration  of  the  estate 
upon  such  terms  as  he  ma}^  deem  for  the  best  interests  of  the  estate. 

Designation  of  Newspapers. 

Sec.  28.  a  Courts  of  bankruptcy  shall  by  order  designate  a  news- 
paper published  within  their  respective  territorial  districts,  and  in  the 
county  in  which  the  bankrupt  resides  or  the  major  part  of  his  property 

(43) 


674  Important  Federal  Laws 

is  situated,  in  which  notices  required  to  be  published  by  this  Act  and 
orders  which  the  court  may  direct  to  be  pubhshed  shall  be  inserted. 
Any  court  may  in  a  particular  case,  for  the  convenience  of  parties  in 
interest,  designate  some  additional  newspaper  in  which  notices  and 
orders  in  such  case  shall  be  published. 

Offenses. 

Sec.  29.  a  A  person  shall  be  punished,  by  imprisonment  for  a 
period  not  to  exceed  five  years,  upon  conviction  of  the  offense  of  having 
knowingly  and  fraudulently  appropriated  to  his  own  use,  embezzled, 
spent,  or  unlawfully  transferred  any  property  or  secreted  or  destroyed 
any  document  belonging  to  a  bankrupt  estate  which  came  into  his 
charge  as  trustee. 

b  A  person  shall  be  punished,  by  imprisonment  for  a  period  not  to 
exceed  two  years,  upon  conviction  of  the  offense  of  having  knowingly 
and  fraudulently  (1)  concealed  while  a  bankrupt,  or  after  his  discharge, 
from  his  trustee  any  of  the  property  belonging  to  his  estate  in  bank- 
ruptcy; or  (2)  made  a  false  oath  or  account  in,  or  in  relation  to,  any 
proceeding  in  bankruptcy;  (3)  presented  under  oath  any  false  claim 
for  proof  against  the  estate  of  a  bankrupt,  or  used  any  such  claim  in 
composition  personally  or  by  agent,  proxy,  or  attorney,  or  as  agent, 
proxy,  or  attorney ;  or  (4)  received  any  material  amount  of  property 
from  a  bankrupt  after  the  filing  of  the  petition,  with  intent  to  defeat 
this  Act;  or  (5)  extorted  or  attempted  to  extort  any  money  or  property 
from  any  person  as  a  consideration  for  acting  or  forbearing  to  act  in 
bankruptcy  proceedings. 

c  A  person  shall  be  punished  by  fine,  not  to  exceed  five  hundred 
dollars,  and  forfeit  his  office,  and  the  same  shall  thereupon  become 
vacant,  upon  conviction  of  the  offense  of  having  knowingly  (1)  acted 
as  a  referee  in  a  case  in  which  he  is  directly  or  indirectly  interested; 
or  (2)  purchased,  while  a  referee,  directly  or  indirectly,  any  property 
of  the  estate  in  bankruptcy  of  which  he  is  referee;  or  (3)  refused, 
while  a  referee  or  trustee,  to  permit  a  reasonable  opportunity  for  the 
inspection  of  the  accounts  relating  to  the  affairs  of,  and  the  papers 
and  records  of,  estates  in  his  charge  by  parties  in  interest  when  directed 
bv  the  court  so  to  do. 

d  A  person  shall  not  be  prosecuted  for  anv  offense  arising  under 
this  Act  unless  the  indictment  is  found  or  the  information  is  filed  in 
court  within  one  year  after  the  commission  of  the  offense. 

Rules,  Forms,  and  Orders. 

Sec.  30.  a  All  necessary  rules,  forms,  and  orders  as  to  procedure 
and  for  carrying  this  Act  into  force  and  effect  shall  be  prescribed,  and 
may  be  amended  from  time  to  time,  by  the  Supreme  Court  of  the 
United  States. 

Computation  of  Time. 

Sec.    31.     a  Whenever   time    is   enumerated   by    days    in    this    Act, 


Bankruptcy  675 

or  in  any  proceeding  in  bankruptcy,  the  number  of  days  shall  be  com- 
puted by  excluding'  the  first  and  including  the  last,  unless  the  last  fall 
on  a  Sunday  or  holiday,  in  which  event  the  day  last  included  shall  be 
the  next  day  thereafter  which  is  not  a  Sunday  or  a  legal  holiday. 

Transfer  of  Cases. 

Sec.  32.  a  In  the  event  petitions  are  filed  against  the  same  person, 
or  against  dififerent  members  of  a  partnership,  in  different  courts  of 
bankruptcy  each  of  which  has  jurisdiction,  the  cases  shall  be  trans- 
ferred, by  order  of  the  courts  relinquishing  jurisdiction,  to  and  be  con- 
solidated by  the  one  of  such  courts  which  can  proceed  with  the  same 
for  the  greatest  convenience  of  parties  in  interest. 

CHAPTER  V. 
Officers,  Their  Duties  and  Compensation. 

Creation  of  Tv^^o  Oflfices. 

Sec.  33.     a  The  offices  of  referee  and  trustee  are  hereby  created. 

Appointment,  Removal,  and  Districts  of  Referees. 

Sec.  34.  a  Courts  of  bankruptcy  shall,  within  the  territorial 
limits  of  which  they  respectively  have  jurisdiction,  (1)  appoint  referees, 
each  for  a  term  of  two  years,  and  may,  in  their  discretion,  remove  them 
because  their  services  are  not  needed  or  for  other  cause;  and  (2)  desig- 
nate, and  from  time  to  time  change,  the  limits  of  the  districts  of  ref- 
erees, so  that  each  county,  where  the  services  of  a  referee  are  needed, 
may  constitute  at  least  one  district. 

Qualifications  of  Referees. 

Sec.  35.  a  Individuals  shall  not  be  eligible  to  appointment  as  ref- 
erees unless  they  are  respectively  (1)  competent  to  perform  the  duties 
of  that  office;  (2)  not  holding  any  office  of  profit  or  emolument  under 
the  laws  of  the  United  States  or  of  any  State  other  than  commissioners 
of  deeds,  justices  of  the  peace,  masters  in  chancery,  or  notaries  public; 
(3)  not  related  by  consanguinity  or  affinity,  within  the  third  degree  as 
determined  by  the  common  law,  to  any  of  the  judges  of  the  courts  of 
bankruptcy  or  circuit  courts  of  the  United  States,  or  of  the  justices 
or  judges  of  the  appellate  courts  of  the  districts  wherein  thev  may  be 
appointed ;  and  (4)  residents  of,  or  have  their  offices  in,  the  territorial 
districts  for  which  they  are  to  be  appointed. 

Oaths  of  Office  of  Referees. 

Sec.  36.  a  Referees  shall  take  the  same  oath  of  office  as  that 
prescribed  for  judges  of  United  States  courts. 

Number  of  Referees. 

Sec.  37.  a  Such  number  of  referees  shall  be  appointed  as  may 
be  necessary  to  assist  in  expeditiously  transacting  the  bankruptcy  busi- 
ness pending  in  the  various  courts  of  bankruptcy. 


676  Important  Federal  Laws 

Jurisdiction  of  Referees. 

Sec.  38.  a  Referees  respectively  are  hereby  invested,  subject  al- 
ways to  a  review  by  the  judge,  within  the  limits  of  their  districts  as 
estabhshed  from  time  to  time,  with  jurisdiction  to  (1)  consider  all 
petitions  referred  to  them  by  the  clerks  and  make  the  adjudications  or 
dismiss  the  petitions;  (2)  exercise  the  powers  vested  in  courts  of  bank- 
ruptcy for  the  administering  of  oaths  to  and  the  examination  of  per- 
sons as  witnesses  and  for  requiring  the  production  of  documents  in 
proceedings  before  them,  except  the  power  of  commitment;  (3)  exer- 
cise the  powers  of  the  judge  for  the  taking  possession  and  releasing 
of  the  property  of  the  bankrupt  in  the  event  of  the  issuance  by  the 
clerk  of  a  certificate  showing  the  absence  of  a  judge  from  the  judicial 
district,  or  the  division  of  the  district,  or  his  sickness,  or  inability  to 
act ;  (4)  perform  such  part  of  the  duties,  except  as  to  questions  arising 
out  of  the  applications  of  bankrupts  for  compositions  or  discharges,  as 
are  by  this  x^ct  conferred  on  courts  of  bankruptcy  and  as  shall  be  pre- 
scribed by  rules  or  orders  of  the  courts  of  bankruptcy  of  their  respective 
districts,  except  as  herein  otherwise  provided;  and  (5)  upon  the  appH- 
cation  of  the  trustee  during  the  examination  of  the  bankrupts,  or  other 
proceedings,  authorize  the  employment  of  stenographers  at  the  expense 
of  the  estates  at  a  compensation  not  to  exceed  ten  cents  per  folio  for 
reporting  and  transcribing  the  proceedings. 

Duties  of  Referees. 

Sec.  39.  a  Referees  shall  (1)  declare  dividends  and  prepare  and 
deliver  to  trustees  dividend  sheets  showing  the  dividends  declared  and 
to  whom  payable:  (2)  examine  all  schedules  of  property  and  lists  of 
creditors  filed  by  bankrupts  and  cause  such  as  are  incomplete  or  de- 
fective to  be  amended;  (3)  furnish  such  information  concerning  the 
estates  in  process  of  administration  before  them  as  may  be  requested 
by  the  parties  in  interest;  (4)  give  notices  to  creditors  as  herein  pro- 
vided; (5)  make  up  records  embodying  the  evidence,  or  the  substance 
thereof,  as  agreed  upon  by  the  parties  in  all  contested  matters  arising 
before  them,  whenever  requested  to  do  so  by  either  of  the  parties 
thereto,  together  with  their  findings  therein,  and  transmit  them  to  the 
judges;  (6)  prepare  and  file  the  schedules  of  property  and  lists  of  cred- 
itors required  to  be  filed  by  the  bankrupts,  or  cause  the  same  to  be  done, 
when  the  bankrupts  fail,  refuse,  or  neglect  to  do  so ;  (7)  safely  keep, 
perfect,  and  transmit  to  the  clerks  the  records,  herein  required  to  be 
kept  by  them,  when  the  cases  are  concluded;  (8)  transmit  to  the  clerks 
such  papers  as  may  be  on  file  before  them  whenever  the  same  are 
needed  in  any  proceedings  in  courts,  and  in  like  manner  secure  the 
return  of  such  papers  after  they  have  been  used,  or,  if  it  be  imprac- 
ticable to  transmit  the  original  papers,  transmit  certified  copies  thereof 
by  mail ;  (9)  upon  application  of  any  party  in  interest,  reserve  the  evi- 
dence taken  or  the  substance  thereof  as  agreed  upon  by  the  parties 
before  them  when  a  stenographer  is  not  in  attendance;  and  (10)  when- 


Bankruptcy  677 

ever  their  respective  offices  are  in  the  same  cities  or  towns  where  the 
courts  of  bankruptcy  convene,  call  upon  and  receive  from  the  clerks  all 
papers  filed  in  courts  of  bankruptcy  which  have  been  referred  to  them, 
b  Referees  shall  not  (1)  act  in  cases  in  which  they  are  directly 
or  indirectly  interested;  (2)  practice  as  attorneys  and  counselors  at 
law  in  any  bankruptcy  proceedings;  or  (3)  purchase,  directly  or  indi- 
rectly, any  property  of  an  estate  in  bankruptcy. 

Compensation  of  Referees, 

Sec.  40.  a  Referees  shall  receive  as  full  compensation  for  their 
services,  payable  after  they  are  rendered,  a  fee  of  fifteen  dollars  de- 
posited with  the  clerk  at  the  time  the  petition  is  filed  in  each  case,  except 
w4ien  a  fee  is  not  required  from  a  voluntary  bankrupt,  and  twenty-five 
cents  for  every  proof  of  claim  filed  for  allowance,  to  be  paid  from  the 
estate,  if  any,  as  a  part  of  the  cost  of  administration,  and  from  estates 
which  have  been  administered  before  them  one  per  centum  commis- 
sions on  all  moneys  disbursed  to  creditors  by  the  trustee,  or  one-half 
of  one  per  centum  on  the  amount  to  be  paid  to  creditors  upon  the  con- 
firmation of  a  composition. 

b  Whenever  a  case  is  transferred  from  one  referee  to  another  the 
judge  shall  determine  the  proportion  in  which  the  fee  and  commissions 
therefor  shall  be  divided  between  the  referees. 

c  In  the  event  of  the  reference  of  a  case  being  revoked  before  it 
is  concluded,  and  when  the  case  is  especially  referred,  the  judge  shall 
determine  what  part  of  the  fee  and  commissions  shall  be  paid  to  the 
referee. 

Contempts  Before  Referees. 

Sec.  41.  a  A  person  shall  not,  in  proceedings  before  a  referee, 
(1)  disobey  or  resist  any  lawful  order,  process,  or  writ;  (2)  misbehave 
during  a  hearing  or  so  near  the  place  thereof  as  to  obstruct  the  same ; 
(3)  neglect  to  produce,  after  having  been  ordered  to  do  so,  any  perti- 
nent document;  or  (4)  refuse  to  appear  after  having  been  subpoenaed, 
or,  upon  appearing,  refuse  to  take  the  oath  as  a  witness,  or,  after  hav- 
ing taken  the  oath,  refuse  to  be  examined  according  to  law :  Provided, 
That  no  person  shall  be  required  to  attend  as  a  witness  before  a  referee 
at  a  place  outside  of  the  State  of  his  residence,  and  more  than  one 
hundred  miles  from  such  place  of  residence,  and  only  in  case  his  lawful 
mileage  and  fee  for  one  day's  attendance  shall  be  first  paid  or  ten- 
dered to  him. 

b  The  referee  shall  certify  the  facts  to  the  judge,  if  any  person 
shall  do  any  of  the  things  forbidden  in  this  section.  The  judge  shall 
thereupon,  in  a  summary  manner,  hear  the  evidence  as  to  the  acts 
complained  of,  and,  if  it  is  such  as  to  warrant  him  in  so  doing,  punish 
such  person  in  the  same  manner  and  to  the  same  extent  as  for  a  con- 
tempt committed  before  the  court  of  bankruptcy,  or  commit  such  per- 
son upon  the  same  conditions  as  if  the  doing  of  the  forbidden  act  had 


678  Important  Federal  Laws 

occurred  with   reference  to  the  process  of,   or  in  the  presence  of,  the 
court. 

Records  of  Referees. 

Sec.  42.  a  The  records  of  all  proceedings  in  each  case  before  a 
referee  shall  be  kept  as  nearly  as  may  be  in  the  same  manner  as 
records  are  now  kept  in  equity  cases  in  circuit  courts  of  the  United 
States. 

b  A  record  of  the  proceedings  in  each  case  shall  be  kept  in  a  sepa- 
rate book  or  books,  and  shall,  together  with  the  papers  on  file,  consti- 
tute the  records  of  the  case. 

c  The  book  or  books  containing  a  record  of  the  proceedings  shall, 
when  the  case  is  concluded  before  the  referee,  be  certified  to  by  him, 
and,  together  with  such  papers  as  are  on  file  before  him,  be  transmitted 
to  the  court  of  bankruptcy  and  shall  there  remain  as  a  part  of  the 
records  of  the  court. 

Referee's  Absence  or  Disability. 

Sec.  43.  a  Whenever  the  office  of  a  referee  is  vacant,  or  its  occu- 
pant is  absent  or  disqualified  to  act.  the  judge  may  act,  or  may  appoint 
another  referee,  or  another  referee  holding  an  appointment  under  the 
same  court  may,  by  order  of  the  judge,  temporarily  fill  the  vacancy. 

Appointment  of  Trustees. 

Sec.  44.  a  The  creditors  of  a  bankrupt  estate  shall,  at  their  first 
meeting  after  the  adjudication  or  after  a  vacancy  has  occurred  in  the 
office  of  trustee,  or  after  an  estate  has  been  reopened,  or  after  a  com- 
position has  been  set  aside  or  a  discharge  revoked,  or  if  there  is  a 
vacancy  in  the  office  of  trustee,  appoint  one  trustee  or  three  trustees  of 
such  estate.  If  the  creditors  do  not  appoint  a  trustee  or  trustees  as 
herein  provided,  the  court  shall  do  so. 

Qualifications  of  Trustees. 

Sec.  45.  a  Trustees  may  be  (1)  individuals  who  are  respectively 
competent  to  perform  the  duties  of  that  office,  and  reside  or  have  an 
office  in  the  judicial  district  within  which  they  are  appointed,  or  (2) 
corporations  authorized  by  their  charters  or  by  law  to  act  in  such  capac- 
ity and  having  an  office  in  the  judicial  district  within  which  they  are 
appointed. 

Death  or  Removal  of  Trustees. 

Sec.  46.  a  The  death  or  removal  of  a  trustee  shall  not  abate  any 
suit  or  proceeding  which  he  is  prosecuting  or  defending  at  the  time 
of  his  death  or  removal,  but  the  same  may  be  proceeded  with  or  de- 
fended by  his  joint  trustee  or  successor  in  the  same  manner  as  though 
the  same  had  been  commenced  or  was  being  defended  by  such  joint 
trustee  alone  or  by  such  successor. 

Duties  of  Trustees, 

Sec.  47.     a  Trustees   shall   respectively    (1)    account   for  and  pay 


Bankruptcy  679 

over  to  the  estates  under  their  control  all  interest  received  by  them 
upon  property  of  such  estates ;  (2)  collect  and  reduce  to  money  the 
property  of  the  estates  for  which  they  are  trustees,  under  the  direction 
of  the  court,  and  close  up  the  estate  as  expeditiously  as  is  compatible 
with  the  best  interests  of  the  parties  in  interest ;  and  such  trustees,  as 
to  all  property  in  the  custody  or  coming  into  the  custody  of  the  bank- 
ruptcy court,  shall  be  deemed  vested  with  all  the  rights,  remedies,  and 
powers  of  a  creditor  holding  a  lien  by  legal  or  equitable  proceedings 
thereon  ;  and  also,  as  to  all  property  not  in  the  custody  of  the  bank- 
ruptcy court,  shall  be  deemed  vested  with  all  the  rights,  remedies,  and 
powers  of  a  judgment  creditor  holding  an  execution  duly  returned 
unsatisfied;  (3)  deposit  all  money  received  by  them  in  one  of  the  desig- 
nated depositories;  (4)  disburse  money  only  by  check  or  draft  on  the 
depositories  in  which  it  has  been  deposited;  (5)  furnish  such  inforrna- 
tion  concerning  the  estates  of  which  they  are  trustees  and  their  admin- 
istration as  may  be  requested  by  parties  in  interest;  (6)  keep  regular 
accounts  showing  all  amounts  received  and  from  what  sources  and  all 
amounts  expended  and  on  what  accounts;  (7)  lay  before  the  final  meet- 
ing of  the  creditors  detailed  statements  of  the  administration  of  the 
estates;  (8)  make  final  reports  and  file  final  accounts  with  the  courts 
fifteen  days  before  the  days  fixed  for  the  final  meetings  of  the  creditors; 
(9)  pay  dividends  within  ten  days  after  they  are  declared  by  the  ref- 
erees; (10)  report  to  the  courts,  in  writing,  the  condition  of  the  estates 
and  the  amounts  of  money  on  hand,  and  such  other  details  as  may  be 
required  by  the  courts,  within  the  first  month  after  their  appointment 
and  every  two  months  thereafter,  unless  otherwise  ordered  by  the 
courts;  and  (11)  set  apart  the  bankrupt's  exemptions  and  report  the 
items  and  estimated  value  thereof  to  the  court  as  soon  as  practicable 
after  their  appointment. 

b  Whenever  three  trustees  have  been  appointed  for  an  estate,  the 
concurrence  of  at  least  two  of  them  shall  be  necessary  to  the  validity 
of  their  every  act  concerning  the  administration  of  the  estate. 

c  The  trustee  shall,  within  thirty  days  after  the  adjudication,  file 
a  certified  copy  of  the  decree  of  adjudication  in  the  office  where  con- 
veyances of  real  estate  are  recorded  in  every  county  where  the  bank- 
rupt owns  real  estate  not  exempt  from  execution,  and  pay  the  fee  for 
such  filing,  and  he  shall  receive  a  compensation  of  fifty  cents  for  each 
copy  so  filed,  which,  together  with  the  filing  fee,  shall  be  paid  out  of 
the  estate  of  the  bankrupt  as  a  part  of  the  costs  and  disbursements  of 
the  proceedings.     (As  amended  June  25,  1910.) 

Compensation  of  Trustees,   Receivers  and  Marshals. 

Sec.  48.  a  Trustees  shall  receive  for  their  services,  payable  after 
thev  are  rendered,  a  fee  of  five  dollars  deposited  with  the  clerk  at  the 
time  the  petition  is  filed  in  each  case,  except  when  a  fee  is  not  required 
from  a  voluntary  bankrupt,  and  such  commissions  on  all  moneys  dis- 
bursed or  turned  over  to  any  person,  including  lien  holders,  by  them. 


680  Important  Federal  Laws 

as  may  be  allowed  them  by  the  courts,  not  to  exceed  six  per  centum 
on  the  first  five  hundred  dollars  or  less,  four  per  centum  on  moneys 
in  excess  of  five  hundred  dollars  and  less  than  fifteen  hundred  dollars, 
two  per  centum  on  moneys  in  excess  of  fifteen  hundred  dollars  and 
less  than  ten  thousand  dollars,  and  one  per  centum  on  moneys  in  excess 
of  ten  thousand  dollars.  And  in  case  of  the  confirmation  of  a  compo- 
sition after  the  trustee  has  qualified  the  court  may  allow  him,  as  com- 
pensation, not  to  exceed  one-half  of  one  per  centum  of  the  amount  to 
be  paid  the  creditor  on  such  compensation. 

b  In  the  event  of  an  estate  being  administered  by  three  trustees 
instead  of  one  trustee  or  by  successive  trustees,  the  court  shall  appor- 
tion the  fees  and  commissions  between  them  according  to  the  services 
actually  rendered,  so  that  there  shall  not  be  paid  to  trustees  for  the 
administering  of  any  estate  a  greater  amount  than  one  trustee  would 
be  entitled  to. 

c  The  court  may,  in  its  discretion,  withhold  all  compensation  from 
any  trustee  who  has  been  removed  for  cause. 

d  Receivers  or  marshals  appointed  pursuant  to  section  two,  sub- 
division three,  of  this  Act  shall  receive  for  their  services,  payable  after 
they  are  rendered,  compensation  by  way  of  commissions  upon  the 
moneys  disbursed  or  turned  over  to  any  person,  including  lien  holders, 
by  them,  and  also  upon  the  moneys  turned  over  by  them  or  afterwards 
realized  by  the  trustees  from  property  turned  over  in  kind  by  them  to 
the  trustees,  as  the  court  may  allow,  not  to  exceed  six  per  centum  on 
the  first  five  hundred  dollars  or  less,  four  per  centum  on  moneys  in 
excess  of  five  hundred  dollars  and  less  than  one  thousand  five  hundred 
dollars,  two  per  centum  on  moneys  in  excess  of  one  thousand  five  hun- 
dred dollars  and  less  than  ten  thousand  dollars,  and  one  per  centum 
on  moneys  in  excess  of  ten  thousand  dollars :  Provided,  That  in  case 
of  the  confirmation  of  a  composition  such  commissions  shall  not  exceed 
one-half  of  one  per  centum  of  the  amount  to  be  paid  creditors  on  such 
compositions :  Provided  further.  That  when  the  receiver  or  marshal 
acts  as  a  mere  custodian  and  does  not  carry  on  the  business  of  the  bank- 
rupt as  provided  in  clause  five  of  section  two  of  this  Act,  he  shall  not 
receive  nor  be  allowed  in  any  form  or  guise  more  than  two  per  centum 
on  the  first  thousand  dollars  or  less,  and  one-half  of  one  per  centum 
on  all  above  one  thousand  dollars  on  moneys  disbursed  by  him  or  turned 
over  by  him  to  the  trustee  and  on  moneys  subseciuently  realized  from 
property  turned  over  by  him  in  kind  to  the  trustee :  Provided  further. 
That  before  the  allowance  of  compensation  notice  of  application  there- 
for, specifying  the  amount  asked,  shall  be  given  to  creditors  in  the 
manner  indicated  in  section  fifty-eight  of  this  Act. 

e  Where  the  business  is  conducted  by  trustees,  marshals,  or  re- 
ceivers, as  provided  in  clause  five  of  section  two  of  this  Act,  the  court 
may  allow  such  officers  additional  compensation  for  such  services  by 
way  of  commissions  upon  the  moneys  disbursed  or  turned  over  to  any 


Bankruptcy  681 

person,  including  lien  holders,  by  them,  and,  in  cases  of  receivers  or 
marshals,  also  upon  the  moneys  turned  over  by  them  or  afterwards 
realized  by  the  trustees  from  property  turned  over  in  kind  by  them  to 
the  trustees ;  such  commissions  not  to  exceed  six  per  centum  on  the 
first  five  hundred  dollars  or  less,  four  per  centum  on  moneys  in  excess 
of  five  hundred  dollars  and  less  than  one  thousand  five  hundred  dollars, 
two  per  centum  on  moneys  in  excess  of  one  thousand  five  hundred  dol- 
lars and  less  than  ten  thousand  dollars,  and  one  per  centum  on  moneys 
in  excess  of  ten  thousand  dollars:  Provided,  That  in  case  of  the  con- 
firmation of  a  composition  such  commissions  shall  not  exceed  one-half 
of  one  per  centum  of  the  amount  to  be  paid  creditors  on  such  composi- 
tion: Provided  further.  That  before  the  allowance  of  compensation 
notice  of  application  therefor,  specifying  the  amount  asked,  shall  be 
given  to  creditors  in  the  manner  indicated  in  section  fifty-eight  of  this 
Act.     (As  amended  June  25,  1910.) 

Accounts  and  Papers  of  Trustees. 

Sec.  49.  a  The  accounts  and  papers  of  trustees  shall  be  open  to 
the  inspection  of  officers  and  all  parties  in  interest. 

Bonds  of  Referees  and  Trustees. 

Sec.  50.  a  Referees,  before  assuming  the  duties  of  their  offices, 
and  within  such  time  as  the  district  courts  of  the  United  States  having 
jurisdiction  shall  prescribe,  shall  respectively  qualify  by  entering  into 
bond  to  the  United  States  in  such  sum  as  shall  be  fixed  by  such  courts, 
not  to  exceed  five  thousand  dollars,  with  such  sureties  as  shall  be  ap- 
proved by  such  courts,  conditioned  for  the  faithful  performance  of 
their  official  duties. 

b  Trustees,  before  entering  upon  the  performance  of  their  official 
duties,  and  within  ten  days  after  their  appointment,  or  within  such  fur- 
ther time,  not  to  exceed  five  days,  as  the  court  may  permit,  shall  re- 
spectively qualify  by  entering  into  bond  to  the  United  States,  with  such 
sureties  as  shall  be  approved  by  the  courts,  conditioned  for  the  faithful 
performance  of  their  official  duties. 

c  The  creditors  of  a  bankrupt  estate,  at  their  first  meeting  after 
the  adjudication,  or  after  a  vacancy  has  occurred  in  the  office  of  trus- 
tee, or  after  an  estate  has  been  reopened,  or  after  a  composition  has 
been  set  aside  or  a  discharge  revoked,  if  there  is  a  vacancy  in  the  office 
of  trustee,  shall  fix  the  amount  of  the  bond  of  the  trustee ;  they  may  at 
any  time  increase  the  amount  of  the  bond.  If  the  creditors  do  not  fix 
the  amount  of  the  bond  of  the  trustee  as  herein  provided  the  court 
shall  do  so. 

d  The  court  shall  require  evidence  as  to  the  actual  value  of  the 
property  of  sureties. 

e  There  shall  be  at  least  two  sureties  upon  each  bond. 

f  The  actual  value  of  the  property  of  the  sureties,  over  and  above 


682  Important  Federal  Laws 

their  liabilities  and  exemptions,  on  each  bond  shall  equal  at  least  the 
amount  of  such  bond. 

g  Corporations  organized  for  the  purpose  of  becoming  sureties  upon 
bonds,  or  authorized  by  law  to  do  so.  may  be  accepted  as  sureties  upon 
the  bonds  of  referees  and  trustees  whenever  the  courts  are  satisfied 
that  the  rights  of  all  parties  in  interest  will  be  thereby  amply  protected. 

h  Bonds  of  referees,  trustees,  and  designated  depositories  shall  be 
filed  of  record  in  the  of^ce  of  the  clerk  of  the  court  and  may  be  sued 
upon  in  the  name  of  the  United  States  for  the  use  of  any  person  in- 
jured by  a  breach  of  their  conditions. 

i  Trustees  shall  not  be  liable,  personally  or  on  their  bonds,  to  the 
United  States,  for  any  penalties  or  forfeitures  incurred  by  the  bank- 
rupts under  this  Act,  of  whose  estates  they  are  respectively  trustees. 

j     Joint  trustees  may  give  joint  or  several  bonds. 

k  if  any  referee  or  trustee  shall  fail  to  give  bond,  as  herein  pro- 
vided and  within  the  time  limited,  he  shall  be  deemed  to  have  declined 
his  appointment,  and  such  failure  shall  create  a  vacancy  in  his  office. 

1  Suits  upon  referees'  bonds  shall  not  be  brought  subsequent  to 
two  years  after  the  alleged  breach  of  the  bond. 

m  Suits  upon  trustees'  bonds  shall  not  be  brought  subsequent  to 
two  years  after  the  estate  has  been  closed. 

Duties  of  Clerks. 

Sec.  51.  a  Clerks  shall  respectively  (1)  account  for,  as  for  other 
fees  received  by  them,  the  clerk's  fee  paid  in  each  case  and  such  other 
fees  as  may  be  received  for  certified  copies  of  records  which  may  be 
prepared  for  persons  other  than  officers;  (2)  collect  the  fees  oi 
the  clerk,  referee,  and  trustee  in  each  case  instituted  before  filing 
the  petition,  except  the  petition  of  a  proposed  voluntary  bankrupt 
which  is  accompanied  by  an  affidavit  stating  that  the  petitioner  is  with- 
out, and  can  not  obtain,  the  money  with  which  to  pay  such  fees;  (3) 
deliver  to  the  referees  upon  application  all  papers  which  may  be  re- 
ferred to  them,  or,  if  the  offices  of  such  referees  are  not  in  the  same 
cities  or  towns  as  the  offices  of  such  clerks,  transmit  such  papers  by 
mail,  and  in  like  manner  return  papers  which  were  received  from  such 
referees  after  they  have  been  used ;  (4)  and  within  ten  days  after  each 
case  has  been  closed  pay  to  the  referee,  if  the  case  was  referred,  the 
fee  collected  for  him,  and  to  the  trustee  the  fee  collected  for  him  at 
the  time  of  filing  the  petition. 

Compensation  of  Clerks  and  Marshals. 

Sec.  52.  a  Clerks  shall  respectively  receive  as  full  compensation 
for  their  service  to  each  estate,  a  filing  fee  of  ten  dollars,  except  when 
a  fee  is  not  required  from  a  voluntary  bankrupt. 

b  Alarshals  shall  respectively  receive  from  the  estate  where  an 
adjudication  in  bankruptcy  is  made,  except  as  herein  otherwise  pro- 
vided,  for  the   performance   of   their   services   in   proceedings   in  bank- 


Bankruptcy  683 

ruptcy,  the  same  fees,  and  account  for  them  in  the  same  way,  as  they 
are  entitled  to  receive  for  the  performance  of  the  same  or  similar  ser- 
vices in  other  cases  in  accordance  with  laws  now  in  force,  or  such  as 
may  be  hereafter  enacted,  fixing  the  compensation  of  marshals. 

Duties  of  Attorney-General. 

Sec.  53.  a  The  Attorney-General  shall  annually  lay  before  Con- 
gress statistical  tables  showing  for  the  whole  country,  and  by  States, 
the  number  of  cases  during  the  year  of  voluntary  and  involuntary  bank- 
ruptcy;  the  amount  of  the  property  of  the  estates;  the  dividends  paid 
and  the  expenses  of  administering  such  estates ;  and  such  other  like 
information  as  he  may  deem  important. 

Statistics  of  Bankruptcy  Proceedings. 

Sec.  54.  a  Officers  shall  furnish  in  writing  and  transmit  by  mail 
such  information  as  is  within  their  knowledge,  and  as  may  be  shown 
by  the  records  and  papers  in  their  possession,  to  the  Attorney-General, 
for  statistical  purposes,  within  ten  days  after  being  requested  by  him 
to  do  so. 

CHAPTER  VT 

Creditors. 
Meetings  of  Creditors. 

Sec.  55.  a  The  court  shall  cause  the  first  meeting  of  the  cred- 
itors of  a  bankrupt  to  be  held  not  less  than  ten  nor  more  than  thirty 
days  after  the  adjudication,  at  the  county  seat  of  the  county  in  which 
the  bankrupt  has  had  his  principal  place  of  business,  resided,  or  had 
his  domicile ;  or  if  that  place  would  be  manifestly  inconvenient  as  a 
place  of  meeting  for  the  parties  in  interest,  or  if  the  bankrupt  is  one 
who  does  not  do  business,  reside,  or  have  his  domicile  within  the  United 
States,  the  court  shall  fix  a  place  for  the  meeting  which  is  the  most  con- 
venient for  parties  in  interest.  If  such  meeting  should  by  any  mis- 
chance not  be  held  within  such  time,  the  court  shall  fix  the  date,  as  soon 
as  may  be  thereafter,  when  it  shall  be  held. 

b  At  the  first  meeting  of  creditors  the  judge  or  referee  shall  pre- 
side, and,  before  proceeding  with  the  other  business,  may  allow  or  dis- 
allow the  claims  of  creditors  there  presented,  and  may  publicly  examine 
the  bankrupt  or  cause  him  to  be  examined  at  the  instance  of  any  cred- 
itor. 

c  The  creditors  shall  at  each  meeting  take  such  steps  as  may  be 
pertinent  and  necessary  for  the  promotion  of  the  best  interests  of  the 
estate  and  the  enforcement  of  this  Act. 

d  A  meeting  of  creditors,  subsequent  to  the  first  one,  may  be  held 
at  any  time  and  place  when  all  of  the  creditors  who  have  secured  the 
allowance  of  their  claims  sign  a  written  consent  to  hold  a  meeting  at 
such  time  and  place. 

e  The  court  shall  call  a  meeting  of  creditors  whenever  one-fourth 
or  more  in  number  of  those  who  have  proven  their  claims  shall  file  a 


684  Important  Federal  Laws 

written  request  to  that  effect ;  if  such  request  is  signed  by  a  majority 
of  such  creditors,  which  number  represents  a  majority  in  amount  of 
such  claims,  and  contains  a  request  for  such  meeting  to  be  held  at  a 
designated  place,  the  court  shall  call  such  meeting  at  such  place  within 
thirty  days  after  the  date  of  the  filing  of  the  request. 

f  Whenever  the  affairs  of  the  estate  are  ready  to  be  closed  a  final 
meeting  of  creditors  shall  be  ordered. 

Voters  at  Meetings  of  Creditors. 

Sec.  56.  a  Creditors  shall  pass  upon  matters  submitted  to  them 
at  their  meetings  by  a  majority  vote  in  number  and  amount  of  claims 
of  all  creditors  whose  claims  have  been  allowed  and  are  present,  except 
as  herein  otherwise  provided. 

b  Creditors  holding  claims  which  are  secured  or  have  priority  shall 
not,  in  respect  to  such  claims,  be  entitled  to  vote  at  creditors'  meetings, 
nor  shall  such  claims  be  counted  in  computing  either  the  number  of 
creditors  or  the  amount  of  their  claims,  unless  the  amounts  of  such 
claims  exceed  the  values  of  such  securities  or  priorities,  and  then  only 
for  such  excess. 

Proof  and  Allowance  of  Claims. 

Sec.  57.  a  Proof  of  claims  shall  consist  of  a  statement  under  oath, 
in  Avriting.  signed  by  a  creditor  setting  forth  the  claim,  the  considera- 
tion therefor,  and  whether  any,  and,  if  so,  what,  securities  are  held 
therefor,  and  whether  any,  and,  if  so,  what,  payments  have  been  made 
thereon,  and  that  the  sum  claimed  is  justly  owing  from  the  bankrupt 
to  the  creditor. 

b  Whenever  a  claim  is  founded  upon  an  instrument  of  writing, 
such  instrument,  unless  lost  or  destroyed,  shall  be  filed  with  the  proof 
of  claim.  If  such  instrument  is  lost  or  destroyed,  a  statement  of  such 
fact  and  of  the  circumstances  of  such  loss  or  destruction  shall  be  filed 
under  oath  with  the  claim.  After  the  claim  is  allowed  or  disallowed, 
such  instrument  may  be  withdrawn  by  permission  of  the  court,  upon 
leaving  a  copy  thereof  on  file  with  the  claim. 

c  Claims  after  being  proved  may,  for  the  purpose  of  allowance,  be 
filed  by  the  claimants  in  the  court  where  the  proceedings  are  pending 
or  before  the  referee  if  the  case  has  been  referred. 

d  Claims  which  have  been  duly  proved  shall  be  allowed,  upon  re- 
ceipt by  or  upon  presentation  to  the  court,  unless  objection  to  their 
allowance  shall  be  made  by  parties  in  interest,  or  their  consideration 
be  continued  for  cause  by  the  court  upon  its  own  motion. 

e  Claims  of  secured  creditors  and  those  who  have  priority  may  be 
allowed  to  enable  such  creditors  to  participate  in  the  proceedings  at 
creditors'  meetings  held  prior  to  the  determination  of  the  value  of  their 
securities  or  priorities,  but  shall  be  allowed  for  such  sums  only  as  to 
the  courts  seem  to  be  owing  over  and  above  the  value  of  their  securities 
or  priorities. 


Bankruptcy  685 

f  Objections  to  claims  shall  be  heard  and  determined  as  soon  as 
the  convenience  of  the  court  and  the  best  interests  of  the  estates  and 
the  claimants  will  permit. 

g  The  claims  of  creditors  who  have  received  preferences,  void- 
able under  section  sixty,  subdivision  b,  or  to  whom  conveyances,  trans- 
fers, assignments,  or  incumbrances,  void  or  voidable  under  section  sixty- 
seven,  subdivision  e,  have  been  made  or  given,  shall  not  be  allowed 
unless  such  creditors  shall  surrender  such  preferences,  conveyances, 
transfers,  assignments,  or  incumbrances. 

h  The  value  of  securities  held  by  secured  creditors  shall  be  deter- 
mined by  converting  the  same  into  money  according  to  the  terms  of  the 
agreement  pursuant  to  which  such  securities  were  delivered  to  such 
creditors  or  by  such  creditors  and  the  trustee,  by  agreement,  arbitra- 
tion, compromise,  or  litigation,  as  the  court  may  direct,  and  the  amount 
of  such  value  shall  be  credited  upon  such  claims,  and  a  dividend  shall 
be  paid  only  on  the  unpaid  balance. 

i  Whenever  a  creditor,  whose  claim  against  a  bankrupt  estate  is 
secured  by  the  individual  undertaking  of  any  person,  fails  to  prove 
such  claim,  such  person  may  do  so  in  the  creditor's  name,  and  if  he 
discharge  such  undertaking  in  whole  or  in  part  he  shall  be  subrogated 
to  that  extent  to  the  rights  of  the  creditor. 

j  Debts  owing  to  the  United  States,  a  State,  a  county,  a  district, 
or  a  municipality  as  a  penalty  or  forfeiture  shall  not  be  allowed,  except 
for  the  amount  of  the  pecuniary  loss  sustained  by  the  act,  transaction, 
or  proceeding  out  of  which  the  penalty  or  forfeiture  arose,  with  reason- 
able and  actual  costs  occasioned  thereby  and  such  interest  as  may  have 
accrued  thereon  according  to  law. 

k  Claims  which  have  been  allowed  may  be  reconsidered  for  cause 
and  reallowed  or  rejected  in  whole  or  in  part,  according  to  the  equities 
of  the  case,  before  but  not  after  the  estate  has  been  closed. 

1  Whenever  a  claim  shall  have  been  reconsidered  and  rejected,  in 
whole  or  in  part,  upon  which  a  dividend  has  been  paid,  the  trustee  may 
recover  from  the  creditor  the  amount  of  the  dividend  received  upon 
the  claim  if  rejected  in  whole,  or  the  proportional  part  thereof  if  re- 
jected only  in  part. 

m  The  claim  of  any  estate  which  is  being  administered  in  bank- 
ruptcy against  any  like  estate  may  be  proved  by  the  trustee  and  allowed 
by  the  court  in  the  same  manner  and  upon  like  terms  as  the  claims  of 
other  creditors. 

n  Claims  shall  not  be  proved  against  a  bankrupt  estate  subsequent 
to  one  year  after  the  adjudication ;  or  if  they  are  liquidated  by  litigation 
and  the  final  judgment  therein  is  rendered  within  thirtv  days  before 
or  after  the  expiration  of  such  time,  then  within  sixty  days  after  the 
rendition  of  such  judgment :  Provided.  That  the  right  of  infants  and 
insane  persons  without  guardians,  without  notice  of  the  proceedings, 
may  continue  six  months  longer. 


686  Important  Federal  Laws 

Notices  to  Creditors. 

Sec.  58.  a  Creditors  shall  have  at  least  ten  days'  notice  by  mail, 
to  their  respective  addresses  as  they  appear  in  the  list  of  creditors  of 
the  bankrupt,  or  as  afterwards  filed  with  the  papers  in  the  case  by  the 
creditors,  unless  they  waive  notice  in  writing,  of  (1)  all  examinations 
of  the  bankrupt;  (2)  all  hearings  upon  applications  for  the  confirma- 
tion of  compositions;  (3)  all  meetings  of  creditors;  (4)  all  proposed 
sales  of  property;  (5)  the  declaration  and  time  of  payment  of  divi- 
dends; (6)  the  filing  of  the  final  accounts  of  the  trustee,  and  the  time 
when  and  the  place  where  they  will  be  examined  and  passed  upon;  (7) 
the  proposed  compromise  of  any  controversy;  (8)  the  proposed  dis- 
missal of  the  proceedings,  and  (9)  there  shall  be  thirty  days'  notice 
of  all  applications  for  the  discharge  of  bankrupts. 

b  Notice  to  creditors  of  the  first  meeting  shall  be  published  at 
least  once  and  may  be  published  such  number  of  additional  times  as 
the  court  may  direct :  the  last  publication  shall  be  at  least  one  week 
prior  to  the  date  fixed  for  the  meeting.  Other  notices  may  be  published 
as  the  court  shall  direct. 

c  All  notices  shall  be  given  by  the  referee,  unless  otherwise  ordered 
by  the  judge.     (As  amended  June  25,  1910.) 

Who  May  File  and  Dismiss  Petitions. 

Sec.  59.  a  Any  qualified  person  may  file  a  petition  to  be  adjudged 
a  voluntary  bankrupt. 

b  Three  or  more  creditors  who  have  provable  claims  against  any 
person  which  amount  in  the  aggregate,  in  excess  of  the  value  of  secur- 
ities held  by  them,  if  any,  to  five  hundred  dollars  or  over;  or  if  all  of 
the  creditors  of  such  person  are  less  than  twelve  in  number,  then  one 
of  such  creditors  whose  claim  equals  such  amount  may  file  a  petition 
to  have  him  adjudged  a  bankrupt. 

c  Petitions  shall  be  filed  in  duplicate,  one  copy  for  the  clerk  and 
one  for  service  on  the  bankrupt. 

d  If  it  be  averred  in  the  petition  that  the  creditors  of  the  bank- 
rupt are  less  than  twelve  in  number,  and  less  than  three  creditors  have 
joined  as  petitioners  therein,  and  the  answer  avers  the  existence  of  a 
large  number  of  creditors,  there  shall  be  filed  with  the  answer  a  list 
under  oath  of  all  the  creditors,  with  their  addresses,  and  thereupon  the 
court  shall  cause  all  such  creditors  to  be  notified  of  the  pendency  of 
such  petition  and  shall  delay  the  hearing  upon  such  petition  for  a  rea- 
sonable time,  to  the  end  that  parties  in  interest  shall  have  an  opportu- 
nity to  be  heard ;  if  upon  such  hearing  it  shall  appear  that  a  sufficient 
number  have  joined  in  such  petition,  or  if  prior  to  or  during  such  hear- 
ing a  sufficient  number  shall  join  therein,  the  case  may  be  proceeded 
with,  but  otherwise  it  shall  be  dismissed. 

e  In  computing  the  number  of  creditors  of  a  bankrupt  for  the  pur- 
pose of  determining  how  many  creditors  must  join  in  the  petition,  such 
creditors  as  were  employed  by  him  at  the  time  of  the  filing  of  the  peti- 


Bankruptcy  687 

tion  or  are  related  to  him  by  consanguinity  or  affinity  within  the  third 
degree,  as  determined  by  the  common  law,  and  have  not  joined  in  the 
petition,  shall  not  be  counted. 

f  Creditors  other  than  original  petitioners  may  at  any  time  enter 
their  appearance  and  join  in  the  petition,  or  file  an  answer  and  be 
heard  in  opposition  to  the  prayer  of  the  petition. 

g  A  voluntary  or  involuntary  petition  shall  not  be  dismissed  by 
the  petitioner  or  petitioners  or  for  want  of  prosecution  or  by  consent 
of  parties  until  after  notice  to  the  creditors,  and  to  that  end  the  court 
shall,  before  entertaining  an  application  for  dismissal,  require  the  bank- 
rupt to  file  a  list,  under  oath,  of  all  his  creditors,  with  their  addresses, 
and  shall  cause  notice  to  be  sent  to  all  such  creditors  of  the  pendency 
of  such  application,  and  shall  delay  the  hearing  thereon  for  a  reason- 
able time  to  allow  all  creditors  and  parties  in  interest  opportunity  to  be 
heard.     (As  amended  June  25,  1910.) 

Preferred  Creditors. 

Sec.  60.  a  A  person  shall  be  deemed  to  have  given  a  preference 
if,  being  insolvent,  he  has,  within  four  months  before  the  filing  of  the 
petition,  or  after  the  filing  of  the  petition  and  before  the  adjudication, 
procured  or  suffered  a  judgment  to  be  entered  against  himself  in  favor 
of  any  person,  or  made  a  transfer  of  any  of  his  property,  and  the  eft'ect 
of  the  enforcement  of  such  judgment  or  transfer  will  be  to  enable  any 
one  of  his  creditors  to  obtain  a  greater  percentage  of  his  debt  than  any 
other  of  such  creditors  of  the  same  class.  Where  the  preference  con- 
sists in  a  transfer,  such  period  of  four  months  shall  not  expire  until 
four  months  after  the  date  of  the  recording  or  registering  of  the  trans- 
fer, if  by  law  such  recording  or  registering  is  required. 

b  If  a  bankrupt  shall  have  procured  or  suffered  a  judgment  to  be 
entered  against  him  in  favor  of  any  person  or  have  made  a  transfer 
of  any  of  his  property,  and  if,  at  the  time  of  the  transfer,  or  of  the 
entry  of  the  judgment,  or  of  the  recording  or  registering  of  the  transfer 
if  by  law  recording  or  registering  thereof  is  required,  and  being  within 
four  months  before  the  filing  of  the  petition  in  bankruptcy  or  after 
the  filing  thereof  and  before  the  adjudication,  the  bankrupt  be  insolvent 
and  the  judgment  or  transfer  then  operate  as  a  preference,  and  the 
person  receiving  it  or  to  be  benefited  thereby,  or  his  agent  acting  therein, 
shall  then  have  reasonable  cause  to  believe  that  the  enforcement  of 
such  judgment  or  transfer  would  efi^ect  a  preference,  it  shall  be  void- 
able by  the  trustee  and  he  may  recover  the  property  or  its  value  from 
such  person.  And  for  the  purpose  of  such  recovery  any  court  of  bank- 
ruptcy, as  hereinbefore  defined,  and  any  state  court  which  would  have 
had  jurisdiction  if  bankruptcy  had  not  intervened,  shall  have  concurrent 
jurisdiction. 

c  If  a  creditor  has  been  preferred,  and  afterwards  in  good  faith 
gives  the  debtor  further  credit  without  security  of  any  kind  for  prop- 
erty which  becomes  a  part  of  the  debtor's  estates,  the  amount  of  such 


688  Important  Federal  Laws 

new  credit  remaining  unpaid  at  the  time  of  the  adjudication  in  bank- 
ruptcy may  be  set  off  against  the  amount  which  would  otherwise  be 
recoverable  from  him. 

d  If  a  debtor  shall,  directly  or  indirectly,  in  contemplation  of  the 
filing  of  a  petition  by  or  against  him,  pay  money  or  transfer  property 
to  an  attorney  and  counselor  at  law,  solicitor  in  equity,  or  proctor  in 
admiralty  for  services  to  be  rendered,  the  transaction  shall  be  re-exam- 
ined by  the  court  on  petition  of  the  trustee  or  any  creditor  and  shall 
only  be  held  valid  to  the  extent  of  a  reasonable  amount  to  be  deter- 
mined by  the  court,  and  the  excess  may  be  recovered  by  the  trustee 
for  the  benefit  of  the  estate.  (As  amended  June  25,  1910.) 

CHAPTER  VII. 
Estates. 
Depositories  for  Money. 

Sec.  61.  a  Courts  of  bankruptcy  shall  designate,  by  order,  bank- 
ing institutions  as  depositories  for  the  money  of  bankrupt  estates,  as 
convenient  as  may  be  to  the  residences  of  trustees,  and  shall  require 
bonds  to  the  United  States,  subject  to  their  approval,  to  be  given  by 
such  banking  institutions,  and  may  from  time  to  time  as  occasion  may 
require,  by  like  order  increase  the  number  of  depositories  or  the  amount 
of  any  bond  or  change  such  depositories. 

Expenses  of  Administering  Estates. 

Sec.  62.  a  The  actual  and  necessary  expenses  incurred  by  officers 
in  the  administration  of  estates  shall,  except  where  other  provisions  are 
made  for  their  payment,  be  reported  in  detail,  under  oath,  and  examined 
and  approved  or  disapproved  by  the  court.  If  approved,  they  shall  be 
paid  or  allowed  out  of  the  estates  in  which  they  were  incurred. 

Debts  Which  May  be  Proved. 

Sec.  63.  a  Debts  of  the  bankrupt  which  may  be  proved  and  al- 
lowed against  his  estate  which  are  (1)  a  fixed  liability,  as  evidenced 
by  a  judgment  or  an  instrument  in  writing,  absolutely  owing  at  the 
time  of  the  filing  of  the  petition  against  him,  whether  then  payable  or 
not,  with  any  interest  thereon  which  would  have  been  recoverable  at 
that  date  or  with  a  rebate  of  interest  upon  such  as  were  not  then  pay- 
able and  did  not  bear  interest;  (2)  due  as  costs  taxable  against  an  in- 
voluntary bankrupt  who  was  at  the  time  of  the  filing  of  the  petition 
against  him  plaintiff  in  a  cause  of  action  which  would  pass  to  the  trustee 
and  which  the  trustee  declines  to  prosecute  after  notice;  (3)  founded 
upon  a  claim  for  taxable  costs  incurred  in  good  faith  by  a  creditor 
before  the  filing  of  the  petition  in  an  action  to  recover  a  provable  debt; 
(4)  founded  upon  an  open  account,  or  upon  a  contract  express  or  im- 
plied; and  (5)  founded  upon  provable  debts  reduced  to  judgments  after 
the  filing  of  the  petition  and  before  the  consideration  of  the  bankrupt's 
application   for   a  discharge,   less   costs   incurred   and   interests   accrued 


Bankruptcy  689 

after  the  filing  of  the  petition  and  up  to  the  time  of  the  entry  of  such 
judgments. 

b  UnHquidated  claims  against  the  bankrupt  may,  pursuant  to  ap- 
plication to  the  court,  be  liquidated  in  such  manner  as  it  shall  direct, 
and  may  thereafter  be  proved  and  allowed  against  his  estate. 

Debts  Which  Have  Priority. 

Sec.  64.  a  The  court  shall  order  the  trustee  to  pay  all  taxes 
legally  due  and  owing  by  the  bankrupt  to  the  United  States,  State, 
county,  district,  or  municipality  in  advance  of  the  payment  of  dividends 
to  creditors,  and  upon  filing  the  receipts  of  the  proper  public  officers 
for  such  payment  he  shall  be  credited  with  the  amount  thereof,  and  in 
case  any  question  arises  as  to  the  amount  or  legality  of  any  such  tax 
the  same  shall  be  heard  and  determined  by  the  court. 

b  The  debts  to  have  priority,  except  as  herein  provided,  and  to 
be  paid  in  full  out  of  bankrupt  estates,  and  the  order  of  payment  shall 
be  (1)  the  actual  and  necessary  cost  of  preserving  the  estate  subsequent 
to  filing  the  petition;  (2)  the  filing  fees  paid  by  creditors  in  involuntary 
cases,  and,  where  property  of  the  bankrupt,  transferred  or  concealed 
by  him  either  before  or  after  the  filing  of  the  petition,  shall  have  been 
recovered  for  the  benefit  of  the  estate  of  the  bankrupt  by  the  efforts 
and  at  the  expense  of  one  or  more  creditors,  the  reasonable  expenses  of 
such  recovery;  (3)  the  cost  of  administration,  including  the  fees  and 
mileage  payable  to  witnesses  as  now  or  hereafter  provided  by  the  laws 
of  the  United  States,  and  one  reasonable  attorney's  fee,  for  the  profes- 
sional services  actually  rendered,  irrespective  of  the  number  of  attor- 
neys employed,  to  the  petitioning  creditors  in  involuntary  cases,  to  the 
bankrupt  in  involuntary  cases  while  performing  the  duties  herein  pre- 
scribed, and  to  the  bankrupt  in  voluntary  cases,  as  the  court  may  allow; 
(4)  wages  due  to  workmen,  clerks,  traveling  or  city  salesmen,  or  ser- 
vants which  have  been  earned  within  three  months  before  the  date  of 
commencement  of  proceedings,  not  to  exceed  three  hundred  dollars  to 
each  claimant;  and  (5)  debts  owing  to  any  person  who  by  the  laws  of 
the  States  or  the  United  States  is  entitled  to  priority. 

c  In  the  event  of  the  confirmation  of  a  composition  being  set  aside, 
or  a  discharge  revoked,  the  property  acquired  by  the  bankrupt  in  addi- 
tion to  his  estate  at  the  time  the  composition  was  confirmed  or  the  adju- 
dication was  made  shall  be  applied  to  the  payment  in  full  of  the  claims 
of  creditors  for  property  sold  to  him  on  credit,  in  good  faith,  while  such 
composition  or  discharge  was  in  force,  and  the  residue,  if  any,  shall  be 
applied  to  the  payment  of  the  debts  which  were  owing  at  the  time  of 
the  adjudication.    (As  amended  June  15,  1906.) 

Declaration  and  Payment  of  Dividends, 

Sec.  65.  a  Dividends  of  an  equal  per  centum  shall  be  declared 
and  paid  on  all  allowed  claims,  except  such  as  have  priority  or  are 
secured. 

(44) 


690  Important  Federal  Laws 

•  b  The  first  dividend  shall  be  declared  within  thirty  days  after  the 
adjudication,  if  the  money  of  the  estate  in  excess  of  the  amount  neces- 
sary to  pay  the  debts  which  have  priority  and  such  claims  as  have  not 
been,  but  probably  will  be,  allowed  equals  five  per  centum  or  more  of 
such  allowed  claims.  Dividends  subsequent  to  the  first  shall  be  declared 
upon  like  terms  as  the  first  and  as  often  as  the  amount  shall  equal  ten 
per  centum  or  more  and  upon  closing  the  estate.  Dividends  may  be 
declared  oftener  and  in  smaller  proportions  if  the  judge  shall  so  order : 
Provided.  That  the  first  dividend  shall  not  include  more  than  fifty  per 
centum  of  the  money  of  the  estate  in  excess  of  the  amount  necessary 
to  pay  the  debts  which  have  priority  and  such  claims  as  probably  will 
be  allowed:  And  provided  further,  that  the  final  dividend  shall  not  be 
declared  within  three  months  after  the  first  dividend  shall  be  declared. 

c  The  rights  of  creditors  who  have  received  dividends,  or  in  whose 
favor  final  dividends  have  been  declared,  shall  not  be  afifected  by  the 
proof  and  allowance  of  claims  subsequent  to  the  date  of  such  payment 
or  declarations  of  dividends  ;  but  the  creditors  proving  and  securing  the 
allowance  of  such  claims  shall  be  paid  dividends  equal  in  amount  to 
those  alreadv  received  by  the  other  creditors  if  the  estate  equals  so 
much  before  such  other  creditors  are  paid  any   further  dividends. 

d  Whenever  a  person  shall  have  been  adjudged  a  bankrupt  by  a 
court  without  the  United  States  and  also  by  a  court  of  bankruptcy, 
creditors  residing  within  the  United  States  shall  first  be  paid  a  dividend 
equal  to  that  received  in  the  court  without  the  United  States  by  other 
creditors  before  creditors  who  have  received  a  dividend  in  such  courts 
shall  be  paid  any  amounts. 

e  A  claimant  shall  not  be  entitled  to  collect  from  a  bankrupt  estate 
any  greater  amount  than  shall  accrue  pursuant  to  the  provisions  of  this 
Act. 

Unclaimed  Dividends. 

Sec.  66.  a  Dividends  which  remain  unclaimed  for  six  months 
after  the  final  dividend  has  been  declared  shall  be  paid  by  the  trustee 

into  court. 

b  Dividends  remaining  unclaimed  for  one  year  shall,  under  the 
direction  of  the  court,  be  distributed  to  the  creditors  whose  claims  have 
been  allowed  but  not  paid  in  full,  and  after  such  claims  have  been  paid 
in  full  the  balance  shall  be  paid  to  the  bankrupt:  Provided.  That  in 
case  unclaimed  dividends  belong  to  minors  such  minors  may  have  one 
year  after  arriving  at  majority  to  claim  such  dividends. 

Liens. 

Sec.  67.  a  Claims  which  for  want  of  record  or  for  other  reasons 
would  not  have  been  valid  liens  as  against  the  claims  of  the  creditors 
of  the  bankrupt  shall  not  be  liens  against  his  estate. 

b  Whenever  a  creditor  is  prevented  from  enforcing  his  rights  as 
against  a  lien  created,  or  attempted  to  be  created,  by  his  debtor,  who 


Bankruptcy  691 

afterwards  becomes  a  bankrupt,  the  trustee  of  the  estate  of  such  bank- 
rupt shall  be  subrogated  to  and  may  enforce  such  rights  of  such  creditor 
for  the  benefit  of  the  estate. 

c  A  lien  created  by  or  obtained  in  or  pursuant  to  any  suit  or  pro- 
ceeding at  law  or  in  equity,  including  an  attachment  upon  mesne  process 
or  a  judgment  bv  confession,  which  was  begun  against  a  person  within 
four  months  before  the  filing  of  a  petition  in  bankruptcy  by  or  against 
such  person  shall  be  dissolved  by  the  adjudication  of  such  person  to 
be  a  bankrupt  if  (1)  it  appears  that  said  lien  was  obtained  and  per- 
mitted while  the  defendant  was  insolvent  and  that  its  existence  and 
enforcement  will  work  a  preference,  or  (2)  the  party  or  parties  to  be 
benefited  thereby  had  reasonable  cause  to  believe  the  defendant  was 
insolvent  and  in  contemplation  of  bankruptcy,  or  (3)  that  such  Hen  was 
sought  and  permitted  in  fraud  of  the  provisions  of  this  Act ;  or  if  the 
dissolution  of  such  lien  would  militate  against  the  best  interests  of  the 
estate  of  such  person  the  same  shall  not  be  dissolved,  but  the  trustee 
of  the  estate  of  such  person,  for  the  benefit  of  the  estate,  shall  be  sub- 
rogated to  the  rights  of  the  holder  of  such  lien  and  empowered  to  per- 
fect and  enforce  the  same  in  his  name  as  trustee  with  like  force  and 
effect  as  such  holder  might  have  done  had  not  bankruptcy  proceedings 
intervened. 

d  Liens  given  or  accepted  in  good  faith  and  not  in  contemplation 
of  or  in  fraud  upon  this  Act,  and  for  a  present  consideration,  which 
have  been  recorded  according  to  law,  if  record  thereof  was  necessary  in 
order  to  impart  notice,  shall,  to  the  extent  of  such  present  consideration 
only,  not  be  affected  by  this  Act. 

e  That  all  conveyances,  transfers,  assignments,  or  incumbrances  of 
his  property,  or  any  part  thereof,  made  or  given  by  a  person  adjudged 
a  bankrupt  under  the  provisions  of  this  Act  subsequent  to  the  passage 
of  this  Act  and  within  four  months  prior  to  the  filing  of  the  petition 
with  the  intent  and  purpose  on  his  part  to  hinder,  delay,  or  defraud  his 
creditors,  or  any  of  them,  shall  be  null  and  void  as  against  the  creditors 
of  such  debtor,  except  as  to  purchasers  in  good  faith  and  for  a  present 
fair  consideration ;  and  all  property  of  the  debtor  conveyed,  transferred, 
assigned,  or  encumbered  as  aforesaid  shall,  if  he  be  adjudged  a  bank- 
rupt, and  the  same  is  not  exempt  from  execution  and  liability  for  debts 
by  the  law  of  his  domicile,  be  and  remain  a  part  of  the  assets  and 
estate  of  the  bankrupt  and  shall  pass  to  his  said  trustee,  whose  duty  it 
shall  be  to  recover  and  reclaim  the  same  by  legal  proceedings  or  other- 
wise for  the  benefit  of  the  creditors.  And  all  conveyances,  transfers, 
or  incumbrances  of  his  property  made  by  a  debtor  at  any  time  within 
four  months  prior  to  the  filing  of  the  petition  against  him,  and  while 
insolvent,  which  are  held  null  and  void  as  against  the  creditors  of  such 
debtor  by  the  laws  of  the  State,  Territory,  or  District  in  which  such 
property  is  situate,  shall  be  deemed  null  and  void  under  this  Act  against 
the  creditors  of  such   debtor  if  he  be  adjudged  a  bankrupt,   and   such 


692  Important  Federal  Laws 

property  shall  pass  to  the  assignee  and  be  by  him  reclaimed  and  recov- 
ered for  the  benefit  of  the  creditors  of  the  bankrupt.  For  the  purpose 
of  such  recovery  any  court  of  bankruptcy  as  hereinbefore  defined,  and 
any  State  court  which  would  have  had  jurisdiction  if  bankruptcy  had 
not   intervened,   shall  have  concurrent   jurisdiction. 

f  That  all  levies,  judgments,  attachments,  or  other  liens,  obtained 
through  legal  proceedings  against  a  person  who  is  insolvent,  at  any 
time  within  four  months  prior  to  the  filing  of  a  petition  in  bankruptcy 
against  him,  shall  be  deemed  null  and  void  in  case  he  is  adjudged  a 
bankrupt,  and  the  property  affected  by  the  levy,  judgment,  attachment, 
or  other  lien  shall  be  deemed  wholly  discharged  and  released  from  the 
same,  and  shall  pass  to  the  trustee  as  a  part  of  the  estate  of  the  bank- 
rupt, unless  the  court  shall,  on  due  notice,  order  that  the  right  under 
such  levy,  judgment,  attachment,  or  other  lien  shall  be  preserved  for 
the  benefit  of  the  estate ;  and  thereupon  the  same  may  pass  to  and  shall 
be  preserved  by  the  trustee  for  the  benefit  of  the  estate  as  aforesaid. 
And  the  court  may  order  such  conveyance  as  shall  be  necessary  to  carry 
the  purposes  of  this  section  into  effect :  Provided,  That  nothing  herein 
contained  shall  have  the  effect  to  destroy  or  impair  the  title  obtained 
by  such  levy,  judgment,  attachment,  or  other  lien,  of  a  bona  fide  pur- 
chaser for  value  who  shall  have  acquired  the  same  without  notice  or 
reasonable  cause  for  inquiry.     (As  amended  June  25,  1910.) 

Set-Offs  and  Counterclaims. 

Sec.  68.  a  In  all  cases  of  mutual  debts  or  mutual  credits  between 
the  estate  of  a  bankrupt  and  a  creditor  the  account  shall  be  stated  and 
one  debt  shall  be  set  off  against  the  other,  and  the  balance  only  shall 
be  allowed  or  paid. 

b  x\  set-oft'  or  counterclaim  shall  not  be  allowed  in  favor  of  any 
debtor  of  the  bankrupt  which  (1)  is  not  provable  against  the  estate; 
or  (2)  was  purchased  by  or  transferred  to  him  after  the  filing  of  the 
petition,  or  within  four  months  before  such  filing,  with  a  view  to  such 
use  and  with  knowledge  or  notice  that  such  bankrupt  was  insolvent, 
or  had  committed  an  act  of  bankruptcy. 

Possession  of  Property. 

Sec.  69.  a  A  judge  may,  upon  satisfactory  proof,  by  affidavit, 
that  a  bankrupt  against  whom  an  involuntary  petition  has  been  filed 
and  is  pending  has  committed  an  act  of  bankruptcy,  or  has  neglected 
or  is  neglecting,  or  is  about  to  so  neglect  his  property  that  it  has  thereby 
deteriorated  or  is  thereby  deteriorating  or  is  about  thereby  to  deter- 
iorate in  value,  issue  a  warrant  to  the  marshal  to  seize  and  hold  it 
subject  to  further  orders.  Before  such  warrant  is  issued  the  petitioners 
applying  therefor  shall  enter  into  a  bond  in  such  an  amount  as  the 
judge  shall  fix,  with  such  sureties  as  he  shall  approve,  conditioned  to 
indemnify  such  bankrupt  for  such  damages  as  he  shall  sustain  in  the 
event  such  seizure  shall  prove  to  have  been  wrongfully  obtained.    Such 


Bankruptcy  693 

property  shall  be  released,  if  such  bankrupt  shall  give  bond  in  a  sum 
which  shall  be  fixed  by  the  judge,  with  such  sureties  as  he  shall  ap- 
prove, conditioned,  to  turn  over  such  property,  or  pay  the  value  thereof 
in  money  to  the  trustee,  in  the  event  he  is  adjudged  a  bankrupt  pur- 
suant to  such  petition. 

Title  to  Property. 

Sec.  70.  a  The  trustee  of  the  estate  of  a  bankrupt,  upon  his  ap- 
pointment and  qualification,  and  his  successor  or  successors,  if  he  shall 
have  one  or  more,  upon  his  or  their  appointment  and  qualification,  shall 
in  turn  be  vested  by  operation  of  law  with  the  title  of  the  bankrupt,  as 
of  the  date  he  was  adjudged  a  bankrupt,  except  in  so  far  as  it  is  to 
property  which  is  exempt,  to  all  (1)  documents  relating  to  his  prop- 
erty; (2)  interests  in  patents,  patent  rights,  copyrights,  and  trade- 
marks; (3)  powers  which  he  might  have  exercised  for  his  own  benefit, 
but  not  those  which  he  might  have  exercised  for  some  other  person; 
(4)  property  transferred  by  him  in  fraud  of  his  creditors;  (5)  property 
which  prior  to  the  filing  of  the  petition  he  could  by  any  means  have 
transferred  or  which  might  have  been  levied  upon  and  sold  under  judi- 
cial process  against  him :  Provided,  That  when  any  bankrupt  shall  have 
any  insurance  policy  which  has  a  cash  surrender  value  payable  to  him- 
self, his  estate,  or  personal  representatives,  he  may  within  thirty  days 
after  the  cash  surrender  value  has  been  ascertained  and  stated  to  the 
trustee  by  the  company  issuing  the  same,  pay  or  secure  to  the  trustee 
the  sum  so  ascertained  and  stated,  and  continue  to  hold,  own,  and  carry 
such  policy  free  from  the  claims  of  the  creditors  participating  in  the 
distribution  of  his  estate  under  the  bankruptcy  proceedings,  otherwise 
the  policy  shall  pass  to  the  trustee  as  assets ;  and  (6)  rights  of  action 
arising  upon  contracts  or  from  the  unlawful  taking  or  detention  of,  or 
injury  to,  his  property. 

b  All  real  and  personal  property  belonging  to  bankrupt  estates 
shall  be  appraised  by  three  disinterested  appraisers ;  they  shall  be  ap- 
pointed by,  and  report  to,  the  court.  Real  and  personal  propertv  shall, 
when  practicable,  be  sold  subject  to  the  approval  of  the  court;  it  shall 
not  be  sold  otherwise  than  subject  to  the  approval  of  the  court  for  less 
than  seventy-five  per  centum  of  its  appraised  value. 

c  The  title  to  property  of  a  bankrupt  estate  which  has  been  sold, 
as  herein  provided,  shall  be  conveyed  to  the  purchaser  by  the  trustee. 

d  Whenever  a  composition  shall  be  set  aside,  or  discharge  revoked, 
the  trustee  shall,  upon  his  appointment  and  qualification,  be  vested  as 
herein  provided  with  the  title  to  all  of  the  property  of  the  bankrupt  as 
of  the  date  of  the  final  decree  setting  aside  the  composition  or  revokino- 
the  discharge. 

e  The  trustee  may  avoid  any  transfer  by  the  bankrupt  of  his  prop- 
erty which  any  creditor  of  such  bankrupt  might  have  avoided,  and  may 
recover  the  property  so  transferred,  or  its  value,  from  the  person  to 
whom  it  was  transferred,  unless  he  was  a  bona  fide  holder  for  value 


694  Important  Federal  Laws 

prior  to  the  date  of  the  adjudication.  Such  property  may  be  recovered 
or  its  value  collected  from  whoever  may  have  received  it,  except  a  bona 
fide  holder  for  value.  For  the  purpose  of  such  recovery  any  court  of 
bankruptcy  as  hereinbefore  defined,  and  any  State  court  which  would 
have  had  jurisdiction  if  bankruptcy  had  not  intervened,  shall  have  con- 
current jurisdiction. 

f  Upon  the  confirmation  of  a  composition  offered  by  a  bankrupt, 
the  title  to  his  property  shall  thereupon  revest  in  him. 

The  Time  When  This  Act  Shall  Go  Into  Effect. 

a  This  Act  shall  go  into  full  force  and  efifect  upon  its  passage: 
Provided,  however,  That  no  petition  for  vountary  bankruptcy  shall  be 
filed  within  one  month  of  the  passage  thereof,  and  no  petition  for  invol- 
untary bankruptcy  shall  be  filed  within  four  months  of  the  passage 
thereof. 

b  Proceedings  commenced  under  State  insolvency  laws  before  the 
passage  of  this  Act  shall  not  be  afifected  by  it. 

Sec.  71.  That  the  clerks  of  the  several  district  courts  of  the 
United  States  shall  prepare  and  keep  in  their  respective  offices  com- 
plete and  convenient  indexes  of  all  petitions  and  discharges  in  bank- 
ruptcy heretofore  or  hereafter  filed  in  the  said  courts,  and  shall,  when 
requested  so  to  do,  issue  certificates  of  search  certifying  as  to  whether 
or  not  any  such  petitions  or  discharges  have  been  filed;  and  said  clerks 
shall  be  entitled  to  receive  for  such  certificates  the  same  fees  as  now 
allowed  by  law  for  certificates  as  to  judginents  in  said  courts:  Pro- 
vided. That  said  bankruptcy  indexes  and  dockets  shall  at  all_  times^  be 
open  to  inspection  and  examination  by  all  persons  or  corporations  with- 
out any  fee  or  charge  therefor. 

Sec.  72.  That  neither  the  referee,  receiver,  marshal,  nor  trustee 
shall  in  any  form  or  guise  receive,  nor  shall  the  court  allow  him,  any 
other  or  further  compensation  for  his  services  than  that  expressly  au- 
thorized and  prescribed  in  this  Act.     (As  amended  June  25,  1910.) 

Note. — General  orders  and  forms  in  bankruptcy  are  prepared  by 
the  United  States  Supreme  Court  and  are  published  by  the  United 
States  Printing  Office,  and  are  for  sale  by  the  Superintendent  of  Docu- 
ments, Washington,  D.  C.  .  ■  _  . 


THE  CRIMINAL  CODE. 

Act  of  March  4,  1909. 
An  Act  to  codify,  revise,  and  amend  the  penal  laws  of  the  United  States: 

That  the  penal  laws  of  the  United  States  be,  and  they  hereby  are, 
codified,  revised,  and  amended,  with  title,  chapters,  headnotes,  and 
sections,  entitled,  numbered,  and  to  read  as  follows : 

CHAPTER  ONE. 
Offenses  Against  the  Existence  of  the  Government. 

Treason. 

Sec.  1.  Whoever,  owing  allegiance  to  the  United  States,  levies 
war  against  them  or  adheres  to  their  enemies,  giving  them  aid  and  com- 
fort within  the  United  States  or  elsewhere,  is  guilty  of  treason. 

Punishment. 

Sec.  2.  Whoever  is  convicted  of  treason  shall  sufifer  death ;  or,  at 
the  discretion  of  the  court,  shall  be  imprisoned  not  less  than  five  years 
and  fined  not  less  than  ten  thousand  dollars,  to  be  levied  on  and  col- 
lected out  of  any  or  all  of  his  property,  real  and  personal,  of  which 
he  was  the  owner  at  the  time  of  committing  such  treason,  any  sale 
or  conveyance  to  the  contrary  notwithstanding ;  and  every  person  so 
convicted  of  treason  shall,  moreover,  be  incapable  of  holding  any  office 
vmder  the  United  States. 

Misprision  of  Treason. 

Sec.  3.  Whoever,  owing  allegiance  to  the  United  States  and  hav- 
ing knowledge  of  the  commission  of  any  treason  against  them,  con- 
ceals, and  does  not,  as  soon  as  may  be,  disclose  and  make  known  the 
same  to  the  President  or  to  some  judge  of  the  United  States,  or  to 
the  governor  or  to  some  judge  or  justice  of  a  particular  State,  is  guilty 
of  misprision  of  treason  and  shall  be  imprisoned  not  more  than  seven 
years  and  fined  not  more  than  one  thousand  dollars. 

Inciting  Rebellion. 

Sec.  4.  Whoever  incites,  sets  on  foot,  assists,  or  engages  in  any 
rebellion  or  insurrection  against  the  authority  of  the  United  States 
or  the  laws  thereof,  or  gives  aid  or  comfort  thereto,  shall  be  imprisoned 
not  more  than  ten  years,  or  fined  not  more  than  ten  thousand  dollars, 
or  both ;  and  shall,  moreover,  be  incapable  of  holding  any  office  under 
the  United  States. 


696  Important  Federal  Laws 

Criminal  Correspondence  With  Foreign  Governments. 

Sec.  5.  Every  citizen  of  the  United  States,  whether  actually  resi- 
dent or  abiding  within  the  same,  or  in  any  place  subject  to  the  juris- 
diction thereof,  or  in  any  foreign  country,  without  the  permission  or 
authority  of  the  government,  directly  or  indirectly,  commences  or  car- 
ries on  any  verbal  or  written  correspondence  or  intercourse  with  any 
foreign  government  or  any  officer  or  agent  thereof,  with  an  intent  to 
influence  the  measures  or  conduct  of  any  foreign  government  or  of 
any  officer  or  agent  thereof,  in  relation  to  any  disputes  or  controver- 
sies with  the  United  States,  or  to  defeat  the  measures  of  the  govern- 
ment of  the  United  States ;  and  every  person,  being  a  citizen  of  or 
resident  within  the  United  States  or  in  any  place  subject  to  the  juris- 
diction thereof,  and  not  duly  authorized,  counsels,  advises,  or  assists 
in  any  such  correspondence  with  such  intent,  shall  be  fined  not  more 
than  five  thousand  dollars  and  imprisoned  not  more  than  three  years ; 
but  nothing  in  this  section  shall  be  construed  to  abridge  the  right  of 
a  citizen  to  apply,  himself  or  his  agent,  to  any  foreign  government  or 
the  agents  thereof  for  redress  of  any  injury  which  he  may  have  sus- 
tained from  such  government  or  any  of  its  agents  or  subjects. 

Seditious  Conspiracy. 

Sec.  6.  If  two  or  more  persons  in  any  State  or  Territory,  or 
in  any  place  subject  to  the  jurisdiction  of  the  United  States,  con- 
spire to  overthrow,  put  down,  or  to  destroy  by  force  the  government 
of  the  United  States,  or  to  levy  war  against  them,  or  to  oppose  by 
force  the  authority  thereof,  or  by  force  to  prevent,  hinder,  or  delay 
the  execution  of  any  law  of  the  United  States,  or  by  force  to  seize, 
take,  or  possess  any  property  of  the  United  States  contrary  to  the 
authority  thereof,  they  shall  each  be  fined  not  more  than  five  thousand 
dollars,  or  imprisoned  not  more  than  six  years,  or  both. 

Recruiting  Soldiers  or  Sailors  to  Serve  Against  the  United  States. 

Sec.  7.  Whoever  recruits  soldiers  or  sailors  within  the  United 
States,  or  in  any  place  subject  to  the  jurisdiction  thereof,  to  engage  in 
armed  hostility  against  the  same,  or  opens  within  the  United  States, 
or  in  any  place  subject  to  the  jurisdiction  thereof,  a  recruiting  station 
for  the  enlistment  of  such  soldiers  or  sailors  to  serve  in  any  manner  in 
armed  hostility  against  the  United  States,  shall  be  fined  not  more  than 
one  thousand  dollars  and  imprisoned  not  more  than  five  years'. 

Enlistment  to  Serve  Against  the  United  States. 

Sec.  8.  Every  person  enlisted  or  engaged  within  the  United  States 
or  in  any  place  subject  to  the  jurisdiction  thereof,  with  intent  to  serve 
in  armed  hostility  against  the  United  States,  shall  be  fined  one  hun- 
dred dollars  and  imprisoned  not  more  than  three  years. 


Criminal  Code  697 

CHAPTER  TWO. 

Offenses  Against  Neutrality. 

Accepting   a   Foreign   Commission. 

Sec.  9.  Every  citizen  of  the  United  States  who,  within  the  ter- 
ritory or  jurisdiction  thereof,  accepts  and  exercises  a  commission  to 
serve  a  foreign  prince,  state,  colony,  district,  or  people,  in  war,  by  land 
or  by  sea,  against  any  prince,  state,  colony,  district,  or  people,  with 
whom  the  United  States  are  at  peace,  shall  be  fined  not  more  than  two 
thousand  dollars  and  imprisoned  not  more  than  three  years. 

Enlisting  in  Foreign  Service. 

Sec.  10.  Whoever,  within  the  territory  or  jurisdiction  of  the  United 
States,  enlists,  or  enters  himself,  or  hires  or  retains  another  person  to 
enlist  or  enter  himself,  or  to  go  beyond  the  limits  or  jurisdiction  of 
the  United  States  with  intent  to  be  enlisted  or  entered  in  the  service 
of  any  foreign  prince,  state,  colony,  district,  or  people,  as  a  soldier, 
or  as  a  marine  or  seaman,  on  board  of  any  vessel  of  war,  letter  of 
marque,  or  privateer,  shall  be  fined  not  more  than  one  thousand  dol- 
lars and  imprisoned  not  more  than  three  years. 

Arming  Vessels  Against  People  at  Peace  With  the  United  States. 

Sec.  11.  Whoever,  within  the  territory  or  jurisdiction  of  the 
United  States,  fits  out  and  arms,  or  attempts  to  fit  out  and  arm,  or 
procures  to  be  fitted  out  and  armed,  or  knowingly  is  concerned  in  the 
furnishing,  fitting  out,  or  arming  of  any  vessel,  with  intent  that  such 
vessel  shall  be  employed  in  the  service  of  any  foreign  prince  or  state, 
or  of  any  colony,  district,  or  people,  to  cruise  or  commit  hostilities 
against  the  subjects,  citizens,  or  property  of  any  foreign  prince  or 
state,  or  of  any  colony,  district,  or  people,  with  whom  the  United 
States  are  at  peace,  or  whoever  issues  or  delivers  a  commission  within 
the  territory  or  jurisdiction  of  the  United  States  for  any  vessel,  to  the 
intent  that  she  may  be  so  employed,  shall  be  fined  not  more  than  ten 
thousand  dollars  and  imprisoned  not  more  than  three  years.  And  every 
such  vessel,  her  tackle,  apparel,  and  furniture,  together  with  all  mate- 
rials, arms,  ammunition,  and  stores  which  may  have  been  procured 
for  the  building  and  equipment  thereof,  shall  be  forfeited,  one-half  to 
the  use  of  the  informer  and  the  other  half  to  the  use  of  the  United 
States.  . 

Augmenting  Force  of  Foreign  Vessel  of  War. 

Sec.  12.  Whoever,  within  the  territory  or  jurisdiction  of  the  United 
States,  increases  or  augments,  or  procures  to  be  increased  or  aug- 
mented, or  knowingly  is  concerned  in  increasing  or  augmenting,  the 
force  of  any  ship  of  war,  cruiser,  or  other  armed  vessel  which,  at 
the  time  of  her  arrival  within  the  United  States,  was  a  ship  of  war, 
or  cruiser,  or  armed  vessel,  in  the  service  of  any  foreign  prince  or 
state,  or  of  any  colony,  district,  or  people,  or  belonging  to  the  subjects 


698  Important  Federal  Laws 

or  citizens  of  any  such  prince  or  state,  colony,  district,  or  people,  the 
same  being  at  war  with  any  foreign  prince  or  state,  or  of  any  colony, 
district,  or  people,  with  whom  the  United  States  are  at  peace,  by  add- 
ing to  the  number  of  the  guns  of  such  vessel,  or  by  changing  those  on 
board  of  her  for  guns  of  a  larger  caliber,  or  by  adding  thereto  any 
equipment  solely  applicable  to  war,  shall  be  fined  not  more  than  one 
thousand  dollars  and  imprisoned  not  more  than  one  year. 

Military  Expeditions  Against  People  at  Peace  With  United  States. 

Sec.  13.  Whoever,  within  the  territory  or  jurisdiction  of  the 
United  States,  begins,  or  sets  on  foot,  or  provides  or  prepares  the 
means  for,  any  military  expedition  or  enterprise,  to  be  carried  on  from 
thence  against  the  territory  or  dominions  of  any  foreign  prince  or 
state,  or  of  any  colony,  district,  or  people,  with  whom  the  United 
States  are  at  peace,  shall  be  fined  not  more  than  three  thousand  dollars 
and  imprisoned  not  more  than  three  years. 

Enforcement  of  Foregoing  Provisions. 

Sec.  14.  The  district  courts  shall  take  cognizance  of  all  complaints, 
by  whomsoever  instituted,  in  cases  of  captures  made  within  the  waters 
of  the  United  States,  or  within  a  marine  league  of  the  coasts  or  shores 
thereof.  In  every  case  in  which  a  vessel  is  fitted  out  and  armed,  or 
attempted  to  be  fitted  out  and  armed,  or  in  which  the  force  of  any 
vessel  of  war,  cruiser,  or  other  armed  vessel  is  increased  or  augmented, 
or  in  which  any  military  expedition  or  enterprise  is  begun  or  set  on 
foot,  contrary  to  the  provisions  and  prohibitions  of  this  chapter ;  and 
in  every  case  of  the  capture  of  a  vessel  within  the  jurisdiction  or  pro- 
tection of  the  United  States  as  before  defined ;  and  in  every  case  in  which 
any  process  issuing  out  of  any  court  of  the  United  States  is  disobeyed  or 
resisted  by  any  person  having  the  custody  of  any  vessel  of  war,  cruiser, 
or  other  armed  vessel  of  any  foreign  prince,  or  state,  or  of  any  colony, 
district,  or  people,  or  of  any  subjects  or  citizens  of  any  foreign  prince 
or  state,  or  of  any  colony,  district,  or  people,  it  shall  be  lawful  for  the 
President,  or  such  other  person  as  he  shall  have  empowered  for  that 
purpose,  to  employ  such  part  of  the  land  or  naval  forces  of  the  United 
States,  or  of  the  militia  thereof,  for  the  purpose  of  taking  possession 
of  and  retaining  any  such  vessel,  with  her  prizes,  if  any,  in  order  to 
enforce  the  execution  of  the  prohibitions  and  penalties  of  this  chapter, 
and  the  restoring  of  such  prizes  in  the  cases  in  which  restoration  shall 
be  adjudged;  and  also  for  the  purpose  of  preventing  the  carrying  on  of 
any  such  expedition  or  enterprise  from  the  territory  or  judisdiction 
of  the  United  States  against  the  territory  or  dominion  of  any  foreign 
prince  or  state,  or  of  any  colony,  district,  or  people  with  whom  the 
United  States  are  at  peace. 

Compelling  Foreign  Vessels  to  Depart. 

Sec.  15.     It  shall  be  lawful  for  the  President,  or  such  person  as  he 


Criminal  Code  699 

shall  empower  for  that  purpose,  to  employ  such  part  of  the  land  or 
naval  forces  of  the  United  States,  or  of  the  militia  thereof,  as  shall  be 
necessary  to  compel  any  foreign  vessel  to  depart  the  United  States  in 
all  cases  in  which,  by  the  laws  of  nations  or  the  treaties  of  the  United 
States,  she  ought  not  to  remain  within  the  United  States. 

Armed  Vessels  to  Give  Bond  on  Clearance. 

Sec.  16.  The  owners  or  consignees  of  every  armed  vessel  sailing 
out  of  the  ports  of,  or  under  the  jurisdiction  of.  the  United  States, 
belonging  wholly  or  in  part  to  citizens  thereof,  shall,  before  clearing 
out  the  same,  give  bond  to  the  United  States,  with  sufficient  sureties, 
in  double  the  amount  of  the  value  of  the  vessel  and  cargo  on  board, 
including  her  armament,  conditioned  that  the  vessel  shall  not  be  em- 
ployed by  such  owners  to  cruise  or  commit  hostilities  against  the  sub- 
jects, citizens,  or  property  of  any  foreign  prince  or  state,  or  of  any 
colony,  district,  or  people  with  whom  the  United  States  are  at  peace. 

Detention  by  Collector  of  Customs. 

Sec.  17.  The  several  collectors  of  the  customs  shall  detain  any 
vessel  manifestly  built  for  warlike  purposes,  and  about  to  depart  the 
United  States,  or  any  place  subject  to  the  jurisdiction  thereof,  the 
cargo  of  which  principally  consists  of  arms  and  munitions  of  war, 
when  the  number  of  men  shipped  on  board,  or  other  circumstances, 
render  it  probable  that  such  vessel  is  intended  to  be  employed  by  the 
owners  to  cruise  or  commit  hostilities  upon  the  subjects,  citizens,  or 
property  of  any  foreign  prince  or  state,  or  of  any  colony,  district,  or 
people  with  whom  the  United  States  are  at  peace,  until  the  decision  of 
the  President  is  had  thereon,  or  until  the  owner  gives  such  bond  and 
security  as  is  required  of  the  owners  of  armed  vessels  by  the  preceding 
section. 

Construction  of  This  Chapter. 

Sec.  18.  The  provisions  of  this  chapter  shall  not  be  construed  to 
extend  to  any  subject  or  citizen  of  any  foreign  prince,  state,  colony, 
district,  or  people  who  is  transiently  within  the  United  States  and 
enlists  or  enters  himself  on  board  of  any  vessel  of  war,  letter  of  marque, 
or  privateer,  which  at  the  time  of  its  arrival  within  the  United  States 
was  fitted  and  equipped  as  such,  or  hires  or  retains  another  subject  or 
citizen  of  the  same  foreign  prince,  state,  colony,  district,  or  people 
who  is  transiently  within  the  United  States  to  enhst  or  enter  himself 
to  serve  such  foreign  prince,  state,  colony,  district,  or  people  on  board 
such  vessel  of  war,  letter  of  marque,  or  privateer,  if  the  United  States 
shall  then  be  at  peace  with  such  foreign  prince,  state,  colony,  district, 
or  people.  Nor  shall  they  be  construed  to  prevent  the  prosecution 
or  punishment  of  treason,  or  of  any  piracy  defined  by  the  laws  of  the 
United  States. 


700  Important  Federal  Laws 

CHAPTER  THREE. 

Offenses  Against  the  Elective  Franchise  and  Civil   Rights  of 

Citizens. 

Conspiracy  to  Injure,  etc.,  Citizens  in  the  Exercise  of  Civil  Rights. 

Sec.  19.  If  two  or  more  persons  conspire  to  injure,  oppress, 
threaten,  or  intimidate  any  citizen  in  the  free  exercise  or  enjoyment 
of  any  right  or  privilege  secured  to  him  by  the  Constitution  or  laws 
of  the  United  States,  or  because  of  his  having  so  exercised  the  same, 
or  if  two  or  more  persons  go  in  disguise  on  the  highway,  or  on  the 
premises  of  another,  with  intent  to  prevent  or  hinder  his  free  exercise 
or  enjoyment  of  any  right  or  privilege  so  secured,  they  shall  be  fined 
not  more  than  five  thousand  dollars  and  imprisoned  not  more  than  ten 
years,  and  shall,  moreover,  be  thereafter  ineligible  to  any  office,  or 
place  of  honor,  profit,  or  trust  created  by  the  Constitution  or  laws  of 

the  United  States. 

Depriving  Persons  of  Civil  Rights  Under  Color  of  State  Law, 

Sec.  20.  Whoever,  under  color  of  any  law,  statute,  ordinance, 
regulation,  or  custom,  willfully  subjects,  or  causes  to  be  subjected,  any 
inhabitant  of  any  State,  Territory,  or  District  to  the  deprivation  of 
any  rights,  privileges,  or  immunities  secured  or  protected  by  the  Con- 
stitution and  laws  of  the  United  States,  or  to  different  punishments, 
pains,  or  penalties,  on  account  of  such  inhabitant  being  an  alien,  or  by 
reason  of  his  color,  or  race,  than  are  prescribed  for  the  punishment  of 
citizens,  shall  be  fined  not  more  than  one  thousand  dollars,  or  impris- 
oned not  more  than  one  vear,  or  both. 

Conspiracy  to  Prevent  Person  From  Holding  Office  or  Discharge  of 
Duty. 

Sec.  21.  If  two  or  more  persons  in  any  State,  Territory  or  Dis- 
trict conspire  to  prevent,  by  force,  intimidation,  or  threat,  any  person 
from  accepting  or  holding  any  office,  trust,  or  place  of  confidence  under 
the  United  States,  or  from  discharging  any  duties  thereof ;  or  to  induce 
by  like  means  any  officer  of  the  United  States  to  leave  any  State,  Ter- 
ritory, district,  or  place,  where  his  duties  as  an  officer  are  required  to 
be  performed,  or  to  injure  him  in  his  person  or  property  on  account 
of  his  lawful  discharge  of  the  duties  of  his  office,  or  while  engaged  in 
the  lawful  discharge  thereof,  or  to  injure  his  property  so  as  to  molest, 
interrupt,  hinder,  or  impede  him  in  the  discharge  of  his  official  duties, 
each  of  such  persons  shall  be  fined  not  more  than  five  thousand  dollars, 
or  imprisoned  not  more  than  six  years,  or  both. 

Unlawful  Presence  of  Troops  at  Elections. 

Sec.  22.  Every  officer  of  the  Army  or  Navy,  or  other  person  in 
the  civil,  military,  or  naval  service  of  the  United  States,  who  orders, 
brings,    keeps,    or    has    under   his    authority    or    control   any   troops    or 


Criminal  Code  701 

armed  men  at  any  place  where  a  general  or  special  election  is  held  in 
any  State,  unless  such  force  be  necessary  to  repel  armed  enemies  of  the 
United  States,  shall  be  lined  not  more  than  five  thousand  dollars  and 
imprisoned  not  more  than  five  years. 

Intimidation  of  Voters  by  Officers,  etc.,  of  Army  and  Navy. 

Sec.  23.  Every  officer  or  other  person  in  the  military  or  naval 
service  of  the  United  States  who,  by  force,  threat,  intimidation,  order, 
advice,  or  otherwise,  prevents,  or  attempts  to  prevent,  any  qualified 
voter  of  any  State  from  freely  exercising  the  right  of  suffrage  at  any 
general  or  special  election  in  such  State  shall  be  fined  not  more  than 
five  thousand  dollars  and  imprisoned  not  more  than  five  years. 

Officers  of  Army  or  Navy  Prescribing  Qualifications  of  Voters. 

Sec.  24.  Every  officer  of  the  Army  or  Navy  who  prescribes  or 
fixes,  or  attempts  to  prescribe  or  fix,  whether  by  proclamation,  order, 
or  otherwise,  the  qualifications  of  voters  at  any  election  in  any  State 
shall  be  punished  as  provided  in  the  preceding  section. 

Officers,  etc.,  of  Army  or  Navy   Interfering  With   Officers   of   Elec- 
tion, etc. 

Sec.  25.  Every  officer  or  other  person  in  the  military  or  naval 
service  of  the  United  States  who.  by  force,  threat,  intimidation,  order, 
or  otherwise,  compels,  or  attempts  to  compel,  any  officer  holding  an 
election  in  any  State  to  receive  a  vote  from  a  person  not  legally  quali- 
fied to  vote,  or  who  imposes,  or  attempts  to  impose,  any  regulations 
for  conducting  any  general  or  special  election  in  a  State  dift"erent  from 
those  prescribed  by  law,  or  who  interferes  in  any  manner  with  any 
officer  of  an  election  in  the  discharge  of  his  duty,  shall  be  punished  as 
provided  in  section  twenty-three. 

Persons  Disqualified  From  Holding  Office;  When  Soldiers,  etc.,  May 
Vote. 
Sec.  26.  Every  person  convicted  of  any  offense  defined  in  the  four 
preceding  sections  shall,  in  addition  to  the  punishment  therein  pre- 
scribed, be  disqualified  from  holding  any  office  of  honor,  profit,  or 
trust  under  the  United  States ;  but  nothing  therein  shall  be  construed 
to  prevent  any  officer,  soldier,  sailor,  or  marine  from  exercising  the 
right  of  suffrage  in  any  election  district  to  which  he  may  belong,  if 
otherwise  qualified  according  to  the  laws  of  the  State  in  which  he  offers 
to  vote. 

CHAPTER  FOUR. 

Offenses  Against  the  Operations  of  the  Government. 

Forgery  of  Letters  Patent. 

Sec.  27.  Whoever  shall  falsely  make,  forge,  counterfeit,  or  alter 
any  letters  patent  granted  or  purporting  to  have  been  granted  by  the 
President  of  the  United  States ;  or  whoever  shall  pass,  utter,  or  publish. 


702  Important  Federal  Laws 

or  attempt  to  pass,  utter,  or  publish  as  genuine,  any  such  forged, 
counterfeited,  or  falsely  altered  letters  patent,  knowing  the  same  to 
be  forged,  counterfeited,  or  falsely  altered,  shall  be  fined  not  more 
than  five  thousand  dollars  and  imprisoned  not  more  than  ten  years. 

Forging  Bond,  Bid,  Public  Record,  Etc. 

Sec.  28.  Whoever  shall  falsely  make,  alter,  forge,  or  counterfeit 
or  cause  or  procure  to  be  falsely  made,  altered,  forged,  or  counter- 
feited, or  willingly  aid,  or  assist  in  the  false  making,  altering,  forging, 
or  counterfeiting,  any  bond,  bid,  proposal,  contract,  guarantee,  secur- 
ity, official  bond,  public  record,  affidavit,  or  other  writing  for  the  pur- 
pose of  defrauding  the  United  States ;  or  shall  utter  or  publish  as  true, 
or  cause  to  be  uttered  or  published  as  true,  or  have  in  his  possession 
with  the  intent  to  utter  or  publish  as  true,  any  such  false,  forged, 
altered,  or  counterfeited  bond,  bid,  proposal,  contract,  guarantee, 
security,  official  bond,  public  record,  affidavit,  or  other  writing,  for 
the  purpose  of  defrauding  the  United  States,  knowing  the  same  to  be 
false,  forged,  altered,  or  counterfeited ;  or  shall  transmit  to,  or  present 
at,  or  cause  or  procure  to  be  transmitted  to,  or  presented  at,  the  office 
of  any  officer  of  the  United  States,  any  such  false,  forged,  altered,  or 
counterfeited  bond,  bid,  proposal,  contract,  guarantee,  security,  official 
bond,  public  record,  affidavit,  or  other  writing,  knowing  the  same  to  be 
false,  forged,  altered,  or  counterfeited,  for  the  purpose  of  defrauding 
the  United  States,  shall  be  fined  not  more  than  one  thousand  dollars, 
or  imprisoned  not  more  than  ten  years,  or  both. 

Forging  Deeds,  Powers  of  Attorney,  Etc. 

Sec.  29.  Whoever  shall  falsely  make,  alter,  forge,  or  counterfeit, 
or  cause  or  procure  to  be  falsely  made,  altered,  forged,  or  counter- 
feited, or  willingly  aid  or  assist  in  the  false  making,  altering,  for- 
ging, or  counterfeiting,  any  deed,  power  of  attorney,  order,  certificate, 
receipt,  contract,  or  other  writing,  for  the  purpose  of  obtaining  or 
receiving,  or  of  enabling  any  other  person,  either  directly  or  indirectly, 
to  obtain  or  receive  from  the  United  States,  or  any  of  their  officers 
or  agents,  any  sum  of  money ;  or  whoever  shall  utter  or  publish  as 
true,  or  cause  to  be  uttered  or  published  as  true,  any  such  false, 
forged,  altered,  or  counterfeited  deed,  power  of  attorney,  order,  cer- 
tificate, receipt,  contract,  or  other  writing,  with  intent  to  defraud  the 
United  States,  knowing  the  same  to  be  false,  altered,  forged,  or  coun- 
terfeited ;  or  whoever  shall  transmit  to,  or  present  at,  or  cause  or  pro- 
cure to  be  transmitted  to,  or  presented  at,  any  office  or  officer  of  the 
Government  of  the  United  States,  any  deed,  power  of  attorney,  order, 
certificate,  receipt,  contract,  or  other  writing,  in  support  of,  or  in 
relation  to,  any  account  or  claim,  with  intent  to  defraud  the  United 
States,  knowing  the  same  to  be  false,  altered,  forged,  or  counterfeited, 
shall  be  fined  not  more  than  one  thousand  dollars  and  imprisoned  not 
more  than  ten  years. 


Criminal  Code  703 

Having  Forged  Papers  in  Possession. 

Sec.  30.  Whoever,  knowingly  and  with  intent  to  defraud  the 
United  States,  shall  have  in  his  possession  any  false,  altered,  forged,  or 
counterfeited  deed,  power  of  attorney,  order,  certificate,  receipt,  con- 
tract, or  other  writing,  for  the  purpose  of  enabling  another  to  obtain 
from  the  United  States,  or  from  any  officer  or  agent  thereof,  any  sum 
of  money,  shall  be  fined  not  more  than  five  hundred  dollars,  or  im- 
prisoned not  more  than  five  years,  or  both. 

False  Acknowledgments. 

Sec.  31.  Whoever,  being  an  officer  authorized  to  administer  oaths 
or  to  take  and  certify  acknowledgments,  shall  knowingly  make  any 
false  acknowledgment,  certificate,  or  statement  concerning  the  appear- 
ance before  him  or  the  taking  of  an  oath  or  affirmation  by  any  person 
with  respect  to  any  proposal,  contract,  bond,  undertaking,  or  other 
matter,  submitted  to,  made  with,  or  taken  on  behalf  of,  the  United 
States,  and  concerning  which  an  oath  or  affirmation  is  required  by  law 
or  regulation  made  in  pursuance  of  law.  or  with  respect  to  the  financial 
standing  of  any  principal,  surety,  or  other  party  to  any  such  proposal, 
contract,  bond,  undertaking,  or  other  instrument,  shall  be  fined  not 
more  than  two  thousand  dollars,  or  imprisoned  not  more  than  two 
years,  or  both. 

Falsely  Pretending  to  be  United  States  Officer. 

Sec.  32.  Whoever,  with  intent  to  defraud  either  the  United  States 
or  anv  person,  shall  falsely  assume  or  pretend  to  be  an  officer  or  em- 
ployee acting  under  the  authority  of  the  United  States,  or  any  depart- 
ment, or  any  officer  of  the  Government  thereof,  and  shall  take  upon 
himself  to  act  as  such,  or  shall  in  such  pretended  character  demand 
or  obtain  from  any  person  or  from  the  United  States,  or  any  depart- 
ment, or  any  officer  of  the  Government  thereof,  any  money,  paper, 
document,  or  other  valuable  thing,  shall  be  fined  not  more  than  one 
thousand  dollars,  or  imprisoned  not  more  than  three  years,  or  both. 

False  Personation  of  Holder  of  Public  Stocks. 

Sec.  33.  Whoever  shall  falsely  personate  any  true  and  lawful 
holder  of  any  share  or  sum  in  the  public  stocks  or  debt  of  the  United 
States,  or  any  person  entitled  to  any  annuity,  dividend,  pension,  prize 
money,  wages,  or  other  debt  due  from  the  United  States,  and,  under 
color  of  such  false  personation,  shall  transfer  or  endeavor  to  transfer 
such  public  stock  or  any  part  thereof,  or  shall  receive  or  endeavor  to 
receive  the  money  of  such  true  and  lawful  holder  thereof,  or  the  money 
of  any  person  really  entitled  to  receive  such  annuity,  dividend,  pension, 
prize  money,  wages,  or  other  debt,  shall  be  fined  not  more  than  five 
thousand  dollars  and  imprisoned  not  more  than  ten  years. 

False  Demand  of  Fraudulent  Power  of  Attorney. 

Sec.    34.     Whoever    shall    knowingly    or    fraudulently    demand    or 


704  Important  Federal  Laws 

endeavor  to  obtain  any  share  or  sum  in  the  public  stocks  of  the  United 
States,  or  to  have  any  part  thereof  transferred,  assigned,  sold,  or  con- 
veyed, or  to  have  any  annuity,  dividend,  pension,  prize  money,  wages, 
or  other  debt  due  from  the  United  States,  or  any  part  thereof,  received, 
or  paid  by  virtue  of  any  false,  forged  or  counterfeited  power  of 
attorney,  authority,  or  instrument,  shall  be  fined  not  more  than  five 
thousand  dollars  and  imprisoned  not  more  than  ten  years. 

Making   or   Presenting   False   Claims. 

Sec.  35.  Whoever  shall  make  or  cause  to  be  made,  or  present  or 
cause  to  be  presented,  for  payment  or  approval,  to  or  by  any  person 
or  officer  in  the  civil,  military,  or  naval  service  of  the  United  States, 
anv  claim  upon  or  against  the  Government  of  the  United  States,  or 
any  department  or  officer  thereof,  knowing  such  claim  to  be  false,  fic- 
titious, or  fraudulent ;  or  whoever,  for  the  purpose  of  obtaining  or  aid- 
ing to  obtain  the  payment  or  approval  of  such  claim,  shall  make  or  use, 
or  cause  to  be  made  or  used,  any  false  bill,  receipt,  voucher,  roll, 
account,  claim,  certificate,  affidavit,  or  deposition,  knowing  the  same  to 
contain  any  fraudulent  or  fictitious  statement  or  entry ;  or  whoever  shall 
enter  into  any  agreement,  combination,  or  conspiracy  to  defraud  the 
Government  of  the  United  States,  or  any  department  or  officer  thereof, 
by  obtaining  or  aiding  to  obtain  the  payment  or  allowance  of  any  false 
or  fraudulent  claim ;  or  whoever,  having  charge,  possession,  custody,  or 
control  of  any  money  or  other  public  propertv  used  or  to  be  used  in  the 
military  or  naval  service,  with  intent  to  defraud  the  United  States  or 
willfullv  to  conceal  such  money  or  other  property,  shall  deliver  or  cause 
to  be  delivered,  to  any  other  person  having  authority  to  receive  the 
same,  any  amount  of  such  money  or  other  property  less  than  that  for 
which  he  received  a  certificate  or  took  a  receipt ;  or  whoever,  being 
authorized  to  make  or  deliver  any  certificate,  voucher,  receipt,  or 
other  paper  certifying  the  receipt  of  arms,  ammunition,  provisions, 
clothing,  or  other  property  so  used  or  to  be  used,  shall  make  or  deliver 
the  same  to  any  other  person  without  a  full  knowledge  of  the  truth  of 
the  facts  stated  therein,  and  with  intent  to  defraud  the  United  States, 
shall  be  fined  not  more  than  five  thousand  dollars,  or  imprisoned  not 
inore  than  five  years,  or  both.  And  whoever  shall  knowingly  purchase 
or  receive  in  pledge  for  any  obligation  or  indebtedness  from  any  sol- 
dier, officer,  sailor,  or  other  person  called  into  or  employed  in  the 
military  or  naval  service,  any  arms,  equipments,  ammunition,  clothes, 
military  stores,  or  other  public  property,  whether  furnished  to  the 
soldier,  sailor,  officer,  or  person,  under  a  clothing  allowance  or  other- 
wise, such  soldier,  sailor,  officer,  or  other  person  not  having  the  lawful 
right  to  pledge  or  sell  the  same,  shall  be  fined  not  more  than  five  hun- 
dred dollars,  and  imprisoned  not  more  than  two  years. 

Embezzling  Arms,  Stores,  Etc. 

Sec.   36.     Whoever   shall   steal,   embezzle,   or   knowingly   apply   to 


Criminal  Code  705 

his  own  use,  or  unlawfully  sell,  convey,  or  dispose  of,  any  ordnance, 
arms,  ammunition,  clothing,  subsistence,  stores,  money,  or  other  prop- 
erty of  the  United  States,  furnished  or  to  be  used  for  the  military  or 
naval  service,  shall  be  punished  as  prescribed  in  the  preceding  section. 

Conspiracy  to  Commit  Offense  Against  the  United  States. 

Sec.  Z7.  If  two  or  more  persons  conspire  either  to  commit  any 
ofifense  against  the  United  States,  or  to  defraud  the  United  States  in 
any  manner  or  for  any  purpose,  and  one  or  more  of  such  parties  do 
any  act  to  effect  the  object  of  the  conspiracy,  each  of  the  parties  to 
such  conspiracy  shall  be  fined  not  more  than  ten  thousand  dollars, 
or  imprisoned  not  more  than  two  years,  or  both. 

Delaying  or  Defrauding  Captor  or  Claimant,  Etc.,  of  Prize  Property. 

Sec.  38.  Whoever  shall  willfully  do,  or  aid  or  advise  in  the  doing, 
of  any  act  relating  to  the  bringing  in,  custody,  preservation,  sale, 
or  other  disposition  of  any  property  captured  as  prize,  or  relating 
to  any  documents  or  papers  connected  with  the  property,  or  to  any 
deposition  or  other  document  or  paper  connected  with  the  proceedings, 
with  intent  to  defraud,  delay,  or  injure  the  United  States  or  any  captor 
or  claimant  of  such  property,  shall  be  fined  not  more  than  ten  thousand 
dollars,  or  imprisoned  not  more  than  five  years,  or  both. 

Bribery  of  United  States  Officer. 

Sec.  39.  Whoever  shall  promise,  ofifer,  or  give,  or  cause  or  pro- 
cure to  be  promised,  offered,  or  given,  any  money  or  other  thing  of 
value,  or  shall  make  or  tender  any  contract,  undertaking,  obligation, 
gratuity,  or  security  for  the  payment  of  money,  or  for  the  delivery  or 
conveyance  of  anything  of  value,  to  any  officer  of  the  United  States, 
or  to  any  person  acting  for  or  on  behalf  of  the  United  States  in  any 
official  function,  under  or  by  authority  of  any  department  or  office  of 
the  Government  thereof,  or  to  any  officer  or  person  acting  for  or  on 
behalf  of  either  House  of  Congress,  or  of  any  committee  of  either 
House,  or  both  Houses  thereof,  with  intent  to  influence  his  decision  or 
action  on  any  question,  matter,  cause,  or  proceeding  which  may  at  any 
time  be  pending,  or  which  may  by  law  be  brought  before  him  in  his 
official  capacity,  or  in  his  place  of  trust  or  profit,  or  with  intent  to  in- 
fluence him  to  commit  or  aid  in  committing,  or  to  collude  in,  or  allow, 
any  fraud,  or  make  opportunity  for  the  commission  of  any  fraud,  on 
the  United  States,  or  to  induce  him  to  do  or  omit  to  do  any  act  in  viola- 
tion of  his  lawful  duty,  shall  be  fined  not  more  than  three  times  the 
amount  of  money  or  value  of  the  thing  so  offered,  promised,  given, 
made,  or  tendered,  or  caused  or  procured  to  be  so  offered,  promised, 
given,  made  or  tendered,  and  imprisoned  not  more  than  three  years. 

Unlawfully  Taking  or  Using  Papers  Relating  to  Claim-s. 

Sec.   40.     Whoever   shall   take   and   carry   a\A'ay,   without   authority 
from  the  United  States,  from  the  place  where  it  has  been  filed,  lodged, 

(45) 


706  Important  Federal  Laws 

or  deposited,  or  where  it  may  for  the  time  being  actually  be  kept  by 
authority  of  the  United  States,  any  certificate,  affidavit,  deposition,  writ- 
ten statement  of  facts,  power  of  attorney,  receipt,  voucher,  assignment, 
or  other  document,  record,  file,  or  paper,  prepared,  fitted,  or  intended 
to  be  used  or  presented  in  order  to  procure  the  payment  of  money 
from  or  by  the  United  States,  or  any  officer  or  agent  thereof,  or  the 
allowance  or  payment  of  the  whole  or  any  part  of  any  claim,  account, 
or  demand  against  the  United  States,  whether  the  same  has  or  has  not 
already  been  so  used  or  presented,  and  whether  such  claim,  account,  or 
demand,  or  any  part  thereof,  has  or  has  not  already  been  allowed  or 
paid;  or  whoever  shall  present,  use,  or  attempt  to  use,  any  such  docu- 
ment, record,  file,  or  paper  so  taken  and  carried  away,  in  order  to  pro- 
cure the  payment  of  any  money  from  or  by  the  United  States,  or  any 
officer  or  agent  thereof,  or  the  allowance  or  payment  of  the  whole  or 
any  part  of  any  claim,  account,  or  demand  against  the  United  States, 
shall  be  fined  not  more  than  five  thousand  dollars,  or  imprisoned  not 
more  than  ten  years,  or  both. 

Persons  Interested  Not  to  Act  as  Agents  of  the  Government. 

Sec.  41.  No  officer  or  agent  of  any  corporation,  joint  stock  com- 
pany, or  association,  and  no  member  or  agent  of  any  firm,  or  person 
directly  or  indirectly  interested  in  the  pecuniary  profits  or  contracts 
of  such  corporation,  joint  stock  company,  association,  or  firm,  shall 
be  employed  or  shall  act  as  an  officer  or  agent  of  the  United  States  for 
the  transaction  of  business  with  such  corporation,  joint  stock  company, 
association,  or  firm.  Whoever  shall  violate  the  provision  of  this  sec- 
tion shall  be  fined  not  more  than  two  thousand  dollars  and  imprisoned 
not  more  than  two  years. 

Enticing  Desertions  From  the  Military  or  Naval  Service. 

Sec.  42.  Whoever  shall  entice  or  procure,  or  attempt  or  endeavor 
to  entice  or  procure,  any  soldier  in  the  military  service,  or  any  sea- 
man or  other  person  in  the  naval  service  of  the  United  States,  or  who 
has  been  recruited  for  such  service,  to  desert  therefrom,  or  shall  aid  any 
such  soldier,  seaman,  or  other  person  in  deserting  or  in  attempting  to 
desert  from  such  service ;  or  whoever  shall  harbor,  conceal,  protect, 
or  assist  any  such  soldier,  seaman,  or  other  person  who  may  have 
deserted  from  such  service,  knowing  him  to  have  deserted  therefrom, 
or  shall  refuse  to  give  up  and  deliver  such  soldier,  seaman,  or  other 
person  on  the  demand  of  any  officer  authorized  to  receive  him,  shall 
be  imprisoned  not  more  than  three  years  and  fined  not  more  than  two 
thousand  dollars. 

Enticing  Away  Workmen. 

Sec.  43.  Whoever  shall  procure  or  entice  any  artificer  or  workman 
retained  or  employed  in  any  arsenal  or  armory,  to  depart  from  the 
same  during  the  continuance  of  his  engagement,  or  to  avoid  or  break 
his  contract  with  the  United  States ;  or  whoever,  after  due  notice  of  the 


Criminal  Code  707 

engagement  of  such  workman  or  artificer,  during  the  continuance  of 
such  engagement,  shall  retain,  hire,  or  in  anywise  employ,  harbor,  or 
conceal  such  artificer  or  workman,  shall  be  fined  not  more  than  fifty 
dollars,  or  imprisoned  not  more  than  three  months,  or  both. 

Injuries  to  Fortifications,   Harbor  Defenses,  Etc. 

Sec.  44.  Whoever  shall  willfully  trespass  upon,  injure,  or  destroy 
any  of  the  works  or  property  or  material  of  any  submarine  mine  or 
torpedo,  or  fortification  or  harbor-defense  system  owned  or  constructed 
or  in  process  of  construction  by  the  United  States,  or  shall  willfully 
interfere  with  the  operation  or  use  of  any  such  submarine  mine,  tor- 
pedo, fortification,  or  harbor-defense  system,  shall  be  fined  not  more 
than  five  thousand  dollars,  or  imprisoned  not  more  than  five  vears, 
or  both. 

Unlawfully  Entering  Upon  Military  Reservation,  Fort,  Etc. 

Sec.  45.  Whoever  shall  go  upon  any  military  reservation,  army 
post,  fort,  or  arsenal,  for  any  purpose  prohibited  by  law  or  military 
regulation  made  in  pursuance  of  law,  or  whoever  shall  re-enter  or  be 
found  within  any  such  reservation,  post,  fort,  or  arsenal,  after  having 
been  removed  therefrom  or  ordered  not  to  re-enter  by  any  officer  or 
person  in  command  or  charge  thereof,  shall  be  fined  not  more  than  five 
hundred  dollars,  or  imprisoned  not  more  than  six  months,  or  both. 

Robbery  or  Larceny  of  Personal  Property  of  the  United  States. 

Sec.  46.  Whoever  shall  rob  another  of  any  kind  or  description  of 
personal  property  belonging  to  the  United  States,  or  shall  feloniouslv 
take  and  carry  away  the  same,  shall  be  fined  not  more  than  five  thou- 
sand dollars,  or  imprisoned  not  more  than  ten  years,  or  both. 

Embezzling,  Stealing,   Etc.,  Public  Property. 

Sec.  47.  Whoever  shall  embezzle,  steal,  or  purloin  anv  money, 
property,  .record,  voucher,  or  valuable  thing  whatever,  of  the  moneys, 
goods,  chattels,  records,  or  property  of  the  United  States,  shall  be 
fined  not  more  than  five  thousand  dollars,  or  imprisoned  not  more 
than  five  years,  or  both. 

Receivers,  Etc.,  of  Stolen  Public  Property. 

Sec.  48.  Whoever  shall  receive,  conceal,  or  aid  in  concealino-,  or 
shall  have  or  retain  in  his  possession  with  intent  to  convert  to  his  own 
use  or  gain,  any  money,  property,  record,  voucher,  or  valuable  thing 
whatever,  of  the  moneys,  goods,  chattels,  records,  or  property  of  the 
United  States,  which  has  theretofore  been  embezzled,  stolen,  or  pur- 
loined by  any  other  person,  knowing  the  same  to  have  been  so  em- 
bezzled, stolen,  or  purloined,  shall  be  fined  not  more  than  five  thousand 
dollars,  or  imprisoned  not  more  than  five  years,  or  both ;  and  such 
person  may  be  tried  either  before  or  after  the  conviction  of  the  prin- 
cipal offender. 


708  Important  Federal  Laws 

Timber  Depredations  on  Public  Lands. 

Sec.  49.  Whoever  shall  cut,  or  cause  or  procure  to  be  cut,  or 
shall  wantonly  destroy,  or  cause  to  be  wantonly  destroyed,  any  timber 
growing  on  the  public  lands  of  the  United  States;  or  whoever  shall 
remove,  or  cause  to  be  removed,  any  timber  from  said  public  lands, 
with  intent  to  export  or  to  dispose  of  the  same;  or  whoever,  being  the 
owner,  master,  or  consignee  of  any  vessel,  or  the  owner,  director, 
or  agent  of  anv  railroad,  shall  knowingly  transport  any  timber  so  cut 
or  removed  from  said  lands,  or  lumber  manufactured  therefrom,  shall 
be  fined  not  more  than  one  thousand  dollars,  or  imprisoned  not  more 
than  one  year,  or  both.  Nothing  in  this  section  shall  prevent  any  miner 
or  agriculturist  from  clearing  his  land  in  the  ordinary  working  of  his 
mining  claim,  or  in  the  preparation  of  his  farm  for  tillage,  or  from 
taking  the  timber  necessar>^  to  support  his  improvements,  or  the  takmg 
of  timber  for  the  use  of  the  United  States.  And  nothing  in  this  section 
shall  interfere  with  or  take  away  any  right  or  privilege  under  any 
existing  law  of  the  United  States  to  cut  or  remove  timber  from  any 
public  lands. 

Timber,  Etc.,  Depredations  on  Indian  and  other  Reservations. 

Sec.  50.  Whoever  shall  unlawfully  cut,  or  aid  in  unlawfully  cut- 
ting, or  shall  wantonly  injure  or  destroy,  or  procure  to  be  wantonly 
injured  or  destroyed,  any  tree,  growing,  standing,  or  being  upon  any 
land  of  the  United  States  which,  in  pursuance  of  law,  has  been  reserved 
or  purchased  by  the  United  States  for  any  public  use,  or  upon  any 
Indian  reservation  or  lands  belonging  to  or  occupied  by  any  tribe 
of  Indians  under  the  aaithority  of  the  United  States,  or  any  Indian 
allotment  while  the  title  to  the  same  shall  be  held  in  trust  by  the 
Government,  or  while  the  same  shall  remain  inalienable  by  the  allottee 
without  the  consent  of  the  United  States,  shall  be  fined  not  more  than 
five  hundred  dollars,  or  imprisoned  not  more  than  one  year,  or  both. 

Boxing,  Etc.,  Timber  on  Public  Lands  for  Turpentine,  Etc. 

Sec.  51.  Whoever  shall  cut,  chip,  chop,  or  box  any  tree  upon  any 
lands  belonging  to  the  United  States,  or  upon  any  lands  covered  by  or 
embraced  in  any  unperfccted  settlement,  application,  filing,  entry,  selec- 
tion, or  location,  made  under  any  law  of  the  United  States,  for  the 
purpose  of  obtaining  from  such  tree  any  pitch,  turpentine,  or  other 
substance,  or  shall  knowingly  encourage,  cause,  procure,  or  aid  in  the 
cutting,  chipping,  chopping,  or  boxing  of  any  such  tree,  or  shall  buy, 
trade  "for,  or  in  any  manner  acquire  any  pitch,  turpentine,  or  other 
substance,  or  any  article  or  commodity  made  from  any  such  pitch, 
turpentine,  or  other  substance,  when  he  has  knowledge  that  the  same 
has  been  so  unlawfully  obtained  from  such  trees,  shall  be  fined  not 
more  than  five  hundred  dollars,  or  imprisoned  not  more  than  one  year, 
or  both. 


Criminal  Code  709 

Setting  Fire  to  Timber  on  Public  Lands. 

Sec.  52.  Whoever  shall  willfully  set  on  fire,  or  cause  to  be  set  on 
fire,  any  timber,  underbrush,  or  grass  upon  the  public  domain,  or 
shall  leave  or  suffer  fire  to  burn  unattended  near  any  timber  or  other 
inflammable  material  shall  be  fined  not  more  than  five  thousand  dollars, 
or  imprisoned  not  more  than  two  years,  or  both. 

Failing  to  Extinguish  Fires. 

Sec.  53.  Whoever  shall  build  a  fire  in  or  near  any  forest,  timber, 
or  other  inflammable  material  upon  the  public  domain,  or  upon  any 
Indian  reservation,  or  lands  belonging  to  or  occupied  by  any  tribe  of 
Indians  under  the  authority  of  the  United  States,  or  upon  any  Indian 
allotment  while  the  title  to  the  same  shall  be  held  in  trust  by  the 
Government,  or  while  the  same  shall  remain  inalienable  by  the  allottee 
without  the  consent  of  the  United  States,  shall,  before  leaving  said 
fire,  totallv  extinguish  the  same;  and  whoever  shall  fail  to  do  so  shall 
be  fined  not  more  than  one  thousand  dollars,  or  imprisoned  not  more 
than  one  year,  or  both. 

Fines  to  be  Paid  into  School  Fund. 

Sec.  54.  In  all  cases  arising  under  the  two  preceding  sections  the 
fines  collected  shall  be  paid  into  the  public  school  fund  of  the  county 
in  which  the  lands  where  the  offense  was  committed  are  situated. 

Trespassing  on  Bull  Run  National  Forest,  Oregon. 

Sec.  55.  Whoever,  except  forest  rangers  and  other  persons 
employed  by  the  United  States  to  protect  the  forest,  federal  and  state 
ofificer's  in  the  discharge  of  their  duties,  and  the  employees  of  the  water 
board  of  the  city  of  Portland,  State  of  Oregon,  shall  knowingly  tres- 
pass upon  any  part  of  the  reserve  known  as  Bull  Run  National  Forest, 
in  the  Cascade  Mountains,  in  the  State  of  Oregon,  or  shall  enter 
thereon  for  the  purpose  of  grazing  stock,  or  shall  engage  in  grazing 
stock  thereon,  or  shall  permit  stock  of  any  kind  to  graze  thereon,  shall 
be  fined  not  more  than  five  hundred  dollars,  or  imprisoned  not  more 
than  six  months,  or  both. 

Breaking  Fence  or  Gate  Inclosing  Reserved  Lands,  or  Driving  or 
Permitting  Live  Stock  to  Enter  Upon. 
Sec.  56.  Whoever  shall  knowingly  and  unlawfully  break,  open,  or 
destroy  anv  gate,  fence,  hedge,  or  wall  inclosing  any  lands  of  the 
United  States  which,  in  pursuance  of  any  law,  have  been  reserved  or 
purchased  by  the  United  States  for  any  public  use;  or  whoever  shall 
drive  any  cattle,  horses,  hogs,  or  other -live  stock  upon  any  such  lands 
for  the  purpose  of  destroying  the  grass  or  trees  on  said  lands,  or 
where  they  may  destroy  the  said  grass  or  trees ;  or  whoever  shall 
knowingly  permit  his  cattle,  horses,  hogs,  or  other  live  stock,  to  enter 
through  any  such  inclosure  upon  any  such  lands  of  the  United  States, 
where  such  cattle,  horses,  hogs,  or  other  live  stock  may  or  can  destroy 
the  grass  or  trees  or  other  property  of  the  United   States  on  the  said 


710  Important  Federal  Laws 

lands,  shall  be  fined  not  more  than  five  hundred  dollars,  or  imprisoned 
not  more  than  one  year,  or  both :  Provided,  That  nothino^  in  this  sec- 
tion shall  be  construed  to  apply  to  unreserved  public  lands. 

Injuring  or  Removing  Posts  or  Monuments. 

Sec.  57.  Whoever  shall  willfully  destroy,  deface,  change,  or  re- 
move to  another  place  any  section  corner,  quarter-section  corner,  or 
meander  post,  on  any  Government  line  of  survey,  or  shall  willfully  cut 
down  any  witness  tree  or  any  tree  blazed  to  mark  the  line  of  a  Govern- 
ment survey,  or  shall  willfully  deface,  change,  or  remove  any  monument 
or  bench  mark  of  any  Government  survey,  shall  be  fined  not  more  than 
two  hundred  and  fifty  dollars,  or  imprisoned  not  more  than  six  months, 
or  both. 

Interrupting  Surveys. 

Sec.  58.  Whoever  in  any  manner,  by  threats  or  force,  shall  inter- 
rupt, hinder,  or  prevent  the  surveying  of  the  public  lands,  or  of  any 
private  land  claim  which  has  been  or  may  be  confirmed  by  the  United 
States,  by  the  persons  authorized  to  survey  the  same,  in  conformity 
with  the  instructions  of  the  Commissioner  of  the  General  Land  Office, 
shall  be  fined  not  more  than  three  thousand  dollars  and  imprisoned 
not  more  than  three  years. 

Agreement  to  Prevent  Bids  at  Sale  of  Lands. 

Sec.  59.  \Mioever,  before  or  at  the  time  of  the  public  sale  of  any 
of  the  lands  of  the  United  States,  shall  bargain,  contract,  or  agree,  or 
attempt  to  bargain,  contract,  or  agree  with  any  other  person,  tliat  the 
last-named  person  shall  not  bid  upon  or  purchase  the  land  so  offered  for 
sale,  or  any  parcel  thereof ;  or  whoever  by  intimidation,  combination, 
or  unfair  management  shall  hinder  or  prevent,  or  attempt  to  hinder 
or  prevent,  any  person  from  bidding  upon  or  purchasing  any  tract  of 
land  so  offered  for  sale,  shall  be  fined  not  more  than  one  thousand  dol- 
lars, or  imprisoned  not  more  than  two  years,  or  both. 

Injuries  to  United  States  Telegraph,  Etc.,  Lines. 

Sec.  60.  Whoever  shall  willfully  or  maliciously  injure  or  destroy 
any  of  the  works,  property,  or  material  of  any  telegraph,  telephone, 
or  cable  line,  or  system,  operated  or  controlled  by  the  United  States, 
whether  constructed,  or  in  process  of  construction,  or  shall  willfully 
or  maliciously  interfere  in  any  way  with  the  working  or  use  of  anv 
such  line,  or  system,  or  shall  willfully  or  maliciously  obstruct,  hinder, 
or  delay  the  transmission  of  any  communication  over  anv  such  line, 
.or  system,  shall  be  fined  not  more  than  one  thousand  dollars,  or 
imprisoned  not  more  than  three  years,  or  both. 

Counterfeiting  Weather  Forecast. 

Sec.  61.  Whoever  shall  knowingly  issue  or  publish  any  counterfeit 
weather  forecast  or  warning  of  weather  conditions  falsely  represent- 
ing such   forecast  or  warning  to  have  been  issued  or  published  by  the 


Criminal  Code  711 

Weather  Bureau,  United  States  Sig-nal  Service,  or  other  branch  of  the 
Government  service,  shall  be  fined  not  more  than  five  hundred  dol- 
lars, or  imprisoned  not  more  than  ninety  days,  or  both. 

Interfering  With  Employees  of  Bureau  of  Animal  Industry;  Penalty. 

Sec.  62.  Whoever  shall  forcibly  assault,  resist,  oppose,  prevent, 
impede,  or  interfere  with  any  officer  or  employee  of  the  Bureau  of 
Animal  Industry  of  the  Department  of  Ao^riculture  in  the  execution 
of  his  duties,  or  on  account  of  the  execution  of  his  duties,  shall  be 
fined  not  more  than  one  thousand  dollars,  or  imprisoned  not  more  than 
one  year,  or  both ;  and  whoever  shall  use  any  deadly  or  dangerous 
weapon  in  resisting  any  officer  or  employee  of  the  Bureau  of  Animal 
Industrv  of  the  Department  of  Agriculture  in  the  execution  of  his 
duties,  with  intent  to  commit  a  bodily  injury  upon  him  or  to  deter 
or  prevent  him  from  discharging  his  duties,  or  on  account  of  the  per- 
formance of  his  duties,  shall  be  fined  not  more  than  one  thousand 
dollars,  or  imprisoned  not  more  than  five  years,  or  both. 

Forgery  of  Certificate  of  Entry. 

Sec.  63.  Whoever  shall  forge,  counterfeit,  or  falsely  alter  any  cer- 
tificate of  entry  made  or  required  to  be  made  in  pursuance  of  law  by 
any  officer  of  the  customs,  or  shall  use  any  such  forged,  counterfeited, 
or  falsely  altered  certificate,  knowing  the  same  to  be  forged,  counter- 
feited, or  falsely  altered,  shall  be  fined  not  more  than  ten  thousand 
dollars  and  imprisoned  not  more  than  three  years. 

Concealment  or  Destruction  of  Invoices.  Etc. 

Sec.  64.  Whoever  shall  willfully  conceal  or  destroy  any  invoice, 
book,  or  paper  relating  to  any  merchandise  liable  to  duty,  which  has 
been  or  may  be  imported  into  the  United  States  from  any  foreign 
port  or  country,  after  an  inspection  thereof  has  been  demanded  by  the 
collector  of  any  collection  district,  or  shall  at  any  time  conceal  or  destroy 
airy  such  invoice,  book,  or  paper  for  the  purpose  of  suppressing  any 
evidence  of  fraud  therein  contained,  shall  be  fined  not  more  than  five 
thousand  dollars,  or  imprisoned  not  more  than  two  years,  or  both. 

Resisting  Revenvie  Officers ;  Rescuing  or  Destroying  Seized  Proper- 
ty, Etc. 
Sec.  65.  Whoever  shall  forcibly  assault,  resist,  oppose,  prevent, 
impede,  or  interfere  with  any  officer  of  the  customs  or  of  the  internal 
revenue,  or  his  deputy,  or  any  person  assisting  him  in  the  execution 
of  his  duties,  or  any  person  authorized  to  make  searches  and  seizures, 
in  the  execution  of  his  duty,  or  shall  rescue,  attempt  to  rescue,  or 
cause  to  be  rescued,  any  property  which  has  been  seized  by  any  per- 
son so  authorized ;  or  whoever  before,  at,  or  after  such  seizure,  in 
order  to  prevent  the  seizure  or  securing  of  any  goods,  wares,  or  mer- 
chandise by  any  person  so  authorized,  shall  stave,  break,  throw  over- 
board, destroy,  or  remove  the  same,  shall  be  fined  not  more  than  two 


712  Important  Federal  Laws 

thousand  dollars,  or  imprisoned  not  more  than  one  year,  or  both ;  and 
whoever  shall  use  any  deadly  or  dangerous  weapon  in  resisting  any 
person  authorized  to  make  searches  or  seizures,  in  the  execution  of  his 
duty,  with  intent  to  commit  a  bodily  injury  upon  him  or  to  deter  or 
prevent  him  from  discharging  his  duty,  shall  be  imprisoned  not  more 
than  ten  years. 

Falsely  Assuming  to  be  a  Revenue  Officer. 

Sec.  66.  Whoever  shall  falsely  represent  himself  to  be  a  reve- 
nue officer,  and,  in  such  assumed  character,  demand  or  receive  any 
money  or  other  article  of  value  from  any  person  for  any  duty  or  tax 
due  to  the  United  States,  or  for  any  violation  or  pretended  violation 
of  any  revenue  law  of  the  United  States,  shall  be  fined  not  more  than 
five  hundred  dollars  and  imprisoned  not  more  than  two  years. 

Offering  Presents  to  Revenue  Officers. 

Sec.  67.  Whoever,  being  engaged  in  the  importation  into  *the 
United  States  of  any  goods,  wares,  or  merchandise,  or  being  interested 
as  principal,  clerk,  or  agent  in  the  entry  of  any  goods,  wares,  or  mer- 
chandise, shall  at  any  time  make,  or  offer  to  make,  to  any  officer  of  the 
revenue,  any  gratuity  or  present  of  money  or  other  thing  of  value, 
shall  be  fined  not  more  than  five  thousand  dollars,  or  imprisoned  not 
more  than  two  years,  or  both. 

Admitting  Merchandise  to  Entry  for  Less  Than  Legal  Duty. 

Sec.  68.  Whoever,  being  an  officer  of  the  revenue,  shall,  by  any 
means  whatever,  knowingly  admit  or  aid  in  admitting  to  entry,  any 
goods,  wares,  or  merchandise,  upon  payment  of  less  than  the  amount 
of  duty  legally  due  thereon,  shall  be  removed  from  office  and  fined 
not  more  than  five  thousand  dollars,  or  imprisoned  not  more  than  two 
years,  or  both. 

Securing  Entry  of  Merchandise  by  False  Samples,  Etc. 

Sec.  69.  Whoever,  by  any  means  whatever,  shall  knowingly  efifect, 
or  aid  in  effecting,  any  entry  of  goods,  wares,  or  merchandise,  at  less 
than  the  true  weight  or  measure  thereof,  or  upon  a  false  classification 
thereof  as  to  quality  or  value,  or  by  the  payment  of  less  than  the 
amount  of  duty  legally  due  thereon,  shall  be  fined  not  more  than  five 
thousand  dollars,  or  imprisoned  not  more  than  two  years,  or  both. 

False  Certification  by  Consular  Officers. 

Sec.  70.  Whoever,  being  a  consul,  or  vice-consul,  or  other  person 
employed  in  the  consular  service  of  the  United  States,  shall  knowingly 
certify  falsely  to  any  invoice,  or  other  paper,  to  which  his  certificate 
is  by  law  authorized  or  required,  shall  be  fined  not  more  than  ten  thou- 
sand dollars  and  imprisoned  not  more  than  three  years. 

Taking  Seized  Property  From  Custody  of  Revenue  Officer. 

Sec.  71.  Whoever  shall  dispossess  or  rescue,  or  attempt  to  dispos- 
sess or  rescue,  any  property  taken  or  detained  by  any  officer  or  other 


Criminal  Code  713 

person  under  the  authority  of  any  revenue  law  of  the  United  States, 
or  shall  aid  or  assist  therein,  shall  be  fined  not  more  than  three  hun- 
dred dollars  and  imprisoned  not  more  than  one  year. 

Forging  or  Altering  Ship's  Papers  or  Custom-House   Documents. 

Sec.  72.  Whoever  shall  falsely  make,  forge,  counterfeit,  or  alter 
any  instrument  in  imitation  of,  or  purporting  to  be,  an  abstract  or 
official  copy  or  certificate  of  the  recording,  registry,  or  enrollment  of 
any  vessel,' in  the  office  of  any  collector  of  the  customs,  or  a  license  to 
any  vessel  for  carrying  on  the  coasting  trade  or  fisheries  of  the  United 
States,  or  a  certificate  of  ownership,  pass,  passport,  sea  letter,^  or 
clearance,  granted  for  any  vessel,  under  the  authority  of  the  United 
States,  or  a  permit,  debenture,  or  other  official  document  granted  by 
any  collector  or  other  officer  of  the  customs  by  virtue  of  his  office;  or 
whoever  shall  utter,  publish,  or  pass,  or  attempt  to  utter,  publish,  or 
pass,  as  true,  any  such  false,  forged,  counterfeited,  or  falsely  altered 
instrument,  abstract,  official  copy,  certificate,  license,  pass,  passport, 
sea  letter,  clearance,  permit,  debenture,  or  other  official  document 
herein  specified,  knowing  the  same  to  be  false,  forged,  counterfeited, 
or  falsely  altered,  with  an  intent  to  defraud,  shall  be  fined  not  more 
than  one"^  thousand  dollars  and  imprisoned  not  more  than  three  years. 

Forging  Military  Bounty-Land  Warrant,  Etc. 

Sec.  7Z.  Whoever  shall  falsely  make,  alter,  forge,  or  counterfeit 
any  military  bounty-land  warrant,  or  military  bounty-land  warrant 
certificate,  issued  or  purporting  to  have  been  issued  by  the  Commis- 
sioner of  Pensions  under  any  law  of  Congress,  or  any  certificate  or 
duplicate  certificate  of  location  of  any  military  bounty-land  warrant, 
or  militarv  bounty-land  warrant  certificate  upon  any  of  the  lands  of 
the  United  States,  or  any  certificate  or  duplicate  certificate  of  the  pur- 
chase of  any  of  the  lands  of  the  United  States,  or  any  receipt  or 
duplicate  receipt  for  the  purchase  money  of  any  of  the  lands  of  the 
United  States,  issued  or  purporting  to  have  been  issued  by  the  register 
and  receiver  at  any  land  office  of  the  United  States  or  by  either  of 
them :  or  whoever  shall  utter,  publish,  or  pass  as  true,  any  such  false, 
forged,  or  counterfeited  military  bounty-land  warrant,  military  bounty- 
land  warrant  certificate,  certificate  or  duplicate  certificate  of  location, 
certificate  or  duplicate  certificate  of  purchase,  receipt  or  duplicate  re- 
ceipt for  the  purchase  money  of  any  of  the  lands  of  the  United  States, 
knowing  the  same  to  be  false,  forged,  or  counterfeited,  shall  be  impris- 
oned not  more  than  ten  years. 

Forging,  Etc.,  Certificate  of  Citizenship. 

Sec.  74.  Wlioever  shall  falsely  make,  forge,  or  counterfeit,  or 
cause  or  procure-  to  be  falsely  made,  forged,  or  counterfeited,  or  shall 
knowingly  aid  or  assist  in  falsely  making,  forging,  or  counterfeiting  any 
certificate  of  citizenship,  with  intent  to  use  the  same,  or  with  the 
intent  that  the  same  may  be  used  by  some  other  person,  shall  be  fined 


714  Important  Federal  Laws 

not  more  than  ten  thousand  dollars,  or  imprisoned  not  more  than  ten 
years,  or  both. 

Engraving,  Etc.,  Plate  for  Printing,  or  Photographing,  Selling,  or 
Bringing  Into  United  States,  Etc.,  Certificate  of  Citizenship, 
Etc. 
Sec.  75.  Whoever  shall  engrave,  or  cause  or  procure  to  be  en- 
graved, or  assist  in  engraving,  any  plate  in  the  likeness  of  any  plate 
designed  for  the  printing  of  a  certificate  of  citizenship ;  or  whoever 
shall  sell  any  such  plate,  or  shall  bring  into  the  United  States  from  any 
foreign  place  any  such  plate,  except  under  the  direction  of  the  Secre- 
tary of  Commerce  and  Labor  or  other  proper  officer ;  or  whoever  shall 
have  in  his  control,  custody,  or  possession  any  metallic  plate  engraved 
after  the  similitude  of  any  plate  from  which  any  such  certificate  has 
been  printed,  with  intent  to  use  or  to  suffer  such  plate  to  be  used  in 
forging  or  counterfeiting  any  such  certificate  or  any  part  thereof ;  or 
whoever  shall  print,  photograph,  or  in  any  manner  cause  to  be 
printed,  photographed,  made,  or  executed,  any  print  or  impression  in 
the  likeness  of  any  such  certificate,  or  any  part  thereof ;  or  whoever 
shall  sell  any  such  certificate,  or  shall  bring  the  same  into  the  United 
States  from  any  foreign  place,  except  by  direction  of  some  proper 
officer  of  the  United  States ;  or  whoever  shall  have  in  his  possession  a 
distinctive  paper  which  has  been  adopted  by  the  proper  officer  of  the 
United  States  for  the  printing  of  such  certificate,  with  intent  unlaw- 
fully to  use  the  same,  shall  be  fined  not  more  than  ten  thousand  dol- 
lars, or  imprisoned  not  more  than  ten  years,  or  both. 

False  Personation,  Etc.,  in  Procuring  Naturalization. 

Sec.  76.  Whoever,  when  applying  to  be  admitted  a  citizen,  or 
when  appearing  as  a  witness  for  any  such  person,  shall  knowingly  per- 
sonate any  person  other  than  himself,  or  shall  falsely  appear  in  the 
name  of  a  deceased  person,  or  in  an  assumed  or  fictitious  name ;  or 
whoever  shall  falsely  make,  forge,  or  counterfeit  any  oath,  notice,  affi- 
davit, certificate,  order,  record,  signature,  or  other  instrument,  paper,  or 
proceeding  required  or  authorized  by  any  law  relating  to  or  providing 
for  the  naturalization  of  aliens;  or  whoever  shall  utter,  sell,  dispose  of, 
or  shall  use  as  true  or  genuine,  for  any  unlawful  purpose,  any  false, 
forged,  antedated,  or  counterfeit  oath,  notice,  certificate,  order,  record, 
signature,  instrument,  paper,  or  proceeding  above  specified ;  or  who- 
ever shall  sell  or  dispose  of  to  any  person  other  than  the  person  for 
whom  it  was  originally  issued  any  certificate  of  citizenship  or  certifi- 
cate showing  any  person  to  be  admitted  a  citizen,  shall  be  fined  not 
more  than  one  thousand  dollars,  or  imprisoned  not  more  than  five  years, 
or  both. 

Using  False  Certificate  of  Citizenship,  or  Denying  Citizenship,  Etc. 
Sec.  77 .     Whoever  shall  use  or  attempt  to  use,  or  shall  aid,  assist, 


Criminal  Code  715 

or  participate  in  the  use  of  any  certificate  of  citizenship,  knowing  the 
same  to  be  forged,  counterfeit,  or  antedated,  or  knowing  the  same  to 
have  been  procured  by  fraud  or  otherwise  unlawfully  obtained;  or  who- 
ever, without  lawful  excuse,  shall  knowingly  possess  any  false,  forged, 
antedated,  or  counterfeit  certificate  of  citizenship  purporting  to  have 
been  issued  under  any  law  of  the  United  States  relating  to  naturali- 
zation, knowing  such  certificate  to  be  false,  forged,  antedated,  or 
counterfeit,  with  the  intent  unlawfully  to  use  the  same ;  or  whoever 
shall  obtain,  accept,  or  receive  any  certificate  of  citizenship,  knowing 
the  same  to  have  been  procured  by  fraud  or  by  the  use  or  means  of  any 
false  name  or  statement  given  or  made  with  the  intent  to  procure,  or  to 
aid  in  procuring,  the  issuance  of  such  certificate,  or  knowing  the  same  to 
have  been  fraudulently  altered  or  antedated ;  or  whoever,  without  lawful 
excuse,  shall  have  in  his  possession  any  blank  certificate  of  citizenship 
provided  by  the  Bureau  of  Immigration  and  Naturalization  with  the 
intent  unlawfully  to  use  the  same;  or  whoever,  after  having  been 
admitted  to  be  a  citizen,  shall,  on  oath  or  by  affidavit,  knowingly  deny 
that  he  has  been  so  admitted,  with  the  intent  to  evade  or  avoid  any 
duty  or  liability  imposed  or  required  by  law,  shall  be  fined  not  more 
than  one  thousand  dollars,  or  imprisoned  not  more  than  five  years,  or 
both. 

Using  False  Certificate,  Etc.,  as  Evidence  of  Right  to  Vote,  Etc. 

Sec.  78.  Whoever,  shall  in  any  manner  use,  for  the  purpose  of 
registering  as  a  voter,  or  as  evidence  of  a  right  to  vote,  or  otherwise 
unlawfully,  any  order,  certificate  of  citizenship,  or  certificate,  judg- 
ment, or  exemplification,  showing  any  person  to  be  admitted  to  be  a 
citizen,  whether  heretofore  or  hereafter  issued  or  made,  knowing  that 
such  order,  certificate,  judgment,  or  exemplification  has  been  unlaw- 
fully issued  or  made;  or  whoever  shall  unlawfully  use,  or  attempt  to 
use,  any  such  order  or  certificate,  issued  to  or  in  the  name  of  any  other 
person,  or  in  a  fictitious  name,  or  the  name  of  a  deceased  person,  shall 
be  fined  not  more  than  one  thousand  dollars,  or  imprisoned  not  more 
than  five  years,  or  both. 

Falsely  Claiming  Citizenship. 

Sec.  79.  Whoever  shall  knowingly  use  any  certificate  of  natural- 
ization heretofore  or  which  hereafter  may  be  granted  by  any  court, 
which  has  been  or  may  be  procured  through  fraud  or  by  false  evi- 
dence, or  which  has  been  or  may  hereafter  be  issued  by  the  clerk  or 
any  other  officer  of  the  court  without  any  appearance  and  hearing  of 
the  applicant  in  court  and  without  lawful  authority;  or  whoever,  for 
any  fraudulent  purpose  whatever,  shall  falsely  represent  himself  to  be 
a  citizen  of  the  United  States  without  having  been  duly  admitted  to 
citizenship,  shall  be  fined  not  more  than  one  thousand  dollars,  or 
imprisoned  not  more  than  two  years,  or  both. 


716  Important  Federal  Laws 

Taking  False  Oath  in  Naturalization. 

Sec.  80.  Whoever,  in  any  proceeding  under  or  by  virtue  of  any 
law  relating  to  the  naturalization  of  aliens,  shall  knowingly  swear 
falsely  in  any  case  where  an  oath  is  made  or  affidavit  taken,  shall  be 
fined  not  more  than  one  thousand  dollars  and  imprisoned  not  more  than 
five  years. 

Provisions  Applicable  to  All  Courts  of  Naturalization. 

Sec.  81.  The  provisions  of  the  five  sections  last  preceding  shall 
apply  to  all  proceedings  had  or  taken,  or  attempted  to  be  had  or  taken, 
before  any  court  in  which  any  proceeding  for  naturalization  may  be 
commenced  or  attempted  to  be  commenced,  and  whether  such  court  was 
vested  by  law  with  jurisdiction  in  naturalization  proceedings  or  not. 

Shanghaiing,   and    Falsely   Inducing   Persons   Intoxicated   to   Go    on 
Vessel  Prohibited. 

Sec.  82.  Whoever,  with  intent  that  any  person  shall  perform  ser- 
vice or  labor  of  any  kind  on  board  of  any  vessel  engaged  in  trade  and 
commerce  among  the  several  States  or  with  foreign  nations,  or  on  board 
of  any  vessel  of  the  United  States  engaged  in  navigating  the  high  seas 
or  any  navigable  water  of  the  United  States,  shall  procure  or  induce, 
or  attempt  to  procure  or  induce,  another,  by  force  or  threats  or  by 
representations  which  he  knows  or  believes  to  be  untrue,  or  while  the 
person  so  procured  or  induced  is  intoxicated  or  under  the  influence 
of  any  drug,  to  go  on  board  of  any  such  vessel,  or  to  sign  or  in  any 
wise  enter  into  any  agreement  to  go  on  board  of  any  such  vessel  to 
perform  service  or  labor  thereon  ;  or  whoever  shall  knowingly  detain 
on  board  of  any  such  vessel  any  person  so  procured  or  induced  to  go 
on  board  thereof,  or  to  enter  into  any  agreement  to  go  on  board  thereof, 
by  any  means  herein  defined ;  or  whoever  shall  knowingly  aid  or  abet 
in  the  doing  of  any  of  the  things  herein  made  unlawful,  shall  be  fined 
not  more  than  one  thousand  dollars,  or  imprisoned  not  more  than  one 
year,  or  both. 

Corporations,  Etc.,  Not  to  Contribute  Money  for  Political  Elections, 
Etc. 
Sec.  83.  It  shall  be  unlawful  for  any  national  bank,  or  any  cor- 
poration organized  by  authority  of  any  law  of  Congress,  to  make  a 
money  contribution  in  connection  with  any  election  to  any  political 
office.  It  shall  also  be  unlawful  for  any  corporation  whatever  to  make 
a  money  contribution  in  connection  with  any  election  at  which  Presi- 
dential and  Vice-Presidential  electors  or  a  Representative  in  Congress 
is  to  be  voted  for,  or  any  election  by  any  State  Legislature  of  a  United 
States  Senator.  Every  corporation  which  shall  make  any  contribu- 
tion in  violation  of  the  foregoing  provisions  shall  be  fined  not  more 
than  five  thousand  dollars ;  and  every  officer  or  director  of  any  cor- 
poration  who   shall  consent  to  any  contribution  by  the   corporation   in 


Criminal  Code  717 

violation  of  the  foregoing  provisions  shall  be  fined  not  more  than  one 
thousand  dollars,  or  imprisoned  not  more  than  one  year,  or  both. 

Hunting  Birds,  or  Taking  Their  Eggs  From  Breeding  Grounds  Pro- 
hibited. 

Sec.  84.  Whoever  shall  hunt,  trap,  capture,  willfully  disturb,  or 
kill  any  bird  of  any  kind  whatever,  or  take  the  eggs  of  any  such  bird, 
on  any  lands  of  the  United  States  which  have  been  set  apart  or  re- 
served as  breeding  grounds  for  birds,  by  any  law,  proclamation,  or 
Executive  order,  except  under  such  rules  and  regulations  as  the  Sec- 
retary of  Agriculture  may,  from  time  to  time,  prescribe,  shall  be  fined 
not  more  than  five  hundred  dollars,  or  imprisoned  not  more  than  six 
months,  or  both. 

CHAPTER  FIVE. 

Offenses  Relating  to  Official  Duties. 

Officers,  Etc.,  of  the  United  States  Guilty  of  Extortion. 

Sec.  85.  Every  ofHcer,  clerk,  agent,  or  employee  of  the  United 
States,  and  every  person  representing  himself  to  be  or  assuming  to  act 
as  such  officer,  clerk,  agent,  or  employee,  who,  under  color  of  his  office, 
clerkship,  agency,  or  employment,  or  under  color  of  his  pretended  or 
assumed  office,  clerkship,  agency,  or  employment,  is  guilty  of  extor- 
tion, and  every  person  who  shall  attempt  any  act  which  if  performed 
wlould  make  him  guilty  of  extortion,  shall  be  fined  not  more  than  five 
hundred  dollars,  or  imprisoned  not  more  than  one  year,  or  both. 

Receipting  for  Larger  Sums  Than  are  Paid, 

Sec.  86.  Whoever,  being  an  officer,  clerk,  agent,  employee,  or 
other  person  charged  with  the  payment  of  any  appropriation  made  by 
Congress,  shall  pay  to  any  clerk  or  other  employee  of  the  United  States 
a  sum  less  than  that  provided  by  law,  and  require  such  employee  to 
receipt  or  give  a  voucher  for  an  amount  greater  than  that  actually 
paid  to  and  received  by  him,  is  guilty  of  embezzlement,  and  shall  be 
fined  in  double  the  amount  so  withheld  from  any  employee  of  the 
Government  and  imprisoned  not  more  than  two  years. 

Disbursing  Officer  Unlawfully  Converting,  Etc.,  Public  Money. 

Sec.  87.  Whoever,  being  a  disbursing  officer  of  the  United  States, 
or  a  person  acting  as  such,  shall  in  any  manner  convert  to  his  own  use, 
or  loan  with  or  without  interest,  or  deposit  in  any  place  or  in  any 
manner,  except  as  authorized  by  law,  any  public  money  intrusted  to 
him ;  or  shall,  for  any  purpose  not  prescribed  by  law,  withdraw  from 
the  Treasurer  or  any  assistant  treasurer,  or  any  authorized  depositary, 
or  transfer,  or  apply,  any  portion  of  the  public  money  intrusted  to  him, 
shall  be  deemed  guilty  of  an  embezzlement  of  the  money  so  converted, 
loaned,  deposited,  withdrawn,  transferred,  or  applied,  and  shall  be  fined 
not  more  than  the  amount  embezzled,  or  imprisoned  not  more  than 
ten  years,  or  both. 


718  Important  Federal  Laws 

Failure  of  Treasurer  to  Safely  Keep  Public  Moneys. 

Sec.  88.  If  the  Treasurer  of  the  United  States  or  any  assistant 
treasurer,  or  any  public  depositary,  fails  safely  to  keep  all  moneys 
deposited  by  any  disbursing  officer  or  disbursing  agent,  as  well  as  all 
moneys  deposited  by  any  receiver,  collector,  or  other  person  having 
money  of  the  United  States,  he  shall  be  deemed  guilty  of  embezzle- 
ment of  the  moneys  not  so  safely  kept,  and  shall  be  fined  in  a  sum 
equal  to  the  amount  of  money  so  embezzled  and  imprisoned  not  more 
than  ten  years. 

Custodians  of  Public  Money  Failing  to  Safely  Keep,  Etc. 

Sec.  89.  Every  officer  or  other  person  charged  by  any  act  of  Con- 
gress with  the  safe-keeping  of  the  public  moneys,  who  shall  loan,  use, 
or  convert  to  his  own  use,  or  shall  deposit  in  any  bank  or  exchange 
for  other  funds,  except  as  specially  allowed  by  law,  any  portion  of 
the  pul)lic  moneys  intrusted  to  him  for  safe-keeping,  shall  be  guilty  of 
embezzlement  of  the  money  so  loaned,  used,  converted,  deposited,  or 
exchanged,  and  shall  be  fined  in  a  sum  equal  to  the  amount  of  money 
so  embezzled  and  imprisoned  not  more  than  ten  years. 

Failure  of  Officer  to  Render  Accounts,  Etc. 

Sec.  90.  Every  officer  or  agent  of  the  United  States  who,  having 
received  public  money  which  he  is  not  authorized  to  retain  as  salary, 
pay,  or  emolument,  fails  to  render  his  accounts  for  the  same  as  pro- 
vided by  law  shall  be  deemed  guilty  of  embezzlement,  and  shall  be 
fined  in  a  sum  equal  to  the  amount  of  money  embezzled  and  impris- 
oned not  more  than  ten  years. 

Failure  to  Deposit  as  Required. 

Sec.  91.  Whoever,  having  money  of  the  United  States  in  his  pos- 
session or  under  his  control,  shall  fail  to  deposit  it  with  the  Treasurer, 
or  some  assistant  treasurer,  or  some  public  depositary  of  the  United 
States,  when  required  so  to  do  by  the  Secretary  of  the  Treasury, 
or  the  head  of  any  other  proper  department,  or  by  the  accounting 
officers  of  the  Treasury,  shall  be  deemed  guilty  of  embezzlement  there- 
of, and  shall  be  fined  in  a  sum  equal  to  the  amount  of  money  em- 
bezzled and  imprisoned  not  more  than  ten  years. 

Provisions  of  the  Five  Preceding  Sections,  How  Applied. 

Sec.  92.  The  provisions  of  the  five  preceding  sections  shall  be 
construed  to  apply  to  all  persons  charged  with  the  safe-keeping,  trans- 
fer, or  disbursement  of  the  public  money,  whether  such  persons  be 
indicted  as  receivers  or  depositaries  of  the  same. 

Record  Evidence  of  Embezzlement. 

Sec.  93.  Upon  the  trial  of  any  indictment  against  any  person  for 
embezzling  public  money  under  any  provision  of  the  six  preceding 
sections,  it  shall  be  sufficient  evidence,  prima  facie,  for  the  purpose  of 
showing  a  balance  against  such  person,   to  produce  a   transcript   from 


Criminal  Code  719 

the  books  and  proceedings  of  the  Treasury,  as  required  in  civil  cases, 
under  the  provisions  for  the  settlement  of  accounts  between  the  United 
States  and   receivers  of  public  money. 

Prima  Facie  Evidence. 

Sec.  94.  The  refusal  of  any  person,  whether  in  or  out  of  office, 
charg-ed  with  the  safe-keeping,  transfer,  or  disbursement  of  the  public 
money  to  pay  any  draft,  order,  or  warrant,  drawn  upon  him  by  the 
proper  accounting  officer  of  the  Treasury,  for  any  public  money  in  his 
hands  belonging  to  the  United  States,  no  matter  in  what  capacity 
the  same  may  have  been  received,  or  may  be  held,  or  to  transfer  or  dis- 
burse any  such  money,  promptly,  upon  the  legal  requirement  of  any 
authorized  officer,  shall  be  deemed,  upon  the  trial  of  any  indictment 
against  such  person  for  embezzlement,  prima  facie  evidence  of  such 
embezzlement. 

Evidence  of  Conversion. 

Sec.  95.  If  any  officer  charged  with  the  disbursement  of  the  public 
moneys  accepts,  receives,  or  transmits  to  the  Treasury  Department  to 
be  allowed  in  his  favor  any  receipt  or  voucher  from  a  creditor  of  the 
United  States  without  having  paid  to  such  creditor  in  such  funds  as  the 
officer  received  for  disbursement,  or  in  such  funds  as  he  may  be  author- 
ized by  law  to  take  in  exchange,  the  full  amount  specified  in  such  receipt 
or  voucher,  every  such  act  is  an  act  of  conversion  by  such  officer  to  his 
own  use  of  the  amount  specified  in  such  receipt  or  voucher. 

Banker,  Etc.,  Receiving  Deposit  From  Disbursing  OfBcer. 

Sec.  96.  Every  banker,  broker,  or  other  person  not  an  authorized 
depositary  of  public  moneys,  who  shall  knowingly  receive  from  any 
disbursing  officer,  or  collector  of  internal  revenue,  or  other  agent  of 
the  United  States,  any  public  money  on  deposit,  or  by  way  of  loan 
or  accommodation,  with  or  without  interest,  or  otherwise  than  in  pay- 
ment of  a  debt  against  the  United  States,  or  shall  use,  transfer,  con- 
vert, appropriate,  or  apply  any  portion  of  the  public  money  for  any 
purpose  not  prescribed  by  law ;  and  every  president,  cashier,  teller, 
director,  or  other  officer  of  any  bank  or  banking  association  who  shall 
violate  any  provision  of  this  section  is  guilty  of  embezzlement  of  the 
public  money  so  deposited,  loaned,  transferred,  used,  converted,  appro- 
priated, or  applied,  and  shall  be  fined  not  more  than  the  amount  embez- 
zled, or  imprisoned  not  more  than  ten  years,  or  both. 

Embezzlement   by   Internal-Revenue    Officers,   Etc. 

Sec.  97.  Any  officer  connected  with,  or  employed  in,  the  Internal 
Revenue  Service  of  the  United  States,  and  any  assistant  of  such  officer, 
who  shall  embezzle  or  wrongfully  convert  to  his  own  use  any  money 
or  other  property  of  the  United  States,  and  any  officer  of  the  United 
States,  or  any  assistant  of  such  officer,  who  shall  embezzle  or  wrong- 
fully convert  to  his  own  use  any  money  or  property  which  may  have 


720  Important  Federal  Laws 

come  into  his  possession  or  under  his  control  in  the  execution  of  such 
office  or  employment,  or  under  color  or  claim  of  authority  as  such 
officer  or  assistant,  whether  the  same  shall  be  the  money  or  property  of 
the  United  States  or  of  some  other  person  or  party,  shall,  where  the 
offense  is  not  otherwise  punishable  by  some  statute  of  the  United  States, 
be  fined  not  more  than  the  value  of  the  money  and  property  thus 
embezzled  or  converted,  or  imprisoned  not  more  than  ten  years,  or  both. 

Officer   Contracting   Beyond   Specific   Appropriation. 

Sec.  98.  Whoever,  being  an  officer  of  the  United  States,  shall 
knowingly  contract  for  the  erection,  repair,  or  furnishing  of  any  public 
building,  or  for  any  public  improvement,  to  pay  a  larger  amount  than 
the  specific  sum  appropriated  for  such  purpose,  shall  be  fined  not  more 
than  two  thousand  dollars  and  imprisoned  not  more  than  two  years. 

Officer  of  United  States  Court  Failing  to  Deposit  Moneys,  Etc. 

Sec.  99.  Whoever,  being  a  clerk  or  other  officer  of  a  court  of  the 
United  States,  shall  fail  forthwith  to  deposit  any  money  belonging  in 
the  registry  of  the  court,  or  hereafter  paid  into  court  or  received  by 
the  officers  thereof,  with  the  Treasurer,  assistant  treasurer,  or  a  des- 
ignated depositary  of  the  United  States,  in  the  name  and  to  the  credit 
of  such  court,  or  shall  retain  or  convert  to  his  own  use  or  to  the 
use  of  another  any  such  money,  is  guilty  of  embezzlement,  and  shall 
be  fined  not  more  than  the  amount  embezzled,  or  imprisoned  not  more 
than  ten  years,  or  both ;  but  nothing  herein  shall  be  held  to  prevent 
the  delivery  of  any  such  money  upon  security,  according  to  agreement 
of  parties,  under  the  direction  of  the  court. 

Receiving  Loan  or  Deposit  From  Officer  of  Court. 

Sec.  100.  Whoever  shall  knowingly  receive,  from  a  clerk  or  other 
officer  of  a  court  of  the  United  States,  as  a  deposit,  loan,  or  otherwise, 
any  money  belonging  in  the  registry  of  such  court,  is  guilty  of 
embezzlement,  and  shall  be  punished  as  prescribed  in  the  preceding 
section. 

Failure  to  Make  Returns  or  Reports. 

Sec.  101.  Every  officer  who  neglects  or  refuses  to  make  any  return 
or  report  which  he  is  required  to  make  at  stated  times  by  any  act  of 
Congress  or  regulation  of  the  Department  of  the  Treasury,  other  than 
his  accounts,  within  the  time  prescribed  by  such  act  or  regulation, 
shall  be  fined  not  more  than  one  thousand  dollars. 

Aiding  in  Trading  in  Obscene  Literature,  Etc. 

Sec.  102.  Whoever,  being  an  officer,  agent,  or  employee  of  the 
Government  of  the  United  States  shall  knowingly  aid  or  abet  any  person 
engaged  in  violating  any  provision  of  law  prohibiting,  importing,  adver- 
tising, dealing  in,  exhibiting,  or  send  or  receiving  by  mail,  obscene 
or  indecent  publications,  or  representations,  or  means  for  preventing 
conception  or  producing  abortion,   or  other  article   of  indecent  or   im- 


Criminal  Code  721 

moral  use  or  tendency,  shall  be  fined  not  more  than  five  thousand  dol- 
lars, or  hnprisoned  not  more  than  ten  years,  or  both. 

Collecting   and    Disbursing    Officers   Forbidden   to    Trade   in   Public 
Funds,  Etc. 

Sec.  103.  Whoever,  being  an  officer  of  the  United  States  con- 
cerned in  the  collection  or  the  disbursement  of  the  revenues  thereof, 
shall  carry  on  any  trade  or  business  in  the  funds  or  debts  of  the  United 
States,  or  of  any  State,  or  in  any  public  property  of  either,  shall  be 
fined  not  more  than  three  thousand  dollars,  or  imprisoned  not  more 
than  one  year,  or  both,  and  be  removed  from  office,  and  thereafter  be 
incapable  of  holding  any  office  under  the  United  States. 

Certain  Officers  Forbidden  to  Purchase,  Etc.,  Witness,  Etc.,  Fees. 

Sec.  104.  Whoever,  being  a  judge,  clerk,  or  deputy  clerk  of  any 
court  of  the  United  States,  or  of  any  Territory  thereof,  or  a  United 
States  district  attorney,  assistant  attorney,  marshal,  deputy  marshal, 
commissioner,  or  other  person  holding  any  office  or  employment,  or 
position  of  trust  or  profit  under  the  Government  of  the  United  States 
shall,  either  directly  or  indirectly,  purchase  at  less  than  the  full  face 
value  thereof,  any  claim  against  the  United  States  for  the  fee,  mileage, 
or  expenses  of  any  witness,  juror,  deputy  marshal,  or  any  other  officer 
of  the  court  whatsoever,  shall  be  fined  not  more  than  one  thousand 
dollars. 

Falsely  Certifying,  Etc.,  as  to  Record  of  Deeds. 

Sec.  105.  Whoever,  being  an  officer  or  other  person  authorized  by 
any  law  of  the  United  States  to  record  a  conveyance  of  real  property  or 
any  other  instrument  which  by  such  law  may  be  recorded,  shall  know- 
ingly certify  falsely  that  such  conveyance  or  instrument  has  or  has  not 
been  recorded,  shall  be  fined  not  more  than  one  thousand  dollars,  or 
imprisoned  not  more  than  seven  years,  or  both. 

Other  False  Certificates. 

Sec.  106.  Whoever,  being  a  public  officer  or  other  person  author- 
ized by  any  law  of  the  United  States  to  make  or  give  a  certificate  or 
other  writing,  shall  knowingly  make  and  deliver  as  true  such  a  certifi- 
cate or  writing,  containing  any  statement  which  he  knows  to  be  false, 
in  a  case  where  the  punishment  thereof  is  not  elsewhere  expressly  pro- 
vided by  law,  shall  be  fined  not  more  than  five  hundred  dollars,  or 
imprisoned  not  more  than  one  year,  or  both. 

Inspector  of  Steamboats  Receiving  Illegal  Fees. 

Sec.  107.  Every  inspector  of  steamboats  who,  upon  any  pretense, 
receives  any  fee  or  reward  for  his  services,  except  what  is  allowed 
to  him  by  law,  shall  forfeit  his  office,  and  be  fined  not  more  than  five 
hundred  dollars,  or  imprisoned  not  more  than  six  months,  or  both. 

Pension  Agent  Taking  Fee,  Etc. 

Sec.   108.     Every  pension  agent,  or  other  person  employed  or  ap- 
(46) 


722  Important  Federal  Laws 

pointed  by  him,  who  takes,  receives,  or  demands  any  fee  or  reward 
from  any  pensioner  for  any  service  in  connection  with  the  payment  of 
his  pension,  shall  be  fined  not  more  than  five  hundred  dollars. 

Officer  Not  to  be  Interested  in  Claims  Against  United  States. 

Sec.  109.  Whoever,  being  an  officer  of  the  United  States,  or_  a 
person  holding  any  place  of  trust  or  profit,  or  discharging  any  official 
function  under,  or  in  connection  with,  any  Executive  Department  of 
the  Government  of  the  United  States,  or  under  the  Senate  or  House  of 
Representatives  of  the  United  States,  shall  act  as  an  agent  or  attorney 
for  prosecuting  any  claim  against  the  United  States,  or  in  any  manner, 
or  by  any  means,  otherwise  than  in  discharge  of  his  proper  official 
duties,  shall  aid  or  assist  in  the  prosecution  or  support  of  any  such 
claim,  or  receive  any  gratuity,  or  any  share  of  or  interest  in  any  claim 
from  any  claimant  against  the  United  States,  with  intent  to  aid  or  assist, 
or  in  consideration  of  having  aided  or  assisted,  in  the  prosecution  of 
such  claim,  shall  be  fined  not  more  than  five  thousand  dollars,  or  im- 
prisoned not  more  than  one  year,  or  both. 

Member  of  Congress,  Etc.,  Soliciting  or  Accepting  Bribe. 

Sec.  110.  Whoever,  being  elected  or  appointed  a  ^lember  of  or 
Delegate  to  Congress,  or  a  Resident  Commissioner  shall,  after  his 
election  or  appointment,  and  either  before  or  after  he  has  qualified, 
and  during  his  continuance  in  office,  directly  or  indirectly,  ask,  accept, 
receive,  or  agree  to  receive,  any  money,  property,  or  other  valuable 
consideration,  or  any  promise,  contract,  undertaking,  obligation,  gra- 
tuity, or  security  for  the  payment  of  money  or  for  the  delivery  or 
conveyance  of  anything  of  value  to  him  or  to  any  person  with  his  con- 
sent, connivance,  or  concurrence,  for  his  attention  to.  or  services,  or 
with  the  intent  to  have  his  action,  vote,  or  decision  influenced  on  any 
question,  matter,  cause,  or  proceeding,  which  may  at  any  time  be  pend- 
ing in  either  House  of  Congress  or  before  any  committee  thereof,  or 
which  by  law  or  under  the  Constitution  may  be  brought  before  him 
in  his  official  capacity,  or  in  his  place  as  such  Member,  Delegate,  or 
Resident  Commissioner,  shall  be  fined  not  more  than  three  times  the 
amount  asked,  accepted,  or  received,  and  imprisoned  not  more  than 
three  years ;  and  shall,  moreover,  forfeit  his  office  or  place,  and  there- 
after be  forever  disqualified  from  holding  any  office  of  honor,  trust, 
or  profit  under  the  Government  of  the  United  States. 

Offering,  Etc.,  Member  of  Congress  Bribe,  Etc. 

Sec.  111.  Whoever  shall  promise,  offer,  or  give,  or  cause  to  be 
promised,  offered,  or  given,  any  money  or  other  thing  of  value,  or 
shall  make  or  tender  any  contract,  undertaking,  obligation,  gratuity, 
or  security  for  the  payment  of  money  or  for  the  delivery  or  convey- 
ance of  anything  of  value,  to  any  Member  of  either  House  of  Congress, 
or  Delegate  to  Congress,  or  Resident  Commissioner,  after  his  election 


Criminal  Code  723 

or  appointment  and  either  before  or  after  he  has  quaHfied,  and  during 
his  continuance  in  office,  or  to  any  person  with  his  consent,  conniv- 
ance, or  concurrence,  with  intent  to  influence  his  action,  vote,  or  deci- 
sion, on  any  question,  matter,  cause,  or  proceeding  which  may  at  any 
time  be  pending  in  either  House  of  Congress,  or  before  any  committee 
thereof,  or  which  by  law  or  under  the  Constitution  may  be  brought 
before  him  in  his  official  capacity  or  in  his  place  as  such  Member,  Dele- 
gate, or  Resident  Commissioner,  shall  be  fined  not  more  than  three 
times  the  amount  of  money  or  value  of  the  thing  so  promised,  offered, 
given,  made,  or  tendered,  and  imprisoned  not  more  than  three  years. 

Member  of  Congress  Taking  Consideration  for  Procuring  Contracts, 
Offices,  Etc.;  Offering  Member  Consideration,  Etc. 
Sec.  112.  Whoever,  being  elected  or  appointed  a  Member  of  or 
Delegate  to  Congress,  or  a  Resident  Commissioner,  shall,  after  his 
election  or  appointment  and  either  before  or  after  he  has  qualified  and 
during  his  continuance  in  office,  or  being  an  officer  or  agent  of  the 
United  States,  shall  directly  or  indirectly  take,  receive,  or  agree  to  re- 
ceive, from  any  person,  any  money,  property,  or  other  valuable  consid- 
eration Avhatever,  for  procuring,  or  aiding  to  procure,  any  contract, 
appointive  office,  or  place  from  the  United  States  or  from  any  officer 
or  department  thereof,  for  any  person  whatever,  or  for  giving  away 
such  contract,^  appointive  office,  or  place  to  any  person  whomsoever ; 
or  whoever,  directly  or  indirectly,  shall  offer,  or  agree  to  give,  or  shall 
give,  or  bestow,  any  money,  property,  or  other  valuable  consideration 
whatever,  for  the  procuring,  or  aiding  to  procure,  any  such  contract, 
appointive  office,  or  place,  shall  be  fined  not  more  than  ten  thousand 
dollars  and  imprisoned  not  more  than  two  years  ;  and  shall,  moreover, 
be  disqualified  from  holding  any  office  of  honor,  profit,  or  trust  under 
the  Government  of  the  United  States.  Any  such  contract  or  agree- 
ment may,  at  the  option  of  the  President,  be  declared  void. 

Member  of  Congress  Taking  Compensation  in  Matters  to  Which 
United  States  is  a  Party. 
Sec.  113.  Whoever,  being  elected  or  appointed  a  Senator,  Mem- 
ber of_  or  Delegate  to  Congress,  or  a  Resident  Commissioner,  shall 
after  his  election  or  appointment  and  either  before  or  after  he  has  qual- 
ified, and  during  his  continuance  in  office,  or  being  the  head  of  a  depart- 
ment, or  other  officer  or  clerk  in  the  employ  of  the  United  States, 
shall,  directly  or  indirectly,  receive,  or  agree  to  receive,  any  compen- 
sation whatever  for  any  services  rendered  or  to  be  rendered  to  any 
person,  either  by  himself  or  another,  in  relation  to  any  proceeding, 
contract,  claim,  controversy,  charge,  accusation,  arrest,  or  other  mat- 
ter or  thing  in  which  the  United  States  is  a  party  or  directlv  or  indi- 
rectly interested,  before  any  department,  court-martial,  bureau,  officer, 
or   any   civil,    military,    or   naval    commission    whatever,    shall    be   fined 


724  Important  Federal  Laws 

not  more  than  ten  thousand  dollars  and  imprisoned  not  more  than  two 
years;  and  shall,  moreover,  thereafter  be  incapable  of  holding  any  office 
of  honor,  trust,  or  profit  under  the  Government  of  the  United  States. 

Member  of  Congress  Not  to  be  Interested  in  Contract. 

Sec.  114.  Whoever,  being  elected  or  appointed  a  Member  of  or 
Delegate  to  Congress,  or  a  Resident  Commissioner,  shall,  after  his  elec- 
tion or  appointment  and  either  before  or  after  he  has  qualified,  and  dur- 
ing his  continuance  in  office,  directly  or  indirectly,  himself,  or  by  any 
other  person  in  trust  for  him,  or  for  his  use  or  benefit,  or  on  his  account, 
undertake,  execute,  hold,  or  enjoy,  in  whole  or  in  part,  any  contract  or 
agreement,  made  or  entered  into  in  behalf  of  the  United  States  by  any 
officer  or  person  authorized  to  make  contracts  on  its  behalf,  shall  be 
fined  not  more  than  three  thousand  dollars.  All  contracts  or  agree- 
ments made  in  violation  of  this  section  shall  be  void ;  and  whenever 
any  sum  of  money  is  advanced  by  the  United  States,  in  consideration 
of  any  such  contract  or  agreement,  it  shall  forthwith  be  repaid ;  and 
in  case  of  failure  or  refusal  to  repay  the  same  when  demanded  by  the 
proper  officer  of  the  Department  under  whose  authority  such  contract 
or  agreement  shall  have  been  made  or  entered  into,  suit  shall  at  once  be 
brought  against  the  person  so  failing  or  refusing  and  his  sureties,  for 
the  recovery  of  the  money  so  advanced. 

Officer  Making  Contract  With  Member  of  Congress. 

Sec.  115.  Whoever,  being  an  officer  of  the  United  States,  shall 
on  behalf  of  the  United  States,  directly  or  indirectly  make  or  enter 
into  any  contract,  bargain,  or  agreement,  in  writing  or  otherwise,  with 
any  Member  of  or  Delegate  to  Congress,  or  any  Resident  Commis- 
sioner, after  his  election  or  appointment  as  such  Member.  Delegate,  or 
Resident  Commissioner,  and  either  before  or  after  he  has  qualified, 
and  during  his  continuance  in  office,  shall  be  fined  not  more  than  three 
thousand  dollars. 

Contracts  to  Which  Two  Preceding  Sections  do  Not  Apply. 

Sec.  116.  Nothing  contained  in  the  two  preceding  sections  shall 
extend,  or  be  construed  to  extend,  to  any  contract  or  agreement  made 
or  entered  into,  or  accepted,  by  any  incorporated  company,  where  such 
contract  or  agreement  is  made  for  the  general  benefit  of  such  incor- 
poration or  company ;  nor  to  the  purchase  or  sale  of  bills  of  exchange 
or  other  property  by  any  Member  of  or  Delegate  to  Congress,  or  Resi- 
dent Commissioner,  where  the  same  are  ready  for  delivery,  and  pay- 
ment therefor  is  made,  at  the  time  of  making  or  entering  into  the  con- 
tract or  agreement. 

United  States  Officer  Accepting  Bribe. 

Sec.  117.  Whoever,  being  an  officer  of  the  United  States,  or  a 
person  acting  for  or  on  behalf  of  the  United  States,  in  any  official 
capacity,  under  or  by  virtue  of  the  authority  of  any  department  or  office 


Criminal  Code  725 

of  the  Government  thereof ;  or  whoever,  being  an  officer  or  person  act 
ing  for  or  on  behalf  of  either  House  of  Congress,  or  of  any  committee 
of  either  House,  or  of  both  Houses  thereof,  shall  ask,  accept,  or  receive 
any  monev,  or  any  contract,  promise,  undertaking,  obligation,  gratuity, 
or  security  for  the  payment  of  money,  or  for  the  delivery  or  convey- 
ance of  anything  of  value,  with  intent  to  have  his  decision  or  action  on 
any  question,  matter,  cause,  or  proceeding  which  may  at  any  time  be 
pending,  or  which  may  by  law  be  brought  before  him  in  his  official 
capacitv.  or  in  his  place  of  trust  or  profit,  influenced  thereby,  shall  be 
fined  not  more  than  three  times  the  amount  of  money  or  value  of  the 
thing  so  asked,  accepted,  or  received,  and  imprisoned  not  more  than 
three  years;  and  shall,  moreover,  forfeit  his  office  or  place  and  there- 
after be  forever  disqualified  from  holding  any  office  of  honor,  trust, 
or  profit  under  the  Government  of  the  United  States. 

Political  Contributions  Not  to  be  Solicited  by  Certain  Officers. 

Sec.  118.  No  Senator  or  Representative  in.  or  Delegate  or  Resi- 
dent Commissioner  to  Congress,  or  Senator,  Representative.  Delegate, 
or  Resident  Commissioner  elect,  or  officer  or  employee  of  either  House 
of  Congress,  and  no  executive,  judicial,  military,  or  naval  officer  of 
the  United  States,  and  no  clerk  or  employee  of  any  department,  branch, 
or  bureau  of  the  executive,  judicial,  or  military  or  naval  service  of  the 
United  States,  shall,  directly  or  indirectly,  solicit  or  receive,  or  be  in 
any  manner  concerned  in  soliciting  or  receiving,  any  assessment,  sub- 
scription, or  contribution  for  any  political  purpose  whatever,  from  any 
officer,  clerk,  or  emplovee  of  the  United  States,  or  any  department, 
branch,  or  bureau  thereof,  or  from  any  person  receiving  any  salary 
or  compensation  from  moneys  derived  from  the  Treasury  of  the  United 
States. 

Political  Contributions  Not  to  be  Received  in  Public  Offices. 

Sec.  119.  No  person  shall,  in  any  room  or  building  occupied  in 
the  discharge  of  official  duties  by  any  officer  or  employee  of  the  United 
States  mentioned  in  the  preceding  section,  or  in  any  navy-yard.  fort. 
or  arsenal,  solicit  in  any  manner  whatever  or  receive  any  contribution 
of  money  or  other  thing  of  value  for  any  political  purpose  whatever. 

Immunity  From  Official  Proscription,  Etc. 

Sec.  120.  No  officer  or  employee  of  the  United  States  mentioned 
in  section  one  hundred  and  eighteen,  shall  discharge,  or  promote,  or 
degrade,  or  in  any  manner  change  the  official  rank  or  compensation  of 
any  other  officer  or  employee,  or  promise  or  threaten  so  to  do,  for 
giving  or  Avithholding  or  neglecting  to  make  any  contribution  of  money 
or  other  valuable  thing  for  any  political  purpose. 

Giving  Money,  Etc.,  to  Officials  for  Political  Purposes  Prohibited. 

Sec.  121.  No  officer,  clerk,  or  other  person  in  the  service  of  the 
United   States   shall,   directly   or   indirectly,   give   or   hand   over   to   any 


726  Important  Federal  Laws 

other  officer,  clerk,  or  person  in  the  service  of  the  United  States,  or 
to  any  Senator  or  Member  of  or  Delegate  to  Congress,  or  Resident 
Commissioner,  any  money  or  other  valuable  thing  on  account  of  or  to 
be  applied  to  the  promotion  of  any  political  object  whatever. 

Penalty  for  Violating  Provisions  of  Four  Preceding  Sections. 

Sec.  122.  Whoever  shall  violate  any  provision  of  the  four  preced- 
ing sections  shall  be  fined  not  more  than  five  thousand  dollars,  or  im- 
prisoned not  more  than  three  years,  or  both. 

Government  Officer,  Etc.,  Giving  Out  Advance  Information  Respect- 
ing Crop  Reports. 

Sec.  123.  Whoever,  being  an  officer  or  employee  of  the  United 
States  or  a  person  acting  for  or  on  behalf  of  the  United  States  in  any 
capacity  under  or  by  virtue  of  the  authority  of  any  department  or 
ofiice  thereof,  and  while  holding  such  office,  employment,  or  position 
shall,  by  virtue  of  the  office,  employment,  or  position  held  by  him, 
become  possessed  of  any  information  which  might  exert  an  influence 
upon  or  affect  the  market  value  of  any  product  of  the  soil  grown 
within  the  United  States,  which  information  is  by  law  or  by  the  rules 
of  the  Department  or  office  required  to  be  withheld  from  publication 
until  a  fixed  time,  and  shall  willfully  impart,  directly  or  indirectly,  such 
information,  or  any  part  thereof,  to  any  person  not  entitled  under  the 
law  or  the  rules  of  the  Department  or  office  to  receive  the  same ;  or 
shall,  before  such  information  is  made  public  through  regular  official 
channels,  directly  or  indirectly  speculate  in  any  such  product  respecting 
which  he  has  thus  become  possessed  of  such  information,  by  buying  or 
selling  the  same  in  any  quantity,  shall  be  fined  not  more  than  ten 
thousand  dollars,  or  imprisoned  not  more  than  ten  years,  or  both: 
Provided,  That  no  person  shall  be  deemed  guilty  of  a  violation  of  any 
such  rule,  unless  prior  to  such  alleged  violation  he  shall  have  had  actual 
knowledge  thereof. 

^Government  Officer,  Etc.,  Knowingly  Compiling  or  Issuing  False 
Statistics  Respecting  Crops. 
Sec.  124.  Whoever,  being  an  officer  or  employee  of  the  United 
States,  and  whose  duties  require  the  compilation  or  report  of  statistics 
or  information  relative  to  the  products  of  the  soil,  shall  knowingly 
compile  for  issuance,  or  issue,  any  false  statistics  or  information  as  a 
report  of  the  United  States,  shall  be  fined  not  more  than  five  thousand 
dollars,  or  imprisoned  not  more  than  five  years,  or  both. 

CHAPTER  VI. 

Offenses  Against  Public  Justice. 

Perjury. 

Sec.  125.  Whoever,  having  taken  an  oath  before  a  competent  tri- 
bunal,  officer,   or   person,   in   any   case   in   which   a   law   of   the   United 


Criminal  Code  727 

States  authorizes  an  oath  to  be  administered,  that  he  will  testify, 
declare,  depose,  or  certify  truly,  or  that  any  written  testimony,  declara- 
tion, deposition,  or  certificate  by  him  subscribed,  is  true,  shall  will- 
fully and  contrary  to  such  state  or  subscribe  any  material  matter  which 
he  does  not  believe  to  be  true,  is  guilty  of  perjury  and  shall  be  fined 
not  more  than  two  thousand  dollars  and  imprisoned  not  more  than  five 
years. 
Subornation  of  Perjury. 

Sec.   126.     Whoever  shall  procure  another  to  commit  any  perjury 
is  guilty  of  subornation  of  perjury,   and  punishable  as  in  the  preced- 
ing section  prescribed. 
Stealing  or  Altering  Process ;  Procuring  False  Bail,  Etc. 

Sec.  127.  Whoever  shall  feloniously  steal,  take  away,  alter,  fal- 
sify, or  otherwise  avoid  any  record,  writ,  process,  or  other  proceeding, 
in  any  court  of  the  United  States,  by  means  whereof  any  judgment  is 
reversed,  made  void,  or  does  not  take  efifect ;  or  whoever  shall  acknowl- 
edge, or  procure  to  be  acknowledged,  in  any  such  court,  any  recogni- 
zance, bail,  or  judgment,  in  the  name  of  any  other  person  not  privy  or 
consenting  to  the  same,  shall  be  fined  not  more  than  five  thousand  dol- 
lars, or  imprisoned  not  more  than  seven  years,  or  both ;  but  this  pro- 
vision shall  not  extend  to  the  acknowledgment  of  any  judgment  by  an 
attorney,  duly  admitted,  for  any  person  against  whom  such  judgment 
is  had  or  given. 
Destroying,  Etc.,  Public  Records. 

Sec.  128.  Whoever  shall  willfully  and  unlawfully  conceal,  remove, 
mutilate,  obliterate,  or  destrov,  or  attempt  to  conceal,  remove,  mutilate, 
obliterate,  or  destroy,  or,  with  intent  to  conceal,  remove,  mutilate,  oblit- 
erate, destroy,  or  steal,  shall  take  and  carry  away  any  record,  proceed- 
ing, map,  book,  paper,  document,  or  other  thing,  filed  or  deposited  with 
any  clerk  or  officer  of  any  court  of  the  United  States,  or  in  any  public 
office,  or  with  any  judicial  or  public  officer  of  the  United  States,  shall 
be  fined  not  more  than  two  thousand  dollars,  or  imprisoned  not  more 
than  three  years,  or  both. 

Destroying  Records  by  Officer  in  Charge. 

Sec.  129.  Whoever,  having  the  custody  of  anv  record,  proceeding, 
map,  book,  document,  paper,  or  other  thing  specified  in  the  preceding 
section,  shall  willfully  and  unlawfully  conceal,  remove,  mutilate,  oblit- 
erate, falsify,  or  destroy  any  such  record,  proceeding,  map,  book,  docu- 
ment, paper,  or  thing,  shall  be  fined  not  more  than  two  thousand  dol- 
lars, or  imprisoned  not  more  than  three  years,  or  both ;  and  shall  more- 
over forfeit  his  office  and  be  forever  afterward  disqualified  from  hold- 
ing any  office  under  the  Government  of  the  United  States. 

Forging  Signature  of  Judge,  Etc. 

Sec.    130.     Whoever  shall    forge  the  signature  of   any  judge,   reg- 
ister, or  other  officer  of  any  court  of  the  United  States,  or  of  any  Ter- 


728  Important  Federal  Laws 

ritory  thereof,  or  shall  forge  or  counterfeit  the  seal  of  any  such  court, 
or  shall  knowingly  concur  in  using  any  such  forged  or  counterfeit  sig- 
nature or  seal,  for  the  purpose  of  authenticating  any  proceeding  or 
document,  or  shall  tender  in  evidence  any  such  proceeding  or  document 
with  a  false  or  counterfeit  signature  of  any  such  judge,  register,  or 
other  officer,  or  a  false  or  counterfeit  seal  of  the  court,  subscribed  or 
attached  thereto,  knowing  such  signature  or  seal  to  be  false  or  counter- 
feit, shall  be  fined  not  more  than  five  thousand  dollars  and  imprisoned 
not  more  than  five  years. 

Bribery  of  a  Judge  or  Judicial  Officer. 

Sec.  131.  Whoever,  directly  or  indirectly,  shall  give  or  ofiter,  or 
cause  to  be  given  or  offered,  any  money,  property,  or  value  of  any  kind, 
or  any  promise  or  agreement  therefor,  or  any  other  bribe,  to  any  judge, 
judicial  officer,  or  other  person  authorized  by  any  law  of  the  United 
States  to  hear  or  determine  any  question,  matter,  cause,  proceeding,  or 
controversy,  with  intent  to  influence  his  action,  vote,  opinion,  or  de- 
cision thereon,  or  because  of  any  such  action,  vote,  opinion,  or  deci- 
sion, shall  be  fined  not  more  than  twenty  thousand  dollars,  or  impris- 
oned not  more  than  fifteen  years,  or  both;  and  shall  forever  be  dis- 
qualified to  hold  any  office  of  honor,  trust,  or  profit  under  the  United 
States. 

Judge  or  Judicial  Officer  Accepting  a  Bribe,  Etc. 

Sec.  132.  Whoever,  being  a  judge  of  the  United  States,  shall  in 
any  wise  accept  or  receive  any  sum  of  money,  or  other  bribe,  present, 
or  reward,  or  any  promise,  contract,  obligation,  gift,  or  security  for  the 
payment  of  money,  or  for  the  delivery  or  conveyance  of  anything  of 
value,  with  the  intent  to  be  influenced  thereby  in  any  opinion,  judg- 
ment, or  decree  in  any  suit,  controversy,  matter,  or  cause  depending 
before  him,  or  because  of  any  such  opinion,  ruling,  decision,  judgment, 
or  decree,  shall  be  fined  not  more  than  twenty  thousand  dollars,  or  im- 
prisoned not  more  than  fifteen  years,  or  both;  and  shall  be  forever  dis- 
qualified to  hold  any  office  of  honor,  trust,  or  profit  under  the  United 
States. 

Juror,    Referee,    Master,    Etc.,    or    Judicial    Officer,    Etc.,    Accepting 
Bribe. 

Sec.  133.  Whoever,  being  a  juror,  referee,  arbitrator,  appraiser, 
assessor,  auditor,  master,  receiver.  United  States  commissioner,  or  other 
person  authorized  by  any  law  of  the  United  States  to  hear  or  determine 
any  question,  matter,  cause,  controversy,  or  proceeding,  shall  ask,  re- 
ceive, or  agree  to  receive,  any  money,  property,  or  value  of  any  kind, 
or  any  promise  or  agreement  therefor,  upon  any  agreement  or  under- 
standing that  his  vote,  opinion,  action,  judgment  or  decision  shall  be 
influenced  thereby,  or  because  of  any  such  vote,  opinion,  action,  judg- 
ment, or  decision,  shall  be  fined  not  more  than  two  thousand  dollars,  or 
imprisoned  not  more  than  two  years,  or  both. 


Criminal  Code  729 

Witness  Accepting  Bribe. 

Sec.  134.  Whoever,  being,  or  about  to  be,  a  witness  upon  a  trial, 
hearing,  or  other  proceeding,  before  any  court  or  any  officer  author- 
ized by  the  laws  of  the  United  States  to  hear  evidence  or  take  testi- 
mony, shall  receive,  or  agree  or  offer  to  receive,  a  bribe,  upon  any 
agreement  or  understanding  that  his  testimony  shall  be  influenced 
thereby,  or  that  he  will  absent  himself  from  the  trial,  hearing,  or  other 
proceeding,  or  because  of  such  testimony,  or  such  absence,  shall  be  fined 
not  more  than  two  thousand  dollars,  or  imprisoned  not  more  than  two 
years,  or  both. 

Intimidation  or  Corruption  of  Witness,  or  Grand  or  Petit  Juror,  or 
Officer. 

Sec.  135.  Whoever  corruptly,  or  by  threats  or  force,  or  by  any 
threatening  letter  or  communication,  shall  endeavor  to  influence,  intim- 
idate, or  impede  any  witness,  in  any  court  of  the  United  States  or  be- 
fore any  United  States  commissioner  or  officer  acting  as  such  commis- 
sioner, or  any  grand  or  petit  juror,  or  officer  in  or  of  any  court  of  the 
United  States,  or  officer  who  may  be  serving  at  any  examination  or 
other  proceeding  before  any  United  States  commissioner  or  officer  act- 
ing as  such  commissioner,  in  the  discharge  of  his  duty,  or  who  corruptly 
or  by  threats  or  force,  or  by  any  threatening  letter  or  threatening  com- 
munication, shall  influence,  obstruct,  or  impede,  or  endeavor  to  influence, 
obstruct,  or  impede,  the  due  administration  of  justice  therein,  shall  be 
fined  not  more  than  one  thousand  dollars,  or  imprisoned  not  more  than 
one  year,  or  both. 

Conspiring  to  Intimidate  Party,  Witness,  or  Juror. 

Sec.  136.  If  two  or  more  persons  conspire  to  deter  by  force,  in- 
timidation, or  threat,  any  party  or  witness  in  any  court  of  the  United 
States,  or  in  any  examination  before  a  United  States  commissioner  or 
officer  acting  as  such  commissioner,  from  attending  such  court  or 
examination,  or  from  testifying  to  any  matter  pending  therein,  freely, 
fully,  and  truthfully,  or  to  injure  such  party  or  witness  in  his  person  or 
property  on  account  of  his  having  so  attended  or  testified,  or  to  influ- 
ence the  verdict,  presentment,  or  indictment  of  any  grand  or  petit  juror 
in  any  such  court,  or  to  injure  such  juror  in  his  person  or  property  on 
account  of  any  verdict,  presentment,  or  indictment  lawfully  assented  to 
by  him,  or  on  account  of  his  being  or  having  been  such  juror,  each  of 
such  persons  shall  be  fined  not  more  than  five  thousand  dollars,  or  im- 
prisoned not  more  than  six  years,  or  both. 

Attempt  to  Influence  Juror. 

Sec.  137.  Whoever  shall  attempt  to  influence  the  action  or  deci- 
ion  of  any  grand  or  petit  juror  of  any  court  of  the  United  States  upon 
any  issue  or  matter  pending  before  such  juror,  or  before  the  jury  of 
wliich  he  is  a  member,  or  pertaining  to  his  duties,  by  writing  or  sending 
to  him  any  letter  or  any  communication,  in  print  or  writing,  in  relation 


730  Important  Federal  Laws 

to  such  issue  or  matter,  shall  be  fined  not  more  than  one  thousand  dol- 
lars, or  imprisoned  not  more  than  six  months,  or  both. 

Allowing  Prisoner  to  Escape, 

Sec.  138.  Whenever  any  marshal,  deputy  marshal,  ministerial 
officer,  or  other  person  has  in  his  custody  any  prisoner  by  virtue  of 
process  issued  under  the  laws  of  the  United  States  by  any  court,  judge, 
or  commissioner,  and  such  marshal,  deputy  marshal,  ministerial  officer, 
or  other  person  voluntarily  suffers  such  prisoner  to  escape,  he  shall  be 
fined  not  more  than  two  thousand  dollars,  or  imprisoned  not  more  than 
two  years,  or  both. 

Application  of   Preceding   Section. 

Sec.  139.  The  preceding  section  shall  be  construed  to  apply  not 
only  to  cases  in  which  the  prisoner  who  escaped  was  charged  or  found 
guilty  of  an  offense  against  the  laws  of  the  United  States,  and  to  cases 
in  which  the  prisoner  may  be  in  custody  charged  with  ofifenses  against 
any  foreign  government  with  which  the  United  States  have  treaties  of 
extradition,  but  also  to  cases  in  which  the  prisoner  may  be  held  in 
custody  for  removal  to  or  from  the  Philippine  Islands  as  provided 
by  law. 

Obstructing  Process  or  Assaulting  Officer. 

Sec.  140.  Whoever  shall  knowingly  and  willfully  obstruct,  resist, 
or  oppose  any  officer  of  the  United  States,  or  other  person  duly  author- 
ized, in  serving,  or  attempting  to  serve  or  execute,  any  mesne  process 
or  warrant,  or  any  rule  or  order,  or  any  other  legal  or  judicial  writ  or 
process  of  any  court  of  the  United  States,  or  United  States  commis- 
sioner, or  shall  assault,  beat,  or  wound  any  officer  or  other  person  duly 
authorized,  knowing  him  to  be  such  officer,  or  other  person  so  duly 
authorized,  in  serving  or  executing  any  such  writ,  rule,  order,  process, 
warrant,  or  other  legal  or  judicial  writ  or  process,  shall  be  fined  not 
more  than  three  hundred  dollars  and  imprisoned  not  more  than  one 
year. 

Rescuing,  Etc.,  Prisoner;  Concealing,  Etc.,  Person  for  Whom  War- 
rant has  Issued. 
Sec.  141.  Whoever  shall  rescue  or  attempt  to  rescue,  from  the 
custody  of  any  officer  or  person  lawfully  assisting  him,  any  person  ar- 
rested upon  a  warrant  or  other  process  issued  under  the  provisions  of 
any  law  of  the  United  States,  or  shall,  directly  or  indirectly,  aid,  abet, 
or  assist  any  person  so  arrested  to  escape  from  the  custody  of  such 
officer  or  other  person,  or  shall  harbor  or  conceal  any  person  for  whose 
arrest  a  warrant  or  process  has  been  so  issued,  so  as  to  prevent  his  dis- 
covery and  arrest,  after  notice  or  knowledge  of  the  fact  that  a  warrant 
or  process  has  been  issued  for  the  apprehension  of  such  person,  shall 
be  fined  not  more  than  one  thousand  dollars,  or  imprisoned  not  more 
than  six  months,  or  both. 


Criminal  Code  731 

Rescue  at  Execution. 

Sec.  142.  Whoever,  by  force,  shall  set  at  liberty  or  rescue  any 
person  found  guilty  in  any  court  of  the  United  States  of  any  capital 
crime,  while  going  to  execution  or  during  execution,  shall  be  fined  not 
more  than  twenty-five  thousand  dollars  and  imprisoned  not  more  than 
twenty-five  years. 

Rescue  of  Prisoner. 

Sec.  143.  Whoever,  by  force,  shall  set  at  liberty  "or  rescue  any 
person  who,  before  conviction,  stands  committed  for  any  capital  crime ; 
or  whoever,  by  force,  shall  set  at  liberty  or  rescue  any  person  com- 
luitted  for  or  convicted  of  any  offense  other  than  capital,  shall  be  fined 
not  more  than  five  hundred  dollars  and  imprisoned  not  more  than  one 
year. 
Rescue  of  Body  of  Executed  Offender. 

Sec.  144.  Whoever,  by  force,  shall  rescue  or  attempt  to  rescue, 
from  the  custody  of  any  marshal  or  his  ofificers,  the  dead  body  of  an 
executed  offender,  while  it  is  being  conveyed  to  a  place  of  dissection, 
as  provided  by  section  three  hundred  and  thirty-one  thereof,  or  by 
force  shall  rescue  or  attempt  to  rescue  such  body  from  the  place  where 
it  has  been  deposited  for  dissection  in  pursuance  of  that  section,  shall 
be  fined  not  more  than  one  hundred  dollars,  or  imprisoned  not  more 
than  one  year,  or  both. 

Extortion  by  Internal-Revenue  Informers. 

Sec.  145.  Whoever  shall,  under  a  threat  of  informing,  or  as  a 
consideration  for  not  informing,  against  any  violation  of  any  law  of 
the  United  States,  demand  or  receive  any  money  or  other  valuable 
thing,  shall  be  fined  not  more  than  two  thousand  dollars,  or  imprisoned 
not  more  than  one  year,  or  both. 

Misprision  of  Felony. 

Sec.  146.  Whoever,  having  knowledge  of  the  actual  commission 
of  the  crime  of  m.urder  or  other  felony  cognizable  by  the  courts  of  the 
United  States,  conceals  and  does  not  as  soon  as  may  be  disclose  and 
make  known  the  same  to  some  one  of  the  judges  or  other  persons  in 
civil  or  military  authority  under  the  United  States,  shall  be  fined  not 
more  than  five  hundred  dollars,  or  imprisoned  not  more  than  three 
years,  or  both. 

CHAPTER  VII. 
Offenses  Against  the  Currency,  Coinage,  Etc. 

"Obligation  or  Other  Security  of  the  United  States"  Defined. 

Sec.  147.  The  words  "obligation  or  other  security  of  the  United 
States"  shall  be  held  to  mean  all  bonds,  certificates  of  indebtedness, 
national  bank  currency,  coupons,  United  States  notes,  Treasury  notes, 
gold  certificates,  silver  certificates,  fractional  notes,  certificates  of 
deposit,  bills,  checks,  or  drafts  for  money,  drawn  by  or  upon  authorized 


732  Important  Federal  Laws 

officers  of  the  United  States,  stamps  and  other  representatives  of  vakie, 
of  whatever  denomination,  which  have  been  or  may  be  issued  under 
any  act  of  Congress. 

Forging  or  Counterfeiting  United  States  Securities. 

Sec.  148.  Whoever,  with  intent  to  defraud,  shall  falsely  make, 
forge,  counterfeit,  or  alter  any  obligation  or  other  security  of  the 
United  States  shall  be  fined  not  more  than  five  thousand  dollars  and 
imprisoned  not  more  than  fifteen  years. 

Counterfeiting  National-Bank  Notes. 

Sec.  149.  Whoever  shall  falsely  make,  forge,  or  counterfeit,  or 
cause  or  procure  to  be  made,  forged,  or  counterfeited,  or  shall  willingly 
aid  or  assist  in  falsely  making,  forging,  or  counterfeiting,  any  note  in 
imitation  of,  or  purporting  to  be  in  imitation  of,  the  circulating  notes 
issued  by  any  banking  association  now  or  hereafter  authorized  and 
acting  under  the  laws  of  the  United  States ;  or  whoever  shall  pass, 
utter,  or  publish,  or  attempt  to  pass,  utter,  or  publish,  any  false,  forged, 
or  counterfeited  note,  purporting  to  be  issued  by  any  such  association 
doing  a  banking  business,  knowing  the  same  to  be  falsely  made,  forged, 
or  counterfeited ;  or  whoever  shall  falsely  alter,  or  cause  or  procure  to 
be  falsely  altered,  or  shall  willingly  aid  or  assist  in  falsely  altering,  any 
such  circulating  notes,  or  shall  pass,  utter,  or  publish,  or  attempt  to 
pass,  utter,  or  publish  as  true,  any  falsely  altered  or  spurious  circulating 
note  issued,  or  purporting  to  have  been  issued,  by  any  such  banking 
association,  knowing  the  same  to  be  falsely  altered  or  spurious,  shall  be 
fined  not  more  than  one  thousand  dollars  and  imprisoned  not  more  than 
fifteen  years. 

Using  Plates  to  Print  Notes  Without  Authority,  Etc. 

Sec.  150.  Whoever,  having  control,  custody,  or  possession  of  any 
plate,  stone,  or  other  thing,  or  any  part  thereof,  from  which  has  been 
printed,  or  which  may  be  prepared  by  direction  of  the  Secretary  of  the 
Treasurv  for  the  purpose  of  printing,  any  obligation  or  other  security 
of  the  United  States,  shall  use  such  plate,  stone,  or  other  thing,  or  any 
part  thereof,  or  knowingly  sufifer  the  same  to  be  used  for  the  purpose  of 
printing  any  such  or  similar  obligation  or  other  security,  or  any  part 
thereof,  except  as  may  be  printed  for  the  use  of  the  United  States  by 
order  of  the  proper  officer  thereof  ;  or  whoever,  by  any  way,  art.  or 
means  shall  make  or  execute,  or  cause  or  procure  to  be  made  or  ex- 
ecuted, or  shall  assist  in  making  or  executing  any  plate,  stone,  or  other 
thing  in  the  likeness  of  any  plate  designated  for  the  printing  of  such 
obligation  or  other  security ;  or  whoever  shall  sell  any  such  plate,  stone, 
or  other  thing,  or  bring  into  the  United  States  or  any  place  subject  to 
the  jurisdiction  thereof,  from  any  foreign  place,  any  such  plate,  stone, 
or  other  thing,  except  under  the  direction  of  the  Secretary  of  the  Treas- 
ury or  other  proper  officer,  or  with  any  other  intent,  in  either  case,  than 
that  such  plate,  stone,  or  other  thing  be  used  for  the  printing  of  the  obli- 


Criminal  Code  7Z2) 

gations  or  other  securities  of  the  United  States;  or  whoever  shall  have 
in  his  control,  custody,  or  possession  any  plate,  stone,  or  other  thing 
in  any  manner  made  after  or  in  the  similitude  of  any  plate,  stone,  or 
other  thing,  from  which  any  such  obligation  or  other  security  has  been 
printed,  with  intent  to  use  such  plate,  stone,  or  other  thing,  or  to  suffer 
the  same  to  be  used  in  forging  or  counterfeiting  any  such  obligation  or 
other  security,  or  any  part  thereof ;  or  whoever  shall  have  in  his  pos- 
session or  custody,  except  under  authority  from  the  Secretary  of  the 
Treasury  or  other  proper  officer,  any  obligation  or  other  security  made 
or  executed,  in  whole  or  in  part,  after  the  similitude  of  any  obligation 
or  other  security  issued  under  the  authority  of  the  United  States,  with 
intent  to  sell  or  otherwise  use  the  same  ;  or  whoever  shall  print,  photo- 
graph, or  in  any  other  manner  make  or  execute,  or  cause  to  be  printed, 
photographed,  made,  or  executed,  or  shall  aid  in  printing,  photograph- 
ing, making,  or  executing  any  engraving,  photograph,  print,  or  im- 
pression in  the  likeness  of  any  such  obligation  or  other  security,  or  any 
part  thereof,  or  shall  sell  any  such  engraving,  photograph,  print,  or 
impression,  except  to  the  United  States,  or  shall  bring  into  the  United 
States  or  any  place  subject  to  the  jurisdiction  thereof,  from  any  foreign 
place  any  such  engraving,  photograph,  print,  or  impression,  except  by 
direction  of  some  proper  officer  of  the  United  States ;  or  whoever  shall 
have  or  retain  in  his  control  or  possession,  after  a  distinctive  paper  has 
been  adopted  by  the  Secretary  of  the  Treasury  for  the  obligations  and 
other  securities  of  the  United  States,  any  similar  paper  adapted  to  the 
making  of  any  such  obligation  or  other  security,  except  under  the  au- 
thority of  the  Secretary  of  the  Treasury  or  some  other  proper  officer 
of  the  United  States,  shall  be  fined  not  more  than  five  thousand  dollars, 
or  imprisoned  not  more  than  fifteen  years,  or  both. 

Passing,  Selling,  Concealing,  Etc.,  Forged  Obligations. 

Sfx.  151.  Whoever,  with  intent  to  defraud,  shall  pass,  utter,  pub- 
lish, or  sell,  or  attempt  to  pass,  utter,  publish,  or  sell,  or  shall  bring 
into  the  United  States  or  any  place  subject  to  the  jurisdiction  thereof, 
with  intent  to  pass,  publish,  utter,  or  sell,  or  shall  keep  in  possession 
or  conceal  with  like  intent,  any  falsely  made,  forged,  counterfeited, 
or  altered  oblisration  or  other  securitv  of  the  United  States,  shall  be 
fined  not  more  than  five  thousand  dollars  and  imprisoned  not  more 
than  fifteen  years. 

Taking  Impressions  of  Tools,  Implements,  Etc. 

Sec.  152.  Whoever,  without  authority  from  the  United  States, 
shall  take,  procure,  or  make,  upon  lead,  foil,  wax.  plaster,  paper,  or 
any  other  substance  or  material,  an  impression,  stamp,  or  imprint  of, 
from,  or  by  the  use  of  any  bedplate,  bedpiece,  die,  roll,  plate,  seal,  type, 
or  other  tool,  implement,  instrument,  or  thing  used  or  fitted  or  intended 
to  be  used  in  printing,  stamping,  or  impressing,  or  in  making  other 
tools,  implements,  instruments,  or  things  to  be  used  or  fitted  or  intended 


734  Important  Federal  Laws 

to  be  used  in  printing,  stamping,  or  impressing  any  kind  or  description 
of  obligation  or  other  security  of  the  United  States  now  authorized  or 
hereafter  to  be  authorized  by  the  United  States,  or  circulating  note  or 
evidence  of  debt  of  any  banking  association  under  the  laws  thereof, 
shall  be  fined  not  more  than  five  thousand  dollars,  or  imprisoned  not 
more  than  ten  years,  or  both. 

Having  in  Possession  Unlawfully  Such  Impressions. 

Sec.  153.  Whoever,  with  intent  to  defraud,  shall  have  in  his  pos- 
session, keeping,  custody,  or  control,  without  authority  from  the  United 
States,  any  imprint,  stamp,  or  impression,  taken  or  made  upon  any  sub- 
stance or  material  whatsoever,  of  any  tool,  implement,  instrument,  or 
thing,  used,  or  fitted  or  intended  to  be  used,  for  any  of  the  purposes 
mentioned  in  the  preceding  section ;  or  whoever,  with  intent  to  defraud, 
shall  sell,  give,  or  deliver  any  such  imprint,  stamp,  or  impression  to 
any  other  person,  shall  be  fined  not  more  than  five  thousand  dollars,  or 
imprisoned  not  more  than  ten  years,  or  both. 

Buying,  Selling,  or  Dealing  in  Forged  Bonds,  Notes,  Etc. 

Sec.  154.  Whoever  shall  buy,  sell,  exchange,  transfer,  receive,  or 
deliver,  any  false,  forged,  counterfeited,  or  altered  obligation  or  other 
security  of  the  United  States,  or  circulating  note  of  any  banking  asso- 
ciation organized  or  acting  under  the  laws  thereof,  which  has  been  or 
may  hereafter  be  issued  by  virtue  of  any  act  of  Congress,  with  the 
intent  that  the  same  be  passed,  published,  or  used  as  true  and  genuine, 
shall  be  fined  not  more  than  five  thousand  dollars,  or  imprisoned  not 
more  than  ten  years,  or  both. 

Secreting  or  Removing  Tools  or  Material  Used  for  Printing  Bonds, 
Notes,  Stamps,  Etc. 

Sec.  155.  Whoever,  without  authority  from  the  United  States, 
shall  secrete  within,  embezzle,  or  take  and  carry  away  from  any  build- 
ing, room,  office,  apartment,  vault,  safe,  or  other  place  where  the  same 
is  kept,  used,  employed,  placed,  lodged,  or  deposited  by  authority  of 
the  United  States,  any  bedpiece,  bedplate,  roll,  plate,  die,  seal,  type, 
or  other  tool,  implement,  or  thing  used  or  fitted  to  be  used  in  stamp- 
ing or  printing,  or  in  making  some  other  tool  or  implement  used  or 
fitted  to  be  used  in  stamping  or  printing,  any  kind  or  description  of 
bond,  bill,  note,  certificate,  coupon,  postage  stamp,  revenue  stamp, 
fractional  currency  note  or  other  paper,  instrument,  obligation,  device, 
or  document,  now  or  hereafter  authorized  by  law  to  be  printed,  stamped, 
sealed,  prepared,  issued,  uttered,  or  put  in  circulation  on  behalf  of  the 
United  States ;  or  whoever,  without  such  authority,  shall  so  secrete, 
embezzle,  or  take  and  carry  away  any  paper,  parchment,  or  other  mate- 
rial prepared  and  intended  to  be  used  in  the  making  of  any  svtch  pa- 
pers, instruments,  obligations,  devices,  or  documents ;  or  whoever, 
without   such   authority,   shall    so   secrete,   embezzle,   or   take   and   carry 


Criminal  Code  735 

away  ai\v  paper,  parchment,  or  other  material  printed  or  stamped,  in 
whole  or  part,  and  intended  to  be  prepared,  issued,  or  put  in  circulation 
on  behalf  of  the  United  States  as  one  of  the  papers,  instruments,  or 
obligations  hereinbefore  named,  or  printed  or  stamped,  in  whole  or 
part,  in  the  similitude  of  any  such  paper,  instrument,  or  obligation, 
whether  intended  to  issue  or  put  the  same  in  circulation  or  not,  shall 
be  fined  not  more  than  five  thousand  dollars,  or  imprisoned  not  more 
than  ten  years,  or  both. 

Counterfeiting  Notes,  Bonds,  Etc.,  of  Foreign  Governments. 

Sec.  156.  Whoever,  within  the  United  States  or  any  place  sub- 
ject to  the  jurisdiction  thereof,  with  intent  to  defraud,  shall  falsely 
make,  alter,  forge,  or  counterfeit  any  bond,  certificate,  obligation,  or 
other  security  in  imitation  of,  or  purporting  to  be  an  imitation  of,  any 
bond,  certificate,  obligation,  or  other  security  of  any  foreign  govern- 
ment, issued  or  put  forth  under  the  authority  of  such  foreign  govern- 
ment, or  any  treasury  note,  bill,  or  promise  to  pav  issued  by  such 
foreign  government,  and  intended  to  circulate  as  money,  either  by  law, 
order,  or  decree  of  such  foreign  government ;  or  whoever  shall  cause 
or  procure  to  be  so  falsely  made,  altered,  forged,  or  counterfeited,  or 
shall  knowingly  aid  or  assist  in  making,  altering,  forging,  or  counter- 
feiting, any  such  bond,  certificate,  obligation,  or  other  security,  or 
any  such  treasury  note,  bill,  or  promise  to  pay,  intended  as  aforesaid  to 
circulate  as  money,  shall  be  fined  not  more  than  five  thousand  dollars 
and  imprisoned  not  more  than  five  years. 

Passing  Such  Forged  Notes,  Bonds,  Etc. 

Sec.  157.  Whoever,  within  the  United  States  or  any  place  subject 
to  the  jurisdiction  thereof,  knowingly  and  with  intent  to  defraud,  shall 
utter,  pass,  or  put  ofif,  in  payment  or  negotiation,  any  false,  forged,  or 
counterfeited  bond,  certificate,  obligation,  security,  treasury  note,  bill, 
or  promise  to  pay,  mentioned  in  the  section  last  preceding,  whether  the 
same  was  made,  altered,  forged,  or  counterfeited  within  the  United 
States  or  not,  shall  be  fined  not  more  than  three  thousand  dollars  and 
imprisoned  not  more  than  three  years. 

Counterfeiting  Notes  on  Foreign  Banks. 

Sec.  158.  Whoever,  within  the  United  States  or  anv  place  sub- 
ject to  the  jurisdiction  thereof,  with  intent  to  defraud,  shall  falsely 
make,  alter,  forge  or  counterfeit,  or  cause  or  procure  to  be  so  falsely 
made,  altered,  forged,  or  counterfeited,  or  shall  knowingly  aid  and 
assist  in  the  false  making,  altering,  forging,  or  counterfeiting  of  any 
bank  note  or  bill  issued  by  a  bank  or  corporation  of  any  foreign  coun- 
try, and  intended  by  the  law  or  usage  of  such  foreign  country  to  cir- 
culate as  money,  such  bank  or  corporation  being  authorized  by  the  laws 
of  such  country,  shall  be  fined  not  more  than  two  thousand  dollars  and 
imprisoned  not  more  than  two  years. 


yZ^)  Important  Federal  Laws 

Passing  Such  Counterfeit  Bank  Notes. 

Sec.  159.  Whoever,  within  the  United  States  or  any  place  subject 
to  the  jurisdiction  thereof,  shall  utter,  pass,  put  ofif,  or  tender  in  pay- 
ment, with  intent  to  defraud,  any  such  false,  forged,  altered,  or  coun- 
terfeited bank  note  or  bill,  as  mentioned  in  the  preceding  section,  know- 
ing the  same  to  be  so  false,  forged,  altered,  and  [or]  counterfeited, 
whether  the  same  was  made,  forged,  altered,  or  counterfeited  within  the 
United  States  or  not,  shall  be  fined  not  more  than  one  thousand  dollars 
and  imprisoned  not  more  than  one  year. 

Having  in  Possession  Such  Forged  Notes,  Bonds,  Etc. 

Sec.  160.  Whoever,  within  the  United  States  or  any  place  subject 
to  the  jurisdiction  thereof,  shall  have  in  his  possession  any  false, 
forged,  or  counterfeit  bond,  certificate,  obligation,  security,  Treasury 
note,  bill,  promise  to  pay,  bank  note,  or  bill  issued  by  a  bank  or  corpo- 
ration of  any  foreign  country,  with  intent  to  utter,  pass,  or  put  off  the 
same,  or  to  deliver  the  same  to  any  other  person  with  intent  that  the 
same  may  thereafter  be  uttered,  passed,  or  put  off  as  true,  or  shall 
knowingly  deliver  the  same  to  any  other  person  with  such  intent,  shall 
be  fined  not  more  than  one  thousand  dollars  and  imprisoned  not  more 
than  one  year. 

Having  Unlawfully  in  Possession  or  Using  Plates  for  Such  Notes, 
Bonds,  Etc. 

Sec.  161.  Whoever,  within  the  United  States  or  any  place  subject 
to  the  jurisdiction  thereof,  except  by  lawful  authority,  shall  have  con- 
trol, custody,  or  possession  of  any  plate,  stone,  or  other  thing,  or  any 
part  thereof,  from  which  has  been  printed  or  may  be  printed  any  coun- 
terfeit note,  bond,  obligation,  or  other  security,  in  whole  or  in  part,  of 
any  foreign  government,  bank,  or  corporation,  or  shall  use  such  plate, 
stone,  or  other  thing,  or  knowingly  permit  or  suffer  the  same  to  be  used 
in  counterfeiting  such  foreign  obligations,  or  any  part  thereof ;  or  who- 
ever shall  make  or  engrave,  or  cause  or  procure  to  be  made  or  engraved, 
or  shall  assist  in  making  or  engraving,  any  plate,  stone,  or  other  thing, 
in  the  likeness  or  similitude  of  any  plate,  stone,  or  other  thing  desig- 
nated for  the  printing  of  the  genuine  issues  of  the  obligations  of  any 
foreign  government,  bank,  or  corporation  ;  or  whoever  shall  print,  pho- 
tograph, or  in  any  other  manner  make,  execute,  or  sell,  or  cause  to  be 
printed,  photographed,  made,  executed,  or  sold,  or  shall  aid  in  printing, 
photographing,  making,  executing,  or  selling,  any  engraving,  photo- 
graph, print,  or  impression  in  the  likeness  of  any  genuine  note,  bond, 
obligation,  or  other  security,  or  any  part  thereof,  of  any  foreign  gov- 
ernment, bank,  or  corporation  ;  or  whoever  shall  bring  into  the  United 
States  or  any  place  subject  to  the  jurisdiction  thereof,  any  counterfeit 
plate,  stone,  or  other  thing,  or  engraving,  photograph,  print,  or  other 
impressions  of  the  notes,  bonds,  obligations,  or  other  securities  of  any 


Criminal  Code  7^7 

foreign  government,  bank,  or  corporation,  shall  be  fined  not  more  than 
five  thousand  dollars,  or  imprisoned  not  more  than  five  years,  or  both. 

Connecting  Parts  of  Different  Instruments. 

Sec.  162.  Whoever  shall  so  place  or  connect  together  different 
parts  of  two  or  more  notes,  bills,  or  other  genuine  instruments  issued 
under  the  authority  of  the  United  States,  or  by  any  foreign  govern- 
ment, or  corporation,  as  to  produce  one  instrument,  with  intent  to  de- 
fraud, shall  be  deemed  guilty  of  forgery  in  the  same  manner  as  if  the 
parts  so  put  together  were  falsely  made  or  forged,  and  shall  be  fined 
not  more  than  one  thousand  dollars,  or  imprisoned  not  more  than  five 
years,  or  both. 

Counterfeiting  Gold  or  Silver  Coins  or  Bars. 

Sec.  163.  Whoever  shall  falsely  make,  forge,  or  counterfeit,  or 
cause  or  procure  to  be  falsely  made,  forged,  or  counterfeited,  or  shall 
willingly  aid  or  assist  in  falsely  making,  forging,  or  counterfeiting  any 
coin  or  bars  in  resemblance  or  similitude  of  the  gold  or  silver  coins  or 
bars  which  have  been,  or  hereafter  may  be,  coined  or  stamped  at  the 
mints  and  assay  offices  of  the  United  States,  or  in  resemblance  or  sim- 
ilitude of  any  foreign  gold  or  silver  coin  which  by  law  is,  or  hereafter 
may  be,  current  in  the  United  States,  or  are  in  actual  use  and  circula- 
tion as  money  within  the  United  States ;  or  whoever  shall  pass,  utter, 
publish,  or  sell,  or  attempt  to  pass,  utter,  publish,  or  sell,  or  bring  into 
the  United  States  or  any  place  subject  to  the  jurisdiction  thereof,  from 
any  foreign  place,  knowing  the  same  to  be  false,  forged,  or  counterfeit, 
with  intent  to  defraud  any  body  politic  or  corporate,  or  any  person  or 
persons  whomsoever,  or  shall  have  in  his  possession  any  such  false, 
forged,  or  counterfeited,  coin  or  bars,  knowing  them  to  be  false, 
forged,  or  counterfeited,  with  intent  to  defraud  any  body  politic  or 
corporate,  or  any  person  or  persons  whomsoever,  shall  be  fined  not 
more  than  five  thousand  dollars  and  imprisoned  not  more  than  ten 
years. 

Counterfeiting  Minor  Coins. 

Sec.  164.  Whoever  shall  falsely  make,  forge,  or  counterfeit,  or 
cause  or  procure  to  be  falsely  made,  forged,  or  counterfeited,  or  shall 
willingly  aid  or  assist  in  falsely  making,  forging,  or  counterfeiting  any 
coin  in  the  resemblance  or  similitude  of  any  of  the  minor  coins  which 
have  been,  or  hereafter  may  be,  coined  at  the  mints  of  the  United 
States;  or  whoever  shall  pass,  utter,  publish,  or  sell,  or  bring  into  the 
United  States  or  any  place  subject  to  the  jurisdiction  thereof,  from 
any  foreign  place,  or  have  in  his  possession  any  such  false,  forged,  or 
counterfeited  coin,  with  intent  to  defraud  any  person  whomsoever,  shall 
be  fined  not  more  than  one  thousand  dollars  and  imprisoned  not  more 
than  three  years. 

(47) 


738  Important  Federal  Laws 

Falsifying,  Mutilating,  or  Lightening  Coinage. 

Sec.  165.  Whoever,  fraudulently,  by  any  art,  way,  or  means, 
shall  deface,  mutilate,  impair,  diminish,  falsify,  scale,  or  lighten,  or 
cause  or  procure  to  be  fraudulently  defaced,  mutilated,  impaired,  dimin- 
ished, falsified,  scaled,  or  lightened,  or  willingly  aid  or  assist  in  fraud- 
ulently defacing,  mutilating,  impairing,  diminishing,  falsifying,  scaling, 
or  lightening,  the  gold  or  silver  coins  which  have  been,  or  which  may 
hereafter  be,  coined  at  the  mints  of  the  United  States,  or  any  foreign 
gold  or  silver  coins  which  are  by  law  made  current  or  are  in  actual  use 
or  circulation  as  money  within  the  United  States  or  in  any  place  subject 
to  the  jurisdiction  thereof ;  or  whoever  shall  pass,  utter,  publish,  or 
sell,  or  attempt  to  pass,  utter,  publish,  or  sell,  or  bring  into  the  United 
States  or  any  place  subject  to  the  jurisdiction  thereof,  from  anv  foreign 
place,  knowing  the  same  to  be  defaced,  mutilated,  impaired,  diminished, 
falsified,  scaled,  or  lightened,  with  intent  to  defraud  any  person  whom- 
soever or  shall  have  in  his  possession  any  such  defaced,  mutilated,  im- 
paired, diminished,  falsified,  scaled,  or  lightened  coin,  knowing  the  same 
to  be  defaced,  mutilated,  impaired,  diminished,  falsified,  scaled  or  light- 
ened with  intent  to  defraud  any  person  whomsoever,  shall  be  fined  not 
more  than  two  thousand  dollars  and  imprisoned  not  more  than  five 
years. 

Debasement  of  Coinage  by  Officers  of  the  Mint. 

Sec.  166.  If  any  of  the  gold  or  silver  coins  struck  or  coined  at 
any  of  the  mints  of  the  United  States  shall  be  debased,  or  made  worse 
as  to  the  proportion  of  fine  gold  or  fine  silver  therein  contained,  or  shall 
be  of  less  weight  or  value  than  the  same  ought  to  be,  pursuant  to  law, 
or  if  any  of  the  scales  or  weights  used  at  any  of  the  mints  or  assay 
offices  of  the  United  States  shall  be  defaced,  altered,  increased,  or 
diminished  through  the  fault  or  connivance  of  any  officer  or  person 
employed  at  the  said  mints  or  assay  ofiices,  with  a  fraudulent  intent ; 
or  if  any  such  officer  or  person  shall  embezzle  any  of  the  metals  at  any 
time  committed  to  his  charge  for  the  purpose  of  being  coined,  or  any 
of  the  coins  struck  or  coined  at  the  said  mints,  or  any  medals,  coins, 
or  other  moneys  of  said  mints  or  assay  offices  at  any  time  committed 
to  his  charge,  or  of  which  he  may  have  assumed  the  charge,  every  such 
officer  or  person  who  commits  any  of  the  said  ofifenses  shall  be  fined  not 
more  than  ten  thousand  dollars  and  imprisoned  not  more  than  ten 
years. 

Making  or  Uttering  Coins  in  Resemblance  of  Money. 

Sec.  167.  Whoever,  except  as  authorized  by  law,  shall  make  or 
cause  to  be  made,  or  shall  utter  or  pass,  or  attempt  to  utter  or  pass,  any 
coins  of  gold  or  silver  or  other  metal,  or  alloys  of  metals,  intended  for 
the  use  and  purpose  of  current  money,  whether  in  the  resemblance  of 
coins  of  the  United  States  or  of  foreign  countries,  or  of  original  design, 


Criminal  Code  739 

shall  be  fined  not  more  than  three  thousand  dollars,  or  imprisoned  not 
more  than  five  years,  or  both. 

Making  or  Issuing  Devices  of  Minor  Coins. 

Sec.  168.  Whoever,  not  lawfully  authorized,  shall  make,  issue,  or 
pass,  or  cause  to  be  made,  issued,  or  passed,  any  coin,  card,  token, 
or  device  in  metal,  or  its  compounds,  which  may  be  intended  to  be 
used  as  money  for  any  one-cent,  two-cent,  three-cent,  or  five-cent  piece, 
now  or  hereafter  authorized  by  law,  or  for  coins  of  equal  value,  shall 
be  fined  not  more  than  one  thousand  dollars  and  imprisoned  not  more 
than  five  years. 

Counterfeiting,  Etc.,  Dies  for  Coins  of  United  States. 

Sec.  169.  Whoever,  without  lawful  authority,  shall  make,  or  cause 
or  procure  to  be  made,  or  shall  willingly  aid  or  assist  in  making,  any 
die,  hub,  or  mold,  or  any  part  thereof,  either  of  steel  or  plaster,  or 
any  other  substance  whatsoever,  in  the  likeness  or  similitude,  as  to  the 
design  or  the  inscription  thereon,  of  any  die,  hub,  or  mold  designated 
for  the  coining  or  making  of  any  of  the  genuine  gold,  silver,  nickel, 
bronze,  copper,  or  other  coins  of  the  United  States,  that  have  been  or 
hereafter  may  be  coined  at  the  mints  of  the  United  States ;  or  whoever, 
without  lawful  authority,  shall  have  in  his  possession  any  such  die,  hub, 
or  mold,  or  any  part  thereof,  or  shall  permit  the  same  to  be  used  for 
or  in  aid  of  the  counterfeiting  of  any  of  the  coins  of  the  United  States 
hereinbefore  mentioned,,  shall  be  fined  not  more  than  five  thousand  dol- 
lars and  imprisoned  not  more  than  ten  years. 

Counterfeiting,  Etc.,  Dies  for  Foreign  Coins. 

Sec.  170.  W^hoever,  within  the  United  States  or  any  place  subject 
to  the  jurisdiction  thereof,  without  lawful  authority,  shall  make,  or 
cause  or  procure  to  be  made,  or  shall  willingly  aid  or  assist  in  making 
any  die,  hub,  or  mold,  or  any  part  thereof,  either  of  steel  or  plaster,  or 
of  any  other  substance  whatsoever,  in  the  likeness  or  similitude,  as  to 
the  design  or  the  inscription  thereon,  of  any  die,  hub,  or  mold  desig- 
nated for  the  coining  of  the  genuine  coin  of  any  foreign  government ; 
or  whoever,  without  lawful  authority,  shall  have  in  his  possession  any 
such  die,  hub,  or  mold,  or  any  part  thereof,  or  shall  conceal,  or  know- 
ingly sufifer  the  same  to  be  used  for  the  counterfeiting  of  any  foreign 
coin,  shall  be  fined  not  more  than  two  thousand  dollars,  or  imprisoned 
not  more  than  five  years,  or  both. 

Making,  Importing,  or  Having  in  Possession  Tokens,  Prints,  Etc., 
Similar  to  United  States  or  Foreign  Coins. 
Sec.  171.  Whoever,  within  the  United  States  or  any  place  sub- 
ject to  the  jurisdiction  thereof,  shall  make,  or  cause  or  procure  to  be 
made,  or  shall  bring  therein,  from  any  foreign  country,  or  shall  have 
in  possession  with  intent  to  sell,  give  away,  or  in  any  other  manner  use 
the    same,    any   business    or    professional    card,    notice,    placard,    token. 


740  Important  Federal  Laws 

device,  print,  or  impression,  or  any  other  thing  whatsoever,  in  the 
likeness  or  similitude  as  to  design,  color,  or  the  inscription  thereon, 
of  any  of  the  coins  of  the  United  States  or  of  any  foreign  country  that 
have  been  or  hereafter  may  be  used  as  money,  either  under  the  author- 
ity of  the  United  States  or  under  the  authority  of  any  foreign  govern- 
ment, shall  be  fined  not  more  than  one  hundred  dollars.  But  nothing 
in  this  section  shall  be  construed  to  forbid  or  prevent  the  printing  and 
publishing  of  illustrations  of  coins  and  medals,  or  the  making  of  the 
necessary  plates  for  the  same,  to  be  used  in  illustrating  numismatic 
and  historical  books  and  journals  and  school  arithmetics  and  the  circu- 
lars of  legitimate  publishers  and  dealers  in  the  same.  (As  amended 
February  15,  1912.) 

Counterfeit  Obligations,  Securities,  Coins  or  Material  for  Counter- 
feiting to  be  Forfeited. 

Sec.  172.  All  counterfeits  of  any  obligation  or  other  security  of 
the  United  States  or  of  any  foreign  government,  or  counterfeits  of  any 
of  the  coins  of  the  United  States  or  of  any  foreign  government,  and 
all  material  or  apparatus  fitted  or  intended  to  be  Ubcd,  or  that  shall  have 
been  used,  in  the  making  of  any  of  such  counterfeit  obligation  or  other 
security  or  coins  hereinbefore  mentioned,  that  shall  be  found  in  the 
possession  of  any  person  without  authority  from  the  Secretary  of  the 
Treasury  or  other  proper  officer  to  have  the  same,  shall  be  taken  pos- 
session of  by  any  authorized  agent  of  the  Treasury  Department  and 
forfeited  to  the  United  States,  and  disposed  of  in  any  manner  the  Sec- 
retary of  the  Treasury  may  direct.  Whoever  having  the  custody  or 
control  of  any  such  counterfeits,  material,  or  apparatus  shall  fail  or 
refuse  to  surrender  possession  thereof  upon  request  by  any  such  author- 
ized agent  of  the  Treasury  Department,  shall  be  fined  not  more  than 
one  hundred  dollars,  or  imprisoned  not  more  than  one  year,  or  both. 

Issue  of  Search  Warrants  in  Certain  Cases  for  Suspected  Counterfeit 
Obligations,  Securities,  or  Coin,  or  Material  for  Counterfeiting; 
Forfeiture. 

Sec.  173.  The  several  judges  of  courts  established  under  the  laws 
of  the  United  States  and  United  States  commissioners  may,  upon 
proper  oath  or  affirmation,  within  their  respective  jurisdictions,  issue  a 
search  warrant  authorizing  any  marshal  of  the  United  States,  or  any 
other  person  specially  mentioned  in  such  warrant,  to  enter  any  house, 
store,  building,  boat,  or  other  place  named  in  such  warrant,  in  which 
there  shall  appear  probable  cause  for  believing  that  the  manufacture  of 
counterfeit  money,  or  the  concealment  of  counterfeit  money,  or  the  man- 
ufacture or  concealment  of  counterfeit  obligations  or  coins  of  the  United 
States  or  of  anv  foreign  government,  or  the  manufacture  or  concealment 
of  dies,  hubs,  molds,  plates,  or  other  things  fitted  or  intended  to  be  used 
for  the  manufacture  of  counterfeit  money,  coins,  or  obligations  of  the 
United  States  or  of  any  foreign  government,  or  of  any  bank  doing  busi- 
ness under  the  authority  of  the  United  States  or  of  any  State  or  Terri- 


Criminal  Code  741 

tory  thereof,  or  of  any  bank  doing-  business  under  the  authority  of  any 
foreign  government,  or  of  any  political  division  of  any  foreign  govern- 
ment, is  being  carried  on  or  practiced,  and  there  search  for  any  such 
counterfeit  money,  coins,  dies,  hubs,  molds,  plates,  and  other  things, 
and  for  any  such  obligations,  and  if  any  such  be  found,  to  seize  and 
secure  the  same  and  to  make  return  thereof  to  the  proper  authority; 
and  all  such  counterfeit  money,  coins,  dies,  hubs,  molds,  plates,  and 
other  things,  and  all  such  counterfeit  obligations  so  seized  shall  be  for- 
feited to  the  United  States. 

Circulating  Bills  of  Expired  Corporations. 

Sec.  174.  In  all  cases  where  the  charter  of  any  corporation  which 
has  been  or  may  be  created  by  act  of  Congress  has  expired  or  may 
hereafter  expire^  if  any  director,  officer,  or  agent  of  the  corporation, 
or  any  trustee  thereof,  or  any  agent  of  such  trustee,  or  any  person 
having  in  his  possession  or  under  his  control  the  property  of  the  cor- 
poration for  the  purpose  of  paying  or  redeeming  its  notes^  and  obliga- 
tions, shall  knowingly  -issue,  reissue,  or  utter  as  money,  or  in  any  other 
way  knowingly  put  in  circulation  any  bill,  note,  check,  draft,  or  other 
security  purporting  to  have  been  made  by  any  such  corporation  whose 
charter  has  expired,  or  by  any  officer  thereof,  or  purporting  to  have 
been  made  under  authority  derived  therefrom,  or  if  any  person  shall 
knowingly  aid  in  any  such  act,  he  shall  be  fined  not  more  than  ten 
thousand  dollars,  or  imprisoned  not  more  than  five  years,  or  both.  But 
nothing  herein  shall  be  construed  to  make  it  unlawful  for  any  person, 
not  being  such  director,  officer,  or  agent  of  the  corporation,  or  any 
trustee  thereof,  or  any  agent  of  such  trustee,  or  any  person  having  in 
his  possession  or  under  his  control  the  property  of  the  corporation  for 
the  purpose  hereinbefore  set  forth,  who  has  received  or  may  hereafter 
receive  such  bill,  note,  check,  draft,  or  other  security,  bona  fide  and  in 
the  ordinary  transactions  of  business,  to  utter  as  money  or  otherwise 
circulate  the  same. 

Imitating    National    Banking    Notes    With    Printed    Advertisements 
Thereon. 

Sec.  175.  It  shall  not  be  lawful  to  design,  engrave,  print,  or  in  any 
manner  make  or  execute,  or  to  utter,  issue,  distribute,  circulate,  or  use 
any  business  or  professional  card,  notice,  placard,  circular,  handbill, 
or  advertisement  in  the  likeness  or  similitude  of  any  circulating  note 
or  other  obligation  or  security  of  any  banking  association  organized 
or  acting  under  the  laws  of  the  United  States  which  has  been  or  may 
be  issued  under  any  act  of  Congress,  or  to  write,  print,  or  otherwise 
impress  upon  any  such  note,  obligation,  or  security,  any  business  or 
professional  card,  notice  or  advertisement,  or  any  notice  or  advertise- 
ment of  any  matter  or  thing  whatever.  Whoever  shall  violate  any  pro- 
vision of  this  section  shall  be  fined  not  more  than  one  hundred  dol- 
lars, or  imprisoned  not  more  than  six  months,  or  both. 


742  Important  Federal  Laws 

Mutilating  or  Defacing  National  Bank-Note. 

Sec.  176.  Whoever  shall  mutilate,  cut,  deface,  disfigure,  or  per- 
forate with  holes,  or  unite  or  cement  together,  or  do  any  other  thing 
to  any  bank  bill,  draft,  note,  or  other  evidence  of  debt,  issued  by  any 
national  banking  association,  or  shall  cause  or  procure  the  same  to  be 
done,  with  intent  to  render  such  bank  bill,  draft,  note,  or  other  evidence 
of  debt  unfit  to  be  reissued  by  said  association,  shall  be  fined  not  more 
than  one  hundred  dollars,  or  imprisoned  not  more  more  than  six 
months,  or  both. 

Imitating  United  States  Securities  or  Printing  Business  Cards  on 
Them. 
Sec.  177.  It  shall  not  be  lawful  to  design,  engrave,  print,  or  in  any 
manner  make  or  execute,  or  to  utter,  issue,  distribute,  circulate,  or 
use,  any  business  or  professional  card,  notice,  placard,  circular,  hand- 
bill, or  advertisement,  in  the  likeness  or  similitude  of  any  bond,  cer- 
tificate of  indebtedness,  certificate  of  deposit,  coupon.  United  States 
note,  Treasury  note,  gold  certificate,  silver  certificate,  fractional  note, 
or  other  obligation  or  security  of  the  United  States  which  has  been  or 
may  be  issued  under  or  authorized  by  any  act  of  Congress  heretofore 
passed  or  which  may  hereafter  be  passed;  or  to  write,  print,  or  other- 
wise impress  upon  any  such  instrument,  obligation,  or  security,  any 
business  or  professional  card,  notice,  or  advertisement,  or  any  notice 
or  advertisement  of  any  matter  or  thing  whatever.  Whoever  shall 
violate  any  provision  of  this  section  shall  be  fined  not  more  than  five 
hundred  dollars. 

Notes  of  Less  Than  One  Dollar  not  to  be  Issued. 

Sec.  178.  No  person  shall  make,  issue,  circulate,  or  pay  out  any 
note,  check,  memorandum,  token,  or  other  obligation  for  a  less  sum 
than  one  dollar,  intended  to  circulate  as  money  or  to  be  received  or 
used  in  lieu  of  lawful  money  of  the  United  States ;  and  every  person 
so  offending  shall  be  fined  not  more  than  five  hundred  dollars,  or  im- 
prisoned not  more  than  six  months,  or  both. 

CHAPTER  VIII. 
Offenses  Against  the  Postal  Service. 

Conducting  Post-Office  Without  Authority. 

Sec.  179.  Whoever,  without  authority  from  the  Postmaster-Gen- 
eral, shall  set  up  or  profess  to  keep  any  office  or  place  of  business  bear- 
ing the  sign,  name,  or  title  of  post-office,  shall  be  fined  not  more  than 
five  hundred  dollars. 

Illegal  Carrying. 

Sec.  180.  Whoever,  being  concerned  in  carrying  the  mail,  shall 
collect,  receive,  or  carry  any  letter  or  packet,  or  cause  or  procure  the 


Criminal  Code  743 

same  to  be   done,  contrary  to  law,   shall  be  fined  not  more  than  fifty 
dollars,  or  imprisoned  not  more  than  thirty  days,  or  both. 

Conveyance  of  Mail  by  Private  Express  Forbidden. 

Sec.  181.  Whoever  shall  establish  any  private  express  for  the  con- 
veyance of  letters  or  packets,  or  in  any  manner  cause  or  provide  for 
the  conveyance  of  the  same  by  regular  trips  or  at  stated  periods  over 
any  post  route  which  is  or  may  be  established  by  law,  or  from  any 
city,  town,  or  place,  to  any  other  city,  town  or  place,  between  which 
the  mail  is  regularly  carried,  or  whoever  shall  aid  or  assist  therein 
shall  be  fined  not  more  than  five  hundred  dollars,  or  imprisoned  not 
more  than  six  months,  or  both :  Provided,  That  nothing  contained  _  in 
this  section  shall  be  construed  as  prohibiting  any  person  from  receiving 
and  delivering  to  the  nearest  post-office,  postal  car,  or  other  author- 
ized depository  for  mail  matter,  any  mail  matter  properly  stamped. 

Transporting  Persons  Unlawfully  Conveying  Mail. 

Sec.  182.  Whoever,  being  the  owner,  driver,  conductor,  master 
or  other  person  having  charge  of  any  stagecoach,  railway  car,  steam- 
boat, or  other  vehicle  or  vessel,  shall  knowingly  convey  or  knowingly 
permit  the  conveyance  of  any  person  acting  or  employed  as  a  private 
express  for  the  conveyance  of  letters  or  packets,  and  actually  in  pos- 
session of  the  same  for  the  purpose  of  conveying  them,  contrary  to 
law,  shall  be  fined  not  more  than  one  hundred  and  fifty  dollars. 

Sending  Letters  by  Private  Express. 

Sec.  183.  Whoever  shall  transmit  by  private  express  or  other 
unlawful  means,  or  deliver  to  any  agent  thereof,  or  deposit  or  cause  to 
be  deposited  at  any  appointed  place,  for  the  purpose  of  being  so  trans- 
mitted, any  letter  or  packet,  shall  be  fined  not  more  than  fifty  dollars. 

Conveying   Letters   Over   Post   Routes. 

Sec.  184.  Whoever,  being  the  owner,  driver,  conductor,  master, 
or  other  person  having  charge  of  any  stagecoach,  railway  car,  steam- 
boat, or  conveyance  of  any  kind  which  regularly  performs  trips  at 
stated  periods  on  any  post  route,  or  from  any  city,  town,  or  place  to 
any  other  city,  town,  or  place  between  which  the  mail  is  regularly 
carried,  and  which  shall  carry,  otherwise  than  in  the  mail  any  letters 
or  packets,  except  such  as  relate  to  some  part  of  the  cargo  of  such 
steamboat  or  other  vessel,  to  the  current  business  of  the  carrier,  or  to 
some  article  carried  at  the  same  time  by  the  same  stagecoach,  railway 
car,  or  other  vehicle,  except  as  otherwise  provided  by  law,  shall  be 
fined  not  more  than  fifty  dollars. 

Carrying  Letters  Out  of  the  Mail  on  Board  Vessel. 

Sec.  185.  Whoever  shall  carry  any  letter  or  packet  on  board  any 
vessel  which  carries  the  mail,  otherwise  than  in  such  mail,  except  as 
otherwise  provided  by  law,  shall  be  fined  not  more  than  fifty  dollars, 
or  imprisoned  not  more  than  one  month,  or  both. 


744  Important  Federal  Laws 

When  Conveying  of  Letters  by  Private  Persons  is  Lawful. 

Sec.  186.  Nothing  in  this  chapter  shall  be  construed  to  prohibit 
the  conveyance  or  transmission  of  letters  or  packets  by  private  hands 
without  compensation,  or  by  special  messenger  employed  for  the  par- 
ticular occasion  only. 

Wearing  Uniform  of  Carrier  Without  Authority, 

Sec.  187.  Whoever,  not  being  connected  with  the  letter-carrier 
branch  of  the  postal  service,  shall  wear  the  uniform  or  badge  which 
may  be  prescribed  by  the  Postmaster-General,  to  be  worn  by  letter 
carriers,  shall  be  fined  not  more  than  one  hundred  dollars,  or  impris- 
oned not  more  than  six  months,  or  both. 

Vehicles,  Etc.,  Claiming  to  be  Mail  Carriers. 

Sec.  188.  It  shall  be  unlawful  to  paint,  print,  or  in  any  manner 
to  place  upon  or  attach  to  any  steamboat  or  other  vessel,  or  any  car, 
stagecoach,  vehicle,  or  other  conveyance,  not  actually  used  in  carrying 
the  mail,  the  words  "United  States  Mail,"  or  any  words,  letters,  or 
characters  of  like  import ;  or  to  give  notice,  by  publishing  in  any  news- 
paper or  otherwise,  that  any  steamboat  or  other  vessel,  or  any  car, 
stagecoach,  vehicle,  or  other  conveyance,  is  used  in  carrying  the  mail, 
when  the  same  is  not  actually  so  used ;  and  every  person  who  shall  vio- 
late, and  every  owner,  receiver,  lessee,  or  managing  operator  thereof, 
who  shall  cause,  suffer,  or  permit  the  violation  of  any  provision  of  this 
section,  shall  be  liable,  and  shall  be  fined  not  more  than  one  thousand 
dollars,  or  imprisoned  not  more  than  two  years,  or  both. 

Injuring  Mail  Bags,  Etc. 

Sec.  189.  Whoever  shall  tear,  cut,  or  otherwise  injure  any  mail 
bag,  pouch,  or  other  thing  used  or  designed  for  use  in  the  convey- 
ance of  the  mail,  or  shall  draw  or  break  any  staple  or  loosen  any 
part  of  any  lock,  chain,  or  strap  attached  thereto,  with  intent  to  rob 
or  steal  any  such  mail,  or  to  render  the  same  insecure,  shall  be  fined 
not  more  than  five  hundred  dollars,  or  imprisoned  not  mjore  than  three 
years,  or  both. 

Stealing  Post-Office  Property. 

Sec.  190.  Whoever  shall  steal,  purloin,  or  embezzle  any  mail  bag 
or  other  property  in  use  by  or  belonging  to  the  Post-Office  Depart- 
ment, or  shall  appropriate  any  such  property  to  his  own  or  any  other 
than  its  proper  use,  or  shall  convey  away  any  such  property  to  the 
hindrance  or  detriment  of  the  public  service,  shall  be  fined  not  more 
than  two  hundred  dollars,  or  imprisoned  not  more  than  three  years,  or 
both. 

Stealing  or  Forging  Mail  Locks  or  Keys. 

Sec.  191.  Whoever  shall  steal,  purloin,  embezzle,  or  obtain  by  any 
false  pretense,  or  shall  aid  or  assist  in  stealing,  purloining,  embez- 
zling, or  obtaining  by  any   false  pretense,  any  key  suited  to   any  lock 


Criminal  Code  745 

adopted  by  the  Post-Office  Department  and  in  use  on  any  of  the  mails 
or  bags  thereof,  or  any  key  to  any  lock  box,  lock  drawer,  or  other 
authorized  receptacle  for  the  deposit  or  delivery  of  mail  matter;  or 
whoever  shall  knowingly  and  unlawfully  make,  forge,  or  counterfeit, 
or  cause  to  be  unlawfully  made,  forged,  or  counterfeited,  any  such  key, 
or  shall  have  in  his  possession  any  such  mail  lock  or  key  with  the  intent 
unlawfully  or  improperly  to  use,  sell,  or  otherwise  dispose  of  the 
same,  or  to  cause  the  same  to  be  unlawfully  or  improperly  used,  sold, 
or  otherwise  disposed  of ;  or  whoever,  being  engaged  as  a  contractor 
or  otherwise  in  the  manufacture  of  any  such  mail  lock  or  key,  shall 
deliver  or  cause  to  be  delivered,  any  finished  or  unfinished  lock  or  key 
used  or  designed  for  use  by  the  Department,  or  the  interior  part  of 
any  such  lock,  to  any  person  not  duly  authorized  under  the  hand  of 
the  Postmaster-General  and  the  seal  of  the  Post-Office  Department,  to 
receive  the  same,  unless  the  person  receiving  it  is  the  contractor  for 
furnishing  the  same  or  engaged  in  the  manufacture  thereof  in  the 
manner  authorized  by  the  contract,  or  the  agent  of  such  manufacturer, 
shall  be  fined  not  more  than  five  hundred  dollars  and  imprisoned  not 
more  than  ten  years. 

Breaking  Into  and  Entering  Post-OfBce. 

Sec.  192.  Whoever  shall  forcibly  break  into  or  attempt  to  break 
into  any  post-office,  or  any  building  used  in  whole  or  in  part  as  a  post:^ 
office,  with  intent  to  commit  in  such  post-office,  or  building,  or  part 
thereof,  so  used,  any  larceny  or  other  depredation,  shall  be  fined  not 
more  than  one  thousand  dollars  and  imprisoned  not  more  than  five 
years. 

Unlawfully  Entering  Postal  Car,  Etc. 

Sec.  193.  Whoever,  by  violence,  shall  enter  a  post-office  car,  or 
any  apartment  in  any  car,  steamboat,  or  vessel,  assigned  to  the  use  of 
the  Mail  Service,  or  shall  willfully  or  maliciously  assault  or  interfere 
with  any  postal  clerk  in  the  discharge  of  his  duties  in  connection 
with  such  car,  steamboat,  vessel,  or  apartment  thereof,  or  shall  willfullv 
aid  or  assist  therein,  shall  be  fined  not  more  than  one  thousand  dollars, 
or  imprisoned  not  more  than  three  years,  or  both. 

Stealing,  Secreting,  Embezzling,  Etc.,  Mail  Matter  or  Contents. 

Sec.  194.  Whoever  shall  steal,  take,  or  abstract,  or  by  fraud  or 
deception  obtain,  from  or  out  of  any  mail,  post-office,  or  station  thereof, 
or  other  authorized  depository  for  mail  matter,  or  from  a  letter  or 
mail  carrier,  any  letter,  postal  card,  package,  bag,  or  mail,  or  shall 
abstract  or  remove  from  any  such  letter,  package,  bag,  or  mail,  any 
article  or  thing  contained  therein,  or  shall  secrete,  embezzle,  or  destroy 
any  such  letter,  postal  card,  package,  bag,  or  mail,  or  any  article  or 
thing  contained  therein ;  or  whoever  shall  buy,  receive,  or  conceal,  or 
aid  in  buying,  receiving,  or  concealing,  or  shall  unlawfully  have  in  his 
possession,  any  letter,  postal  card,  package,  bag,  or  mail,  or  any  article 


746  Important  Federal  Laws 

or  thing  contained  therein,  which  has  been  so  stolen,  taken,  embezzled, 
or  abstracted,  as  herein  described,  knowing  the  same  to  have  been  so 
stolen,  taken,  embezzled,  or  abstracted ;  or  whoever  shall  take  any 
letter,  postal  card,  or  package,  out  of  any  post-office  or  station  thereof, 
or  out  of  any  authorized  depository  for  mail  matter,  or  from  any  letter 
or  mail  carrier,  or  which  has  been  in  any  post-office  or  station  thereof, 
or  other  authorized  depository,  or  in  the  custody  of  any  letter  or  mail 
carrier,  before  it  has  been  delivered  to  the  person  to  whom  it  was 
directed,  with  a  design  to  obstruct  the  correspondence,  or  to  pry  into 
the  business  or  secrets  of  another,  or  shall  open,  secrete,  embezzle,  or 
destroy  the  same,  shall  be  fined  not  more  than  two  thousand  dollars, 
or  imprisoned  not  more  than  five  years,  or  both. 

Postmaster  or  Employee  of  Postal  Service  Detaining,  Destroying,  or 
Embezzling  Letter,  Etc. 

Sec.  195.  Whoever,  being  a  postmaster  or  other  person  employed 
in  any  department  of  the  postal  service,  shall  unlawfully  detain,  delay, 
or  open  any  letter,  postal  card,  package,  bag,  or  mail  intrusted  to  him 
or  which  shall  come  into  his  possession,  and  which  was  intended  to  be 
conveyed  by  mail,  or  carried  or  delivered  by  any  carrier,  messenger, 
agent,  or  other  person  employed  in  any  department  of  the  postal 
service,  or  forwarded  through  or  delivered  from  any  post-office  or 
station  thereof  established  by  authority  of  the  Postmaster-iGeneral ;  or 
shall  secrete,  embezzle,  or  destroy  any  such  letter,  postal  card,  pack- 
age, bag,  or  mail ;  or  shall  steal,  abstract,  or  remove  from  any  such 
letter,  package,  bag,  or  mail,  any  article  or  thing  contained  therein, 
shall  be  fined  not  more  than  five  hundred  dollars,  or  imprisoned  not 
more  than  five  years,  or  both. 

Postmaster,  Etc.,  Detaining  or  Destroying  Newspapers. 

Sec.  196.  Whoever,  being  a  postmaster  or  other  person  employed 
in  any  department  of  the  postal  service,  shall  improperly  detain,  delay, 
embezzle,  or  destroy  any  newspaper,  or  permit  any  other  person  to 
detain,  delay,  embezzle,  or  destroy  the  same,  or  open,  or  permit  any 
other  person  to  open,  any  mail  or  package  of  newspapers  not  directed 
to  the  office  where  he  is  employed ;  or  whoever  shall  open,  embezzle, 
or  destroy  any  mail  or  package  of  newspapers  not  being  directed  to 
him,  and  he  not  being  authorized  to  open  or  receive  the  same ;  or 
whoever  shall  take  or  steal  any  mail  or  package  of  newspapers  from 
any  post-office  or  from  any  person  having  custody  thereof,  shall  be 
fined  not  more  than  one  hundred  dollars,  or  imprisoned  not  more  than 
one  year,  or  both. 

Assaulting  Mail  Carrier  With  Intent  to  Rob,  and  Robbing  Mail. 

Sec.  197.  Whoever  shall  assault  any  person  having  lawful  charge, 
control,  or  custody  of  any  mail  matter,  with  intent  to  rob,  steal,  or 
purloin  such  mail  matter  or  any  part  thereof,  or  shall  rob  any  such 
person  of  such  mail  or  any  part  thereof,  shall,  for  a  first  offense,  be 


Criminal  Code  747 

imprisoned  not  more  than  ten  years ;  and  if  in  effecting  or  attempting 
to  effect  such  robbery,  he  shall  wound  the  person  having  the  custody 
of  the  mail,  or  put  his  life  in  jeopardy  by  the  use  of  a  dangerous 
weapon,  or  for  a  subsequent  offense,  shall  be  imprisoned  twenty-five 
years. 

Injuring  Letter  Boxes  or  Mail  Matter;  Assaulting  Carrier,  Etc. 

Sec.  198.  Whoever  shall  willfully  injure,  tear  down,  or  destroy 
any  letter  box,  pillar  box,  lock  box,  lock  drawer,  or  other  receptacle 
established  or  approved  by  the  Postmaster-General  for  the  safe  deposit 
of  matter  for  the  miail  or  for  delivery,  or  any  lock  or  similar  device 
belonging  or  attached  thereto,  or  any  letter  box  or  other  receptacle  des- 
ignated or  approved  by  the  Postmaster-General  for  the  receipt  or  deliv- 
ery of  mail  matter  on  any  rural  free  delivery  route,  star  route,  or  other 
mail  route,  or  shall  break  open  the  same ;  or  shall  willfully  injure,  de- 
face, or  destroy  any  mail  matter  deposited  in  any  letter  box,  pillar  box, 
lock  box,  lock  drawer,  or  other  receptacle  established  or  approved  by 
the  Postmaster-General  for  the  safe  deposit  of  matter  for  the  mail  or 
for  delivery ;  or  shall  willfully  take  or  steal  such  matter  from  or  out  of 
any  such  letter  box,  pillar  box,  lock  box,  lock  drawer,  or  other  recep- 
tacle, or  shall  willfully  and  maliciously  assault  any  letter  or  mail  car- 
rier, knowing  him  to  be  such,  while  engaged  on  his  route  in  the  dis- 
charge of  his  duty  as  such  carrier,  or  shall  willfully  aid  or  assist  in  any 
offense  defined  in  this  section,  shall  be  fined  not  more  than  one  thou- 
sand dollars,  or  imprisoned  not  more  than  three  years,  or  both. 

Deserting  the  Mail. 

Sec.  199.  Whoever,  having  taken  charge  of  any  mail,  shall  volun- 
tarily quit  or  desert  the  same  before  he  has  delivered  it  into  the  post- 
ofiice  at  the  termination  of  the  route,  or  to  some  known  mail  carrier, 
messenger,  agent,  or  other  employee  in  the  postal  service  authorized  to 
receive  the  same,  shall  be  fined  not  more  than  five  hundred  dollars,  or 
imprisoned  not  more  than  one  year,  or  both. 

Delivery  of  Letters  by  Master  of  Vessel. 

Sec.  200.  The  master  or  other  person  having  charge  or  control 
of  any  steamboat  or  other  vessel  passing  between  ports  or  places  in  the 
United  States,  arriving  at  any  such  port  or  place  where  there  is  a 
post-office,  shall  deliver  to  the  postmaster  or  at  the  post-office  within 
three  hours  after  his  arrival,  if  in  the  daytime,  and  if  at  night,  within 
two  hours  after  the  next  sunrise,  all  letters  and  packages  brought  by 
him  or  within  his  power  or  control  and  not  relating  to  the  cargo, 
addressed  to  or  destined  for  such  port  or  place,  for  which  he  shall 
receive  from  the  postmaster  two  cents  for  each  letter  or  package  so 
delivered,  unless  the  same  is  carried  under  a  contract  for  carrying  the 
mail ;  and  for  every  failure  so  to  deliver  such  letters  or  packages,  the 
master  or  other  person  having  charge  or  control  of  such  steamboat  or 
other  vessel,  shall  be  fined  not  more  than  one  hundred  and  fifty  dollars. 


748  Important  Federal  Laws 

Obstructing  the  Mail. 

Sec.  201.  Whoever  shall  knowingly  and  willfully  obstruct  or 
retard  the  passage  of  the  mail,  or  any  carriage,  horse,  driver,  or  carrier, 
or  car,  steamboat,  or  other  conveyance  or  vessel  carrying  the  same, 
shall  be  fined  not  more  than  one  hundred  dollars,  or  imprisoned  not 
more  than  six  months,  or  both. 

Ferryman  Delaying  the  Mail. 

Sec.  202.  Whoever,  being  a  ferryman,  shall  delay  the  passage 
of  the  mail  by  willful  neglect  or  refusal  to  transport  the  same  across  any 
ferry,  shall  be  fined  not  more  than  one  hundred  dollars. 

Letters  Carried  in  a  Foreign  Vessel  to  be  Deposited  in  a  Post-Office. 

Sec.  203.  All  letters  or  other  mailable  matter  conveyed  to  or  from 
any  part  of  the  United  States  by  any  foreign  vessel,  except  such  sealed 
letters  relating  to  such  vessel  or  any  part  of  the  cargo  thereof  as  may 
be  directed  to  the  owners  or  consignees  of  the  vessel,  shall  be  subject 
to  postage  charge,  whether  addressed  to  any  person  in  the  United 
States  or  elsewhere,  provided  they  are  conveyed  by  the  packet  or 
other  ship  of  a  foreign  country  imposing  postage  on  letters  or  other 
mailable  matter  conveyed  to  or  from  such  country  by  any  vessel  of 
the  United  States  ;  and  such  letters  or  other  mailable  matter  carried  in 
foreign  vessels,  except  such  sealed  letters  relating  to  the  vessel  or  any 
part  of  the  cargo  thereof  as  may  be  directed  to  the  owners  or  con- 
signees, shall  be  delivered  into  the  United  States  postoffice  by  the 
master  or  other  person  having  charge  or  control  of  such  vessel  when 
arriving,  and  be  taken  from  the  United  States  postofhce  when  depart- 
ing, and  the  postage  justly  chargeable  by  law  paid  thereon ;  and  for 
refusing  or  failing  to  do  so,  or  for  conveying  such  letters  or  other 
mailable  matter,  or  any  letters  or  other  mailable  matter,  intended  to 
be  conveyed  in  any  vessel  of  such  foreign  country,  over  or  across  the 
United  States,  or  any  portion  thereof,  the  party  offending  shall  be 
fined  not  more  than  one  thousand  dollars. 

Vessels  to  Deliver  Letters  at  Post-Office;  Oath. 

Sec.  204.  No  vessel  arriving  within  a  port  or  collection  district  of 
the  United  States  shall  be  allowed  to  make  entry  or  break  bulk  until 
all  letters  on  board  are  delivered  to  the  nearest  postoffice,  and  the  mas- 
ter or  other  person  having  charge  or  control  thereof  has  signed  and 
sworn  to  the  following  declaration  before  the  collector  or  other  proper 
customs  officer: 

I,  A.  B.,  master  ,  of  the  ,  arriving  from  ,  and 

now  lying  in  the  port  of  ,  do  solemnly  swear  (or  affirm)  that  I 

have  to  the  best  of  my  knowledge  and  belief  delivered  to  the  post- 
office  at  every  letter  and  every  bag,  packet,  or  parcel  of  letters 

which  was  on  board  the  said  vessel  during  her  last  voyage,  or  which 
were  in  my  possession  or  under  my  power  or  control. 

And  any  master  or  other  person  having  charge  or  control  of  such 


Criminal  Code  749 

vessel  who  shall  break  bulk  before  he  has  delivered  such  letters  shall 
be  fined  not  more  than  one  hundred  dollars. 

Using,  Selling,  Etc.,  Canceled  Stamps ;  Removing  Cancellation  Marks 
From  Stamps,  Etc. 

Sec.  205.  Whoever  shall  use  or  attempt  to  use  in  payment  of  post- 
age, any  canceled  postage  stamp,  whether  the  same  has  been  used  or  not ; 
or  shall  remove,  attempt  to  remove,  or  assist  in  removing,  the  cancel- 
ing or  defacing  marks  from  any  postage  stamp,  or  the  superscription 
from  any  stamped  envelope,  or  postal  card,  that  has  once  been  used 
in  payment  of  postage,  with  the  intent  to  use  the  same  for  a  like  pur- 
pose, or  to  sell  or  offer  to  sell  the  same,  or  shall  knowingly  have  in 
possession  any  such  postage  stamp,  stamped  envelope,  or  postal  card, 
with  intent  to  use  the  same,  or  shall  knowingly  sell  or  offer  to  sell  any 
such  postage  stamp,  stamped  envelope,  or  postal  card,  or  use  or 
attempt  to  use  the  same  in  payment  of  postage ;  or  whoever  unlawfully 
and  willfully  shall  remove  from  any  mail  matter  any  stamp  attached 
thereto  in  payment  of  postage ;  or  shall  knowingly  use  or  cause  to  be 
used  in  payment  of  postage,  any  postage  stamp,  postal  card,  or  stamped 
envelope,  issued  in  pursuance  of  law,  which  has  already  been  used  for 
a  like  purpose ;  shall,  if  he  be  a  person  employed  in  the  postal  service, 
be  fined  not  more  than  five  hundred  dollars,  or  imprisoned  not  more 
than  three  years,  or  both ;  and  if  he  be  a  person  not  employed  in  the 
postal  service,  shall  be  fined  not  more  than  five  hundred  dollars,  or 
imprisoned  not  more  than  one  year,  or  both. 

False  Returns  to  Increase  Compensation. 

Sec.  206.  Whoever,  being  a  postmaster  or  other  person  employed 
in  any  branch  of  the  postal  service,  shall  make,  or  assist  in  making,  or 
cause  to  be  made,  a  false  return,  statement,  or  account  to  any  officer 
of  the  United  States,  or  shall  make,  assist  in  making,  or  cause  to  be 
made,  a  false  entry  in  any  record,  book,  or  account,  required  by  law 
or  the  rules  or  regulations  of  the  Postoffice  Department  to  be  kept  in 
respect  of  the  business  or  operations  of  any  postofiice  or  other  branch 
of  the  postal  service,  for  the  purpose  of  fraudulently  increasing  his  com- 
pensation or  the  compensation  of  the  postmaster  or  any  employee  in  a 
postofiice ;  or  whoever,  being  a  postmaster  or  other  person  employed 
in  any  postofiice  or  station  thereof,  shall  induce,  or  attempt  to  induce, 
for  the  purpose  of  increasing  the  emoluments  or  compensation  of  his 
office,  any  person  to  deposit  mail  matter  in,  or  forward  in  any  manner 
for  mailing  at,  the  office  where  such  postmaster  or  other  person  is  em- 
ployed, knowing  such  matter  to  be  properly  mailable  at  another  post- 
office,  shall  be  fined  not  more  than  five  hundred  dollars,  or  imprisoned 
not  more  than  two  years,  or  both. 

Collection  of  Unlav^^ful  Postage  Forbidden. 

Sec.  207.  Whoever,  being  a  postmaster  or  other  person  authorized 
to  receive  the  postage   of   mail   matter,   shall    fraudulently   demand   or 


750  Important  Federal  Laws 

receive  any  rate  of  postage  or  gratuity  or  reward  other  than  is  pro- 
vided by  law  for  the  postage  of  such  mail  matter,  shall  be  fined  not 
more  than  one  hundred  dollars,  or  imprisoned  not  more  than  six  months, 
or  both. 

Unlawful  Pledging  or  Sale  of  Stamps. 

Sec.  208.  Whoever,  being  a  postmaster  or  other  person  employed 
in  any  branch  of  the  postal  service,  and  being  intrusted  with  the  sale 
or  custody  of  postage  stamps,  stamped  envelopes,  or  postal  cards,  shall 
use  or  dispose  of  them  in  the  payment  of  debts,  or  in  the  purchase  of 
merchandise  or  other  salable  articles,  or  pledge  or  hypothecate  the 
same,  or  sell  or  dispose  of  them  except  for  cash ;  or  sell  or  dispose  of 
postage  stamps  or  postal  cards  for  any  larger  or  less  sum  than  the 
values  indicated  on  their  faces ;  or  sell  or  dispose  of  stamped  envelopes 
for  a  larger  or  less  sum  than  is  charged  therefor  by  the  Postoffice 
Department  for  like  quantities ;  or  sell  or  dispose  of,  or  cause  to  be 
sold  or  disposed  of,  postage  stamps,  stamped  envelopes,  or  postal  cards 
at  any  point  or  place  outside  of  the  delivery  of  the  office  where  such 
postmaster  or  other  person  is  employed ;  or  induce  or  attempt  to  induce, 
for  the  purpose  of  increasing  the  emoluments  or  compensation  of  such 
postmaster,  or  the  emoluments  or  compensation  of  any  other  person 
employed  in  such  postoffice  or  any  station  thereof,  or  the  allowances  or 
facilities  provided  therefor,  any  person  to  purchase  at  such  postoffice 
or  any  station  thereof,  or  from  any  employee  of  such  postoffice,  postage 
stamps,  stamped  envelopes,  or  postal  cards ;  or  sell  or  dispose  of  post- 
age stamps,  stamped  envelopes,  or  postal  cards,  otherwise  than  as  pro- 
vided by  law  or  the  regulations  of  the  Postoffice  Department,  shall 
be  fined  not  more  than  five  hundred  dollars,  or  imprisoned  not  more 
than  one  year,  or  both. 

Failure  to  Account  for  Postage  and  to  Cancel  Stamps,  Etc.,  by 
Officials. 
Sec.  209.  Whoever,  being  a  postmaster  or  other  person  engaged 
in  the  postal  service,  shall  collect  and  fail  to  account  for  the  postage 
due  upon  any  article  of  mail  matter  which  he  may  deliver,  without 
having  previously  affixed  and  canceled  the  special  stamp  provided  by 
law,  or  shall  fail  to  affix  such  stamp,  shall  be  fined  not  more  than  fifty 
dollars. 

Issuing  Money  Order  Without  Payment. 

Sec.  210.  Whoever,  being  a  postmaster  or  other  person  employed  in 
any  branch  of  the  postal  service,  shall  issue  a  money  order  without 
having  previously  received  the  money  therefor,  shall  be  fined  not  more 
than  five  hundred  dollars. 

Obscene,  Etc.,  Matter  Nonmailable. 

Sec.  211.  Every  obscene,  lewd,  or  lascivious,  and  every  filthy,  book, 
pamphlet,  picture,  paper,  letter,  writing,  print,   or  other  publication  of 


Criminal  Code  751 

an  indecent  character,  and  every  article  or  thing  designed,  adapted,  or 
intended  for  preventing  conception  or  producing  abortion,  or  for  any 
indecent  or  immoral  use ;  and  every  article,  instrument,  substance,  drug, 
medicine,  or  thing  which  is  advertised  or  described  in  a  manner  cal- 
culated to  lead  another  to  use  or  apply  it  for  preventing  conception  or 
producing  abortion,  or  for  any  indecent  or  immoral  purpose;  and  every 
A\Titten  or  printed  card,  letter,  circular,  book,  pamphlet,  advertisement, 
or  notice  of  any  kind  giving  information  directly  or  indirectly,  where, 
or  how,  or  from  whom,  or  by  what  mans  any  of  the  hereinbefore-men- 
tioned matters,  articles,  or  things  may  be  obtained  or  made,  or  where 
or  by  whom  any  act  or  operation  of  any  kind  for  the  procuring  or 
producing  of  abortion  will  be  done  or  performed,  or  how  or  by  what 
means  conception  may  be  prevented  or  abortion  produced,  whether 
sealed  or  unsealed :  and  every  letter,  packet,  or  package,  or  other  mail 
matter  containing  any  filthy,  vile,  or  indecent  thing,  device,  or  substance ; 
and  every  paper,  writing,  advertisement,  or  representation  that  any  arti- 
cle, instrument,  substance,  drug,  medicine,  or  thing  may,  or  can  be,  used 
or  applied  for  preventing  conception  or  producing  abortion,  or  for  any 
indecent  or  immoral  purpose ;  and  every  description  calculated  to  induce 
or  incite  a  person  to  so  use  or  apply  any  such  article,  instrument,  sub- 
stance, drug,  medicine,  or  thing,  is  hereby  declared  to  be  non-mailable 
matter  and  shall  not  be  conveyed  in  the  mails  or  delivered  from  anv 
postoffice  or  by  any  letter  carrier.  Whoever  shall  knowingly  deposit,  or 
cause  to  be  deposited  for  mailing  or  delivery,  anything  declared  by  this 
section  to  be  non-mailable.  or  shall  knowingly  take,  or  cause  the  same  to 
be  taken,  from  the  mails  for  the  purpose  of  circulating  or  disposing 
thereof,  or  of  aiding  in  the  circulation  or  disposition  thereof,  shall  be 
fined  not  more  than  five  thousand  dollars,  or  imprisoned  not  more  than 
five  years,  or  both. 

Libelous  and  Indecent  Envelopes  and  Wrappers. 

Sec.  212.  All  matter  otherwise  mailable  by  law.  upon  the  envelope 
or  outside  cover  or  wrapper  of  which,  or  any  postal  card  upon  which, 
any  delineations,  epithets,  terms,  or  language  of  an  indecent,  lewd, 
lascivious,  obscene,  libelous,  scurrilous,  defamatory,  or  threatening  char- 
acter, or  calculated  by  the  terms  or  manner  or  style  of  display  and 
obviously  intended  to  reflect  injuriously  upon  the  character  or  conduct 
of  another,  may  be  written  or  printed  or  otherwise  impressed  or  appar- 
ent, are  hereby  declared  non-mailable  matter,  and  shall  not  be  conveyed 
in  the  mails  nor  delivered  from  any  postoffice  nor  by  any  letter  carrier, 
and  shall  be  withdrawn  from  the  mails  under  such  regulations  as  the 
Postmaster-General  shall  prescribe.  Whoever  shall  knowingly  deposit  or 
cause  to  be  deposited,  for  mailing  or  delivery,  anything  declared  by  this 
section  to  be  non-mailable  matter,  or  shall  knowingly  take  the  same  or 
cause  the  same  to  be  taken  from  the  mails  for  the  purpose  of  circulating 
or  disposing  of  or  aiding  in  the  circulation  or  disposition  of  the  same. 


752  Important  Federal  Laws 

shall  be  fined  not  more  than  five  thousand  dollars,  or  imprisoned  not 
more  than  five  years,  or  both. 

Lottery,  Gift  Enterprise,  Etc.,  Circulars,  Etc.,  Not  Mailable. 

Sec.  213.  No  letter,  package,  postal  card,  or  circular  concerning  any 
lottery,  gift  enterprise,  or  similar  scheme  offering  prizes  dependent  in 
whole  or  in  part  upon  lot  or  chance ;  and  no  lottery  ticket  or  part 
thereof,  or  paper,  certificate,  or  instrument  purporting  to  be  or  to  repre- 
sent a  ticket,  chance,  share,  or  interest  in  or  dependent  upon  the  event 
of  a  lottery,  gift  enterprise,  or  similar  scheme  offering  prizes  dependent 
in  whole  or  in  part  upon  lot  or  chance ;  and  no  check,  draft,  bill,  money, 
postal  note,  or  money  order,  for  the  purchase  of  any  ticket  or  part 
thereof,  or  of  any  share  or  chance  in  any  such  lottery,  gift  enterprise, 
or  scheme ;  and  no  newspaper,  circular,  pamphlet,  or  publication  of  any 
kind  containing  any  advertisement  of  any  lottery,  gift  enterprise,  or 
scheme  of  any  kind  offering  prizes  dependent  in  whole  or  in  part  upon 
lot  or  chance,  or  containing  any  list  of  the  prizes  drawn  or  awarded  by 
means  of  any  such  lottery,  gift  enterprise,  or  schemes,  whether  said  list 
contains  any  part  or  all  of  such  prizes,  shall  be  deposited  in  or  carried 
by  the  mails  of  the  United  States,  or  be  delivered  by  any  postmaster  or 
letter  carrier.  Whoever  shall  knowingly  deposit  or  cause  to  be  deposited, 
or  shall  knowingly  send  or  cause  to  be  sent,  anything  to  be  conveyed  or 
delivered  by  mail  in  violation  of  the  provisions  of  this  section,  or  shall 
knowingly  deHver  or  cause  to  be  delivered  by  mail  anything  herein  for- 
bidden to  be  carried  by  mail,  shall  be  fined  not  more  than  one  thousand 
dollars,  or  imprisoned  not  more  than  two  years,  or  both ;  and  for  any 
subsequent  offense  shall  be  imprisoned  not  more  than  five  years.  Any 
person  violating  any  provision  of  this  section  may  be  tried  and  punished 
either  in  the  district  in  which  the  unlawful  matter  or  publication  was 
mailed,  or  to  which  it  was  carried,  by  mail  for  delivery  according  to 
the  direction  thereon,  or  in  which  it  was  caused  to  be  delivered  by 
mail  to  the  person  to  whom  it  was  addressed. 

Postmasters  not  to  be  Lottery  Agents. 

Sec.  214.  Whoever,  being  a  postmaster  or  other  person  employed 
in  the  postal  service,  shall  act  as  agent  for  any  lottery  office,  or  under 
color  of  purchase  or  otherwise,  vend  lottery  tickets,  or  shall  knowingly 
send  by  mail  or  deliver  any  letter,  package,  postal  card,  circular,  or 
pamphlet  advertising  any  lottery,  gift  enterprise,  or  similar  scheme, 
offering  prizes  dependent  in  whole  or  in  part  upon  lot  or  chance,  or 
any  ticket,  certificate,  or  instrument  representing  any  chance,  share,  or 
interest  in  or  dependent  upon  the  event  of  any  lottery,  gift  enterprise, 
or  similar  scheme  off"ering  prizes  dependent  in  whole  or  in  part  upon 
lot  or  chance,  or  any  list  of  the  prizes  awarded  by  means  of  any  such 
scheme,  shall  be  fined  not  more  than  one  hundred  dollars,  or  imprisoned 
not  more  than  one  year,  or  both. 


Criminal  Code  753 

Use  of  Mails  to  Promote  Frauds. 

Sec.  215.  Whoever,  having  devised  or  intending  to  devise  any 
scheme  or  artifice  to  defraud,  or  for  obtaining  money  or  property  by 
means  of  false  or  fraudulent  pretenses,  representations,  or  promises,  or 
to  sell,  dispose  of,  loan,  exchange,  alter,  give  away,  distribute,  supply, 
or  furnish  or  procure  for  unlawful  use  any  counterfeit  or  spurious 
coin,  bank  note,  paper  money,  or  any  obligation  or  security  of  the 
United  States,  or  of  any  State,  Territory,  municipality,  company,  cor- 
poration, or  person,  or  anything  represented  to  be  or  intimated  or  held 
out  to  be  such  counterfeit  or  spurious  article,  or  any  scheme  or  artifice 
to  obtain  money  by  or  through  correspondence,  by  what  is  commonly 
called  the  "saw-dust  swindle,"  or  "counterfeit-money  fraud,"  or  by  deal- 
ing or  pretending  to  deal  in  what  is  commonly  called  "green  articles," 
"green  coin,"  "green  goods,"  "bills,"  "paper  goods,"  "spurious  Treasury 
notes,"  "United  States  goods,"  "green  cigars,"  or  any  other  names  or 
terms  intended  to  be  understood  as  relating  to  such  counterfeit  or 
spurious  articles,  shall,  for  the  purpose  of  executing  such  scheme  or 
artifice  or  attempting  so  to  do,  place,  or  cause  to  be  placed,  any  letter, 
postal  card,  package,  writing,  circular,  pamphlet,  or  advertisement, 
whether  addressed  to  any  person  residing  within  or  outside  the  United 
States,  in  any  postofiice,  or  station  thereof,  or  street  or  other  letter  box 
of  the  United  States,  or  authorized  deoository  for  mail  matter,  to  be 
sent  or  delivered  by  the  postofiice  establishment  of  the  United  States,  or 
shall  take  or  receive  any  such  therefrom,  whether  mailed  within  or  with- 
out the  United  States,  or  shall  knowingly  cause  to  be  delivered  by  mail 
according  to  the  direction  thereon,  or  at  the  place  at  w'hich  it  is  directed 
to  be  delivered  by  the  person  to  whom  it  is  addressed,  any  such  letter, 
postal  card,  package,  writing,  circular,  pamphlet,  or  advertisement,  shall 
be  fined  not  more  than  one  thousand  dollars,  or  imprisoned  not  more 
than  five  years,  or  both. 

Fraudulently  Assuming  Fictitious  Address. 

Sec.  216.  Whoever,  for  the  purpose  of  conducting,  promoting,  or 
carrying  on,  in  any  manner,  by  means  of  the  postofiice  establishment  of 
the  United  States,  any  scheme  or  device  mentioned  in  the  section  last 
preceding,  or  any  other  unlawful  business  whatsoever,  shall  use  or  as- 
sume, or  request  to  be  addressed  by,  any  fictitious,  false,  or  assumed 
title,  name,  or  address,  or  name  other  than  his  own  proper  name, 
or  shall  take  or  receive  from  any  postofiice  of  the  United  States,  or  sta- 
tion thereof,  or  any  other  authorized  depository  of  mail  matter,  any 
letter,  postal  card,  package,  or  other  mail  matter  addressed  to  any  such 
fictitious,  false,  or  assumed  title,  name  or  address,  or  name  other  than 
his  own  proper  name,  shall  be  punished  as  provided  in  the  section 
last  preceding. 

Poisons  and  Explosives  Nonmailable. 

Sec.  217.     All  kinds  of  poison,  and  all  articles  and  compositions  con- 
(48) 


754  Important  Federal  Laws 

taining  poison,  and  all  poisonous  animals,  insects,  and  reptiles,  and  ex- 
plosives of  all  kinds,  and  inflammable  materials,  and  infernal  machines, 
and  mechanical,  chemical,  or  other  devices  or  compositions  which  may 
ignite  or  explode,  and  all  disease  germs  or  scabs,  and  all  other  natural 
or  artificial  articles,  compositions,  or  materials  of  whatever  kind  which 
may  kill,  or  in  anywise  hurt,  harm,  or  injure  another,  or  damage,  deface, 
or  otherwise  injure  the  mails  or  other  property,  whether  sealed  as  first- 
class  matter  or  not,  are  hereby  declared  to  be  non-mailable  matter,  and 
shall  not  be  conveyed  in  the  mails  or  delivered  from  any  postoffice  or 
station  thereof,  nor  by  any  letter  carrier ;  but  the  Postmaster-General 
may  permit  the  transmission  in  the  mails,  under  such  rules  and  regula- 
tions as  he  shall  prescribe  as  to  preparation  and  packing,  of  any  articles 
hereinbefore  described  which  are  not  outwardly  or  of  their  own  force 
dangerous  or  injurious  to  life,  health,  or  property :  Provided,  That  all 
spirituous,  vinous,  malted,  fermented,  or  other  intoxicating  liquors  of  any 
kind,  are  hereby  declared  to  be  non-mailable  and  shall  not  be  deposited 
in  or  carried  through  the  mails.  Whoever  shall  knowingly  deposit  or 
cause  to  be  deposited  for  mailing  or  delivery,  or  shall  knowingly  cause 
to  be  delivered  by  mail  according  to  the  directions  thereon,  or  at  any 
place  at  which  it  is  directed  to  be  delivered  by  the  person  to  whom  it  is 
addressed,  anything  declared  by  this  section  to  be  non-mailable,  unless  in 
accordance  with  the  rules  and  regulations  hereby  authorized  to  be  pre- 
scribed by  the  Postmaster-General,  shall  be  fined  not  more  than  one 
thousand  dollars,  or  imprisoned  not  more  than  two  years,  or  both ;  and 
whoever  shall  knowingly  deposit  or  cause  to  be  deposited  for  mailing  or 
delivery,  or  shall  knowingly  cause  to  be  delivered  by  mail  according  to 
the  direction  thereon,  or  at  any  place  to  which  it  is  directed  to  be  deliv- 
ered by  the  person  to  whom  it  is  addressed,  anything  declared  by  this 
section  to  be  non-mailable,  whether  transmitted  in  accordance  with  the 
rules  and  regulations  authorized  to  be  prescribed  by  the  Postmaster- 
General  or  not,  with  the  design,  intent,  or  purpose  to  kill,  or  in  anywise 
hurt,  harm,  or  injure  another  or  damage,  deface,  or  otherwise  injure 
the  mails  or  other  property,  shall  be  fined  not  more  than  five  thousand 
dollars,  or  imprisoned  not  more  than  ten  years,  or  both. 

Counterfeiting  Money  Orders. 

Sec.  218.  Whoever,  with  intent  to  defraud,  shall  falsely  make, 
forge,  counterfeit,  engrave,  or  print,  or  cause  or  procure  to  be  falsely 
made,  forged,  counterfeited,  engraved,  or  printed,  or  shall  willingly  aid 
or  assist  in  falsely  making,  forging,  counterfeiting,  engraving,  or  print- 
ing, any  order  in  imitation  of  or  purporting  to  be  a  money  order  issued 
by  the  Postoffice  Department,  or  by  any  postmaster  or  agent  thereof ;  or 
whoever  shall  forge  or  counterfeit  the  signature  of  any  postmaster, 
assistant  postmaster,  chief  clerk,  or  clerk,  upon  or  to  any  money  order, 
or  postal  note,  or  blank  therefor  provided  or  issued  by  or  under  the 
direction  of  the  Postoffice  Department  of  the  United  States,  or  of  any 
foreign  country,  and  payable  in  the  United  States,  or  any  material  signa- 


Criminal  Code  755 

ture  or  indorsement  thereon,  or  any  material  signature  to  any  receipt  or 
certificate  of  identification  thereon;  or  shall  falsely  alter,  or  cause  or 
procure  to  be  falsely  altered  in  any  material  respect,  or  knowingly  aid  or 
assist  in  falsely  so  altering  any  such  money  order  or  postal  note ;  or 
shall,  with  intent  to  defraud,  pass,  utter,  or  publish  any  such  forged  or 
altered  money  order  or  postal  note,  knowing  any  material  signature  or 
indorsement  thereon  to  be  false,  forged,  or  counterfeited,  or  any  mate- 
rial alteration  therein  to  have  been  falsely  made;  or  shall  issue  any 
money  order  or  postal  note  without  having  previously  received  or  paid 
the  full  amount  of  money  payable  therefor,  with  the  purpose  of  fraudu- 
lently obtaining  or  receiving  or  fraudulently  enabling  any  other  person, 
either  directly  or  indirectly,  to  obtain  or  receive  from  the  United  States 
or  any  officer,  employee,  or  agent  thereof,  any  sum  of  money  whatever;  or 
shall,  with  intent  to  defraud  the  United  States,  or  any  person,  transmit 
or  present  to,  or  cause  or  procure  to  be  transmitted  or  presented  to, 
any  officer  or  employee  or  at  any  office  of  the  government  of  the  United 
States,  any  money  order  or  postal  note,  knowing  the  same  to  contain  any 
forged  or  counterfeited  signature  to  the  same,  or  to  any  material  indorse- 
ment, receipt,  or  certificate  thereon,  or  material  alteration  therein  unlaw'- 
fully  made,  or  to  have  been  unlawfully  issued  without  previous  pay- 
ment of  the  amount  required  to  be  paid  upon  such  issue,  shall  be  fined 
not  more  than  five  thousand  dollars,  or  imprisoned  not  more  than  five 
years,  or  both. 

Counterfeiting  Postage  Stamps. 

Sec.  219.  Whoever  shall  forge  or  counterfeit  any  postage  stam,p, 
or  any  stamp  printed  upon  any  stamped  envelope,  or  postal  card,  or  any 
die,  plate,  or  engraving  therefor;  or  shall  make  or  print,  or  knowingly 
use  or  sell,  or  have  in  possession  with  intent  to  use  or  sell,  any  such 
forged  or  counterfeited  postage  stamp,  stamped  envelope,  postal  card, 
die,  plate,  or  engraving ;  or  shall  make,  or  knowingly  use  or  sell,  or  have 
in  possession  with  intent  to  use  or  sell,  any  paper  bearing  the  water- 
mark of  any  stamped  envelope,  or  postal  card,  or  any  fraudulent  imita- 
tion thereof ;  or  shall  make  or  print,  or  authorize  or  procure  to  be  made 
or  printed,  any  postage  stamp,  stamped  envelope,  or  postal  card,  of  the 
kind  authorized  and  provided  by  the  Postoffice  Department,  without  the 
special  authority  and  direction  of  said  Department ;  or  shall,  after  such 
postage  stamp,  stamped  envelope,  or  postal  card  has  been  printed,  with 
intent  to  defraud,  deliver  the  same  to  any  person  not  authorized  by  an 
instrument  in  writing,  duly  executed  under  the  hand  of  the  Postmaster- 
General  and  the  seal  of  the  Postoffice  Department,  to  receive  it,  shall  be 
fined  not  more  than  five  hundred  dollars,  or  imprisoned  not  more  than 
five  years,  or  both. 

Counterfeiting,  Etc.,  Foreign  Stamps. 

Sec.  220.  Whoever  shall  forge,  or  counterfeit,  or  knowingly  utter 
or  use  any  forged  or  counterfeited  postage  stamp  of  any  foreign  gov- 


756  Important  Federal  Laws 

ernment,  shall  be  fined  not  more  than  five  hundred  dollars,  or  impris- 
oned not  more  than  five  years,  or  both. 

Inclosing  Higher-Class  in  Lower-Class  Matter. 

Sec.  221.  Matter  of  the  second,  third,  or  fourth  class  containing  any 
writing  or  printing  in  addition  to  the  original  matter,  other  than  as 
authorized  by  law,  shall  not  be  admitted  to  the  mails,  nor  delivered, 
except  upon  payment  of  postage  for  matter  of  the  first  class,  deduct- 
ing therefrom  any  amount  which  may  have  been  prepaid  by  stamps 
affixed,  unless  by  direction  of  the  Postmaster-General  such  postage  shall 
be  remitted.  Whoever  shall  knowingly  conceal  or  inclose  any  matter 
of  a  higher  class  in  that  of  a  lower  class,  and  deposit  or  cause  the  same 
to  be  deposited  for  conveyance  by  mail,  at  a  less  rate  than  would  be 
charged  for  such  higher  class  matter,  shall  be  fined  not  more  than  one 
hundred  dollars. 
Postmaster  Illegally  Approving  Bond,  Etc. 

Sec.  222.  Whoever,  being  a  postmaster,  shall  affix  his  signature  to 
the  approval  of  any  bond  of  a  bidder,  or  to  the  certificate  of  sufficiency 
of  sureties  in  any  contract,  before  the  said  bond  or  contract  is  signed  by 
the  bidder  or  contractor  and  his  sureties,  or  shall  knowingly,  or  with- 
out the  exercise  of  due  diligence,  approve  any  bond  of  a  bidder  with 
insufficient  sureties,  or  shall  knowingly  make  any  false  or  fraudulent 
certificate,  shall  be  forthwith  dismissed  from  office  and  be  thereafter 
disqualified  from  holding  the  office  of  postmaster ;  and  shall  also  be 
fined  not  more  than  five  thousand  dollars,  or  imprisoned  not  more  tlian 
one  year,  or  both. 

False  Evidence  as  to  Second-Class  Mail  Matter. 

Sec.  223.  Whoever  shall  submit  or  cause  to  be  submitted  to  any 
postmaster  or  to  the  Postoffice  Department  or  any  officer  of  the  postal 
service,  anv  false  evidence  relative  to  any  publication  for  the  purpose  of 
securing  the  admission  thereof  at  the  second-class  rate,  for  transporta- 
tion in  the  mails,  shall  be  fined  not  more  than  five  hundred  dollars. 

Inducing  or  Prosecuting  False  Claims. 

Sec.  224.  Whoever  shall  make,  allege,  or  present,  or  cause  to  be 
made,  alleged,  or  presented,  or  assist,  aid,  or  abet  in  making,  alleging, 
or  presenting,  anv  claim  or  application  for  indemnity  for  the  loss  of 
any  registered  letter,  parcel,  package,  or  other  article  or  matter,  or  the 
contents  thereof,  knowing  such  claim  or  application  to  be  false,  fictitious, 
or  fraudulent ;  or  whoever  for  the  purpose  of  obtaining  or  aiding  to 
obtain  the  payment  or  approval  of  any  such  claim  or  application,  shall 
make  or  use,  or  cause  to  be  made  or  used,  any  false  statement,  certifi- 
cate, affidavit,  or  deposition ;  or  whoever  shall  knowingly  and  willfully 
misrepresent,  or  misstate,  or,  for  the  purpose  aforesaid  shall  knowingly 
and  willfully  conceal  any  material  fact  or  circumstance  in  respect  of 
any  such  claim  or  application  for  indemnity,  shall  be  fined  not  more  than 
five  hundred  dollars,  or  imprisoned  not  more  than  one  year,  or  both. 


Criminal  Code  757 

Misappropriation  of  Postal  Funds  or  Property. 

Sec.  225.  Whoever,  being  a  postmaster  or  other  person  employed 
in  or  connected  with  any  branch  of  the  postal  service,  shall  loan,  use, 
pledge,  hypothecate,  or  convert  to  his  own  use,  or  shall  deposit  in  any 
bank,  or  exchange  for  other  funds  or  property,  except  as  authorized 
by  law,  any  money  or  property  coming  into  his  hands  or  under  his  con- 
trol in  any  manner  whatever,  in  the  execution  or  under  color  of  his 
ofifice,  employment,  or  service,  whether  the  same  shall  be  the  money  or 
property  of  the  United  States  or  not ;  or  shall  fail  or  refuse  to  remit 
to  or  deposit  in  the  Treasury  of  the  United  States  or  in  a  designated 
depository,  or  to  account  for  or  turn  over  to  the  proper  officer  or  agent, 
any  such  money  or  property,  when  required  so  to  do  by  law  or  the 
regulations  of  the  Postoffice  Department,  or  upon  demand  or  order  of 
the  Postmaster-General,  either  directly  or  through  a  duly  authorized 
officer  or  agent,  shall  be  deemed  guilty  of  embezzlement;  and  every  such 
person,  as  well  as  every  other  person  advising  or  knowingly  participat- 
ing therein,  shall  be  fined  in  a  sum  equal  to  the  amount  or  value  of  the 
money  or  property  embezzled,  or  imprisoned  not  more  than  ten  years, 
or  both.  Any  failure  to  produce  or  to  pay  over  any  such  money  or 
property,  when  required  so  to  do  as  above  provided,  shall  be  taken  to  be 
prima  facie  evidence  of  such  embezzlement ;  and  upon  the  trial  of  any 
indictment  against  any  person  for  such  embezzlement,  it  shall  be  prima 
facie  evidence  of  a  balance  against  him  to  produce  a  transcript  from 
the  account  books  of  the  Auditor  for  the  Postoffice  Department.  But 
nothing  herein  shall  be  construed  to  prohibit  any  postmaster  deposit- 
ing, under  the  direction  of  the  Postmaster-General,  in  a  national  bank 
designated  by  the  Secretary  of  the  Treasury  for  that  purpose,  to  his 
own  credit  as  postmaster,  any  funds  in  his  charge,  nor  prevent  his  nego- 
tiating drafts  or  other  evidences  of  debt  through  such  bank,  or  through 
United  States  disbursing  officers,  or  otherwise,  when  instructed  or  re- 
quired so  to  do  by  the  Postmaster-General,  for  the  purpose  of  remitting 
surplus  funds  from  one  postoffice  to  another. 

Employees  not  to  Become  Interested  in  Contracts. 

Sec.  226.  Whoever,  being  a  person  employed  in  the  postal  service 
shall  become  interested  in  any  contract  for  carrying  the  mail,  or  act 
as  agent,  with  or  without  compensation,  for  any  contractor  or  person 
offering  to  become  a  contractor  in  any  business  before  the  Department, 
shall  be  immediately  dismissed  from  office,  and  shall  be  fined  not  more 
than  five  thousand  dollars,  or  imprisoned  not  more  than  one  year,  or 
both. 

Fraudulent  Use  of  Official  Envelopes. 

Sec.  227.  Whoever  shall  make  use  of  any  official  envelope,  label,  or 
indorsement  authorized  by  law,  to  avoid  the  payment  of  postage  or 
registry  fee  on  his  private  letter,  packet,  package,  or  other  matter  in 
the  mail,  shall  be  fined  not  more  than  three  hundred  dollars. 


758  Important  Federal  Laws 

Fraudulent  Increase  of  Weight  of  Mail. 

Sec.  228.  Whoever  shall  place  or  cause  to  be  placed  any  matter  in 
the  mails  during  the  regular  weighing  period,  for  the  purpose  of  increas- 
ing the  weight  of  the  mail  with  intent  to  cause  an  increase  in  the  com- 
pensation of  the  railroad  mail  carrier  over  whose  route  such  mail  may- 
pass,  shall  be  fined  not  more  than  twenty  thousand  dollars,  or  imprisoned 
not  more  than  five  years,  or  both. 

Offenses  Against  Foreign  Mail  in  Transit. 

Sec.  229.  Every  foreign  mail  shall,  while  being  transported  across 
the  territory  of  the  United  States,  under  authority  of  law,  be  taken 
and  deemed  to  be  a  mail  of  the  United  States  so  far  as  to  make  any 
violation  thereof,  or  depredation  thereon,  or  offense  in  respect  thereto, 
or  any  part  thereof,  an  offense  of  the  same  grade,  and  punishable  in 
the  same  manner  and  to  the  same  extent  as  though  the  mail  was  a 
mail  of  the  United  States;  and  in  any  indictment  or  information  for 
any  such  offense,  the  mail,  or  any  part  thereof,  may  be  alleged  to  be, 
.and  on  the  trial  of  any  such  indictment  or  information  it  shall  be  deemed 
and  held  to  be,  a  mail  or  part  of  a  mail  of  the  United  States. 

Omission  to  take  Oath. 

Sec.  230.  Every  person  employed  in  the  postal  service  shall  be  sub- 
ject to  all  penalties  and  forfeitures  for  the  violation  of  the  laws  relating 
to  such  service,  whether  he  has  taken  the  oath  of  office  or  not. 

Definitions. 

Sec.  231.  The  words  "postal  service,"  wherever  used  in  this  chap- 
ter, shall  be  held  and  deemed  to  include  the  "PostofiEice  Department." 

CHAPTER  IX. 

Offenses  Against  Foreign  and  Interstate  Commerce. 

Dynamite,  Etc.,  Not  to  Be  Carried  on  Vessels  or  Vehicles  Carrying 
Passengers  for  Hire. 

Sec.  232.  It  shall  be  unlawful  to  transport,  carry,  or  convey,  any 
dynamite,  gunpowder,  or  other  explosive,  between  a  place  in  a  foreign 
country  and  a  place  within  or  subject  to  the  jurisdiction  of  the  United 
States,  or  between  a  place  in  any  State,  Territory,  or  District  of  the 
United  States,  or  place  noncontiguous  to  but  subject  to  the  jurisdiction 
thereof,  and  a  place  in  any  other  State,  Territory,  or  District  of  the 
United  States,  or  place  noncontiguous  to  but  subject  to  the  jurisdiction 
thereof,  on  any  vessel  or  vehicle  of  any  description  operated  by  a  com- 
mon carrier,  which  vessel  or  vehicle  is  carrying  passengers  for  hire : 
Provided,  That  it  shall  be  lawful  to  transport  on  any  such  vessel  or 
vehicle  small  arms  ammunition  in  any  quantity,  and  such  fuses,  tor- 
pedoes, rockets,  or  other  signal  devices,  as  may  be  essential  to  promote 
safety  in  operation,  and  properly  packed  and  marked  samples  of  explo- 
sives for  laboratory  examination,  not  exceeding  a  net  weight  of  one- 


Criminal  Code  759 

half  pound  each,  and  not  exceeding  twenty  samples  at  one  time  in  a 
single  vessel  or  vehicle ;  but  such  samples  shall  not  be  carried  in  that 
part  of  a  vessel  or  vehicle  which  is  intended  for  the  transportation  of 
passengers  for  hire :  Provided  further,  That  nothing  in  this  section  shall 
be  construed  to  prevent  the  transportation  of  military  or  naval  forces 
with  their  accompanying  munitions  of  war  on  passenger  equipment  ves- 
sels or  vehicles. 

Interstate  Commerce  Commission  to  Make  Regulations  for  Transpor- 
tation of  Explosives. 
Sec.  233.  The  Interstate  Commerce  Commission  shall  formulate 
regulations  for  the  safe  transportation  of  explosives,  which  shall  be 
binding  upon  all  common  carriers  engaged  in  interstate  or  foreign  com- 
merce which  transport  explosives  by  land.  Said  commission,  of  its  own 
motion,  or  upon  application  made  by  any  interested  party,  may  make 
changes  or  modifications  in  such  regulations,  made  desirable  by  new 
information  or  altered  conditions.  Such  regulations  shall  be  in  accord 
with  the  liest  known  practicable  means  for  securing  safety  in  transit, 
covering  the  packing,  marking,  loading,  handling  while  in  transit,^  and 
the  precautions  necessary  to  determine  whether  the  material  when  offered 
is  in  proper  condition  to  transport.  Such  regulations,  as  well  as  all 
changes  or  modifications  thereof,  shall  take  effect  ninety  days  after  their 
formulation  and  publication  by  said  commission  and  shall  be  in  effect 
until  reversed,  set  aside,  or  modified. 

Liquid  Nitroglycerin,  Etc.,  Not  to  Be  Carried  on  Certain  Vessels  and 
Vehicles. 

Sec.  234.  It  shall  be  unlawful  to  transport,  carry,  or  convey, 
liquid  nitroglycerin,  fulminate  in  bulk  in  dry  condition,  or  other  like 
explosive,  between  a  place  in  a  foreign  country  and  a  place  within  or 
subject  to  the  jurisdiction  of  the  United  States,  or  between  a  place 
in  one  State,  Territory,  or  District  of  the  United  States,  or  place  non- 
contiguous to  but  subject  to  the  jurisdiction  thereof,  and  a  place  in 
any  other  State,  Territory,  or  District  of  the  United  States,  or  place 
noncontiguous  to  but  subject  to  the  jurisdiction  thereof,  on  any  vessel 
or  vehicle  of  any  description  operated  by  a  common  carrier  in  the  trans- 
portation of  passenger  or  articles  of  commerce  by  land  or  water. 

Marking  of  Packages  of  Explosives;  Deceptive  Marking. 

Sec.  235.  Every  package  containing  explosives  or  other  dangerous 
articles  when  presented  to  a  common  carrier  for  shipment  shall  have 
plainly  marked  on  the  outside  thereof  the  contents  thereof  ;  and  it  shall 
be  unlawful  for  any  person  to  deliver,  or  cause  to  be  delivered,  to  any 
common  carrier  engaged  in  interstate  or  foreign  commerce  by  land  or 
water,  for  interstate  or  foreign  transportation,  or  to  carry  upon  any 
vessel  or  vehicle  engaged  in  interstate  or  foreign  transportation,  any 
explosive,  or  other  dangerous  article,  under  any  false  or  deceptive  mark- 
ing, description,  invoice,  shipping  order,  or  other  declaration,  or  without 


760  Important  Federal  Laws 

informing  the  agent  of  such  carrier  of  the  true  character  thereof,  at 
or  before  the  time  such  deUvery  or  carriage  is  made.  Whoever  shall 
knowingly  violate,  or  cause  to  be  violated,  any  provision  of  this  section, 
or  of  the  three  sections  last  preceding,  or  any  regulation  made  by  the 
Interstate  Commerce  Commission  in  pursuance  thereof,  shall  be  fined 
not  more  than  two  thousand  dollars,  or  imprisoned  not  more  than  eight- 
een months,  or  both. 

Death  or  Bodily  Injury  Caused  by  Such  Transportation. 

Sec.  236.  When  the  death  or  bodily  injury  of  any  person  is  caused 
by  the  explosion  of  any  article  named  in  the  four  sections  last  pre- 
ceding, while  the  same  is  being  placed  upon  any  vessel  or  vehicle  to  be 
transported  in  violation  thereof,  or  while  the  same  is  being  so  trans- 
ported, or  while  the  same  is  being  removed  from  such  vessel  or  vehicle, 
the  person  knowingly  placing,  or  aiding  or  permitting  the  placing,  of 
such  articles  upon  any  such  vessel  or  vehicle,  to  be  so  transported,  shall 
be  imprisoned  not  more  than  ten  years. 

Importation  and  Transportation  of  Lottery  Tickets,  Etc. 

Sec.  237.  Whoever  shall  bring  or  cause  to  be  brought  into  the 
United  States  or  any  place  subject  to  the  jurisdiction  thereof,  from 
any  foreign  country,  for  the  purpose  of  disposing  of  the  same,  any 
paper,  certificate,  or  instrument  purporting  to  be  or  to  represent  a 
ticket,  chance,  share,  or  interest  in  or  dependent  upon  the  event  of  a 
lottery,  gift  enterprise,  or  similar  scheme,  ofi^ering  prizes  dependent  in 
wliole  or  in  part  upon  lot  or  chance,  or  any  advertisement  of,  or  list 
of  the  prizes  drawn  or  awarded  by  means  of,  any  such  lottery,  gift 
enterprise,  or  similar  scheme ;  or  shall  therein  knowingly  deposit  or  cause 
to  be  deposited  with  any  express  company  or  common  carrier  for  car- 
riage, or  shall  carry,  from  one  State,  Territory,  or  District  of  the  United 
States,  or  place  noncontiguous  to  but  subject  to  the  jurisdiction  thereof, 
to  any  other  State,  Territory,  or  District  of  the  United  States,  or  place 
noncontiguous  to  but  subject  to  the  jurisdiction  thereof,  or  from  any 
place  in  or  subject  to  the  jurisdiction  of  the  United  States  through  a 
foreign  country  to  any  place  in  or  subject  to  the  jurisdiction  thereof, 
or  from  any  place  in  or  subject  to  the  jurisdiction  of  the  United  States 
to  a  foreign  country,  any  paper,  certificate,  or  instrument  purporting  to 
be  or  to  represent  a  ticket,  chance,  share,  or  interest  in  or  dependent 
upon  the  event  of  any  such  lottery,  gift  enterprise,  or  similar  scheme,  or 
any  advertisement  of,  or  list  of  the  prizes  drawn,  or  award  by  means  of, 
any  such  lottery,  gift  enterprise,  or  similar  scheme,  or  shall  knowingly 
take  or  receive,  or  cause  to  be  taken  or  received,  any  such  paper,  certifi- 
cate, instrument,  advertisement,  or  list  so  brought,  deposited,  or  trans- 
ported, shall,  for  the  first  ofifense.  be  fined  not  more  than  one  thousand 
dollars,  or  imprisoned  not  more  than  two  years,  or  both ;  and  for  any 
subsequent  offense  shall  be  imprisoned  not  m.ore  than  two  years. 


Criminal  Code  761 

Interstate  Shipment  of  Intoxicating  Liquors ;  Delivery  of  to  be  Made 
Only  to  Bona  Fide  Consignee. 

Sec.  238.  Any  officer,  agent,  or  employee  of  any  railroad  company, 
express  company,  or  other  common  carrier,  who  shall  knowingly  de- 
liver or  cause  to  be  delivered  to  any  person  other  than  the  person  to 
whom  it  has  been  consigned,  unless  upon  the  written  order  in  each 
instance  of  the  bona  fide  consignee,  or  to  any  fictitious  person,  or  to 
any  person  under  a  fictitious  name,  any  spirituous,  vinous,  malted,  fer- 
mented, or  other  intoxicating  liquor  of  any  kind  which  has  been  shipped 
from  one  State,  Territory,  or  District  of  the  United  States,  or  place  non- 
contiguous to  but  subject  to  the  jurisdiction  thereof,  into  any  other  State, 
Territory,  or  District  of  the  United  States,  or  place  noncontiguous  to 
but  subject  to  the  jurisdiction  thereof,  or  from  any  foreign  country 
into  any  State,  Territory,  or  District  of  the  United  States,  or  place 
noncontiguous  to  but  subject  to  the  jurisdiction  thereof,  shall  be  fined 
not  more  than  five  thousand  dollars,  or  imprisoned  not  more  than  two 
years,  or  both. 

Common  Carrier,  Etc.,  Not  to  Collect  Purchase  Price  of  Interstate 
Shipment  of  Intoxicating  Liquors. 

Sec.  239.  Any  railroad  company,  express  company,  or  other  com- 
mon carrier,  or  any  other  person  who,  in  connection  with  the  trans- 
portation of  any  spirituous,  vinous,  malted,  fermented,  or  other  intoxi- 
cating liquor  of  any  kind,  from  one  State,  Territory,  or  District  of  the 
United  States,  or  place  noncontiguous  to  but  subject  to  the  jurisdiction 
thereof,  into  any  other  State,  Territory,  or  District  of  the  United  States, 
or  place  noncontiguous  to  but  subject  to  the  jurisdiction  thereof,  or 
from  any  foreign  country  into  any  State,  Territory,  or  District  of  the 
United  States,  or  place  noncontiguous  to  but  subject  to  the  jurisdiction 
thereof,  shall  collect  the  purchase  price  or  any  part  thereof  before,  on,  or 
after  delivery,  from  the  consignee,  or  from  any  other  person,  or  shall  in 
any  manner  act  as  the  agent  of  the  buyer  or  seller  of  any  such  liquor,  for 
the  purpose  of  buying  or  selling  or  completing  the  sale  thereof,  saving 
only  in  the  actual  transportation  and  delivery  of  the  same,  shall  be  fined 
not  more  than  five  thousand  dollars. 

Packages  Containing  Intoxicating  Liquors  Shipped  in  Interstate  Com- 
merce to  be  Marked  as  Such. 

Sec.  240.  Whoever  shall  knowingly  ship  or  cause  to  be  shipped 
from  one  State,  Territory,  or  District  of  the  United  States,  or  place 
noncontiguous  to  but  subject  to  the  jurisdiction  thereof,  into  any  other 
State,  Territory,  or  District  of  the  United  States,  or  place  noncontiguous 
to  but  subject  to  the  jurisdiction  thereof,  or  from  any  foreign  country  into 
any  State,  Territory,  or  District  of  the  United  States,  or  place  noncon- 
tiguous to  but  subject  to  the  jurisdiction  thereof,  any  package  of  or  pack- 
age containing  any  spirituous,  vinous,  malted,  fermented,  or  other  intoxi- 
cating liquor  of  any  kind,  unless  such  package  be  so  labeled  on  the  outside 


762  Important  Federal  Laws 

cover  as  to  plainly  show  the  name  of  the  consignee,  the  nature  of  its  con- 
tents, and  the  quantity  contained  therein,  shall  be  fined  not  more  than  five 
thousand  dollars ;  and  such  liquor  shall  be  forfeited  to  the  United  States, 
and  may  be  seized  and  condemned  by  like  proceedings  as  those  provided 
by  law  for  the  seizure  and  forfeiture  of  property  imported  into  the 
United  States  contrary  to  law. 
Importation  of  Certain  Wild  Animals,  Birds,  and  Reptiles  Forbidden. 

Sec.  241.  The  importation  into  the  United  States,  or  any  Territory 
or  District  thereof,  of  the  mongoose,  the  so-called  "flying  foxes"  or 
fruit  bats,  the  English  sparrow,  the  starling,  and  such  other  birds  and 
animals  as  the  Secretary  of  Agriculture  may  from  time  to  time  declare 
to  be  injurious  to  the  interests  of  agriculture  or  horticulture,  is  hereby 
prohibited ;  and  all  such  birds  and  animals  shall,  upon  arrival  at  any 
port  of  the  United  States,  be  destroyed  or  returned  at  the  expense  of 
the  owner.  No  person  shall  import  into  the  United  States  or  into  any 
Territory  or  District  thereof,  any  foreign  wild  animal  or  bird,  except 
under  special  permit  from  the  Secretary  of  Agriculture :  Provided,  That 
nothing  in  this  section  shall  restrict  the  importation  of  natural  his- 
tory specimens  for  museums  or  scientific  collections,  or  of  certain  cage 
birds,  such  as  domesticated  canaries,  parrots,  or  such  other  birds  as  the 
Secretary  of  Agriculture  may  designate.  The  Secretary  of  the  Treasury 
is  hereby  authorized  to  make  regulations  for  carrying  into  effect  the 
provisions  of  this  section. 
Transportation  of  Prohibited  Animals. 

Sec.  242.  It  shall  be  unlawful  for  any  person  to  deliver  to  any 
common  carrier  for  transportation,  or  for  any  common  carrier  to  trans- 
port from  any  State,  Territory,  or  District  of  the  United  States,  to  any 
other  State,  Territory,  or  District  thereof,  any  foreign  animals  or  birds, 
the  importation  of  which  is  prohibited,  or  the  dead  bodies  or  parts  there- 
of of  any  wild  animals  or  birds,  where  such  animals  or  birds  have  been 
killed  or  shipped  in  violation  of  the  laws  of  the  State,  Territor)',  or 
District  in  which  the  same  were  killed,  or  from  which  they  were  shipped : 
Provided,  That  nothing  herein  shall  prevent  the  transportation  of  any 
dead  birds  or  animals  killed  during  the  season  when  the  same  may  be 
lawfully  captured,  and  the  export  of  which  is  not  prohibited  by  law  in 
the  State,  Territory,  or  District  in  which  the  same  are  captured  or 
killed:  Provided  further.  That  nothing  herein  shall  prevent  the  importa- 
tion, transportation,  or  sale  of  birds  or  bird  plumage  manufactured  from 
the  feathers  of  barnyard  fowls. 

Marking  of  Packages. 

Sec.  243.  All  packages  containing  the  dead  bodies,  or  the  plumage, 
or  parts  thereof,  of  game  animals,  or  game  or  other  wild  birds,  when 
shipped  in  interstate  or  foreign  commerce,  shall  be  plainly  and  clearly 
marked,  so  that  the  name  and  address  of  the  shipper,  and  the  nature  of 
the  contents  may  be  readily  ascertained  on  ah  inspection  of  the  outside  of 
such  package. 


Criminal  Code  763 

Penalty  for  Violation  of  Preceding  Sections. 

Sec.  244.  For  each  evasion  or  violation  of  an}^  provision  of  the 
three  sections  last  preceding,  the  shipper  shall  be  fined  not  more  than 
two  hundred  dollars ;  the  consignee  knowingly  receiving  such  articles  so 
shipped  and  transported  in  violation  of  said  sections  shall  be  fined  not 
more  than  two  hundred  dollars ;  and  the  carrier  knowingly  carrying 
or  transporting  the  same  in  violation  of  said  sections  shall  be  fined  not 
more  than  two  hundred  dollars. 

Depositing  Obscene  Books,  Etc.,  With  Common  Carrier. 

Sec.  245.  Whoever  shall  bring  or  cause  to  be  brought  into  the 
United  States  or  any  place  subject  to  the  jurisdiction  thereof,  from  any 
foreign  country,  or  shall  therein  knowingly  deposit  or  cause  to  be  depos- 
ited with  any  express  company  or  other  common  carrier,  for  carriage 
from  one  State,  Territory,  or  District  of  the  United  States,  or  place 
noncontiguous  to  but  subject  to  the  jurisdiction  thereof,  to  any  other 
State,  Territory,  or  District  of  the  United  States,  or  place  noncon- 
tiguous to  but  subject  to  the  jurisdiction  thereof,  or  from  any  place  in 
or  subject  to  the  jurisdiction  of  the  United  States  through  a  foreign 
country  to  any  place  in  or  subject  to  the  jurisdiction  thereof,  or  from 
any  place  in  or  subject  to  the  jurisdiction  of  the  United  States  to  a 
foreign  country,  any  obscene,  lewd,  or  lascivious,  or  any  filthy  book, 
pamphlet,  picture,  paper,  letter,  writing,  print,  or  other  matter  of  inde- 
cent character,  or  any  drug,  medicine,  article,  or  thing  designed,  adapted, 
or  intended  for  preventing  conception,  or  producing  abortion,  or  for  any 
indecent  or  immoral  use,  or  any  written  or  printed  card,  letter,  circular, 
book,  pamphlet,  advertisement,  or  notice  of  any  kind  giving  information, 
directly  or  indirectly,  where,  how,  or  of  whom,  or  by  what  means  any  of 
the  hereinbefore-mentioned  articles,  matters,  or  things  may  be  obtained 
or  made ;  or  whoever  shall  knowingly  take  or  cause  to  be  taken  from 
such  express  company  or  other  common  carrier  any  matter  or  thing 
the  depositing  of  which  for  carriage  is  herein  made  unlawful,  shall  be 
fined  not  more  than  five  thousand  dollars,  or  imprisoned  not  more  than 
five  years,  or  both. 


LARCENY  IN  INTERSTATE  COMMERCE. 

Act  of  February  13,  191.3. 

An  Act  to  punish  the  unlawful  breaking  of  seals  of  railroad  cars  containing 
interstate  or  foreign  shipments,  the  unlawful  entering  of  such  cars,  the 
stealing  of  freight  and  express  packages  or  baggage  or  articles  in  process 
of  transportation  in  interstate  shipment,  and  the  felonious  asportation  of 
such  freight  or  express  packages  or  baggage  or  articles  therefrom  into 
another  district  of  the  United  States,  and  the  felonious  possession  or  recep- 
tion of  the  same. 

Larceny  in  Interstate  Commerce  Made  Punishable. 

Section  1.     That  whoever  shall  unlawfully  break  the  seal  of  any 
railroad  car  containing  interstate   or   foreign   shipments   of    freight   or 


764  Important  Federal  Laws 

express,  or  shall  enter  any  such  car  with  intent,  in  either  case,  to  commit 
larceny  therein;  or  whoever  shall  steal  or  unlawfully  take,  carry  away,  or 
conceal,  or  by  fraud  or  deception  obtain  from  any  railroad  car,  station 
house,  platform,  depot,  steamboat,  vessel,  or  wharf,  with  intent  to  convert 
to  his  own  use  any  goods  or  chattels  moving  as,  or  which  are  a  part  of 
or  which  constitute,  an  interstate  or  foreign  shipment  of  freight  or 
express,  or  shall  buy,  or  receive,  or  have  in  his  possession  any  such  goods 
or  chattels,  knowing  the  same  to  have  been  stolen ;  or  whoever  shall  steal 
or  shall  unlawfully  take,  carry  away,  or  by  fraud  or  deception  obtain, 
with  intent  to  convert  to  his  own  use,  any  baggage  which  shall  have 
come  into  the  possession-  of  any  common  carrier  for  transportation  from 
one  State  or  Territory  or  the  District  of  Columbia  to  another  State  or 
Territory  or  the  District  of  Columbia,  or  to  a  foreign  country,  or  from 
a  foreign  country  to  any  State  or  Territory  or  the  District  of  Columbia, 
or  shall  break  into,  steal,  take,  carry  away,  or  conceal  any  of  the  con- 
tents of  such  baggage,  or  shall  buy,  receive,  or  have  in  his  possession  any 
such  baggage  or  any  article  therefrom  of  whatsoever  nature,  knowing  the 
same  to  have  been  stolen,  shall  in  each  case  be  fined  not  more  than  five 
thousand  dollars  or  imprisoned  not  more  than  ten  years,  or  both,  and 
prosecutions  therefor  may  be  instituted  in  any  district  wherein  the  crime 
shall  have  been  committed.  The  carrying  or  transporting  of  any  such 
freight,  express,  baggage,  goods,  or  chattels  from  one  State  or  Territory 
or  the  District  of  Columbia  into  another  State  or  Territory  or  the  District 
of  Columbia,  knowing  the  same  to  have  been  stolen,  shall  constitute  a 
separate  offense  and  subject  the  offender  to  the  penalties  above  described 
for  unlawful  taking,  and  prosecutions  therefor  may  be  instituted  in  any 
district  into  which  such  freight,  express,  baggage,  goods,  or  chattels  shall 
have  been  removed  or  into  which  they  shall  have  been  brought  by  such 
offender. 

Sec.  2.  That  nothing  in  this  Act  shall  be  held  to  take  away  or  impair 
the  jurisdiction  of  the  courts  of  the  several  States  under  the  laws  thereof ; 
and  a  judgment  of  conviction  or  accjuittal  on  the  merits  under  the  laws 
of  any  State  shall  be  a  bar  to  any  prosecution  hereunder  for  the  same  act 
or  acts. 

CHAPTER  X. 

The  Slave  Trade  and  Peonage. 

Confining  or  Detaining  Slaves  on  Board  Vessel. 

Sec.  246.  Whoever,  being  of  the  crew  or  ship's  company  of  any 
foreign  vessel  engaged  in  the  slave  trade,  or  being  of  the  crew  or  ship's 
company  of  any  vessel  owned  wholly  or  in  part,  or  navigated  for  or  in 
behalf  of  any  citizen  of  the  United  States,  forcibly  confines  or  detains 
on  board  such  vessel  any  person  as  a  slave,  or,  on  board  such  vessel, 
offers  or  attempts  to  sell  as  a  slave  any  such  person,  or  on  the  high 
seas,  or  anywhere  on  tide  water,  transfers  or  delivers  to  any  other 
vessel  any  such  person  with  intent  to  make   such  person  a   slave,   or 


Criminal  Code  765 

lands  or  delivers  on  shore  from  on  board  such  vessel  any  person  with 
intent  to  make  sale  of,  or  having  previously  sold  such  person  as  a 
slave,  is  a  pirate,  and  shall  be  imprisoned  for  Hfe. 

Seizing  Slaves  on  Foreign  Shore. 

Sec.  247.  Whoever,  being  of  the  crew  or  ship's  company  of  any 
foreign  vessel  engaged  in  the  slave  trade,  or  being  of  the  crew  or 
ship's  company  of  any  vessel  owned  in  whole  or  part,  or  navigated  for, 
or  in  behalf  of.  any  citizen  of  the  United  States,  lands  from  such 
vessel,  and  on  any  foreign  shore,  seizes  any  person  with  intent  to  make 
such  person  a  slave,  or  decoys,  or  forcibly  brings,  or  carries  or  receives 
such  person  on  board  such  vessel,  with  like  intent,  is  a  pirate,  and  shall 
be  imprisoned  for  life. 

Bringing  Slaves  into  the  United  States. 

Sec.  248.  Whoever  brings  within  the  jurisdiction  of  the  United 
States,  in  any  manner  whatsoever,  any  person  from  any  foreign  king- 
dom or  country,  or  from  sea,  or  holds,  sells,  or  otherwise  disposes  of, 
any  person  so  brought  in,  as  a  slave,  or  to  be  held  to  service  or  labor, 
shall  be  fined  not  more  than  ten  thousand  dollars,  one-half  to  the  use 
of  the  United  States  and  the  other  half  to  the  use  of  the  party  who 
prosecutes  the  indictment  to  effect;  and,  moreover,  shall  be  imprisoned 
not  more  than  seven  years. 

Equipping  Vessels  for  Slave  Trade. 

Sec.  249.  Whoever  builds,  fits  out,  equips,  loads,  or  otherwise  pre- 
pares, or  sends  away,  either  as  master,  factor,  or  owner,  any  vessel,  in 
any  port  or  place  within  the  jurisdiction  of  the  United  States,  or  causes 
such  vessel  to  sail  from  any  port  or  place  whatsoever,  within  such 
jurisdiction,  for  the  purpose  of  procuring  any  person  from  any  foreign 
kingdom  or  country  to  be  transported  to  any  port  or  place  whatsoever, 
to  be  held,  sold,  or  otherwise  disposed  of  as  a  slave,  or  held  to  service 
or  labor,  shall  be  fined  not  more  than  five  thousand  dollars,  one-half 
to  the  use  of  the  United  States  and  the  other  half  to  the  use  of  the 
person  prosecuting  the  indictment  to  effect;  and  shall,  moreover,  be 
imprisoned  not  more  than  seven  years. 

Transporting  Persons  to  Be  Held  as  Slaves. 

Sec.  250.  Whoever,  within  the  jurisdiction  of  the  United  States, 
takes  on  board,  receives,  or  transports  from  any  foreign  kingdom  or 
country,  or  from  sea,  any  person  in  any  vessel,  for  the  purpose  of 
holding,  selling,  or  otherwise  disposing  of  such  person  as  a  slave,  or 
to  be  held  to  service  or  labor,  shall  be  punished  as  prescribed  in  the 
section  last  preceding. 

Hovering  on  Coast  With  Slaves  on  Board. 

Sec.  251.  Whoever,  being  the  captain,  master,  or  commander  of 
any  vessel  found  in  any  river,  port,  bay,  harbor,  or  on  the  high  seas, 
within  the  jurisdiction  of  the  United  States,  or  hovering  on  the  coast 


766  Important  Federal  Laws 

thereof,  having  on  board  any  person,  for  the  purpose  of  selling  such 
person  as  a  slave,  or  with  intent  to  land  such  person  for  any  such  pur- 
pose, shall  be  fined  not  more  than  ten  thousand  dollars  and  imprisoned 
not  more  than  four  years. 

Serving  in  Vessels  Engaged  in  Slave  Trade. 

Sec.  252.  Whoever,  being  a  citizen  of  the  United  States,  or  other 
person  residing  therein,  voluntarily  serves  on  board  of  any  vessel  em- 
ployed or  made  use  of  in  the  transportation  of  slaves  from  any  for- 
eign country  or  place  to  another,  shall  be  fined  not  more  than  two  thou- 
sand dollars  and  imprisoned  not  more  than  two  years. 
Receiving  or  Carrying  Away  Any  Person  to  be  Sold  or  Held  as  a 
Slave. 

Sec.  253.  Whoever,  being  the  master  or  owner  or  person  having 
charge  of  any  vessel,  receives  on  board  any  other  person,  with  the 
knowledge  or  intent  that  such  person  is  to  be  carried  from  any  place 
subject  to  the  jurisdiction  of  the  United  States  to  any  other  place,  to 
be  held  or  sold  as  a  slave,  or  carries  away  from  any  place  subject  to 
the  jurisdiction  of  the  United  States  any  such  person,  with  the  intent 
that  he  may  be  so  held  or  sold  as  a  slave,  shall  be  fined  not  more  than 
five  thousand  dollars,  or  imprisoned  not  more  than  five  years,  or  both. 

Equipping,  Etc.,  Vessel  for  Slave  Trade. 

Sec.  254.  No  person  shall,  for  himself  or  for  another,  as  master, 
factor,  or  owner,  build,  fit,  equip,  load,  or  otherwise  prepare  any  ves- 
sel in  any  port  or  place  within  the  jurisdiction  of  the  United  States, 
or  cause  any  vessel  to  sail  from  any  port  or  place  within  the  jurisdic- 
tion of  the  United  States  for  the  purpose  of  procuring  any  person 
from  any  foreign  kingdom,  place,  or  country  to  be  transported  to  any 
port  or  place  whatsoever,  to  be  held,  sold,  or  otherwise  disposed  of,  as 
a  slave,  or  to  be  held  to  service  or  labor ;  and  every  vessel  so  built, 
fitted  out,  equipped,  laden,  or  otherwise  prepared,  with  her  tackle, 
apparel,  furniture,  and  lading,  shall  be  forfeited;  one  moiety  to  the 
use  of  the  United  States  and  the  other  to  the  use  of  the  person  who 
sues  for  the  forfeiture  and  prosecutes  the  same  to  effect. 
Penalty  on  Persons  Building,  Equipping,  Etc. 

Sec.  255.  Whoever  so  builds,  fits  out,  equips,  loads,  or  otherwise 
prepares  or  sends  away  any  vessel,  knowing  or  intending  that  the  same 
shall  be  employed  in  such  trade  or  business,  contrary  to  the  provisions 
of  the  section  last  preceding,  or  in  any  way  aids  or  abets  therein,  shall, 
besides  the  forfeiture  of  the  vessel,  pay  the  sum  of  two  thousand  dol- 
lars;  one  moiety  thereof  to  the  use  of  the  United  States  and  the  other 
moiety  thereof  to  the  use  of  the  person  who  sues  for  and  prosecutes 
the  same  to  effect. 
Forfeiture  of  Vessel  Transporting  Slaves. 

Sec.  256.  Every  vessel  employed  in  carrying  on  the  slave  trade  or 
on  which  is  received  or  transported  any  person  from  any  foreign  king- 


Criminal  Code  767 

dom  or  country,  or  from  sea,  for  the  purpose  of  holding,  selling,  or 
otherwise  disposing  of  such  person  as  a  slave,  or  of  holding  such  person 
tb  service  or  labor,  shall,  together  with  her  tackle,  apparel,  furniture, 
and  the  goods  and  effects  which  may  be  found  on  board,  or  which  may 
have  been  imported  thereon  in  the  same  voyage,  be  forfeited ;  one 
moiety  to  the  use  of  the  United  States  and  the  other  to  the  use  of  the 
person  who  sues  for  and  prosecutes  the  forfeiture  to  effect. 

Receiving  Persons  on  Board  to  be  Sold  as  Slaves. 

Sec.  257.  Whoever,  being  a  citizen  of  the  United  States,  takes  on 
board,  receives,  or  transports  any  person  for  the  purpose  of  selling 
such  person  as  a  slave  shall,  in  addition  to  the  forfeiture  of  the  ves- 
sel, pay  for  each  person  so  received  on  board  or  transported  the  sum 
of  two  hundred  dollars,  to  be  recovered  in  any  court  of  the  United 
States ;  the  one  moiety  thereof  to  the  use  of  the  United  States  and  the 
other  moiety  to  the  use  of  the  person  who  sues  for  and  prosecutes  the 
same  to  effect. 

Vessels  Found  Hovering  On  Coast. 

Sec.  258.  Every  vessel  w^hich  is  found  in  any  river,  port,  bay,  or 
harbor,  or  on  the  high  seas,  within  the  jurisdiction  of  the  United 
States,  or  hovering  on  the  coast  thereof,  and  having  on  board  any  per- 
son, with  intent  to  sell  such  person  as  a  slave,  or  with  intent  to  land 
the  same  for  that  purpose,  either  in  the  United  States  or  elsewhere, 
shall,  together  with  her  tackle,  apparel,  furniture,  and  the  goods  or 
effects  on  board  of  her,  be  forfeited  to  the  United  States. 

Forfeiture  of  Interest  in  Vessels  Transporting  Slaves. 

Sec.  259.  It  shall  be  unlawful  for  any  citizen  of  the  United  States, 
or  other  person  residing  therein,  or  under  the  jurisdiction  thereof, 
directly  or  indirectly  to  hold  or  have  any  right  or  property  in  any  ves- 
sel employed  or  made  use  of  in  the  transportation  or  carrying  of  slaves 
from  one  foreign  country  or  place  to  another,  and  any  such  right  or 
property  shall  be  forfeited,  and  may  be  libeled  and  condemned  for  the 
use  of  the  person  suing  for  the  same.  Whoever  shall  violate  the  pro- 
hibition of  this  section  shall  also  forfeit  and  pay  a  sum  of  money  equal 
to  double  the  value  of  his  right  or  property  in  such  vessel ;  and  shall 
also  forfeit  a  sum  of  money  equal  to  double  the  value  of  the  interest 
he  had  in  the  slaves  which  at  any  time  may  be  transported  or  carried 
in  such  vessels. 
Seizure  of  Vessels  Engaged  in  the  Slave  Trade. 

Sec.  260.  The  President  is  authorized,  when  he  deems  it  expedient, 
to  man  and  employ  any  of  the  armed  vessels  of  the  United  States  to 
cruise  wherever  he  may  judge  attempts  are  making  to  carry  on  the 
slave  trade,  by  citizens  or  residents  of  the  United  States,  in  contra- 
vention of  laws  prohibitory  of  the  same ;  and,  in  such  case,  he  shall 
instruct  the  commanders  of  such  armed  vessels  to  seize,  take,  and  bring 
into  any  port  of  the  United  States,  to  be  proceeded  against  according 


768  Important  Federal  Laws 

to  law,  all  American  vessels,  wheresoever  found,  which  may  have  on 
board,  or  which  may  be  intended  for  the  purpose  of  taking  on  board, 
or  of  transporting,  or  may  have  transported  any  person,  in  violation  of 
the  provisions  of  any  Act  of  Congress  prohibiting  the  traffic  in  slaves. 

Proceeds  of  Condemned  Vessels,  How  Distributed. 

Sec.  261.  The  proceeds  of  all  vessels,  their  tackle,  apparel,  and 
furniture,  and  the  goods  and  effects  on  board  of  them,  which  are  so 
seized,  prosecuted,  and  condemned,  shall  be  paid  into  the  Treasury  of 
the  United  States. 

Disposal,  of  Persons  Found  on  Board  Seized  Vessel. 

Sec.  262.  The  officers  of  the  vessel  making  such  seizure  shall  safely 
keep  every  person  found  on  board  of  any  vessel  so  seized,  taken,  or 
brought  into  port  for  condemnation,  and  shall  deliver  every  such  per- 
son to  the  marshal  of  the  district  into  which  he  may  be  brought,  if 
into  a  port  of  the  United  States,  or  if  elsewhere,  to  such  person  as 
may  be  lawfully  appointed  by  the  President,  in  the  manner  directed 
by  law,  transmitting  to  the  President,  as  soon  as  may  be  after  such 
delivery,  a  descriptive  list  of  such  persons,  in  order  that  he  may  give 
directions  for  the  disposal  of  them. 

Apprehension  of  Ofifiicers  and  Crew. 

Sec.  263.  The  commanders  of  such  commissioned  vessels  shall 
cause  to  be  apprehended  and  taken  into  custody  every  person  found  on 
board  of  such  offending  vessel  so  seized  and  taken,  being  of  the  officers 
or  crew  thereof,  and  him  convey,  as  soon  as  conveniently  may  be,  to 
the  civil  authority  of  the  United  States,  to  be  proceeded  against  in  due 
course  of  law. 
Removal  of  Persons  Delivered  From  Seized  Vessels. 

Sec.  264.  The  President  is  authorized  to  make  such  regulations 
and  arrangements  as  he  may  deem  expedient  for  the  safe  keeping, 
support,  and  removal  beyond  the  limits  of  the  United  States  of  all 
such  persons  as  may  be  so  delivered  and  brought  within  its  jurisdiction. 

To  What  Port  Captured  Vessels  Sent. 

Sec.  265.  It  shall  be  the  duty  of  the  commander  of  any  armed 
vessel  of  the  United  States,  whenever  he  makes  any  capture  under  the 
preceding  provisions,  to  bring  the  vessel  and  her  cargo,  for  adjudication, 
into  some  port  of  the  State,  Territory,  or  District  to  which  such  vessel 
so  captured  may  belong,  if  he  can  ascertain  the  same ;  if  not,  then  into 
any  convenient  port  of  the  United  States. 

When  Owners  of  Foreign  Vessels  Shall  Give  Bond. 

Sec.  266.  Every  owner,  master,  or  factor  of  any  foreign  vessel 
clearing  from  any  port  within  the  jurisdiction  of  the  United  States,  and 
suspected  to  be  intended  for  the  slave  trade,  and  the  suspicion  being 
declared  to  the  officer  of  the  customs  by  any  citizen,  on  oath,  and  such 
information  being  to  the  satisfaction  of  the  officer,  shall  first  give  bond, 


Criminal  Code  769 

with  sufficient  sureties,  to  the  Treasurer  of  the  United  States  that  none 
of  the  natives  of  any  other  foreign  country  or  place  shall  be  taken  on 
board  such  vessel  to  be  transported  or  sold  as  slaves  in  any  other  foreign 
port  or  place  whatever,  within  nine  months  thereafter. 

Instructions  to  Commanders  of  Armed  Vessels. 

Sec.  267.  The  President  is  authorized  to  issue  instructions  to  the 
commanders  of  the  armed  vessels  of  the  United  States,  directing  them, 
whenever  it  is  practicable,  and  under  such  rules  and  regulations  as  he 
may  prescribe,  to  proceed  directly  to  the  country  from  which  they  were 
taken,  and  there  hand  over  to  the  agent  of  the  United  States  all  such 
persons,  delivered  from  on  board  vessels  seized  in  the  prosecution  of 
the  slave  trade ;  and  they  shall  afterward  bring  the  captured  vessels 
and  persons  engaged  in  prosecuting  such  trade  to  the  United  States 
for  trial  and  adjudication. 

Kidnaping. 

Sec.  268.  Whoever  kidnaps  or  carries  away  any  other  person,  with 
the  intent  that  such  other  person  be  sold  into  involuntary  servitude, 
or  held  as  a  slave ;  or  who  entices,  persuades,  or  induces  any  other 
person  to  go  on  board  any  vessel  or  to  any  other  place  with  the  intent 
that  he  may  be  made  or  held  as  a  slave,  or  sent  out  of  the  country  to 
be  so  made  or  held ;  or  who  in  any  way  knowingly  aids  in  causing  any 
other  person  to  be  held,  sold,  or  carried  away  to  be  held  or  sold  as  a 
slave,  shall  be  fined  not  more  than  five  thousand  dollars,  or  imprisoned 
not  more  than  five  years,  or  both. 

Holding  or  Returning  Person  to  Peonage. 

Sec.  269.  Whoever  holds,  arrests,  returns,  or  causes  to  be  held, 
arrested,  or  returned,  or  in  any  manner  aids  in  the  arrest  or  return  of 
any  person  to  a  condition  of  peonage,  shall  be  fined  not  more  than  five 
thousand  dollars,  or  imprisoned  not  more  than  five  years,  or  both. 

Obstructinpf  Execution  of  Above. 

Sec.  270.  Whoever  obstructs,  or  attempts  to  obstruct,  or  in  any 
way  interferes  with  or  prevents  the  enforcement  of  the  section  last 
preceding,  shall  be  liable  to  the  penalties  therein  prescribed. 

Bringing  Kidnaped  Persons  into  the  United  States. 

Sec.  271.  Whoever  shall  knowingly  and  willfully  bring  into  the 
United  States  or  any  place  subject  to  the  jurisdiction  thereof,  any  person 
inveigled  or  forcibly  kidnaped  in  any  other  country,  with  intent  to 
hold  such  person  so  inveigled  or  kidnaped  in  confinement  or  to  any 
involuntary  servitude;  or  whoever  shall  knowingly  and  willfully  sell,  or 
cause  to  be  sold,  into  any  condition  of  involuntary  servitude,  any  other 
person  for  any  term  whatever ;  or  whoever  shall  knowingly  and  will- 
full  v  hold  to  involuntary  servitude  any  person  so  brought  or  sold,  shall 
be  fined  not  more  than  five  thousand  dollars  and  imprisoned  not  more 
than  five  years. 
(49) 


770  Important  Federal  Laws 

CHAPTER  XL 

Offenses  Within  the  Admiralty  and  Maritime  and  the  Terri- 
torial Jurisdiction  of  the  United  States. 

Maritime  and  Territorial  Jurisdiction  Prescribed. 

Sec.  272.  The  crimes  and  offenses  defined  in  this  chapter  shall  be 
punished  as  herein  prescribed : 

First.  W^hen  committed  upon  the  high  seas,  or  on  any  other 
waters  within  the  admiralty  and  maritime  jurisdiction  of  the  United 
States  and  out  of  the  jurisdiction  of  any  particular  State,  or  when  com- 
mitted within  the  admiralty  and  maritime  jurisdiction  of  the  United 
States  and  out  of  the  jurisdiction  of  any  particular  State  on  board  any 
vessel  belonging  in  whole  or  in  part  to  the  United  States  or  any  citizen 
thereof,  or  to  any  corporation  created  by  or  under  the  laws  of  the 
United  States,  or  of  any  State,  Territory,  or  District  thereof. 

Second.  When  committed  upon  any  vessel  registered,  licensed,  or 
enrolled  under  the  laws  of  the  United  States,  and  being  on  a  voyage 
upon  the  waters  of  any  of  the  Great  Lakes,  namely:  Lake  Superior, 
Lake  ^lichigan,  Lake  Huron,  Lake  Saint  Clair,  Lake  Erie,  Lake 
Ontario,  or  any  of  the  waters  connecting  any  of  said  lakes,  or  upon 
the  River  Saint  Lawrence  where  the  same  constitutes  the  International 
boundary  line. 

Third.  When  committed  within  or  on  any  lands  reserved  or  ac- 
quired for  the  exclusive  use  of  the  United  States,  and  under  the  exclu- 
sive jurisdiction  thereof,  or  any  place  purchased  or  otherwise  acquired 
by  the  United  States  by  consent  of  the  Legislature  of  the  State  in  which 
the  same  shall  be,  for  the  erection  of  a  fort,  magazine,  arsenal,  dock- 
yard, or  other  needful  building. 

Fourth.  On  any  island,  rock,  or  key,  containing  deposits  of  guano, 
which  may,  at  the  discretion  of  the  President,  be  considered  as  apper- 
taining to  the  United  States. 

Murder. 

Sec.  273.  Murder  is  the  unlawful  killing  of  a  human  being  with 
malice  aforethought.  Every  murder  perpetrated  by  poison,  lying  in 
wait,  or  any  other  kind  of  willful,  deliberate,  malicious,  and  premedi- 
tated killing;  or  committed  in  the  perpetration  of,  or  attempt  to  per- 
petrate, any  arson,  rape,  burglary,  or  robbery ;  or  perpetrated  from  a 
premeditated  design  unlawfully  and  maliciously  to  effect  the  death  of 
any  human  being  other  than  him  who  is  killed,  is  murder  in  the  first 
degree.     Any  other  murder  is  murder  is  the  second  degree. 

Manslaughter. 

Sec.  274.  Manslaughter  is  the  unlawful  killing  of  a  human  being 
without  malice.     It  is  of  two  kinds : 

First.     Voluntary — upon  a  sudden  quarrel  or  heat  of  passion. 
Second.     Involuntary — in  the  commission   of   an   unlawful   act   not 


Criminal  Code  771 

amounting  to  a  felony,  or  in  the  commission  of  a  lawful  act  which 
might  produce  death,  in  an  unlawful  manner,  or  without  due  caution 
and  circumspection. 

Punishment  for  Murder ;  for  Manslaughter. 

Sec.  275.  Every  person  guilty  of  murder  in  the  first  degree  shall 
suffer  death.  Every  person  guilty  of  murder  in  the  second  degree 
shall  be  imprisoned  not  less  than  ten  years  and  may  be  imprisoned  for 
life.  Every  person  guilty  of  voluntary  manslaughter  shall  be  impris- 
oned not  more  than  ten  years.  Every  person  guilty  of  involuntary 
manslaughter  shall  be  imprisoned  not  more  than  three  years,  or  fined 
not  exceeding  one  thousand  dollars,  or  both. 

Assault  With  Intent  to  Commit  Murder,  Rape,  Robbery,  Etc. 

Sec.  276.  Whoever  shall  assault  another  with  intent  to  commit 
murder,  or  rape,  shall  be  imprisoned  not  more  than  twenty  years. 
Whoever  shall  assault  another  with  intent  to  commit  any  felony, 
except  murder,  or  rape,  shall  be  fined  not  more  than  three  thousand 
dollars,  or  imprisoned  not  more  than  ten  years,  or  both.  Whoever, 
with  intent  to  do  bodily  harm,  and  without  just  cause  or  excuse,  shall 
assault  another  with  a  dangerous  weapon,  instrument,  or  other  thing, 
shall  be  fined  not  more  than  one  thousand  dollars,  or  imprisoned  not 
more  than  five  years,  or  both.  Whoever  shall  unlawfully  strike,  beat, 
or  wound  another,  shall  be  fined  not  more  than  five  hundred  dollars, 
or  imprisoned  not  more  than  six  months,  or  both.  Whoever  shall 
unlawfully  assault  another,  shall  be  fined  not  more  than  three  hundred 
dollars,  or  imprisoned  not  more  than  three  months,  or  both. 

Attempt  to  Commit  Murder  or  Manslaughter. 

Sec.  277.  Whoever  shall  attempt  to  commit  murder  or  man- 
slaughter, except  as  provided  in  the  preceding  section,  shall  be  fined  not 
more  than  one  thousand  dollars  and  imprisoned  not  more  than  three 
years. 

Rape. 

Sec.  278.  Whoever  shall  commit  the  crime  of  rape  shall  suffer 
death. 

Having  Carnal  Knowledge  of 'Female  Under  16. 

Sec.  279.  Whoever  shall  carnally  and  unlawfully  know  any  female 
under  the  age  of  sixteen  years,  or  shall  be  accessory  to  such  carnal 
and  unlawful  knowledge  before  the  fact,  shall,  for  a  first  offense,  be 
imprisoned  not  more  than  fifteen  years,  and  for  a  subsequent  offense 
be  imprisoned  not  more  than  thirty  years. 

Seduction  of  Female  Passenger  on  Vessel. 

Sec.  280.  Every  master,  officer,  seaman,  or  other  person  employed 
on  board  of  any  American  vessel  who,  during  the  vovage,  under  prom- 
ise of  marriage,  or  by  threats,  or  the  exercise  of  authority,  or  solicita- 
tion,  or  the  making  of  gifts   or  presents,   seduces  and  has   illicit   con- 


772  .  Important  Federal  Laws 

nection  with  any  female  passenger,  shall  be  fined  not  more  than  one 
thousand  dollars,  or  imprisoned  not  more  than  one  year,  or  both ;  but 
subsequent  intermarriage  of  the  parties  may  be  pleaded  in  bar  of 
conviction. 

Payment  of  Fine  to  Female  Seduced;  Evidence  Required;  Limita- 
tation  on  Indictment. 
Sec.  281.  When  a  person  is  convicted  of  a  violation  of  the  section 
last  preceding,  the  court  may,  in  its  discretion,  direct  that  the  amount 
of  the  fine,  when  paid,  be  paid  for  the  use  of  the  female  seduced,  or 
her  child,  if  she  have  any ;  but  no  conviction  shall  be  had  on  the  testi- 
mony of  the  female  seduced,  without  other  evidence,  nor  unless  the 
indictment  is  found  within  one  year  after  the  arrival  of  the  vessel  on 
which  the  ofifense  was  committed  at  the  port  of  its  destination. 

Punishment  for  Loss  of  Life  by  Misconduct  of  Officers,  Owners, 
Charterers,  Inspectors,  Etc.,  of  Vessels. 
Sec.  282.  Every  captain,  engineer,  pilot,  or  other  person  employed 
on  any  steamboat  or  vessel,  by  whose  misconduct,  negligence,  or  inat- 
tention to  his  duties  on  such  vessel  the  life  of  any  person  is  destroyed, 
and  every  owner,  charterer,  inspector,  or  other  public  officer,  through 
whose  fraud,  neglect,  connivance,  misconduct,  or  violation  of  law  the 
life  of  any  person  is  destroyed,  shall  be  fined  not  more  than  ten 
thousand  dollars,  or  imprisoned  not  more  than  ten  years,  or  both; 
Provided,  That  when  the  owner  or  charterer  of  any  steamboat  or  ves- 
sel, shall  be  a  corporation,  any  executive  officer  of  such  corporation, 
for  the  time  being  actually  charged  with  the  control  and  management 
of  the  operation,  equipment,  or  navigation  of  such  steamboat  or  ves- 
sel, who  has  knowingly  and  willfully  caused  or  allowed  such  fraud, 
neglect,  connivance,  misconduct,  or  violation  of  law,  by  which  the  life 
of  any  person  is  destroyed,  shall  be  fined  not  more  than  ten  thousand 
dollars,  or  imprisoned  not  more  than  ten  years,  or  both. 

Maiming. 

Sec.  283.  Whoever,  with  intent  to  maim  or  disfigure,  shall  cut, 
bite,  or  slit,  the  nose,  ear,  or  lip,  or  cut  out  or  disable  the  tongue, 
or  put  out  or  destroy  an  eye.  or  cut  off  or  disable  a  limb  or  any  mem- 
ber of  another  person ;  or  whoever,  with  like  intent,  shall  throw  or 
pour  upon  another  person,  any  scalding  hot  water,  vitriol,  or  other 
corrosive  acid,  or  caustic  substance  whatever,  shall  be  fined  not  more 
than  one  thousand  dollars,  or  imprisoned  not  more  than  seven  years, 
or  both. 

Robbery. 

Sec.  284.  Whoever,  by  force  and  violence,  or  by  putting  in  fear, 
shall  feloniously  take  from  the  person  or  presence  of  another  anything 
of  value,  shall  be  imprisoned  not  more  than  fifteen  years. 


Criminal  Code  773 

Arson  of  Dwelling  House. 

Sec.  285.  Whoever  shall  willfully  and  maliciously  set  fire  to,  burn, 
or  attempt  to  burn,  or  by  means  of  a  dangerous  explosive  destroy  or 
attempt  to  destroy,  any  dwelling  house,  or  any  store,  barn,  stable,  or 
other  building,  parcel  of  a  dwelling  house,  shall  be  imprisoned  not  more 
than  twenty  years. 

Arson  of  Arsenal,  Etc. ;  Other  Buildings,  Etc. 

Sec.  286.  Whoever  shall  maliciously  set  fire  to,  burn,  or  attempt 
to  burn,  or  by  any  means  destroy  or  injure,  or  attempt  to  destroy  or 
injure,  any  arsenal,  armory,  magazine,  rope-walk,  ship-house,  ware- 
house, block-house,  or  barrack,  or  any  store-house,  barn,  or  stable,  not 
parcel  of  a  dwelling  house,  or  any  other  building  not  mentioned  in  the 
section  last  preceding,  or  any  vessel  built,  building,  or  undergoing 
repair,  or  any  light-house,  or  beacon,  or  any  machinery,  timber,  cables, 
rigging,  or  other  materials  or  appliances  for  building,  repairing,  or 
fitting  out  vessels,  or  any  pile  of  wood,  boards,  or  other  lumber,  or 
any  military,  naval,  or  victualing  stores,  arms,  or  other  munitions  of 
war,  shall  be  fined  not  more  than  five  thousand  dollars  and  imprisoned 
not  more  than  twenty  years. 

Larceny. 

Sec.  287.  Whoever  shall  take  and  carry  away,  with  intent  to  steal 
or  purloin,  any  personal  property  of  another,  shall  be  punished  as 
follows:  If  the  property  taken  is  of  a  value  exceeding  fifty  dollars,  or 
is  taken  from  the  person  of  another,  by  a  fine  of  not  more  than  ten 
thousand  dollars,  or  imprisonment  for  not  more  than  ten  years,  or 
both ;  in  all  other  cases,  by  a  fine  of  not  more  than  one  thousand  dol- 
lars, or  by  imprisonment  not  more  than  one  year,  or  both.  If  the 
property  stolen  consists  of  any  evidence  of  debt,  or  other  written 
instrument,  the  amount  of  money  due  thereon,  or  secured  to  be  paid 
thereby,  and  remaining  unsatisfied,  or  which  in  any  contingency  might 
be  collected  thereon,  or  the  value  of  the  property  the  title  to  which 
is  shown  thereby,  or  the  sum  which  might  be  recovered  in  the  absence 
thereof,  shall  be  deemed  to  be  the  value  of  the  property  stolen. 

Receiving,  Etc.,  Stolen  Goods. 

Sec.  288.  Whoever  shall  buy,  receive,  or  conceal,  any  money, 
goods,  bank  notes,  or  other  thing  which  may  be  the  subject  of  larceny, 
which  has  been  feloniously  taken,  stolen,  or  embezzled,  from  any  other 
person,  knowing  the  same  to  have  been  so  taken,  stolen,  or  embezzled, 
shall  be  fined  not  more  than  one  thousand  dollars  and  imprisoned  not 
more  than  three  years  ;  and  such  person  may  be  tried  either  before  or 
after  the  conviction  of  the  principal  ofifender. 

Laws  of  States  Adopted  for  Punishing  Wrongful  Acts,  Etc. 

Sec.  289.  Whoever,  within  the  territorial  limits  of  any  State,  or- 
ganized Territory,  or  District,  but  within  or  upon  any  of  the  places  now 


774  Important  Federal  Laws 

existing,  or  hereafter  reserved  or  acquired,  described  in  section  two 
hundred  and  seventy-two  of  this  act,  shall  do  or  omit  the  doing  of 
any  act  or  thing  which  is  not  made  penal  by  any  law  of  Congress,  but 
which  if  committed  or  omitted  within  the  jurisdiction  of  the  State, 
Territory,  or  District  in  which  such  place  is  situated,  by  the  laws 
thereof  now  in  force  would  be  penal,  shall  be  deemed  guilty  of  a  like 
offense  and  be  subject  to  a  like  punishment;  and  every  such  State, 
Territorial,  or  District  law  shall,  for  the  purposes  of  this  section, 
continue  in  force,  notwithstanding  any  subsequent  repeal  or  amend- 
ment thereof  by  any  such  State,  Territory,  or  District. 

CHAPTER  XII. 
Piracy  and  Other  Offenses  Upon  the  High  Seas. 

Piracy  Under  The  Law  of  Nations. 

Sec.  290.  Whoever,  on  the  high  seas,  commits  the  crime  of  piracy 
as  defined  by  the  law  of  nations,  and  is  afterwards  brought  into  or 
found  in  the  United  States,  shall  be  imprisoned  for  life. 

Mai-Treatment  of  Crew  by  Officers  of  Vessel. 

Sec.  29L  Whoever,  being  the  master  or  officer  of  a  vessel  of  the 
United  States,  on  the  high  seas,  or  on  any  other  waters  within  the 
admiralty  and  maritime  jurisdiction  of  the  United  States,  beats,  wounds, 
or  without  justifiable  cause,  imprisons  any  of  the  crew  of  such  vessel,  or 
withholds  from  them  suitable  food  and  nourishment,  or  inflicts  upon 
them  any  cruel  and  unusual  punishment,  shall  be  fined  not  more  than 
one  thousand  dollars,  or  imprisoned  not  more  than  five  years,  or  both. 
Nothing  herein  contained  shall  be  construed  to  repeal  or  modify  section 
forty-six  hundred  and  eleven  of  the  Revised  Statutes. 

Inciting  Revolt  or  Mutiny  on  Shipboard. 

Sec.  292.  Whoever,  being  of  the  crew  of  a  vessel  of  the  United 
States,  on  the  high  seas,  or  on  any  other  waters  within  the  admiralty 
and  maritime  jurisdiction  of  the  United  States,  endeavors  to  make  a 
revolt  or  mutiny  on  board  such  vessel,  or  combines,  conspires,  or  con- 
federates with  any  other  person  on  board  to  make  such  revolt  or 
mutiny,  or  solicits,  incites,  or  stirs  up  any  other  of  the  crew  to  disobey 
or  resist  the  lawful  orders  of  the  master  or  other  officer  of  such  ves- 
sel, or  to  refuse  or  neglect  their  proper  duty  on  board  thereof,  or  to 
betray  their  proper  trust,  or  assembles  with  others  in  a  tumultous 
and  mutinous  manner,  or  makes  a  riot  on  board  thereof,  or  unlawfully 
confines  the  master  or  other  commanding  officer  thereof,  shall  be  fined 
not  more  than  one  thousand  dollars,  or  imprisoned  not  more  than  five 
years,  or  both. 

Revolt  and  Mutiny  on  Shipboard. 

Sec.  293.  Whoever,  being  of  the  crew  of  a  vessel  of  the  United 
States,  on  the  high  seas,  or  on  any  other  waters  within  the  admiralty 


Criminal  Code  775 

and  maritime  jurisdiction  of  the  United  States,  unlawfully  and  with 
force,  or  by  fraud,  or  intimidation,  usurps  the  command  of  such  vessel 
from  the  master  or  other  lawful  officer  in  command  thereof,  or  deprives 
him  of  authority  and  command  on  board,  or  resists  or  prevents  him  in 
the  free  and  lawful  exercise  thereof,  or  transfers  such  authority  and 
command  to  another  not  lawfully  entitled  thereto,  is  guilty  of  a  revolt 
and  mutiny,  and  shall  be  fined  not  more  than  two  thousand  dollars  and 
imprisoned  not  more  than  ten  years. 

Seaman  Laying  Violent  Hands  on  His  Commander. 

Sec.  294.  Whoever,  being  a  seaman,  lays  violent  hands  upon  his 
commander,  thereby  to  hinder  and  prevent  his  fighting  in  defense  of 
his  vessel  or  the  goods  intrusted  to  him,  is  a  pirate,  and  shall  be 
imprisoned  for  life. 

Abandonment  of  Mariners  in  Foreign  Ports. 

Sec.  295.  Whoever,  being  master  or  commander  of  a  vessel  of  the 
United  States,  while  aboard,  maliciously  and  without  justifiable  cause, 
forces  any  officer  or  mariner  of  such  vessel  on  shore,  in  order  to  leave 
him  behind  in  any  foreign  port  or  place,  or  refuses  to  bring  home 
again  all  such  officers  and  mariners  of  such  vessel  whom  he  carried 
out  with  him,  as  are  in  a  condition  to  return  and  willing  to  return, 
when  he  is  ready  to  proceed  on  his  homeward  voyage,  shall  be  fined 
not  more  than  five  hundred  dollars,  or  imprisoned  not  more  than  six 
months,  or  both. 

Conspiracy  to  Cast  Away  Vessel. 

Sec.  296.  Whoever,  on  the  high  seas,  or  within  the  United  States, 
willfully  and  corruptly  conspires,  combines,  and  confederates^  with  any 
other  person,  such  other  person  being  either  within  or  without  the 
United  States,  to  cast  away  or  otherwise  destroy  any  vessel,  with  intent 
to  injure  any  person  that  may  have  underwritten  or  may  thereafter 
underwrite  any  policy  of  insurance  thereon  or  on  goods  on  board 
thereof,  or  with  intent  to  injure  any  person  that  has  lent  or  advanced, 
or  may  lend  or  advance,  any  money  on  such  vessel  on  bottomry  or 
respondentia;  or  whoever,  within  the  United  States,  builds,  or  fits 
out,  or  aids  in  building  or  fitting  out,  any  vessel  with  intent  that  the 
same  be  cast  away  or  destroyed,  witn  the  intent  hereinbefore  mentioned, 
shall  be  fined  not  more  than  ten  thousand  dollars  and  imprisoned  not 
more  than  ten  years. 

Plundering  Vessels  in  Distress,  Etc. 

Sec.  297.  Whoever  plunders,  steals,  or  destroys  any  money,  goods, 
merchandise,  or  other  effects,  from  or  belonging  to  any  vessel  in  dis- 
tress, or  wrecked,  lost,  stranded,  or  cast  away,  upon  the  sea,  or  upon  any 
reef,'  shoal,  bank,  or  rocks  of  the  sea,  or  in  any  other  place  within  the 
admiralty  and  maritime  jurisdiction  of  the  United  States,  shall  be 
fined  not   more  than  five   thousand   dollars  and  imprisoned   not   more 


77(i  Important  Federal  Laws 

than  ten  years ;  and  whoever  wullfuUy  obstructs  the  escape  of  any  per- 
son endeavoring  to  save  his  Hf e  from  such  vessel,  or  the  wreck  thereof ; 
or  whoever  holds  out  or  shows  any  false  light,  or  extinguishes  any 
true  light,  with  intent  to  bring  any  vessel  sailing  upon  the  sea  into 
danger,  or  distress,  or  shipwreck,  shall  be  imprisoned  not  less  than  ten 
years  and  may  be  imprisoned  for  life. 

Attacking  Vessel  With  Intent  to  Plunder. 

Sec.  298.  Whoever,  upon  the  high  seas  or  on  any  other  waters 
within  the  admiralty  and  maritime  jurisdiction  of  the  United  States, 
by  surprise  or  by  open  force,  maliciously  attacks  or  sets  upon  any 
vessel  belonging  to  another,  with  an  intent  unlawfully  to  plunder  the 
same,  or  to  despoil  any  owner  thereof  of  any  moneys,  goods,  or  merr 
chandise  laden  on  board  thereof,  shall  be  fined  not  more  than  five 
thousand  dollars  and  imprisoned  not  more  than  ten  years. 

Breaking  and  Entering  Vessel,  Etc. 

Sec.  299.  Whoever,  upon  the  high  seas  or  on  any  other  waters 
within  the  admiralty  and  maritime  jurisdiction  of  the  United  States, 
and  out  of  the  jurisdiction  of  any  particular  State,  breaks  or  enters  any 
vessel,  with  intent  to  commit  any  felony,  or  maliciously  cuts,  spoils,  or 
destroys  any  cordage,  cable,  buoys,  buoy  rope,  head  fast,  or  other  fast 
fixed  to  the  anchor'  or  moorings  belonging  to  any  vessel,  shall  be  fined 
not  more  than  one  thousand  dollars  and  imprisoned  not  more  than  five 
years. 

Owner  Destroying  Vessel  at  Sea. 

Sec.  300.  Whoever,  upon  the  high  seas  or  on  any  other  waters 
within  the  admiralty  and  maritime  jurisdiction  of  the  United  States, 
willfully  and  corruptly  casts  away  or  otherwise  destroys  anv  vessel,  of 
which  he  is  owner,  in  whole  or  in  part,  with  intent  to  prejudice  any 
person  that  may  underwrite  any  policy  of  insurance  thereon,  or  anv 
merchant  that  may  have  goods  thereon,  or  any  other  ovv-ner  of  such 
vessel,  shall  be  imprisoned  for  life  or  for  any  term  of  years. 

Other  Persons  Destroying  or  Attempting  to  Destroy  Vessel  at  Sea. 

Sec.  301.  Whoever,  not  being  an  owner,  upon  the  high  seas  or  on 
any  other  waters  within  the  admiralty  and  maritime  jurisdiction  of 
the  United  States,  willfully  and  corruptly  casts  away  or  otherwise 
destroys  any  vessel  of  the  United  States  to  which  he  belongs,  or,  will- 
fully, with  intent  to  destroy  the  same,  sets  fire  to  any  such  vessel,  or 
otherwise  attempts  the  destruction  thereof,  shall  be  imprisoned  not 
more  than  ten  years. 

Robbery  on  Shore  by  Crew  of  Piratical  Vessel. 

Sec.  302.  Whoever,  being  engaged  in  any  piratical  cruise,  or  en- 
terprise, or  being  of  the  crew  of  any  piratical  vessel,  lands  from  such 
vessel,  and  on  shore  commits  robbery,  is  a  pirate,  and  shall  be  impris- 
oned for  life. 


Criminal  Code  ly^ 

Arming  Vessel  to  Cruise  Against  Citizens  of  the  United  States. 

Sec.  303.  Whoever,  being  a  citizen  of  the  United  States,  without 
the  Hmits  thereof,  fits  out  and  arms,  or  attempts  to  fit  out  and  arm,  or 
procures  to  be  fitted  out  and  armed,  or  knowingly  aids  or  is  concerned 
in  furnishing,  fitting  out.  or  arming,  any  private  vessel  of  war  or  pri- 
vateer, with'intent  that  such  vessel  shall  be  employed  to  cruise  or  com- 
mit hostilities  upon  the  citizens  of  the  United  States,  or  their  property, 
or  whoever  takes  the  command  of  or  enters  on  board  of  any  such  vessel, 
for  such  intent,  or  wdio  purchases  any  interest  in  any  such  vessel  with 
a  view  to  share  in  the  profits  thereof,  shall  be  fined  not  more  than  ten 
thousand  dollars  and  imprisoned  not  more  than  ten  years.  The  trial 
for  such  oft'ense.  if  committed  without  the  limits  of  the  United  States. 
shall  be  in  the  district  in  which  the  offender  shall  be  apprehended  or 
first  brought. 

Piracy  Under  Color  of  a  Foreign  Commission. 

Sec.  304.  Whoever,  being  a  citizen  of  the  United  States,  commits 
any  murder  or  robbery,  or  any  act  of  hostijity  against  the  United 
States,  or  against  any  citizen  thereof,  on  the  high  seas,  under  color  of 
any  commission  from  any  foreign  prince,  or  state,  or  on  pretense  of 
authority  from  any  person,  is,  notwithstanding  the  pretense  of  such 
authority,  a  pirate,  and  shall  be  Imprisoned  for  life. 

Piracy  by  Subjects  or  Citizens  of  a  Foreign  State. 

Sec.  305.  Whoever,  being  a  citizen  or  subject  of  any  foreign  state, 
is  found  and  taken  on  the  sea  making  war  upon  the  United  States,  or 
cruising  against  the  vessels  and  property  thereof,  or  of  the  citizens  of 
the  same,  contrary  to  the  provisions  of  any  treaty  existing  between 
the  United  States  and  the  state  of  which  the  offender  is  a  citizen  or 
subject,  when  by  such  treaty  such  acts  are  declared  to  be  piracy,  is 
guilty  of  piracy,  and  shall  be  imprisoned  for  Hfe. 

Running  Away  With  or  Yielding  Up  Vessel  or  Cargo. 

Sec.  306.  Whoever,  being  a  captain  or  other  officer  or  mariner  of 
a  vessel  upon  the  high  seas  or  on  any  other  waters  within  the  admiralty 
and  maritime  jurisdiction  of  the  United  States,  piratically  or  feloni- 
ously runs  away  with  such  vessel,  or  with  any  goods  or  merchandise 
thereof,  to  the  value  of  fifty  dollars,  or  wdio  yields  up  such  vessel  vol- 
untarily to  any  pirate,  shall  be  fined  not  more  than  ten  thousand  dol- 
lars, or  imprisoned  not  more  than  ten  years,  or  both. 

Confederating,  Etc.,  With  Pirates. 

Sec.  307.  Whoever  attempts  or  endeavors  to  corrupt  any  com- 
mander, master,  officer,  or  mariner  to  yield  up  or  to  run  away  with  any 
vessel,  or  with  any  goods,  wares,  or  merchandise,  or  to  turn  pirate, 
or  to  go  over  to  or  confederate  with  pirates,  or  in  any  wise  to  trade 
with  any  pirate,  knowing  him  to  be  such,  or  furnishes  such  pirate  with 
any  ammunition,  stores,  or  provisions  of  any  kind,  or  fits  out  any  vessel 


778  Importaxt  Federal  Laws 

knowingly  and,  with  a  design  to  trade  with,  supply,  or  correspond  with 
any  pirate  or  robber  upon  the  seas ;  or  whoever  consults,  combines, 
confederates,  or  corresponds  with  any  pirate  or  robber  upon  the  seas, 
knowing  him  to  be  guilty  of  any  piracy  or  robbery ;  or  whoever,  being 
a  seaman,  confines  the  master  of  any  vessel,  shall  be  fined  not  more 
than  one  thousand  dollars  and  imprisoned  not  more  than  three  years. 

Sale  of  Arms  and  Intoxicants  Forbidden  in  the  Pacific  Islands. 

Sec.  308.  Whoever,  being  subject  to  the  authority  of  the  United 
States,  shall  give,  sell,  or  otherwise  supply  any  arms,  ammunition, 
explosive  substance,  intoxicating  liquor,  or  opium  to  any  aboriginal 
native  of  any  of  the  Pacific  islands  lying  within  the  twentieth  parallel 
of  north  latitude  and  the  fortieth  parallel  of  south  latitude,  and  the  one 
hundred  and  twentieth  meridian  of  longitude  west  and  one  hundred 
and  twentieth  meridian  of  longitude  east  of  Greenwich,  not  being  in 
the  possession  or  under  the  protection  of  any  civilized  power,  shall  be 
fined  not  more  than  fifty  dollars,  or  imprisoned  not  more  than  three 
months,  or  both.  In  addition  to  such  punishment,  all  articles  of  a 
similar  nature  to  those  in  respect  to  which  an  oft'ense  has  been  com- 
mitted, found  in  the  possession  of  the  offender,  may  be  declared  for- 
feited. If  it  shall  appear  to  the  court  that  such  opium,  wine,  or  spirits 
have  been  given  bona-fide  for  medical  purposes,  it  shall  be  lawful  for 
the  court  to  dismiss  the  charge. 

Offenses  Under  Preceding  Section  Deemed  on  High  Seas. 

Sec.  309.  All  oft'enses  against  the  provisions  of  the  section  last 
preceding,  committed  on  any  of  said  islands  or  on  the  waters,  rocks, 
or  keys  adjacent  thereto,  shall  be  deemed  committed  on  the  high  seas 
on  board  a  merchant  ship  or  vessel  belonging  to  the  United  States, 
and  the  courts  of  the  United  States  shall  have  jurisdiction  accordingly. 

"Vessels  of  the  United  States"  Defined. 

Sec.  310.  The  words  ''vessel  of  the  United  States,"  wherever  they 
occur  in  this  chapter,  shall  be  construed  to  mean  a  vessel  belonging  in 
whole  or  in  part  to  the  United  States,  or  any  citizen  thereof,  or  any 
corporation  created  by  or  under  the  laws  of  the  United  States,  or  of  any 
State,  Territory,  or  District  thereof. 

CHAPTER  XIII. 
Certain  Offenses  in  the  Territories. 

Places  Within  Which  Sections  of  This  Chapter  Shall  Apply. 

Sec.  311.  Except  as  otherwise  expressly  provided,  the  offenses 
defined  in  this  chapter  shall  be  punished  as  hereinafter  provided,  when 
committed  within  any  Territory  or  District,  or  within  or  upon  any 
place  within  the  exclusive  jurisdiction  of  the  United  States. 


Criminal  Code  779 

Circulation  of  Obscene  Literature;  Promoting  Abortion,  How  Pun- 
ished. 

Sec.  312.  Whoever  shall  sell,  lend,  give  away,  or  in  any  manner 
exhibit,  or  offer  to  sell,  lend,  give  away,  or  in  any  manner  exhibit,  or 
shall  otherwise  publish  or  offer  to  publish  in  any  manner,  or  shall  have 
in  his  possession  for  any  such  purpose,  any  obscene  book,  pamphlet, 
paper,  writing,  advertisement,  circular,  print,  picture,  drawing,  or 
other  representation,  figure,  or  image  on  or  of  paper  or  other  material, 
or  any  cast,  instrument,  or  other  article  of  an  immoral  nature,  or  any 
drug  or  medicine,  or  any  article  whatever,  for  the  prevention  of  concep- 
tion, or  for  causing  unlawful  abortion,  or  shall  advertise  the  same  for 
sale,  or  shall  write  or  print,  or  cause  to  be  written  or  printed,  any  card, 
circular,  book,  pamphlet,  advertisement,  or  notice  of  any  kind,  stating 
when,  where,  how,  or  of  whom,  or  by  what  means,  any  of  the  articles 
above  mentioned  can  be  purchased  or  obtained,  or  shall  manufacture, 
draw,  or  print,  or  in  any  wise  make  any  of  such  articles,  shall  be  fined 
not  more  than  two  thousand  dollars,  or  imprisoned  not  more  than  five 
years,  or  both. 

Polygamy. 

Sec.  313.  Every  person  who  has  a  husband  or  wife  living,  who 
marries  another,  whether  married  or  single,  and  any  man  who  simul- 
taneously, or  on  the  same  day,  marries  more  than  one  woman,  is  guilty 
of  polygamy,  and  shall  be  fined  not  more  than  five  hundred  dollars  and 
imprisoned  not  more  than  five  years.  But  this  section  shall  not  extend 
to  any  person  by  reason  of  any  former  marriage  whose  husband  or 
wife  by  such  marriage  shall  have  been  absent  for  five  successive  years, 
and  is  not  known  to  such  person  to  be  living,  and  is  believed  by  such 
person  to  be  dead,  nor  to  any  person  by  reason  of  any  former  marriage 
which  shall  have  been  dissolved  by  a  valid  decree  of  a  competent  court, 
nor  to  any  person  by  reason  of  any  former  marriage  which  shall  have 
been  pronounced  void  by  a  valid  decree  of  a  competent  court,  on  the 
ground  of  nullity  of  the  marriage  contract. 

Unlawful  Cohabitation. 

Sec.  314.  If  any  male  person  cohabits  with  more  than  one  woman, 
he  shall  be  fined  not  more  than  three  hundred  dollars,  or  imprisoned 
not  more  than  six  months,  or  both. 

Joinder  of  Counts. 

Sec.  315.  Counts  for  any  or  all  of  the  offenses  named  in  the  two 
sections  last  preceding  may  be  joined  in  the  same  information  or 
indictment. 

Adultery. 

Sec.  316.  Whoever  shall  commit  adultery  shall  be  imprisoned  not 
more  than  three  years ;  and  when  the  act  is  committed  between  a  mar- 
ried woman  and  a  man  who  is  unmarried,  both  parties  to  such  act 
shall  be  deemed  guilty  of  adultery ;  and  when   such   act   is   committed 


780  Important  Federal  Laws 

between  a  married  man  and  a  woman  who  is  unmarried,  the  man  shall 
be  deemed  guilty  of  adultery. 

Incest. 

Sec.  317.  Whoever,  being  related  to  another  person  within  and 
not  including  the  fourth  degree  of  consanguinity  computed  according  to 
the  rules  of  the  civil  law.  shall  marry  or  cohabit  with,  or  have  sexual 
intercourse  with  such  other  so  related  person,  knowing  her  or  him  to  be 
within  said  degree  of  relationship,  shall  be  deemed  guilty  of  incest,  and 
shall  be  imprisoned  not  more  than  fifteen  years. 

Fornication. 

Sec.  318.  If  any  unmarried  man  or  woman  commits  fornication, 
each  shall  be  fined  not  more  than  one  hundred  dollars,  or  imprisoned 
not  more  than  six  months. 

Certificates  of  Marria8:e ;  Penalty  for  Failure  to  Record. 

Sec.  319.  Every  ceremony  of  marriage,  or  in  the  nature  of  a  mar- 
riage ceremony  of  any  kind,  whether  either  or  both  or  more  of  the 
parties  to  such  ceremony  be  lawfully  competent  to  be  the  subjects  of 
such  marriage  or  ceremony  or  not,  shall  be  certified  by  a  certificate 
stating  the  fact  and  nature  of  such  ceremony,  the  full  name  of  each  of 
the  parties  concerned,  and  the  full  name  of  every  officer,  priest,  and 
person,  by  whatever  style  or  designation  called  or  known,  in  anv  way 
taking  part  in  the  performance  of  such  ceremony,  which  certificate 
shall  be  draAvn  up  and  signed  by  the  parties  to  such  ceremony  and  by 
every  officer,  priest,  and  person  taking  part  in  the  performance  of  such 
ceremony,  and  shall  be  by  the  officer,  priest,  or  other  person  solemnizing 
such  marriage  or  ceremony  filed  in  the  office  of  the  probate  court,  or, 
if  there  be  none,  in  the  office  of  the  court  having  probate  powers  in 
the  county  or  district  in  which  such  ceremony  shall  take  place,  for 
record,  and  shall  be  immediately  recorded,  and  be  at  all  times  subject 
to  inspection  as  other  public  records.  Such  certificate,  or  the  record 
thereof,  or  a  duly  certified  copy  of  such  record,  shall  be  prima  facie 
evidence  of  the  facts  required  by  this  section  to  be  stated  therein  in  any 
proceeding,  civil  or  criminal,  in  which  the  matter  shall  be  drawn  in 
question.  But  nothing  in  this  section  shall  be  held  to  prevent  the  proof 
of  marriages,  whether  lawful  or  unlawful,  by  any  evidence  otherwise 
legally  admissible  for  that  purpose.  Whoever  shall  willfully  violate 
anv  provision  of  this  section  shall  be  fined  not  more  than  one  thousand 
dollars,  or  imprisoned  not  more  than  two  vears,  or  both.  The  pro- 
visions of  this  section  shall  apply  only  within  the  Territories  of  the 
United  States. 

Prize  Fights,  Bull  Fights,  Etc. 

Sec.  320.  Whoever  shall  voluntarily  engage  in  a  pugilistic  encoun- 
ter between  man  and  man  or  a  fight  between  a  man  and  a  bull  or  any 
other  animal,  for  money  or  for  other  thing  of  value,  or  for  any  cham- 


Criminal  Code  781 

pionship,  or  upon  the  result  of  which  any  money  or  anything  of  value 
is  bet  or  wagered,  or  to  see  which  any  admission  fee  is  directly  or 
indirectly  charged,  shall  be  imprisoned  not  more  than  five  years.  The 
provisions  of  this  section  shall  apply  only  within  the  Territories  of  the 
United  States  and  the  District  of  Columbia. 

"Pugilistic  Encounter"  Defined. 

Sec.  321.  By  the  term  "pugilistic  encounter,"  as  used  in  the  sec- 
tion last  preceding,  is  meant  any  voluntary  fight  by  blows  by  means  of 
fists  or  otherwise,  whether  with  or  without  gloves,  between  two  or 
more  men,  for  money  or  for  a  prize  of  any  character,  or  for  any  other 
thing  of  value,  or  for  any  championship,  or  upon  the  result  of  which 
any  money  or  anything  of  value  is  bet  or  wagered,  or  to  see  which  any 
admission  fee  is  directly  or  indirectly  charged. 

Train  Robberies  in  Territories,  Etc, 

Sec.  322.  Whoever  shall  willfully  and  maliciously  trespass  upon 
or  enter  upon  any  railroad  train,  railroad  car,  or  railroad  locomotive, 
with  the  intent  to  commit  murder,  or  robbery,  shall  be  fined  not  more 
than  five  thousand  dollars,  or  imprisoned  not  more  than  twenty  years, 
or  both.  Whoever  shall  willfully  and  maliciously  trespass  upon  or 
enter  upon  any  railroad  train,  railroad  car,  or  railroad  locomotive, 
with  intent  to  commit  any  unlawful  violence  upon  or  against  any 
passenger  on  said  train,  or  car,  or  upon  or  against  any  engineer,  con- 
ductor, fireman,  brakeman,  or  any  ofiicer  or  employee  connected  with 
said  locomotive,  train,  or  car,  or  upon  or  against  any  express  messen- 
ger or  mail  agent  on  said  train  or  in  any  car  thereof,  or  to  commit  any 
crime  or  ofifense  against  any  person  or  property  thereon,  shall  be  fined 
not  more  than  one  thousand  dollars,  or  imprisoned  not  more  than  one 
year,  or  both.  Whoever  shall  counsel,  aid,  abet,  or  assist  in  the  per- 
petration of  any  of  the  ofifenses  set  forth  in  this  section  shall  be 
deemed  to  be  a  principal  therein.  Upon  the  trial  of  any  person 
charged  with  any  offense  set  forth  in  this  section,  it  shall  not  be  neces- 
sary to  set  forth  or  prove  the  particular  person  against  whom  it  was 
intended  to  commit  the  ofTense,  or  that  it  was  intended  to  commit  such 
offense  against  any  particular  person. 

CHAPTER  XIV. 
General  and  Special  Provisions. 

Punishment  of  Death  by  Hanging. 

Sec.  323.  The  manner  of  inflicting  the  punishment  of  death  shall 
be  by  hanging. 

No  Conviction  to  Work  Corruption  of  Blood   or  Forfeiture  of  Es- 
tate. 
Sec.   324.     No   conviction   or  judgment   shall   work   corruption   of 
blood  or  any  forfeiture  of  estate. 


782  Important  Federal  Laws 

Whipping  and  the  Pillory  Abolished. 

Sec.  325.  The  punishment  of  whipping  and  of  standing  in  the 
pillory  shall  not  be  inflicted. 

Jurisdiction  of  State  Courts. 

Sec.  326.  Nothing  in  this  Title  shall  be  held  to  take  away  or 
impair  the  jurisdiction  of  the  courts  of  the  several  States  under  the 
laws  thereof. 

Pardoning  Power. 

Sec.  7)27.  Whenever,  by  the  judgment  of  any  court  or  judicial 
officer  of  the  United  States,  in  any  criminal  proceeding,  any  person  is 
sentenced  to  two  kinds  of  punishment,  the  one  pecuniary  and  the 
other  corporal,  the  President  shall  have  full  discretionary  power  to 
pardon  or  remit,  in  whole  or  in  part,  either  one  of  the  two  kinds, 
without,  in  any  manner,  impairing  the  legal  validity  of  the  other  kind, 
or  of  any  portion  of  either  kind,  not  pardoned  or  remitted. 

Indians  Committing  Certain  Crimes;  How  Punished. 

Sec.  328.  All  Indians  committing  against  the  person  or  property 
of  another  Indian  or  other  person  any  of  the  following  crimes,  namely 
— murder,  manslaughter,  rape,  assault  with  intent  to  kill,  assault  with 
a  dangerous  weapon,  arson,  burglary,  and  larceny,  within  any  Territory 
of  the  United  States,  and  either  within  or  without  an  Indian  reserva- 
tion, shall  be  subject  therefor  to  the  laws  of  such  Territory  relating  to 
said  crimes,  and  shall  be  tried  therefor  in  the  same  courts  and  in  the 
same  manner  and  shall  be  subject  to  the  same  penalties  as  are  all  other 
persons  charged  with  the  commission  of  said  crimes,  respectively ;  and 
the  said  courts  are  hereby  given  jurisdiction  in  all  such  cases.  And  all 
such  Indians  committing  any  of  the  above  named  crimes  against  the 
person  or  property  of  another  Indian  or  other  person  within  the  bound- 
aries of  any  State  of  the  United  States,  and  within  the  limits  of  any 
Indian  reservation,  shall  be  subject  to  the  same  laws,  tried  in  the  same 
courts  and  in  the  same  manner,  and  be  subject  to  the  same  penalties  as 
are  all  other  persons  committing  any  of  the  above  crimes  within  the 
exclusive  jurisdiction  of  the  United  States :  Provided,  That  any  Indian 
who  shall  commit  the  offense  of  rape  upon  any  female  Indian  within  the 
limits  of  any  Indian  reservation  shall  be  imprisoned  at  the  discretion 
of  the  court. 

Crimes  Cor-imitted  on  Indian  Reservations  in  South  Dakota. 

Sec.  329.  The  circuit  and  district  courts  of  the  United  States  for 
the  district  of  South  Dakota  shall  have  jurisdiction  to  hear,  try,  and 
determine  all  actions  and  proceedings  in  which  any  person  shall  be 
charged  with  the  crime  of  murder,  manslaughter,  rape,  assault  with 
intent  to  kill,  assault  with  a  dangerous  weapon,  arson,  burglary,  or 
larceny,  committed  vv-ithin  the  limits  of  any  Indian  reservation  in  the 
State  of  South  Dakota.    Any  person  convicted  of  murder,  manslaughter. 


Criminal  Code  783 

rape,  arson,  or  burglary,  committed  within  the  limits  of  any  such 
reservation,  shall  be  subject  to  the  same  punishment  as  is  imposed 
upon  persons  committing  said  crimes  within  the  exclusive  jurisdiction 
of  the  United  States :  Provided,  That  any  Indian  who  shall  commit  the 
crime  of  rape  upon  any  female  Indian  within  any  such  reservation  shall 
be  imprisoned  at  the  discretion  of  the  court.  Any  person  convicted  of 
the  crime  of  assault  with  intent  to  kill,  assault  with  a  dangerous  weapon, 
or  larceny,  committed  within  the  limits  of  any  such  reservation,  shall 
be  subject  to  the  same  punishment  as  is  provided  in  cases  of  other  per- 
sons convicted  of  any  of  said  crimes  under  the  laws  of  the  State  of 
South  Dakota.  This  section  is  passed  in  pursuance  of  the  cession  of 
jurisdiction  contained  in  chapter  one  hundred  and  six.  Laws  of  South 
Dakota,  nineteen  hundred  and  one. 

Qualified  Verdicts  in  Certain  Cases. 

Sec.  330.  In  all  cases  where  the  accused  is  found  guilty  of  the 
crime  of  murder  in  the  first  degree,  or  rape,  the  jury  may  qualify  their 
verdict  by  adding  thereto  ''without  capital  punishment;"  and  whenever 
the  jury  shall  return  a  verdict  qualified  as  aforesaid,  the  person  con- 
victed shall  be  sentenced  to  imprisonment  for  life. 

Body  of  Executed  Offender  May  be  Delivered  to  Surgeon  for  Dis- 
section. 
Sec.  331.  The  court  before  which  any  person  is  convicted  of 
murder  in  the  first  degree,  or  rape,  may,  in  its  discretion,  add  to  the 
judgment  of  death,  that  the  body  of  the  offender  be  delivered  to  a 
surgeon  for  dissection ;  and  the  marshal  who  executes  such  judgment 
shall  deliver  the  body,  after  execution,  to  such  surgeon  as  the  court 
may  direct ;  and  such  surgeon,  or  some  person  appointed  by  him,  shall 
receive  and  take  away  the  body  at  the  time  of  execution. 

Who  Are  Principals. 

Sec.  332.  Whoever  directly  commits  any  act  constituting  an  of- 
fense defined  in  any  law  of  the  United  States,  or  aids,  abets,  counsels, 
commands,   induces,   or  procures   its   commission,   is   a  principal. 

Punishment  of  Accessories. 

Sec.  333.  Whoever,  except  as  otherwise  expressly  provided  by 
law,  being  an  accessory  after  the  fact  to  the  commission  of  any  offense 
defined  in  anv  law  of  the  United  States,  shall  be  imprisoned  not  exceed- 
ing one-half  the  longest  term  of  imprisonment,  or  fined  not  exceeding 
one-half  the  largest  fine  prescribed  for  the  punishment  of  the  principal, 
or  both,  if  the  principal  is  punishable  by  both  fine  and  imprisonment; 
or  if  the  principal  is  punishable  by  death,  then  an  accessory  shall  be 
imprisoned  not  more  than  ten  years. 

Accessories  to  Robbery  or  Conspiracy. 

Sec.  334.  Whoever,  without  lawful  authority,  receives  or  takes 
into  custody  any  vessel,  goods,  or  other  property,   feloniously  taken  by 


784  1 M  i'OKT A  N  T  1m:l>i:k  a i ,  1 .  \  w  s 

any  n^Mu-r  or  pirate  against  tlu-  laws  (if  llio  United  States,  knowing 
the  same  to  have  lieen  felonionsly  taken,  and  whoever,  knowing  that 
.siieh  pir;Ue  or  rohher  has  done  or  eonunitted  any  sueh  piracy  or  roh- 
berv.  on  the  land  or  at  sea,  receives,  entertains,  or  conceals  any  such 
pirate  or  rol)her.  is  an  accessory  al'ter  the  fact  to  such  rol)hery  or 
piracy,  and  shall  he  imprisoned  not  more  than  ten  years. 

Felonies  and  Misdemeanors. 

Sir.  .\>5.  All  otTenses  which  may  he  pmiishcd  hy  death,  or  im- 
prisonment for  a  term  exceeding  one  year,  shall  he  deemed  felonies. 
All  other  ()iTenses  shall  be  deemed  misdemeanors. 

Murder   and   Manslaughter;   Place  Where   Crime   Deemed  to   Have 
Been  Committed. 

Skc.  33(>.  In  all  cases  of  mm-der  or  manslaughter,  the  crime  shall 
he  deemed  to  have  been  commilled  at  the  place  where  the  injury  was 
inllicteil.  or  the  poison  administered,  or  other  means  employed  which 
caused  the  death,   without   regard  to  the  place  where  the  death  occurs. 

Construction  of  Words. 

Skc.  3o7.  Wortls  used  in  this  title  in  the  present  tense  include  the 
future  as  well  as  the  present ;  words  used  in  the  masculine  gender 
include  the  feminine  and  neuter:  the  singlar  luimber  inchnles  the  plural, 
and  the  plural  the  singular:  the  word  "person"  and  the  word  "who- 
ever" include  a  corporation  as  well  as  a  natural  person:  writing  in- 
cludes printing  anil  typewriting,  and  signature  or  subscription  includes  a 
mark  when  the  person  making  the  same  intended  it  as  such.  The 
worils  "this  Title."  wherever  they  occur  herein,  shall  be  construed  to 
mean  this  act. 

Omission  of  Words  "Hard  Labor"  Not  to  Deprive  Court  of  Power 
to  Impose. 
Skc.  vV>8.  The  omission  of  the  words  "hard  labor"  from  the  pro- 
visions prescribing  the  punishment  in  the  various  sections  of  this  act, 
shall  not  be  construed  as  depriving  the  court  of  the  iH>wer  to  impose 
hard  labor  as  a  jtart  of  the  punishment,  in  any  ease  where  such  power 
now  exists. 

Arrangement  and  Classification  of  Sections. 

Skc.  .\>^^.  The  arrangement  and  classitication  of  the  several  sec- 
tions of  this  title  have  been  made  for  the  puqxise  of  a  more  convenient 
and  orderlv  arrangement  of  the  same,  and  therefore  no  inference  or 
presun\ption  of  a  legislative  construction  is  to  be  drawn  by  reason  of 
the  chapters   under   which   any  particular   section   is  placed. 

Jurisdiction  of  Circuit  and  District  Courts. 

Sec.  vUO.  The  crimes  and  otTen.'^es  detined  in  this  title  shall  be 
cogui;^able  in  the  circuit  and  district  courts  of  the  United  States,  as 
prescribed  in  .sections  five  hundrcil  and  sixty-three  and  six  hundred 
and  tweutv-nine  of  the   Revised   Statutes. 


Parole  of  Prisoners  785 

THE  PAROLE  OF  PRISONERS  ACT. 

Act  of  June  25,  1910. 
An  Act  to  parole  United  States  prisoners,  and  for  other  purposes. 

Parole  of  Prisoners. 

Section  1.  That  every  prisoner  who  has  been  or  may  hereafter 
be  convicted  of  any  offense  against  the  United  States,  and  is  confined  in 
execution  of  the  judgment  of  such  conviction  in  any  United  States  pen- 
itentiary or  prison,  for  a  definite  term  or  terms  of  over  one  year,  or 
for  the  term  of  his  natural  hfe,  whose  record  of  conduct  shows  he  has 
observed  the  rules  of  such  institution,  and  who  if  sentenced  for  a  defi- 
nite term  has  served  one-third  of  the  total  of  the  term  or  terms  for 
which  he  was  sentenced,  or,  if  sentenced  for  the  term  of  his  natural 
life,  has  served  not  less  than  fifteen  years,  may  be  released  on  parole 
as  hereinafter  provided.     (As  amended  June  23,  1913.) 

Board  of  Parole. 

Sec.  2.  That  the  superintendent  of  prisons  of  the  Department  of 
Justice,  and  the  warden  and  physician  of  each  United  States  penitentiary 
shall  constitute  a  board  of  parole  for  such  prison,  which  shall  establish 
rules  and  regulations  for  its  procedure  subject  to  the  approval  of  the 
Attorney-General.  The  chief  clerk  of  such  prison  shall  be  clerk  of  said 
board  of  parole,  and  meetings  shall  be  held  at  each  prison  as  often  as 
the  regulations  of  such  board  shall  provide:  Provided,  That  in  every 
case  where  a  prison  other  than  a  United  States  penitentiary  is  used  for 
the  confinement  of  such  prisoners  it  shall  be  the  duty  of  the  Attorney- 
General  to  designate  the  officers  of  said  prison  who,  together  with  the 
superintendent  of  prisons,  shall  constitute  such  board  for  said  prison. 

Application. 

Sec.  3.  That  if  it  shall  appear  to  said  board  of  parole  from  a  report 
by  the  proper  officers  of  such  prison  or  upon  application  by  a  prisoner 
for  release  on  parole,  that  there  is  a  reasonable  probability  that  such 
applicant  will  live  and  remain  at  liberty  without  violating  the  laws,  and 
if  in  the  opinion  of  the  board  such  release  is  not  incompatible  with  the 
welfare  of  society,  then  said  board  of  parole  may  in  its  discretion  au- 
thorize the  release  of  such  applicant  on  parole,  and  he  shall  be  allowed 
to  go  on  parole  outside  of  said  prison,  and,  in  the  discretion  of  the  board, 
to  return  to  his  home,  upon  such  terms  and  conditions,  including  per- 
sonal reports  from  such  paroled  person,  as  said  board  of  parole  shall 
prescribe,  and  to  remain,  while  on  parole,  in  the  legal  custody  and  under 
the  control  of  the  warden  of  such  prison  from  which  paroled,  and  until 
the  expiration  of  the  term  or  terms  specified  in  his  sentence,  less  such 
good  time  allowance  as  is  or  may  hereafter  be  provided  for  by  Act  of 
Congress ;  and  the  said  board  shall,  in  every  parole  fix  the  limits  of  the 
residence  of  the  person  paroled,  which  limits  may  thereafter  be  changed 
in  the  discretion  of  the  board :  Provided,  That  no  release  on  parole  shall 
become  operative  until  the  findings  of  the  board  of  parole  under  the 

(50) 


786  Important  Federal  Laws 

terms  hereof  shall  have  been  approved  by  the  Attorney-General  of  the 
United  States. 

Arrest  for  Violation. 

Sec.  4.  That  if  the  warden  of  the  prison  or  penitentiary  from  which 
said  prisoner  was  paroled  or  said  board  of  parole  or  any  member  thereof 
shall  have  reliable  information  that  the  prisoner  has  violated  his  parole, 
then  said  warden,  at  any  time  within  the  term  or  terms  of  the  prisoner's 
sentence,  may  issue  his  warrant  to  any  officer  hereinafter  authorized  to 
execute  the  same,  for  the  retaking  of  such  prisoner. 

Officers  Who  May  Arrest. 

Sec.  5.  That  anv  officer  of  said  prison  or  any  federal  officer  au- 
thorized to  serve  criminal  process  within  the  United  States,  to  whom 
such  warrant  shall  be  delivered,  is  authorized  and  required  to  execute 
such  warrant  by  taking  such  prisoner  and  returning  him  to  said  prison 
within  the  time  specified  in  said  warrant  therefor.  All  necessary  ex- 
penses incurred  in  the  administration  of  this  Act  shall  be  paid  out  of 
the  appropriation  for  the  prison  in  connection  with  which  such  expense 
was  incurred,  and  such  appropriation  is  hereby  made  available  therefor. 

Hearings. 

Sec.  6.  That  at  the  next  meeting  of  the  board  of  parole  held  at 
such  prison  after  the  issuing  of  a  warrant  for  the  retaking  of  any 
paroled  prisoner,  said  board  of  parole  shall  be  notified  thereof,  and  if 
said  prisoner  shall  have  been  returned  to  said  prison,  he  shall  be  given 
an  opportunity  to  appear  before  said  board  of  parole,  and  the  said  board 
mav  then  or  at  any  time  in  its  discretion  revoke  the  order  and  terminate 
such  parole  or  modify  the  terms  and  conditions  thereof.  If  such  order 
of  parole  shall  be  revoked  and  the  parole  so  terminated,  the  said  pris- 
oner shall  serve  the  remainder  of  the  sentence  originally  imposed;  and 
the  time  the  prisoner  was  out  on  parole  shall  not  be  taken  into  account 
to  diminish  the  time  for  which  he  was  sentenced. 

Parole  Officer — Duties. 

Sec.  7.  That  each  board  of  parole  shall  appoint  a  parole  officer 
for  the  penitentiary  over  which  it  has  jurisdiction.  Subject  to  the  direc- 
tion and  control  of  such  board,  it  shall  be  the  duty  of  such  officer  to 
aid  paroled  prisoners  in  securing  employment  and  to  visit  and  exercise 
supervision  over  them  while  on  parole,  and  such  officer  shall  have  such 
authority  and  perform  such  other  duties  as  the  board  of  parole  may 
direct.  The  salary  of  each  parole  officer  shall  be  fixed  by  the  board  of 
parole,  but  shall '  not  exceed  one  thousand  five  hundred  dollars  per 
annum,  which,  together  with  his  actual  and  necessary  traveling  ex- 
penses, when  approved  by  such  board,  shall  be  paid  out  of  the  appro- 
priation for  the  maintenance  of  the  penitentiary  to  which  he  is  assigned, 
which  appropriation  is  hereby  made  available  for  the  purpose.  In  addi- 
tion to  such  parole  officers  the  supervision  of  paroled  prisoners  may  also 


Parole  of  Prisoners  '  787 

be  devolved  upon  the  United  States  marshals  when  the  board  of  parole 
may  deem  it  necessarv. 

Gratuities  to  Paroled  Prisoners. 

Sec.  8.  That  it  shall  be  the  duty  of  the  warden  of  the  prison  to 
furnish  to  any  and  all  paroled  prisoners  the  usual  gratuities,  consisting 
of  clothing,  transportation,  and  five  dollars  in  money ;  the  transporta- 
tion furnished  shall  be  to  the  place  to  which  the  paroled  prisoner  has 
elected  to  go,  with  the  approval  of  the  board  of  parole.  The  warden  of 
the  prison  who  furnishes  these  gratuities  is  hereby  authorized  to  charge 
the  actual  cost  of  the  same  in  his  accounts  against  the  United  States : 
Provided,  however,  That  when  any  such  paroled  prisoner  shall  have 
received  his  final  discharge,  while  he  is  away  from  such  prison,  he  shall 
be  entitled  to  no  further  gratuities  provided  for  discharged  prisoners 
under  existing  law. 

Parole  Under  State  Laws. 

Sec.  9.     That  whenever  any  person  has  been  convicted  of  any  of- 
fense against  the  United   States  which  is  punishable  by  imprisonment, 
and  has  been  sentenced  to  imprisonment  and  is  confined  therefor,  in  any 
reformatory  institution  of  any  State  in  accordance  with  section  fifty-five 
hundred  and  forty-eight  of  the  Revised  Statutes,  or  other  laws  of  the 
United  States,  then  if  such  State  has  laws  for  the  parole  of  prisoners 
comiuitted  to  such  institutions  by  the  courts  of  that  State,  such  person 
convicted  of  any  ofifense  against  the  United   States  shall  be  eligible  to 
parole  on  the  same  terms  and  conditions  and  by  the  same  authority  and 
subject  to  recommittal  for  violation  of  such  parole  in  the  same  manner, 
as  persons  committed  to  such  institutions  by  the  courts  of  said  State, 
and  the  laws  of  said  State  relating  to  the  parole  of  prisoners  and  the 
supervision  thereof  in  such  institutions  are  hereby  adopted  and  made  to 
apply  to  persons  committed  to  such  institutions  for  offenses  against  the 
United  States.     The  necessary  cost  of  parole  and  supervision  of  such 
prisoners,  to  the  State  where  such  institution  is  located  shall  be  paid  by 
the  United  States  out  of  the  appropriation  for  the  support  of  prisoners 
confined  in  state  institutions,  which  appropriation  is  hereby  made  avail- 
able for  the  purpose.     No  such  prisoner  shall  be  entitled  to  go  on  parole 
until  the  Attorney-General  shall  have  approved  the  order  therefor:  Pro- 
vided, That  when  a  prisoner  is  committed  to  such  institution  outside  of 
the  State  where  he  lives  he  may  be  permitted  by  his  parole  to  return  to 
his  home,  and  in  such  case  the  supervision  of  such  prisoner  on  parole 
shall  devolve  upon  the  marshal  of  the  district  where  said  prisoner  lives, 
and  in  case  such  prisoner  should  violate  his  parole  a  warrant  for  his 
recommitment  shall  be  delivered  to  and  executed  by  said  marshal. 
President's  Pardoning  Power  Not  Affected. 

Sec.  10.  That  nothing  herein  contained  shall  be  construed  to  im- 
pair the  power  of  the  President  of  the  United  States  to  grant  a  pardon 
or  commutation  in  any  case,  or  in  any  way  impair  or  revoke  such  good 
time  allowance  as  is  or  may  hereafter  be  provided  by  Act  of  Congress. 


THE  FEDERAL  JUDICIAL  CODE. 

Act  of  March  3,  1911. 
An  Act  to  codify,  revise,  and  amend  the  laws  relating  to  the  judiciary. 

That  the  laws  relating  to  the  jtidiciary  be,  and  they  hereby  are, 
codified,  revised,  and  amended,  with  title,  chapters,  head-notes,  and 
sections,  entitled,  numbered,  and  to  read  as  follows : 

CHAPTER  ONE. 

District  Courts — Organization. 

Section  1.  In  each  of  the  districts  described  in  chapter  five,  there 
shall  be  a  court  called  a  district  court,  for  which  there  shall  be  appointed 
one  judge,  to  be  called  a  district  judge;  except  that  in  the  northern 
district  of  California,  the  southern  district  of  California,  the  northern 
district  of  Illinois,  the  district  of  Minnesota,  the  district  of  Nebraska, 
the  district  of  New  Jersey,  the  eastern  district  of  New  York,  the  north- 
ern and  southern  district's  of  Ohio,  the  district  of  Oregon,  the  eastern 
and  western  districts  of  Pennsylvania,  and  the  western  district  of  Wash- 
ington, there  shall  be  an  additional  district  judge  in  each,  and  in  the 
southern  district  of  New  York,  three  additional  district  judges:  Pro- 
vided, That  there  shall  be  one  judge  for  the  eastern  and  western  dis- 
tricts of  South  Carolina,  one  judge  for  the  eastern  and  middle  districts 
of  Tennessee,  and  one  judge  for  the  northern  and  southern  districts  of 
Mississippi:  Provided  further.  That  the  district  judge  for  the  middle 
district  of  Alabama  shall  continue  as  heretofore  to  be  a  district  judge 
for  the  northern  district  thereof.  Every  district  judge  shall  reside  in 
the  district  or  one  of  the  districts  for  which  he  is  appointed,  and  for 
offending  against  this  provision  shall  be  deemed  guilty  of  a  high  mis- 
demeanor.    (As  amended  July  30,  1914.) 

Salary. 

Sec.  2.  Each  of  the  district  judges  shall  receive  a  salary  of  six 
thousand  dollars  a  year,  to  be  paid  in  monthly  installments. 

Clerk. 

Sec.  3.  A  clerk  shall  be  appointed  for  each  district  court  by  the 
judge  thereof,  except  in  cases  otherwise  provided  for  by  law. 

Deputies. 

Sec.  4.  Except  as  otherwise  specially  provided  by  law%  the  clerk 
of  the  district  court  for  each  district  may,  with  the  approval  of  the 
district  judge  thereof  appoint  such  number  of  deputy  clerks  as  may  be 
deemed  necessary  by  such  judge,  who  may  be  designated  to  reside  and 
maintain  offices  at  such  places  of  holding  court  as  the  judge  may  deter- 
mine.     Such    deputies   may   be    removed   at    the   pleasure    of    the    clerk 


Federal  Judicial  Code  789 

appointing  them,  with  the  concurrence  of  the  district  judge.  In  case 
of  the  death  of  the  clerk,  his  deputy  or  deputies  shall,  unless  removed, 
continue  in  ofifice  and  perform  the  duties  of  the  clerk,  in  his  name,  until 
a  clerk  is  appointed  and  qualified  ;  and  for  the  default  or  misfeasances 
in  office  of  any  such  deputy,  whether  in  the  lifetime  of  the  clerk  or 
after  his  death,  the  clerk  and  his  estate  and  the  sureties  on  his  official 
bond  shall  be  liable ;  and  his  executor  or  administrator  shall  have  such 
remedy  for  any  such  default  or  misfeasances  committed  after  his  death 
as  the  clerk  would  be  entitled  to  if  the  same  had  occurred  in  his  life- 
time. 

Crier  and  Marshal. 

Sec.  5.  The  district  court  for  each  district  may  appoint  a  crier  for 
the  court ;  and  the  marshal  may  appoint  such  number  of  persons,  not 
exceeding  five,  as  the  judge  may  determine,  to  wait  upon  the  grand  and 
other  juries,  and  for  other  necessary  purposes. 

Records,  Where  Kept. 

Sec.  6.  The  records  of  a  district  court  shall  be  kept  at  the  place 
where  the  court  is  held.  When  it  is  held  at  more  than  one  place  in 
any  district  and  the  place  of  keeping  the  records  is  not  specially  pro- 
vided by  law^  they  shall  be  kept  at  either  of  the  places  of  holding  the 
court  which  may  be  designated  by  the  district  judge. 

Change  Not  to  Affect  Suits. 

Sec.  7.  No  action,  suit,  proceeding,  or  process  in  any  district  court 
shall  abate  or  be  rendered  invalid  by  reason  of  any  act  changing  the 
time  of  holding  such  court,  but  the  same  shall  be  deemed  to  be  return- 
able to,  pending,  and  triable  in  the  terms  established  next  after  the 
return  day  thereof. 

Conclusion  of  Suit  at  End  of  Term. 

Sec.  8.  When  the  trial  or  hearing  of  any  cause,  civil  or  criminal, 
in  a  district  court  has  been  commenced  and  is  in  progress  before  a  jury 
or  the  court,  it  shall  not  be  stayed  or  discontinued  by  the  arrival  of 
the  time  fixed  by  law  for  another  session  of  said  court ;  but  the  court 
may  proceed  therein  and  bring  it  to  a  conclusion  in  the  same  manner 
and  with  the  same  effect  as  if  another  stated  term  of  the  court  had 
not  intervened. 

Equity  and  Admiralty  Business. 

Sec.  9.  The  district  courts,  as  courts  of  admiralty  and  as  courts 
of  equity,  shall  be  deemed  always  open  for  the  purpose  of  filing  any 
pleading,  of  issuing  and  returning  mesne  and  final  process,  and  of 
making  and  directing  all  interlocutory  motions,  orders,  rules,  and  other 
proceedings  preparatory  to  the  hearing,  upon  their  merits,  of  all  causes 
pending  therein.  Any  district  judge  may,  upon  reasonable  notice  to  the 
parties,  make,  direct,  and  award,  at  chambers  or  in  the  clerk's  office, 
and  in  vacation  as  well  as  in  term,  all  such  process,  commissions,  orders, 


790  Important  Federal  Laws 

rules,  and  other  proceedings,  whenever  the  same  are  not  grantable  of 
course,  according  to  the  rules  and  practice  of  the  court. 

Adjournment  for  Criminal  Trials. 

Sec.  10.  District  courts  shall  hold  monthly  adjournments  of  their 
regular  terms,  for  the  trial  of  criminal  causes,  when  their  business 
requires  it  to  be  done,  in  order  to  prevent  undue  expenses  and  delays  in 
such  cases. 

Special  Terms. 

Sec.  11.  A  special  term  of  any  district  court  may  be  held  at  the 
same  place  where  any  regular  term  is  held,  or  at  such  other  place  in 
the  district  as  the  nature  of  the  business  may  require,  and  at  such  time 
and  upon  such  notice  as  may  be  ordered  by  the  district  judge.  Any 
business  may  be  transacted  at  such  special  term  which  might  be  trans- 
acted at  a  regular  term. 

Adjournment  in  Absence  of  Judge. 

Sec.  12.  If  the  judge  of  any  district  court  is  unable  to  attend  at 
the  commencement  of  any  regular,  adjourned,  or  special  term,  or  any 
time  during  such  term,  the  court  may  be  adjourned  by  the  marshal,  or 
clerk,  by  virtue  of  a  written  order  directed  to  him  by  the  judge,  to  the 
next  regular  term,  or  to  any  earlier  day,  as  the  order  may  direct. 

Designation  of  Another  Judge. 

Sec.  13.  When  any  district  judge  is  prevented,  by  any  disability, 
from  holding  any  stated  or  appointed  term  of  his  district  court,  and  that 
fact  is  made  to  appear  by  the  certificate  of  the  clerk,  under  the  seal  of 
the  court,  to  any  circuit  judge  of  the  circuit  in  which  the  district  lies, 
or,  in  the  absence  of  all  the  circuit  judges,  to  the  circuit  justice  of  the 
circuit  in  which  the  district  lies,  any  such  circuit  judge  or  justice  may, 
if  in  his  judgment  the  public  interests  so  require,  designate  and  appoint 
the  judge  of  any  other  district  in  the  same  circuit  to  hold  said  court, 
and  to  discharge  all  the  judicial  duties  of  the  judge  so  disabled,  during 
such  disability.  Whenever  it  shall  be  certified  by  any  such  circuit  judge 
or,  in  his  absence,  by  the  circuit  justice  of  the  circuit  in  which  the  dis- 
trict lies,  that  for  any  sufficient  reason  it  is  impracticable  to  designate 
and  appoint  a  judge  of  another  district  within  the  circuit  to  perform  the 
duties  of  such  disabled  judge,  the  chief  justice  may,  if  in  his  judgment 
the  public  interests  so  require,  designate  and  appoint  the  judge  of  any 
district  in  another  circuit  to  hold  said  court  and  to  discharge  all  the 
judicial  duties  of  the  judge  so  disabled,  during  such  disability.  Such 
appointment  shall  be  filed  in  the  clerk's  office,  and  entered  on  the  min- 
utes of  the  said  district  court,  and  a  certified  copy  thereof,  under  the 
seal  of  the  court,  shall  be  transmitted  by  the  clerk  to  the  judge  so  desig- 
nated and  appointed. 
Designation  of  Judge  to  Relieve  Business. 

Sec.   14.     When,  from  the  accumulation  or  urgency  of  business  in 
any  district  court,  the  public  interests  require  the  designation  and  ap- 


Federal  Judicial  Code  791 

pointment  hereinafter  provided,  and  the  fact  is  made  to  appear,  by  the 
certificate  of  the  clerk,  under  the  seal  of  the  court,  to  any  circuit  judge 
of  the  circuit  in  which  the  district  lies,  or,  in  the  absence  of  all  the 
circuit  judges,  to  the  circuit  justice  of  the  circuit  in  which  the  district 
lies,  such  circuit  judge  or  justice  may  designate  and  appoint  the  judge 
of  any  other  district  in  the  same  circuit  to  have  and  exercise  within  the 
district  first  named  the  same  powers  that  are  vested  in  the  judge  thereof. 
Each  of  the  said  district  judges  may,  in  case  of  such  appointment,  hold 
separately  at  the  same  time  a  district  court  in  such  district,  and  dis- 
charge all  the  judicial  duties  of  the  district  judge  therein. 

Temporary  Judge. 

Sec.  15.  If  all  the  circuit  judges  and  the  circuit  justice  are  absent 
from  the  circuit,  or  are  unable  to  execute  the  provisions  of  either  of  the 
two  preceding  sections,  or  if  the  district  judge  so  designated  is  dis- 
abled or  neglects  to  hold  the  court  and  transact  the  business  for  which 
he  is  designated,  the  clerk  of  the  district  court  shall  certify  the  fact  to 
the  Chief  Justice  of  the  United  States,  who  may  thereupon  designate 
and  appoint  in  the  manner  aforesaid  the  judge  of  any  district  within 
such  circuit  or  within  any  other  circuit ;  and  said  appointment  shall  be 
transmitted  to  the  clerk  and  be  acted  upon  by  him  as  directed  in  the 
preceding  section. 

New  Designation, 

Sec.  16.  Any  such  circuit  judge,  or  circuit  justice,  or  the  Chief 
Justice,  as  the  case  may  be,  may  from  time  to  time,  if  in  his  judgment 
the  public  interests  so  require,  make  a  new  designation  and  appointment 
of  any  other  district  judge,  in  the  manner,  for  the  duties,  and  with  the 
powers  mentioned  in  the  three  preceding  sections,  and  revoke  any  pre- 
vious designation  and  appointment. 

Senior  Circuit  Judge  to  Designate. 

Sec.  17.  It  shall  be  the  duty  of  the  senior  circuit  judge  then  pres- 
ent in  the  circuit,  whenever  in  his  judgment  the  public  interest  so  re- 
quires, to  designate  and  appoint,  in  the  manner  and  with  the  powers 
provided  in  section  fourteen,  the  district  judge  of  any  judicial  district 
within  his  circuit  to  hold  a  district  court  in  the  place  or  in  aid  of  any 
other  district  judge  within  the  same  circuit. 

Circuit  Judge  to  Hold  District  Court. 

Sec.  18.  Whenever  it  shall  be  certified  by  the  senior  circuit  judge 
of  the  second  circuit,  or,  in  his  absence,  by  the  circuit  justice  of  said 
circuit,  that  on  account  of  the  accumulation  or  urgency  of  business  in 
any  circuit  court  in  said  circuit  it  is  impracticable  to  designate  and 
appoint  a  sufficient  number  of  district  judges  of  other  districts  within 
said  circuit  to  relieve  such  accumulation  or  urgency  of  business,  the 
Chief  Justice  may,  if  in  his  judgment  the  public  interests  so  require, 
designate  and  appoint  the  judge  of  anv  district  court  in  another  circuit 
to  hold  a  district  court  within  the  said  second  circuit,  and  to  have  and 


792  Important  Federal  Laws 

exercise  within  the  district  to  which  he  is  so  assigned  the  same  powers 
that  are  vested  in  the  judge  thereof:  Provided,  That  such  judge  so 
designated  and  appointed  shall  have  consented,  in  writing,  to  such 
designation  and  appointment :  And  provided  further.  That  the  senior 
circuit  judge  of  the  circuit  within  which  such  judge  so  designated  and 
appointed  resides  shall  certify,  in  writing,  that  the  business  of  the  dis- 
trict of  such  judge  will  not  suffer  thereby.  Such  appointment  shall  be 
filed  in  the  clerk's  office  and  entered  on  the  minutes  of  the  said  district 
court,  and  a  certified  copy  thereof,  under  the  seal  of  the  court,  shall  be 
transmitted  by  the  clerk  to  the  judge  so  designated  and  appointed.  Each 
of  the  said  district  judges  may,  in  the  case  of  such  appointment,  hold 
separately,  at  the  same  time,  a  district  court  in  such  district,  and  dis- 
charge all  of  the  judicial  duties  of  the  district  judge  therein.  (As 
amended  October  3,  1913.) 

Authority  of  Designated  Judge. 

Sec.  19.  It  shall  be  the  duty  of  the  district  or  circuit  judge  who 
is  designated  and  appointed  under  either  of  the  six  preceding  sections, 
to  discharge  all  the  judicial  duties  for  which  he  is  so  appointed,  during 
the  time  for  which  he  is  so  appointed  ;  and  all  the  acts  and  proceedings 
in  the  courts  held  by  him,  or  by  or  before  him,  in  pursuance  of  said 
provisions,  shall  have  the  same  effect  and  validity  as  if  done  by  or 
before  the  district  judge  of  the  said  district. 

Judge  Disqualified. 

Sec.  20.  Whenever  it  appears  that  the  judge  of  any  district  court 
is  in  any  way  concerned  in  interest  in  any  suit  pending  therein,  or  has 
been  of  counsel  or  is  a  material  witness  for  either  party,  or  is  so  related 
to  or  connected  with  either  party  as  to  render  it  improper,  in  his  opinion, 
for  him  to  sit  on  the  trial,  it  shall  be  his  duty,  on  application  by  either 
party,  to  cause  the  fact  to  be  entered  on  the  records  of  the  court ;  and 
also  an  order  that  an  authenticated  copy  thereof  shall  be  forthwith  cer- 
tified to  the  senior  circuit  judge  for  said  circuit  then  present  in  the  cir- 
cuit ;  and  thereupon  such  proceedings  shall  be  had  as  are  provided  in 
section  fourteen. 

Personal  Bias  or  Prejudice  of  Judge. 

Sec.  21.  Whenever  a  party  to  any  action  or  proceeding,  civil  or 
criminal,  shall  make  and  file  an  affidavit  that  the  judge  before  whom 
the  action  or  proceeding  is  to  be  tried  or  heard  has  a  personal  bias  or 
prejudice  either  against  him  or  in  favor  of  any  opposite  party  to  the 
suit,  such  judge  shall  proceed  no  further  therein,  but  another  judge 
shall  be  designated  in  the  manner  prescribed  in  the  section  last  preced- 
ing, or  chosen  in  the  manner  prescribed  in  section  twenty-three,  to 
hear  such  matter.  Every  such  affidavit  shall  state  the  facts  and  the 
reasons  for  the  belief  that  such  bias  or  prejudice  exists,  and  shall  be 
filed  not  less  than  ten  days  before  the  beginning  of  the  term  of  the 
court,  or  good  cause  shall  be  shown  for  the  failure  to  file  it  within  such 


Federal  Judicial  Code  793 

time.  No  party  shall  be  entitled  in  any  case  to  file  more  than  one  such 
affidavit ;  and  no  such  affidavit  shall  be  filed  unless  accompanied  by  a 
certificate  of  counsel  of  record  that  such  affidavit  and  application  are 
made  in  good  faith.  The  same  proceedings  shall  be  had  when  the  pre- 
siding judge  shall  file  with  the  clerk  of  the  court  a  certificate  that  he 
deems  himself  unable  for  any  reason  to  preside  with  absolute  impar- 
tiality in  the  pending  suit  or  action. 

Continuance  of  Cases  in  Vacancies. 

Sec.  22.  When  the  office  of  judge  of  any  district  court  becomes 
vacant,  all  process,  pleadings,  and  proceedings  pending  before  such 
court  shall,  if  necessary,  be  continued  by  the  clerk  thereof  until  such 
times  as  a  judge  shall  be  appointed,  or  designated  to  hold  such  court; 
and  the  judge  so  designated,  while  holding  such  court,  shall  possess 
the  powers  conferred  by,  and  be  subject  to  the  provisions  contained  in, 
section  nineteen. 

Division  of  Business. 

Sec.  23.  In  districts  having  more  than  one  district  judge,  the 
judges  may  agree  upon  the  division  of  business  and  assignment  of  cases 
for  trial  in  said  district ;  but  in  case  they  do  not  so  agree,  the  senior 
circuit  judge  of  the  circuit  in  which  the  district  lies,  shall  make  all  nec- 
essary orders  for  the  division  of  business  and  the  assignment  of  cases 
for  trial  in  said  district. 

CHAPTER  TWO. 
District  Courts — Jurisdiction. 

Sec.  24.  The  district  courts  shall  have  original  jurisdiction  as  fol- 
lows: 

First.  Of  all  suits  of  a  civil  nature,  at  common  law  or  in  equity, 
brought  by  the  United  States,  or  by  any  officer  thereof  authorized  by 
law  to  sue,  or  between  citizens  of  the  same  State  claiming  lands  under 
grants  from  different  States ;  or,  where  the  matter  in  controversy  ex- 
ceeds, exclusive  of  interest  and  costs,  the  sum  or  value  of  three  thou- 
sand dollars,  and  (a)  arises  under  the  Constitution  or  laws  of  the 
United  States,  or  treaties  made,  or  which  shall  be  made,  under  their 
authority,  or  (b)  is  between  citizens  of  different  States,  or  (c)  is  be- 
tween citizens  of  a  State  and  foreign  States,  citizens,  or  subjects.  No 
district  court  shall  have  cognizance  of  any  suit  (except  upon  foreign 
bills  of  exchange)  to  recover  upon  any  promissory  note  or  other  chose 
in  action  in  favor  of  any  assignee,  or  of  any  subsequent  holder  if  such 
instrument  be  payable  to  bearer  and  be  not  made  by  any  corporation, 
unless  such  suit  might  have  been  prosecuted  in  such  court  to  recover 
upon  said  note  or  other  chose  in  action  if  no  assignment  had  been  made : 
Provided,  however.  That  the  foregoing  provision  as  to  the  sum  or  value 
of  the  matter  in  controversy  shall  not  be  construed  to  apply  to  any  of 
the  cases  mentioned  in  the  succeeding  paragraphs  of  this  section. 


794  Important  Federal  Laws 

Second.  Of  all  crimes  and  offenses  cognizable  under  the  authority 
of  the  United  States. 

Third.  Of  all  civil  causes  of  admiralty  and  maritime  jurisdiction, 
saving  to  suitors  in  all  cases  the  right  of  a  common-law  remedy  where 
the  common  law  is  competent  to  give  it ;  of  all  seizures  on  land  or 
waters  not  within  admiralty  and  maritime  jurisdiction;  of  all  prizes 
brought  into  the  United  States ;  and  of  all  proceedings  for  the  condem- 
nation of  property  taken  as  prize. 

Fourth.  Of  all  suits  arising  under  any  law  relating  to  the  slave 
trade. 

Fifth.  Of  all  cases  arising  imder  any  law  providing  for  internal 
revenue,  or  from  revenue  from  imports  or  tonnage,  except  those  cases 
arising  under  any  law  providing  revenue  from  imports,  jurisdiction  of 
which  has  been  conferred  upon  the  Court  of  Customs  Appeals. 

Sixth.     Of  all  cases  arising  under  the  postal  laws. 

Seventh.  Of  all  suits  at  law  or  in  equity  arising  under  the  patent, 
the  copyright,  and  the  trade-mark  laws. 

Eighth.  Of  all  suits  and  proceedings  arising  imder  any  law  regu- 
lating commerce,  except  those  suits  and  proceedings  exclusive  jurisdic- 
tion of  which  has  been  conferred  upon  the  Commerce  Court. 

Ninth.  Of  all  suits  and  proceedings  for  the  enforcement  of  pen- 
alties and  forfeitures  mcurred  under  any  law  of  the  United  States. 

Tenth;  Of  all  suits  by  the  assignee  of  any  debenture  for  drawback 
of  duties,  issued  under  any  law  for  the  collection  of  duties,  against 
the  person  to  whom  such  debenture  was  originally  granted,  or  against 
any  indorser  thereof,  to  recover  the  amount  of  such  debenture. 

Eleventh.  Of  all  suits  brought  by  any  person  to  recover  damages 
for  any  injury  to  his  person  or  property  on  accoimt  of  any  act  done 
by  him,  under  any  law  of  the  United  States,  for  the  protection  or  col- 
lection of  any  of  the  revenues  thereof,  or  to  enforce  the  right  of  citizens 
of  the  United  States  to  vote  in  the  several  States. 

Twelfth.  Of  all  suits  authorized  by  law  to  be  brought  by  any 
person  for  the  recovery  of  damages  on  account  of  any  injury  to  his 
person  or  property,  or  of  the  deprivation  of  any  right  or  privilege  of 
a  citizen  of  the  United  States,  by  any  act  done  in  furtherance  of  any 
conspiracy  mentioned  in  section  nineteen  hundred  and  eighty,  Revised 
Statutes. 

Thirteenth.  Of  all  suits  authorized  by  law  to  be  brought  against 
any  person  who,  having  knowledge  that  any  of  the  wrongs  mentioned 
in  section  nineteen  hundred  and  eighty.  Revised  Statutes,  are  about 
to  be  done,  and,  having  power  to  prevent  or  aid  in  preventing  the  same, 
neglects  or  refuses  so  to  do,  to  recover  damages  for  any  such  wrong- 
ful act. 

Fourteenth.  Of  all  suits  at  law  or  in  equity  authorized  by  law  to 
be  brought  by  any  person  to  redress  the  deprivation,  under  color  of 
any  law,  statute,  ordinance,  regulation,  custom,  or  usage,  of  any  State, 


Federal  Judicial  Code  795 

of  any  right,  privilege,  or  immunity,  secured  by  the  Constitution  of 
the  United  States,  or  of  any  right  secured  by  any  law  of  the  United 
States  providing  for  equal  rights  of  citizens  of  the  United  States,  or 
of  all  persons  within  the  jurisdiction  of  the  United  States. 

Fifteenth.  Of  all  suits  to  recover  possession  of  any  oflice,  except 
that  of  elector  of  President  or  Vice  President,  Representative  in  or  Dele- 
gate to  Congress,  or  member  of  a  State  legislature,  authorized  by  law 
to  be  brought,  wherein  it  appears  that  the  sole  question  touching  the 
title  to  such  office  arises  out  of  the  denial  of  the  right  to  vote  to  any 
citizen  offering  to  vote,  on  account  of  race,  color,  or  previous  condition 
of  servitude :  Provided,  That  such  jurisdiction  shall  extend  only  so  far 
as  to  determine  the  rights  of  the  parties  to  such  office  by  reason  of  the 
denial  of  the  right  guaranteed  by  the  Constitution  of  the  United  States, 
and  secured  by  any  law,  to  enforce  the  right  of  citizens  of  the  United 
States  to  vote  in  all  the  States. 

Sixteenth.  Of  all  cases  commenced  by  the  United  States,  or  by 
direction  of  any  officer  thereof,  against  any  national  banking  associa- 
tion, and  cases  for  winding  up  the  aft'airs  of  any  such  bank ;  and  of  all 
suits  brought  by  any  banking  association  established  in  the  district  for 
which  the  court  is  held,  under  the  provisions  of  title  "National  Banks," 
Revised  Statutes,  to  enjoin  the  Comptroller  of  the  Currency,  or  any 
receiver  acting  under  his  direction,  as  provided  by  said  title.  And  all 
national  banking  associations  established  under  the  laws  of  the  United 
States  shall,  for  the  purposes  of  all  other  actions  by  or  against  them, 
real,  personal,  or  mixed,  and  all  suits  in  equity,  be  deemed  citizens  of 
the  States  in  which  they  are  respectively  located. 

Seventeenth.  Of  all  suits  brought  by  any  alien  for  a  tort  only,  in 
violation  of  the  laws  of  nations  or  of  a  treaty  of  the  United  States. 

Eighteenth.     Of  all  suits  against  consuls  and  vice  consuls. 

Nineteenth.     Of  all  matters  and  proceedings  in  bankruptcy. 

Twentieth.  Concurrent  with  the  Court  of  Claims,  of  all  claims  not 
exceeding  ten  thousand  dollars  founded  upon  the  Constitution  of  the 
United  States  or  any  law  of  Congress,  or  upon  any  regulation  of  an 
Executive  Department,  or  upon  any  contract,  express  or  implied,  with 
the  Government  of  the  United  States,  or  for  damages,  liquidated  or 
unliquidated,  in  cases  not  sounding  in  tort,  in  respect  to  which  claims 
the  party  would  be  entitled  to  redress  against  the  United  States,  either 
in  a  court  of  law,  equity,  or  admiralty,  if  the  United  States  were  suable, 
and  of  all  set-offs,  counterclaims,  claims  for  damages,  whether  liquidated 
or  unliquidated,  or  other  demands  whatsoever  on  the  part  of  the  Gov- 
ernment of  the  United  States  against  any  claimant  against  the  Govern- 
ment in  said  court:  Provided,  however.  That  nothing  in  this  paragraph 
shall  be  construed  as  giving  to  either  the  district  courts  of  the  Court 
of  Claims  jurisdiction  to  hear  and  determine  claims  growing  out  of  the 
late  Civil  War,  and  commonly  known  as  "war  claims,"  or  to  hear  and 
determine   other   claims   which   had   been    rejected   or   reported   on    ad- 


796  Important  Federal  Laws 

versely  prior  to  the  third  day  of  March,  eighteen  hundred  and  eighty- 
seven,  by  any  court,  department,  or  commission  authorized  to  hear  and 
determine  the  same,  or  to  hear  and  determine  claims  for  pensions ;  or 
as  giving  to  the  district  courts  jurisdiction  of  cases  brought  to  recover 
fees,  salary,  or  compensation  for  official  services  of  officers  of  the 
United  States  or  brought  for  such  purpose  by  persons  claiming  as  such 
officers  or  as  assignees  or  legal  representatives  thereof ;  but  no  suit 
pending  on  the  twenty-seventh  day  of  June,  eighteen  hundred  and 
ninety-eight,  shall  abate  or  be  afitected  by  this  provision :  And  provided 
further,  That  no  suit  against  the  Government  of  the  United  States  shall 
be  allowed  under  this  paragraph  unless  the  same  shall  have  been  brought 
within  six  years  after  the  right  accrued  for  which  the  claim  is  made : 
Provided,  That  the  claims  of  married  women,  first  accrued  during  mar- 
riage, of  persons  under  the  age  of  twenty-one  years,  first  accrued  during 
minority,  and  of  idiots,  lunatics,  insane  persons,  and  persons  beyond 
the  seas  at  the  time  the  claim  accrued,  entitled  to  the  claim,  shall  not  be 
barred  if  the  suit  be  brought  within  three  years  after  the  disability  has 
ceased;  but  no  other  disability  than  those  enumerated  shall  prevent  any 
claim  from  being  barred,  nor  shall  any  of  the  said  disabilities  operate 
cumulativelv.  All  suits  brought  and  tried  under  the  provisions  of  this 
paragraph  shall  be  tried  by  the  court  without  a  jury. 

Twenty-first.  Of  proceedings  in  equity,  by  writ  of  injunction,  to 
restrain  violations  of  the  provisions  of  laws  of  the  United  States  to 
prevent  the  unlawful  inclosure  of  public  lands ;  and  it  shall  be  suffi- 
cient to  give  the  court  jurisdiction  if  service  of  original  process  be  had 
in  anv  civil  proceeding  on  any  agent  or  employee  having  charge  or 
control  of  the  inclosure. 

Twenty-second.  Of  all  suits  and  proceedings  arising  under  any 
law  regulating  the  immigration  of  aliens,  or  under  the  contract  labor 
laws. 

Twenty-third.  Of  all  suits  and  proceedings  arising  under  any  law 
to  protect  trade  and  commerce  against  restraints  and  monopolies. 

Twenty-fourth.  Of  all  actions,  suits,  or  proceedings  involving  the 
right  of  any  person,  in  whole  or  in  part  of  Indian  blood  or  descent,  to 
any  allotment  of  land  under  any  law  or  treaty. 

And  the  judgment  or  decree  of  any  such  court  in  favor  of  any 
claimant  to  an  allotment  of  land  shall  have  the  same  effect,  when  prop- 
erly certified  to  the  Secretary  of  the  Interior,  as  if  such  allotment  had 
been  allowed  and  approved  by  him :  but  this  provision  shall  not  apply 
to  any  lands  now  or  heretofore  held  by  either  of  the  Five  Civilized 
Tribes,  the  Osage  Nation  of  Indians,  nor  to  any  of  the  lands  within 
the  Ouapaw  Indian  Agency:  Provided,  That  the  right  of  appeal  shall 
be  allowed  to  either  party  as  in  other  cases.      (As  amended  December 

21,  1911.) 

Twenty-fifth.  Of  suits  in  equity  brought  by  any  tenant  in  common 
or  joint  tenant   for  the  partition  of   lands   in   cases  where   the  United 


Federal  Judicial  Code  797 

States   is  one  of  such  tenants  in  common   or  joint  tenants,   such   suits 
to  be  brought  in  the  district  in  which  such  land  is  situate. 

Chinese  Exclusion  Appeals. 

Sec.  25.  The  district  courts  shall  have  appellate  jurisdiction  of  the 
judgments  and  orders  of  United  States  commissioners  in  cases  arising 
under  the  Chinese  exclusion  laws. 

Yellowstone  Park. 

Sec.  26.  The  district  court  for  the  district  of  Wyoming  shall  have 
jurisdiction  of  all  felonies  committed  within  the  Yellowstone  National 
Park  and  appellate  jurisdiction  of  judgments  in  cases  of  conviction 
before  the  commissioner  authorized  to  be  appointed  under  section  five 
of  an  Act  entitled  "An  Act  to  protect  the  birds  and  animals  in  Yellow- 
stone National  Park,  and  to  punish  crimes  in  said  Park,  and  for  other 
purposes,"  approved  May  seventh,  eighteen  hundred  and  ninety-four. 

Indian  Reservations,  South  Dakota. 

Sec.  27.  The  district  court  of  the  United  States  for  the  district 
of  South  Dakota  shall  have  jurisdiction  to  hear,  try,  and  determine  all 
actions  and  proceedings  in  which  any  person  shall  be  charged  with  the 
crime  of  murder,  manslaughter,  rape,  assault  with  intent  to  kill,  arson, 
burglary,  larceny,  or  assault  with  a  dangerous  weapon,  committed 
within  the  limits  of  any  Indian  reservation  in  the  State  of  South  Dakota. 

CHAPTER  THREE. 
District  Courts — Removal  of  Causes  From  State  Courts. 

Sec.  28.  Any  suit  of  a  civil  nature,  at  law  or  in  equity,  arising 
under  the  Constitution  or  laws  of  the  United  States,  or  treaties  made, 
or  which  shall  be  made,  under  their  authority,  of  which  the  district 
courts  of  the  United  States  are  given  original  jurisdiction  by  this  title, 
which  may  now  be  pending  or  which  may  hereafter  be  brought,  in  any 
State  court,  may  be  removed  by  the  defendant  or  defendants  therein 
to  the  district  court  of  the  United  States  for  the  proper  district.  Any 
other  suit  of  a  civil  nature,  at  law  or  in  equity,  of  which  the  district 
courts  of  the  United  States  are  given  jurisdiction  by  this  title,  and 
w^hich  are  now  pending  or  which  may  hereafter  be  brought,  in  any 
State  court,  may  be  removed  into  the  district  court  of  the  United  States 
for  the  proper  district  by  the  defendant  or  defendants  therein,  being 
non-residents  of  that  State.  And  when  in  any  suit  mentioned_  in  this 
section  there  shall  be  a  controversy  which  is  wholly  between  citizens  of 
different  States,  and  which  can  be  fully  determined  as  between  them, 
then  either  one  or  more  of  the  defendants  actually  interested  in  such 
controversy  may  remove  said  suit  into  the  district  court  of  the  United 
States  for  the  proper  district.  And  where  a  suit  is  now  pending,  or 
may  hereafter  be  brought,  in  any  State  court,  in  which  there  is  a  con- 
troversy between  a   citizen   of   the    State   in   which   the   suit   is   brought 


798  Important  Federal  Laws 

and   a  citizen   of   another   State,   any   defendant,   being   such   citizen   of 
another    State,    may    remove    such    suit    into    the    district    court    of    the 
United  States  for  the  proper  district,  at  any  time  before  the  trial  there- 
of, when  it   shall  be  made  to  appear  to  said  district  court  that   from 
prejudice  or  local  influence  he  will  not  be  able  to  obtain  justice  in  such 
State  court,  or  in  any  other  State  court  to  which  the  said  defendant  may, 
under  the  laws  of  the  State,  have  the  right,  on  account  of  such  prejudice 
or  local  influence,  to  remove  said  cause :   Provided,   That  if  it   further 
appear  that  said  suit  can  be  fully  and  justly  determined  as  to  the  other 
defendants  in  the  State  court,  without  being  afl:'ected  by  such  prejudice 
or  local  influence,  and  that  no  party  to  the  suit  will  be  prejudiced  by 
a  separation  of  the  parties,  said  district  court  may  direct  the  suit  to  be 
remanded,  so  far  as  relates  to  such  other  defendants,  to  the  State  court, 
to  be  proceeded  with  therein.     At  any  time  before  the  trial  of  any  suit 
which  is  now  pending  in  any  district  court,  or  may  hereafter  be  entered 
therein,  and  which  has  been  removed  to  said  court  from  a  State  court 
on  the  affidavit  of  any  party  plaintifl:'  that  he  had  reason  to  believe  and 
did  believe  that,   from  prejudice   or   local   influence,   he   was   unable   to 
obtain  justice  in  said  State  court,  the  district  court  shall,  on  application 
of   the   other   party,   examine   into   the   truth   of    said   affidavit   and   the 
grounds  thereof,  and,  unless  it  shall  appear  to  the  satisfaction  of  said 
court  that  said  party  will  not   be   able  to   obtain   justice   in   said   State 
court,  it  shall  cause  the  same  to  be  remanded  thereto.     Whenever  any 
cause  shall  be  removed  from  any  State  court  into  anv  district  court  of 
the  United  States,  and  the  district  court  shall  decide  that  the  cause  was 
improperly  removed,  and  order  the  same  to  be  remanded  to  the  State 
court  from  whence  it  came,  such  remand  shall  be  immediately  carried 
into   execution,   and  no  appeal   or  writ  of   error   from   the   decision   of 
the  district  court  so  remanding  such  cause  shall  be  allowed:  Provided, 
That   no  case  arising  under   an   Act   entitled   *'An   Act   relating  to   the 
liability  of  common  carriers  by  railroad   to  their  employees   in   certain 
cases,"  approved  April   twenty-second,  nineteen  hundred  and   eight,   or 
any  amendment  thereto,  and  brought  in  any   State  court  of  competent 
jurisdiction  shall  be  removed  to  any  court  of  the  United  States:  And 
provided  further.  That  no  suit  brought  in  any  State  court  of  competent 
jurisdiction  against  a  railroad  company,  or  other  corporation,  or  person, 
engaged  in  and  carrying  on  the  business  of  a  common  carrier,  to  recover 
damages  for  delay,  loss  of.  or  injury  to  property  received  for  transpor- 
tation by  such  common  carrier  under  section  twenty  of  the  Act  to  regu- 
late commerce,  approved  February  fourth,  eighteen  hundred  and  eighty- 
seven,  as  amended  June  twenty-ninth,  ninete'en  hundred  and  six,  April 
thirteenth,  nineteen  hundred  and  eight,  February  twenty-fifth,  nineteen 
hundred  and  nine,  and  June  eighteenth,  nineteen  hundred  and  ten,  shall 
be   removed   tq  any  court   of   the   United    States   where   the   matter   in 
controversy  does  not  exceed,  exclusive  of   interest  and  costs,  the   sum 
or  value  of  $3,000. 


Federal  Judicial  Code  799 

Procedure  for  Removal. 

Sec.  29.  Whenever  any  party  entitled  to  remove  any  suit  men- 
tioned in  the  last  preceding  section,  except  suits  removable  on  the 
ground  of  prejudice  or  local  influence,  may  desire  to  remove  such  suit 
from  a  State  court  to  the  district  court  of  the  United  States,  he  may 
make  and  file  a  petition,  duly  verified,  in  such  suit  in  such  State  court 
at  the  time,  or  any  time  before  the  defendant  is  required  by  the  laws 
of  the  State  or  the  rule  of  the  State  court  in  which  such  suit  is  brought 
to  answer  or  plead  to  the  declaration  or  complaint  of  the  plaintiff,  for 
the  removal  of  such  suit  into  the  district  court  to  be  held  in  the  district 
where  such  suit  is  pending,  and  shall  make  and  file  therewith  a  bond, 
with  good  and  sufficient  surety,  for  his  or  their  entering  in  such  district 
court,  within  thirty  days  from  the  date  of  filing  said  petition,  a  certified 
copy  of  the  record  in  such  suit,  and  for  paying  all  costs  that  may  be 
awarded  by  the  said  district  court  if  said  district  court  shall  hold  that 
such  suit  was  wrongfully  or  improperly  removed  thereto,  and  also  for 
their  appearing  and  entering  special  bail  in  such  suit  if  special  bail 
was  originally  requisite  therein.  It  shall  then  be  the  duty  of  the  State 
court  to  accept  said  petition  and  bond  and  proceed  no  further  in  such 
suit.  Written  notice  of  said  petition  and  bond  for  removal  shall  be 
given  the  adverse  party  or  parties  prior  to  filing  the  same.  The  said 
copy  being  entered  within  said  thirty  days  as  aforesaid  in  said  district 
court  of  the  United  States,  the  parties  so  removing  the  said  cause  shall, 
within  thirty  days  thereafter,  plead,  answer,  or  demur  to  the  declara- 
tion or  complaint  in  said  cause,  and  the  cause  shall  then  proceed  in 
the  same  manner  as  if  it  had  been  originally  commenced  in  the  said 
district  court. 

Suits  Under  State  Grants. 

Sec.  30.  If  in  any  action  commenced  in  a  State  court  the  title  of 
land  be  concerned,  and  the  parties  are  citizens  of  the  same  State  and 
the  matter  in  dispute  exceeds  the  sum  or  value  of  three  thousand 
dollars,  exclusive  of  interest  and  costs,  the  sum  or  value  being  made 
to  appear,  one  or  more  of  the  plaintiffs  or  defendants,  before  the  trial, 
may  state  to  the  court,  and  make  affidavit  if  the  court  require  it,  that 
he  or  they  claim,  and  shall  rely  upon,  a  right  or  title  to  the  land  under 
a  grant  from  a  State,  and  produce  the  original  grant,  or  an  exempli- 
fication of  it,  except  where  the  loss  of  public  records  shall  put  it  out  of 
his  or  their  power,  and  shall  move  that  any  one  or  more  of  the  adverse 
party  inform  the  court  whether  he  or  they  claim  a  right  or  title  to 
the  land  under  a  grant  from  some  other  State,  the  party  or  parties  so 
required  shall  give  such  information,  or  otherwise  not  be  allowed  to 
plead  such  grant  or  give  it  in  evidence  upon  the  trial.  If  he  or  they 
inform  the  court  that  he  or  they  do  claim  under  such  grant,  any  one 
or  more  of  the  party  moving  for  such  information  may  then,  on  peti- 
tion and  bond,  as  hereinbefore  mentioned  in  this  chapter,  remove  the 
cause   for  trial  to  the  district  court   of   the   United   States   next   to  be 


800  '         Important  Federal  Laws 

holden  in  such  district ;  and  any  one  of  either  party  removing  the  cause 
shall  not  be  allowed  to  plead  or  give  evidence  of  any  other  title  than 
that  by  him  or  them  stated  as  aforesaid  as  the  ground  of  his  or  their 
claim. 

Civil  Rights  Suits. 

Sec.  31.  When  any  civil  suit  or  criminal  prosecution  is  com- 
menced in  any  State  court,  for  any  cause  whatsoever,  against  any  per- 
son who  is  denied  or  can  not  enforce  in  the  judicial  tribunals  of  the 
State,  or  in  the  part  of  the  State  where  such  suit  or  prosecution  is 
pending,  any  right  secured  to  him  by  any  law  providing  for  the  equal 
civil  rights  of  citizens  of  the  United  States,  or  of  all  persons  within  the 
jurisdiction  of  the  United  States,  or  against  any  officer,  civil  or  military, 
or  other  person,  for  any  arrest  or  imprisonment  or  other  trespasses  or 
wrongs  made  or  committed  by  virtue  of  or  under  color  of  authority 
derived  from  any  law  providing  for  equal  rights  as  aforesaid,  or  for 
refusing  to  do  any  act  on  the  ground  that  it  would  be  inconsistent  with 
such  law,  such  suit  or  prosecution  may,  upon  the  petition  of  such  de- 
fendant, filed  in  said  State  court  at  anv  time  before  the  trial  or  final 
hearing  of  the  cause,  stating  the  facts  and  verified  by  oath,  be  removed 
for  trial  into  the  next  district  court  to  be  held  in  the  district  where  it 
is  pending.  Upon  the  filing  of  such  petition  all  further  proceedings 
in  the  State  courts  shall  cease,  and  shall  not  be  resumed  except  as  here- 
mafter  provided.  But  all  bail  and  other  security  given  in  such  suit  or 
prosecution  shall  continue  in  like  force  and  efifect  as  if  the  same  had 
proceeded  to  final  judgment  and  execution  in  the  State  court.  It  shall 
be  the  duty  of  the  clerk  of  the  State  court  to  furnish  such  defendant, 
petitioning  for  a  removal,  copies  of  said  process  against  him,  and  of 
all  pleadings,  depositions,  testimony,  and  other  proceedings  in  the  case. 
If  such  copies  are  filed  by  said  petitioner  in  the  district  court  on  the 
first  day  of  its  session,  the  cause  shall  proceed  therein  in  the  same 
manner  as  if  it  had  been  brought  there  by  original  process ;  and  if  the 
said  clerk  refuses  or  neglects  to  furnish  such  copies,  the  petitioner  may 
thereupon  docket  the  case  in  the  district  court,  and  the  said  court  shall 
then  have  jurisdiction  therein,  and  may.  upon  proof  of  such  refusal 
or  neglect  of  said  clerk,  and  upon  reasonable  notice  to  the  plaintiff, 
require  the  plaintift"  to  file  a  declaration,  petition,  or  complaint  in  the 
cause ;  and,  in  case  of  his  default,  may  order  a  nonsuit,  and  dismiss 
the  case  at  the  costs  of  the  plaintiff,  and  such  dismissal  shall  be  a  bar 
to  any  further  suit  touching  the  matter  in  controversy.  But  if,  without 
such  refusal  or  neglect  of  said  clerk  to  furnish  such  copies  and  proof 
thereof,  the  petitioner  for  removal  fails  to  file  copies  in  the  district 
court,  as  herein  provided,  a  certificate,  under  the  seal  of  the  district 
court,  stating  such  failure,  shall  be  given,  and  upon  the  production 
thereof  in  said  State  court  the  cause  shall  proceed  therein  as  if  no 
petition  for  removal  had  been  filed. 


Federal  Judicial  Code  801 

Removal  from  Custody  of  State  Courts. 

Sec.  32.  When  all  the  acts  necessary  for  the  removal  of  any  suit 
or  prosecution,  as  provided  in  the  preceding  section,  have  been  per- 
formed, and  the  defendant  petitioning  for  such  removal  is  in  actual 
custody  on  process  issued  by  said  State  court,  it  shall  be  the  duty  of 
the  clerk  of  said  district  court  to  issue  a  writ  of  habeas  corpus  cum 
causa,  and  of  the  marshal,  by  virtue  of  said  writ,  to  take  the  body  of 
the  defendant  into  his  custody,  to  be  dealt  with  in  said  district  court 
according  to  law  and  the  orders  of  said  court,  or,  in  vacation,  of  any 
judge  thereof;  and  the  marshal  shall  fde  with  or  deliver  to  the  clerk 
of  said  State  court  a  duplicate  copy  of  said  writ. 

Revenue  Law  Suits. 

Sec.  33.  When  any  civil  suit  or  criminal  prosecution  is  com- 
menced in  any  court  of  a  State  against  any  officer  appointed  under  or 
acting  by  authority  of  any  revenue  law  of  the  United  States  now  or 
hereafter  enacted,  or  against  any  person  acting  under  or  by  authority 
of  any  such  officer,  on  account  of  any  act  done  under  color  of  his  office 
or  of  any  such  law,  or  on  account  of  any  right,  title,  or  authority 
claimed  by  such  officer  or  other  person  under  any  such  law ;  or  is  com- 
menced against  any  person  holding  property  or  estate  by  title  derived 
from  any  such  officer,  and  affects  the  validity  of  any  such  revenue  law ; 
or  against  any  officer  of  the  courts  of  the  United  States  for  or  on  ac- 
count of  any  act  done  under  color  of  his  office  or  in  the  performance 
of  his  duties  as  such  officer,  or  when  any  civil  suit  or  criminal  prosecu- 
tion is  commenced  against  any  person  for  or  on  account  of  anything 
done  by  him  while  an  officer  of  either  House  of  Congress  in  the  dis- 
charge of  his  official  duty,  in  executing  any  order  of  such  House,  the 
said  suit  or  prosecution  may,  at  any  time  before  the  trial  or  final  hearing 
thereof,  be  removed  for  trial  into  the  district  court  next  to  be  holden 
in  the  district  where  the  same  is  pending,  upon  the  petition  of  such 
defendant  to  said  district  court,  and  in  the  following  manner:  Said 
petition  shall  set  forth  the  nature  of  the  suit  or  prosecution  and  be 
verified  by  affidavit,  and,  together  with  a  certificate  signed  by  an  attor- 
ney or  counselor  at  law  of  some  court  of  record  of  the  State  where 
such  suit  or  prosecution  is  commenced,  or  of  the  United  States,  stating 
that,  as  counsel  for  the  petitioner,  he  has  examined  the  proceedings 
against  him  and  carefully  inquired  into  all  the  matters  set  forth  in  the 
petition,  and  that  he  believes  them  to  be  true,  shall  be  presented  to  the 
said  district  court,  if  in  session,  or  if  it  be  not,  to  the  clerk  thereof  at 
his  office,  and  shall  be  filed  in  said  office.  The  cause  shall  thereupon  be 
entered  on  the  docket  of  the  district  court,  and  shall  proceed  as  a  cause 
originally  commenced  in  that  court ;  but  all  bail  and  other  security  given 
upon  such  suit  or  prosecution  shall  continue  in  like  force  and  effect  as 
if  the  same  had  proceeded  to  final  judgment  and  execution  in  the  State 
court.  When  the  suit  is  commenced  in  the  State  court  by  summons, 
subpoena,  petition,  or  any  other  process  except  capias,  the  clerk  of  the 
(51) 


802  Important  Federal  Laws 

district  court  shall  issue  a  writ  of  certiorari  to  the  State  court,  requir- 
ing it  to  send  to  the  district  court  the  record  and  the  proceedings  in 
the  cause.  When  it  is  commenced  by  capias  or  by  any  other  similar 
form  or  proceeding  by  which  a  personal  arrest  is  ordered,  he  shall  issue 
a  writ  of  habeas  corpus  cum  causa,  a  duplicate  of  which  shall  be  de- 
livered to  the  clerk  of  the  State  court,  or  left  at  his  office,  by  the  mar- 
shal of  the  district  or  his  deputy,  or  by  some  other  person  duly  author- 
ized thereto ;  and  thereupon  it  shall  be  the  duty  of  the  State  court  to 
stay  all  further  proceedings  in  the  cause,  and  the  suit  or  prosecution, 
upon  delivery  of  such  process,  or  leaving  the  same  as  aforesaid,  shall 
be  held  to  be  removed  to  the  district  court,  and  any  further  proceed- 
ings, trial,  or  judgment  therein  in  the  State  court  shall  be  void.  If 
the  defendant  in  the  suit  or  prosecution  be  in  actual  custody  on  mesne 
process  therein,  it  shall  be  the  duty  of  the  marshal,  by  virtue  of  the 
writ  of  habeas  corpus  cum  causa,  to  take  the  body  of  the  defendant 
into  his  custody,  to  be  dealt  with  in  the  cause  according  to  law  and  the 
order  of  the  district  court,  or,  in  vacation,  of  any  judge  thereof ;  and  if, 
upon  the  removal  of  such  suit  or  prosecution,  it  is  made  to  appear  to 
the  district  court  that  no  copy  of  the  record  and  proceedings  therein 
in  the  State  court  can  be  obtained,  the  district  court  may  allow  and 
require  the  plaintiff  to  proceed  de  novo  and  to  file  a  declaration  of  his 
cause  of  action,  and  the  parties  may  thereupon  proceed  as  in  actions 
originally  brought  in  said  district  court.  On  failure  of  the  plaintiff 
so  to  proceed,  judgment  of  non  prosequitur  may  be  rendered  against 
him.  with  costs  for  the  defendant. 

Removal  by  Aliens. 

Sec.  34.  Whenever  a  personal  action  has  been  or  shall  be  brought 
in  any  State  court  In'  an  alien  against  any  citizen  of  a  State  who  is, 
or  at  the  time  the  alleged  action  accrued  was,  a  civil  officer  of  the 
United  States,  being  a  non-resident  of  that  State  wherein  jvirisdiction 
is  obtained  by  the  State  court,  by  personal  service  of  process,  such 
action  may  be  removed  into  the  district  court  of  the  United  States  in 
and  for  the  district  in  which  the  defendant  shall  have  been  served  with 
the  process,  in  the  same  manner  as  now  provided  for  the  removal  of 
an  action  brought  in  a  State  court  by  the  provisions  of  the  preceding 
section. 

Proceedings  on  Affidavit  of  Record. 

Sec.  35.  In  any  case  where  a  party  is  entitled  to  copies  of  the 
records  and  proceedings  in  any  suit  or  prosecution  in  a  State  court, 
to  be  used  in  any  court  of  the  United  States,  if  the  clerk  of  said  State 
court,  upon  demand,  and  the  payment  or  tender  of  the  legal  fees,  re- 
fuses or  neglects  to  deliver  to  him  certified  copies  of  such  records  and 
proceedings,  the  court  of  the  United  States  in  which  such  records  and 
proceedings  are  needed  may,  on  proof  by  affidavit  that  the  clerk  of  said 
State  court  has  refused  or  neglected  to  deliver  copies  thereof,  on  de- 
mand  as   aforesaid,   direct   such   record  to  be   supplied  by   affidavit   or 


Federal  Judicial  Code  803 

otherwise,  as  the  circumstances  of  the  case  may  require  and  allow ;  and 
thereupon  such  proceeding,  trial,  and  judgment  may  be  had  in  the 
said  court  of  the  United  States,  and  all  such  processes  awarded,  as  if 
certified  copies  of  such  records  and  proceedings  had  been  regularly 
before  the  said  court. 

Attachment  Continued  to  Await  Trial. 

Sec.  36.  When  any  suit  shall  be  removed  from  a  State  court  to  a 
district  court  of  the  United  States,  any  attachment  or  sequestration  of 
the  goods  or  estate  of  the  defendant  had  in  such  suit  in  the  State  court 
shall  hold  the  goods  or  estate  so  attached  or  sequestered  to  answer  the 
final  judgment  or  decree  in  the  same  manner  as  by  law  they  would  have 
been  held  to  answer  final  judgment  or  decree  had  it  been  rendered  by 
the  court  in  which  said  suit  was  commenced.  All  bonds,  undertakings, 
or  security  given  by  either  party  in  such  suit  prior  to  its  removal  shall 
remain  valid  and  effectual  notwithstanding  said  removal ;  and  all  in- 
junctions, orders,  and  other  proceedings  had  in  such  suit  prior  to  its 
removal  shall  remain  in  full  force  and  effect  until  dissolved  or  modified 
by  the  court  to  which  such  suit  shall  be  removed. 

Dismissal  of  Suit  Not  Properly  Brought. 

Sec.  7i7 .  If  in  any  suit  commenced  in  a  district  court,  or  removed 
from  a  State  court  to  a  district  court  of  the  United  States,  it  shall 
appear  to  the  satisfaction  of  the  said  district  court,  at  any  time  after 
such  suit  has  been  brought  or  removed  thereto,  that  such  suit  does  not 
really  and  substantially  involve  a  dispute  or  controversy  properly  within 
the  jurisdiction  of  said  district  court,  or  that  the  parties  to  said  suit 
have  been  improperly  or  collusively  made  or  joined,  either  as  plaintiffs 
,  or  defendants,  for  the  purpose  of  creating  a  case  cognizable  or  removable 
under  this  chapter,  the  said  district  court  shall  proceed  no  further 
therein,  but  shall  dismiss  the  suit  or  remand  it  to  the  court  from  which 
it  was  removed,  as  justice  may  require,  and  shall  make  such  order  as 
to  costs  as  shall  be  just. 

Proceedings  in  Suits  Removed. 

Sec.  38.  The  district  court  of  the  United  States  shall,  in  all  suits 
removed  under  the  provisions  of  this  chapter,  proceed  therein  as  if 
the  suit  had  been  originally  commenced  in  said  district  court,  and  the 
same  proceedings  had  been  taken  in  such  suit  in  said  district  court  as 
shall  have  been  had  therein  in  said  State  court  prior  to  its  removal. 

Penalty  for  Clerk's  Failure  to  Furnish  Record. 

Sec.  39.  In  all  causes  removable  under  this  chapter,  if  the  clerk 
of  the  State  court  in  which  any  such  cause  shall  be  pending  shall 
refuse  to  any  one  or  more  of  the  parties  or  persons  applying  to  remove 
the  same,  a  copy  of  the  record  therein,  after  tender  of  legal  fees  for 
such  copy,  said  clerk  so  offending  shall,  on  conviction  thereof  in  the 
district  court  of  the  United  States  to  which  said  action  or  proceeding 
was  removed,  be  fined  not  more  than  one  thousand  dollars,  or  impris- 


804  Important  Federal  Laws 

oned  not  more  than  one  year,  or  both.  The  district  court  to  which  any 
cause  shall  be  removable  under  this  chapter  shall  have  power  to  issue 
a  writ  of  certiorari  to  said  State  court  commanding  said  State  court 
to  make  return  of  the  record  in  any  such  cause  removed  as  aforesaid, 
or  in  which  any  one  or  more  of  the  plaintiffs  or  defendants  have  com- 
plied with  the  provisions  of  this  chapter  for  the  removal  of  the  same, 
and  enforce  said  writ  according  to  law.  If  it  shall  be  impossible  for 
the  parties  or  persons  removing  any  cause  under  this  chapter,  or  com- 
plying with  the  provisions  for  the  removal  thereof,  to  obtain  such  copy, 
for  the  reason  that  the  clerk  of  said  State  court  refuses  to  furnish  a 
copy,  on  payment  of  legal  fees,  or  for  any  other  reason,  the  district 
court  shall  make  an  order  requiring  the  prosecutor  in  any  such  action 
or  proceeding  to  enforce  forfeiture  or  recover  penalty,  as  aforesaid,  to 
file  a  copy  of  the  paper  or  proceeding  by  which  the  same  was  com- 
menced, within  such  time  as  the  court  may  determine;  and  in  default 
thereof  the  court  shall  dismiss  the  said  action  or  proceeding;  but  if 
■said  order  shall  be  complied  with,  then  said  district  court  shall  require 
the  other  partv  to  plead,  and  said  action  or  proceeding  shall  proceed 
to  final  judgment.  The  said  district  court  may  make  an  order  requiring 
the  parties  thereto  to  plead  de  novo;  and  the  bond  given,  conditioned 
as  aforesaid,  shall  be  discharged  so  far  as  it  requires  copy  of  the  record 
to  be  filed  as  aforesaid. 

iv  CHAPTER  FOUR. 

District  Courts — Miscellaneous  Provisions. 

Capital  Cases. 

Sec.  40.  The  trial  of  offenses  punishable  with  death  shall  be  had 
in  the  county  where  the  offense  was  committed,  where  that  can  be 
done  without  great  inconvenience. 

Offenses  on  High  Seas. 

Sec.  41.  The  trial  of  all  offenses  committed  upon  the  high  seas 
or  elsewhere  out  of  the  jurisdiction  of  any  particular  State  or  district, 
shall  be  in  the  district  where  the  offender  is  found,  or  into  which  he 
is  first  brought. 

Place  of  Offense. 

Sec.  42.  When  any  offense  against  the  United  States  is  begun  in 
one  judicial  district  and  completed  in  another,  it  shall  be  deemed  to 
have  been  committed  in  either,  and  may  be  dealt  with,  inquired  of, 
tried,  determined,  and  punished  in  either  district,  in  the  same  manner 
as  if  it  had  been  actually  and  wholly  committed  therein. 

Recoveries. 

Sec.  43.  All  pecuniary  penalties  and  forfeitures  may  be  sued  for 
and  recovered  either  in  the  district  where  they  accrue  or  in  the  district 
where  the  offender  is  found. 


Federal  Judicial  Code  805 

Internal  Revenue. 

Sec.  44.  Taxes  accruing  under  any  law  providing  internal  revenue 
may  be  sued  for  and  recovered  either  in  the  district  where  the  liabil- 
ity for  such  tax  occurs  or  in  the  district  where  the  delinquent  resides. 

Seizure  on  High  Seas. 

Sec.  45.  Proceedings  on  seizures  made  on  the  high  seas,  for  for- 
feiture under  any  law  of  the  United  States,  may  be  prosecuted  in  any 
district  into  which  the  property  so  seized  is  brought  and  proceedings 
instituted.  Proceedings  on  such  seizures  made  within  any  district  shall 
be  prosecuted  in  the  district  where  the  seizure  is  made,  except  in  cases 
where  it  is  otherwise  provided. 

Insurrectionary  Property. 

Sec.  46.  Proceedings  for  the  condemnation  of  any  property  cap- 
tured, whether  on  the  high  seas  or  elsewhere  out  of  the  limits  of  any 
judicial  district,  or  within  any  district,  on  account  of  its  being  pur- 
chased or  acquired,  sold  or  given,  with  intent  to  use  or  employ  the  same, 
or  to  suffer  it  to  be  used  or  employed,  in  aiding,  abetting  or  promoting 
any  insurrection  against  the  Government  of  the  United  States,  or 
knowingly  so  used  or  employed  by  the  owner  thereof,  or  with  his 
consent,  may  be  prosecuted  in  any  district  where  the  same  may  be 
seized,  or  into  which  it  may  be  taken  and  proceedings  first  instituted. 

Forfeiture  of. 

Sec.  47.  Proceedings  on  seizures  for  forfeiture  of  any  vessel  or 
cargo  entering  any  port  of  entry  which  has  been  closed  by  the  Presi- 
dent in  pursuance  of  law,  or  of  goods  and  chattels  coming  from  a  State 
or  section  declared  by  proclamation  of  the  President  to  be  in  insur- 
rection into  other  parts  of  the  United  States,  or  of  any  vessel  or  vehicle 
conveying  such  property,  or  conveying  persons  to  or  from  such  State  or 
section,  or  of  any  vessel  belonging,  in  whole  or  in  part,  to  any  inhab- 
itant of  such  State  or  section,  may  be  prosecuted  in  any  district  into 
which  the  property  so  seized  may  be  taken  and  proceedings  instituted; 
and  the  district  court  thereof  shall  have  as  full  jurisdiction  over  such 
proceedings  as  if  the  seizure  was  made  in  that  district. 

Patents. 

Sec.  48.  In  suits  brought  for  the  infringement  of  letters  patent 
the  district  courts  of  the  United  States  shall  have  jurisdiction,  in  law 
or  in  equity,  in  the  district  of  which  the  defendant  is  an  inhabitant,  or 
in  any  district  in  which  the  defendant,  whether  a  person,  partnership, 
or  corporation,  shall  have  committed  acts  of  infringement  and  have  a 
regular  and  established  place  of  business.  If  such  suit  is  brought  in  a 
district  of  which  the  defendant  is  not  an  inhabitant,  but  in  which  such 
defendant  has  a  regular  and  established  place  of  business,  service  of 
process,  summons,  or  subpoena  upon  the  defendant  may  be  made  by 
service  upon  the  agent  or  agents  engaged  in  conducting  such  business 
in  the  district  in  which  suit  is  brought. 


806  Important  Fedeil\l  Laws 

Comptroller  of  the  Currency. 

Sec.  49.  All  proceedings  by  any  national  banking  association  to 
enjoin  the  Comptroller  of  the  Currency,  under  the  provisions  of  any 
law  relating  to  national  banking  associations,  shall  be  had  in  the  district 
where   such   association   is   located. 

Several  Defendants. 

Sec.  50.  When  there  are  several  defendants  in  any  suit  at  law  or 
in  equity,  and  one  or  more  of  them  are  neither  inhabitants  of  nor  found 
within  the  district  in  which  the  suit  is  brought,  and  do  not  voluntarily 
appear,  the  court  may  entertain  jurisdiction,  and  proceed  to  the  trial 
and  adjudication  of  the  suit  between  the  parties  who  are  properly 
before  it;  but  the  judgment  or  decree  rendered  therein  shall  not  con- 
clude or  prejudice  other  parties  not  regularly  served  with  process  nor 
voluntarily  appearing  to  answer;  and  non-joinder  of  parties  who  are 
not  inhabitants  of  nor  found  within  the  district,  as  aforesaid,  shall  not 
constitute  matter  of  abatement  or  objection  to  the  suit. 

Venue  of  Civil  Suits. 

Sec.  51.  Except  as  provided  in  the  five  succeeding  sections,  no 
person  shall  be  arrested  in  one  district  for  trial  in  another,  in  any  civil 
action  before  a  district  court ;  and,  except  as  provided  in  the  six  suc- 
ceeding sections,  no  civil  suit  shall  be  brought  in  any  district  court 
against  any  person  by  any  original  process  or  proceeding  in  any  other 
district  than  that  whereof  he  is  an  inhabitant ;  but  where  the  jurisdic- 
tion is  founded  only  on  the  fact  that  the  action  is  between  citizens  of 
different  States,  suit  shall  be  brought  only  in  the  district  of  the  resi- 
dence of  either  the  plaintiff  or  the  defendant. 

Same. 

Sec.  52.  When  a  State  contains  more  than  one  district,  ever^'  suit 
not  of  a  local  nature,  in  the  district  court  thereof,  against  a  single 
defendant,  inhabitant  of  such  State,  must  be  brought  in  the  district 
where  he  resides;  but  if  there  are  two  or  more  defendants,  residing  in 
different  districts  of  the  State,  it  may  be  brought  in  either  district,  and 
a  duplicate  writ  may  be  issued  against  the  defendants,  directed  to  the 
marshal  of  any  other  district  in  which  any  defendant  resides.  The 
clerk  issuing  the  duplicate  writ  shall  indorse  thereon  that  it  is  a  true 
copy  of  a  writ  sued  out  of  the  court  of  the  proper  district ;  and  such 
original  and  duplicate  writs,  when  executed  and  returned  into  the  office 
from  which  tbey  issue,  shall  constitute  and  be  proceeded  on  as  one  suit : 
and  upon  any  judgment  or  decree  rendered  therein,  execution  may  be 
issued,  directed  to  the  marshal  of  any  district  in  the  same  State. 

District  Having  Several  Divisions. 

Sec.  53.  When  a  district  contains  more  than  one  division,  every 
suit  not  of  a  local  nature  against  a  single  defendant  must  be  brought 
ifn  the  division  where  he  resides  ;  but  if  there  are  two  or  more  defend- 
ants  residing  in   dift'erent   divisions   of   the   district   it   may   be  brought 


Federal  Judicial  Code  807 

in  either  division.  All  mesne  and  final  process  subject  to  the  provisions 
of  this  section  may  be  served  and  executed  in  any  or  all  of  the  divi- 
sions of  the  district,  or  if  the  State  contains  more  than  one  district, 
then  in  any  of  such  districts,  as  provided  in  the  preceding-  section.  All 
prosecutions  for  crimes  or  offenses  shall  be  had  within  the  division  of 
such  districts  where  the  same  were  committed,  unless  the  court,  or  the 
judge  thereof,  upon  the  application  of  the  defendant,  shall  order  the 
cause  to  be  transferred  for  prosecution  to  another  division  of  the  dis- 
trict. When  a  transfer  is  ordered  by  the  court  or  judge,  all  the  papers 
in  the  case,  or  certified  copies  thereof,  shall  be  transmitted  by  the  clerk, 
under  the  seal  of  the  court,  to  the  division  to  which  the  cause  is  so 
ordered  trtmsf  erred ;  and  thereupon  the  cause  shall  be  proceeded  with 
in  said  division  in  the  same  manner  as  if  the  ofifense  had  been  com- 
mitted therein.  In  all  cases  of  the  removal  of  suits  from  the  courts  of 
a  State  to  the  district  court  of  the  United  States  such  removal  shall  be 
to  the  United  States  district  court  in  the  division  in  which  the  county 
is  situated  from  which  the  removal  is  made  ;  and  the  time  within  which 
the  removal  shall  be  perfected,  in  so  far  as  it  refers  to  or  is  regulated 
by  the  terms  of  United  States  courts,  shall  be  deemed  to  refer  to  the 
terms  of  the  United  States  district  court  in  such  division. 

Local  Suits. 

Sec.  54.  In  suits  of  a  local  nature,  where  the  defendant  resides  in 
a  different  district,  in  the  same  State,  from  that  in  which  the  suit  is 
brought,  the  plaintiff  may  have  original  and  final  process  against  him, 
directed  to  the  marshal  of  the  district  in  which  he  resides. 

Property  in  Different  Districts. 

Sec.  55.  Any  suit  of  a  local  nature,  at  law  or  in  equity,  where  the 
land  or  other  subject-matter  of  a  fixed  character  lies  partly  in  one 
district  and  partly  in  another,  within  the  same  State,  may  be  brought 
in  the  district  court  of  either  district;  and  the  court  in  which  it  is 
brought  shall  have  jurisdiction  to  hear  and  decide  it,  and  to  cause 
mesne  or  final  process  to  be  issued  and  executed,  as  fully  as  if  the  said 
subject  matter  were  wholly  within  the  district  for  which  such  court  is 
constituted. 

Authority  of  Receiver  in  Different  Districts. 

Sec.  56.  Where  in  any  suit  in  which  a  receiver  shall  be  appointed 
the  land  or  other  property  of  a  fixed  character,  the  subject  of  the  suit, 
lies  within  different  States  in  the  same  judicial  circuit,  the  receiver  so 
appointed  shall,  upon  giving  bond  as  required  by  the  court,  immediately 
be  vested  with  full  jurisdiction  and  control  over  all  the  property,  the 
subject  of  the  suit,  lying  or  being  within  such  circuit;  subject,  however, 
to  the  disapproval  of  such  order,  within  thirty  days  thereafter,  by  the 
circuit  court  of  appeals  for  such  circuit,  or  by  a  circuit  judge  thereof, 
after  reasonable  notice  to  adverse  parties  and  an  opportunity  to  be 
heard  upon  the  motion   for  such  disapproval;  and  subject,  also,  to  the 


808  Important  FEeER.\L  Laws 

filing  and  entering  in  the  district  court  for  each  district  of  the  circuit 
in  which  any  portion  of  the  property  may  he  or  be,  within  ten  days 
thereafter,  of  a  duly  certified  copy  of  the  bill  and  of  the  order  of  ap- 
pointment. The  disapproval  of  such  appointment  within  such  thirty 
days,  or  the  failure  to  file  such  certified  copy  of  the  bill  and  order  of 
appointment  within  ten  days,  as  herein  required,  shall  divest  such  re- 
ceiver of  jurisdiction  over  all  such  property  except  that  portion  thereof 
lying  or  being  within  the  State  in  which  the  suit  is  brought.  In  any 
case  coming  within  the  provisions  of  this  section,  in  which  a  receiver 
shall  be  appointed,  process  may  issue  and  be  executed  within  any  dis- 
trict of  the  circuit  in  the  same  manner  and  to  the  same  extent  as  if 
the  property  were  wholly  within  the  same  district;  but  orders  affecting 
such  property  shall  be  entered  of  record  in  each  district  in  which  the 
property  affected  may  lie  or  be. 

Absent  Defendants. 

Sec.  t)7 .  When  in  any  suit  commenced  in  any  district  court  of  the 
United  States  to  enforce  any  legal  or  equitable  hen  upon  or  claim  to, 
or  to  remove  any  incumbrance  or  lien  or  cloud  upon  the  title  to  real 
or  personal  property  within  the  district  where  such  suit  is  brought,  one 
or  more  of  the  defendants  therein  shall  not  be  an  inhabitant  of  or  found 
within  the  said  district,  or  shall  not  voluntarily  appear  thereto,  it  shall 
be  lawful  for  the  court  to  make  an  order  directing  such  absent  defend- 
ant or  defendants  to  appear,  plead,  answer,  or  demur  by  a  day  certain 
to  be  designated,  which  order  shall  be  served  on  such  absent  defendant 
or  defendants,  if  practicable,  wherever  found,  and  also  upon  the  person 
or  persons  in  possession  or  charge  of  said  property,  if  any  there  be ;  or 
where  such  personal  service  upon  such  absent  defendant  or  defendants 
is  not  practicable,  such  order  shall  be  published  in  such  manner  as  the 
court  may  direct,  not  less  than  once  a  week  for  six  consecutive  weeks. 
In  case  such  absent  defendant  shall  not  appear,  plead,  answer,  or  demur 
within  the  time  so  limited,  or  within  some  further  time,  to  be  allowed 
by  the  court,  in  its  discretion,  and  upon  proof  of  the  service  or  publi- 
cation of  said  order  and  of  the  performance  of  the  directions  con- 
tained in  the  same,  it  shall  be  lawful  for  the  court  to  entertain  juris- 
diction, and  proceed  to  the  hearing  and  adjudication  of  such  suit  in  the 
same  manner  as  if  such  absent  defendant  had  been  served  with  process 
within  the  said  district;  but  said  adjudication  shall,  as  regards  said 
absent  defendant  or  defendants  without  appearance,  affect  only  the 
property  which  shall  have  been  the  subject  of  the  suit  and  under  the 
jurisdiction  of  the  court  therein,  within  such  district ;  and  when  a  part 
of  the  said  real  or  personal  property  against  which  such  proceedings 
shall  be  taken  shall  be  within  another  district,  but  within  the  same  State, 
such  suit  may  be  brought  in  either  district  in  said  State :  Provided, 
however.  That  any  defendant  or  defendants  not  actually  personally 
notified  as  above  provided  may,  at  any  time  within  one  year  after  final 
judgment   in   any   suit  mentioned   in  this   section,   enter   his   appearance 


Federal  Judicial  Code  809 

in  said  suit  in  said  district  court,  and  thereupon  the  said  court  shall 
make  an  order  setting  aside  the  judgment  therein  and  permitting  said 
defendant  or  defendants  to  plead  therein  on  payment  by  him  or  them 
of  such  costs  as_  the  court  shall  deem  just ;  and  thereupon  said  suit  shall 
be  proceeded  with  to  final  judgment  according  to  law. 

Transfers  by  Agreement. 

Sec.  58.  Any  civil  cause,  at  law  or  in  equity,  may,  on  written 
stipulation  of  the  parties  or  of  their  attorneys  of  record  signed  and 
filed  with  the  papers  in  the  case,  in  vacation  or  in  term,  and  on  the 
written  order  of  the  judge  signed  and  filed  in  the  case  in  vacation  or 
on  the  order  of  the  court  duly  entered  of  record  in  term,  be  transferred 
to  the  court  of  any  other  division  of  the  same  district,  without  regard 
to  the  residence  of  the  defendants,  for  trial.  When  a  cause  shall  be 
ordered  to  be  transferred  to  a  court  in  any  other  division,  it  shall  be 
the  duty  of  the  clerk  of  the  court  from  which  the  transfer  is  made  to 
carefully  transmit  to  the  clerk  of  the  court  to  which  the  transfer  is 
made  the  entire  file  of  papers  in  the  cause  and  all  documents  and  de- 
posits in  his  court  pertaining  thereto,  together  with  a  certified  tran- 
script of  the  record  of  all  orders,  interlocutory  decrees,  or  other  entries 
in  the  cause ;  and  he  shall  certify,  under  the  seal  of  the  court,  that  the 
papers  sent  are  all  which  are  on  file  in  said  court  belonging  to  the 
cause;  for  the  performance  of  which  duties  said  clerk  so  transmitting 
and  certifying  shall  receive  the  same  fees  as  are  now  allowed  by  law 
for  similar  services,  to  be  taxed  in  the  bill  of  costs,  and  regularly  col- 
lected with  the  other  costs  in  the  cause;  and  such  transcript,  when  so 
certified  and  received,  shall  henceforth  constitute  a  part  of  the  record 
of  the  cause  in  the  court  to  which  the  transfer  shall  be  made.  The 
clerk  receiving  such  transcript  and  original  papers  shall  file  the  same 
and  the  case  shall  then  proceed  to  final  disposition  as  other  cases  of  a 
like  nature. 

New  Districts. 

Sec.  59.  Whenever  any  new  district  or  division  has  been  or  shall 
be  established,  or  any  county  or  territory  has  been  or  shall  be  trans- 
ferred from  one  district  or  division  to  another  district  or  division,  pros- 
ecutions for  crimes  and  ofifenses  committed  within  such  district,  divi- 
sion, county,  or  territory  prior  to  such  transfer,  shall  be  commenced  and 
proceeded  with  the  same  as  if  such  new  district  or  division  had  not  been 
created,  or  such  county  or  territory  had  not  been  transferred,  unless 
the  court,  upon  the  application  of  the  defendant,  shall  order  the  cause 
to  be  removed  to  the  new  district  or  division  for  trial.  Civil  actions 
pending  at  the  time  of  the  creation  of  any  such  district  or  division,  or 
the  transfer  of  any  such  county  or  territory,  and  arising  within  the  dis- 
trict or  division  so  created  or  the  county  or  territory  so  transferred, 
shall  be  tried  in  the  district  or  division  as  it  existed  at  the  time  of  the 
institution  of  the  action,  or  in  the  district  or  division  so  created,  or  to 
which  the  county  or  territory  is  or  shall  be  so  transferred,  as  may  be 


810  Important  Federal  Laws 

agreed  upon  by  the  parties,  or  as  the  court  shall  direct.  The  transfer 
of  such  prosecutions  and  actions  shall  be  made  in  the  manner  provided 
in  the  section  last  preceding. 

Liens  Not  Affected. 

Sec.  60.  The  creation  of  a  new  district  or  division,  or  the  transfer 
of  any  county  or  territory  from  one  district  or  division  to  another 
district  or  division,  shall  not  affect  or  divest  any  lien  theretofore  ac- 
quired in  the  circuit  or  district  court  by  virtue  of  a  decree,  judgment, 
execution,  attachment,  seizure,  or  otherwise,  upon  property  situated 
or  being  within  the  district  or  division  so  created,  or  the  county  or 
territory  so  transferred.  To  enforce  any  such  lien,  the  clerk  of  the 
court  in  which  the  same  is  acquired,  upon  the  request  and  at  the 
cost  of  the  party  desiring  the  same,  shall  make  a  true  and  certified 
copy  of  the  record  thereof,  which  when  so  made  and  certified,  and 
filed  in  the  proper  court  of  the  district  or  division  in  which  such 
property  is  situated  or  shall  be.  after  such  transfer,  shall  constitute 
the  record  of  such  lien  in  such  court,  and  shall  be  evidence  in  all 
courts  and  places  equally  with  the  original  thereof ;  and  thereafter 
like  proceedings  shall  be  had  thereon,  and  with  the  same  eft'ect,  as 
though  the  cause  or  proceeding  had  been  originally  instituted  in  such 
court.  The  provisions  of  this  section  shall  apply  not  only  in  all 
cases  where  a  district  or  division  is  created,  or  a  county  or  any  terri- 
tory is  transferred  by  this  or  any  future  Act,  but  also  in  all  cases 
where  a  district  or  division  has  been  created,  or  a  county  or  any  ter- 
ritorv  has  been  transferred  by  any  law  heretofore  enacted. 

Commissioners  to  Administer  Oaths. 

Sec.  61.  Any  district  judge  may  appoint  commissioners,  before 
whom  appraisers  of  vessels  or  goods  and  merchandise  seized  for 
breaches  of  any  law  of  the  United  States,  may  be  sworn ;  and  such 
oaths,  so  taken,  shall  be  as  effectual  as  if  taken  before  the  judge  in 
open  court. 

Transfer  of  Records. 

Sec.  62.  When  any  Territory  is  admitted  as  a  State,  and  a  district 
court  is  established  therein,  all  the  records  of  the  proceedings  in  the 
several  cases  pending  in  the  highest  court  of  said  Territory  at  the 
time  of  such  admission,  and  all  records  of  the  proceedings  in  the 
several  cases  in  which  judgments  or  decrees  had  been  rendered  in  said 
territorial  court  before  that  time,  and  from  which  writs  of  error  could 
have  been  sued  out  or  appeals  could  have  been  taken,  or  from  which 
writs  of  error  had  been  sued  out  or  appeals  had  been  taken  and  prose- 
cuted to  the  Supreme  Court  or  to  the  circuit  court  of  appeals,  shall  be 
transferred  to   and   deposited   in  the   district  court    for  the   said   State. 

Enforcing  Transfer. 

Sec.  63.  It  shall  be  the  duty  of  the  district  judge,  in  the  case  pro- 
vided in  the  preceding  section,   to  demand  of  the  clerk,  or  other  per- 


Federal  Judicial  Code  811 

son  having  possession  or  custody  of  the  records  therein  mentioned, 
the  deHvery  thereof,  to  be  deposited  in  said  district  court ;  and  in 
case  of  the  refusal  of  such  clerk  or  person  to  comply  with  such  de- 
mand, the  said  district  judge  shall  compel  the  delivery  of  such  records 
by  attachment  or  otherwise,  according  to  law. 

Pending  Cases. 

Sec.  64.  When  any  Territory  is  admitted  as  a  State,  and  a  district 
court  is  established  therein,  the  said  district  court  shall  take  cogni- 
zance of  all  cases  which  were  pending  and  undetermined,  in  the  trial 
courts  of  such  territory,  from  the  judgments  or  decrees  to  be  ren- 
dered in  which  writs  of  error  could  have  been  sued  out  or  appeals 
taken  to  the  Supreme  Court  or  to  the  circuit  court  of  appeals,  and 
shall  proceed  to  hear  and  determine  the  same. 

Receivers  to  Manage  Property  Under  State  Laws. 

Sec.  65.  Whenever  in  any  cause  pending  in  any  court  of  the  United 
States  there  shall  be  a  receiver  or  manager  in  possession  of  any  prop- 
erty, such  receiver  or  manager  shall  manage  and  operate  such  prop- 
erty according  to  the  requirements  of  the  valid  laws  of  the  State  in 
which  such  property  shall  be  situated,  in  the  same  manner  that  the 
owner  or  possessor  thereof  would  be  bound  to  do  if  in  possession 
thereof.  Any  receiver  or  manager  who  shall  willfully  violate  any  pro- 
vision of  this  section  shall  be  fined  not  more  than  three  thousand  dol- 
lars, or  imprisoned  not  more  than  one  year,  or  both. 

Suits  Against  Receivers. 

Sec.  66.  Every  receiver  or  manager  of  any  property  appointed  by 
any  court  of  the  United  States  may  be  sued  in  respect  of  any  act  or 
transaction  of  his  in  carrying  on  the  business  connected  with  such 
property,  without  the  previous  leave  of  the  court  in  which  such  re- 
ceiver or  manager  was  appointed ;  but  such  suit  shall  be  subject  to 
the  general  equity  jurisdiction  of  the  court  in  which  such  manager 
or  receiver  was  appointed  so  far  as  the  same  may  be  necessary  to  the 
ends  of  justice. 

Relationship  Disqualification. 

Sec.  67.  No  person  shall  be  appointed  to  or  employed  in  any  office 
or  duty  in  any  court  who  is  related  by  affinity  or  consanguinity  within 
the  degree  of  first  cousin  to  the  judge  of  such  court:  Provided,  That 
no  such  person  at  present  holding  a  position  or  employment  in  a  cir- 
cuit court  shall  be  debarred  from  similar  appointment  or  employment 
in  the  district  court  succeeding  to  such  circuit  court  jurisdiction.  (As 
amended  December  21.  1911.) 

Clerk  Not  to  be  Receiver. 

Sec.  68.  No  clerk  of  a  district  court  of  the  United  States  or  his 
deputy    shall   be   appointed    a    receiver    or   master   in    any   case,    except 


812  Important  Federal  Laws 

where  the  judge  of  said  court  shall  determine  that  special  reasons  exist 
therefor,  to  be  assigned  in  the  order  of  appointment. 

CHAPTER  V. 

This  chapter,  including  sections  69  to  115,  consists  of  the  division 
of  the  States  into  judicial  districts,  and  is  omitted. 

CHAPTER  VI. 
Circuit  Courts  of  Appeals  Districts. 

Sec.  116.  There  shall  be  nine  judicial  circuits  of  the  United  States 
constituted  as  follows : 

First.  The  first  circuit  shall  include  the  districts  of  Rhode  Island, 
Massachusetts,  New  Hampshire,  ^Nlaine,  and  Porto  Rico. 

Second.  The  second  circuit  shall  include  the  districts  of  Vermont, 
Connecticut,  and  New  York. 

Third.  The  third  circuit  shall  include  the  districts  of  Pennsylvania, 
New  Jersey  and  Delaware. 

Fourth.  The  fourth  circuit  shall  include  the  districts  of  Maryland, 
Virginia,  West  Virginia,  North  Carolina,  and  South  Carolina. 

Fifth.  The  fifth  circuit  shall  include  the  districts  of  Georgia,  Flor- 
ida, Alabama,  Mississippi,  Louisiana,  and  Texas. 

Sixth.  The  sixth  circuit  shall  include  the  district  of  Ohio,  Michi- 
gan, Kentucky,  and  Tennessee. 

Seventh.  The  seventh  circuit  shall  include  the  districts  of  Indiana, 
Illinois,  and  Wisconsin. 

Eighth.  The  eighth  circuit  shall  include  the  districts  of  Nebraska, 
Minnesota,  Iowa,  Missouri,  Kansas,  Arkansas,  Colorado,  Wyoming, 
North  Dakota,  South  Dakota,  Utah,  and  Oklahoma. 

Ninth.  The  ninth  circuit  shall  include  the  districts  of  California, 
Oregon,  Nevada,  Washington,  Idaho,  Montana,  and  Hawaii.  (As 
amended  January  28,  1915.) 

Circuit  Court  of  Appeals. 

Sec.  117.  There  shall  be  in  each  circuit  a  circuit  court  of  appeals, 
which  shall  consist  of  three  judges,  of  whom  two  shall  constitute  a 
quorum,  and  which  shall  be  a  court  of  record,  with  appellate  juris- 
diction, as  hereinafter  limited  and  established. 

Circuit  Judges. 

Sec.  1 18.  There  shall  be  in  the  second,  seventh,  and  eighth  circuits, 
respectively,  four  circuit  judges;  in  the  fourth  circuit,  two  circuit  judges; 
and  in  each  of  the  other  circuits,  three  circuit  judges,  to  be  appointed 
by  the  President,  by  and  with  the  advice  and  consent  of  the  Senate. 
They  shall  be  entitled  to  receive  a  salary  at  the  rate  of  seven  thou- 
sand dollars  a  year  each,  payable  monthly.  Each  circuit  judge  shall 
reside  within  his  circuit.  The  circuit  judges  in  each  circuit  shall  be 
judges  of  the  circuit  court  of  appeals  in  that  circuit,  and  it  shall  be 


Federal  Judicial  Code  813 

the  duty  of  each  circuit  judge  in  each  circuit  to  sit  as  one  of  the  judges 
of  the  circuit  court  of  appeals  in  that  circuit  from  time  to  time  accord- 
ing to  law:  Provided,  That  nothing  in  this  section  shall  be  construed 
to  prevent  any  circuit  judge  holding  district  court  or  serving  in  the 
commerce  court,  or  otherwise,  as  provided  for  and  authorized  in  other 
sections  of  this  act.     (As  amended  January  13,  1913.) 

Allotment  of  Justices. 

Sec.  119.  The  Chief  Justice  and  associate  justices  of  the  Supreme 
Court  shall  be  allotted  among  the  circuits  by  an  order  of  the  court, 
and  a  new  allotment  shall  be  made  whenever  it  becomes  necessary  or 
convenient  by  reason  of  the  alteration  of  any  circuit,  or  of  the  new 
appointment  of  a  Chief  Justice  or  associate  justice,  or  otherwise.  If 
a  new  allotment  becomes  necessary  at  any  other  time  than  during  a 
term,  it  shall  be  made  by  the  Chief  Justice,  and  shall  be  binding  until 
the  next  term  and  until  a  new  allotment  by  the  court.  Whenever,  by 
reason  of  death  or  resignation,  no  justice  is  allotted  to  a  circuit,  the 
Chief  Justice  may,  until  a  justice  is  regularly  allotted  thereto,  tem- 
porarily assign  a  justice  of  another  circuit  to  such  circuit. 

Supreme  Court  Justices  in  Circuit  Court. 

Sec.  120.  The  Chief  Justice  and  the  associate  justices  of  the  Su- 
preme Court  assigned  to  each  circuit,  and  the  several  district  judges 
within  each  circuit,  shall  be  'competent  to  sit  as  judges  of  the  circuit 
court  of  appeals  within  their  respective  circuits.  In  case  the  Chief 
Justice  or  an  associate  justice  of  the  Supreme  Court  shall  attend  at 
any  session  of  the  circuit  court  of  appeals,  he  shall  preside.  In  the 
absence  of  such  Chief  Justice,  or  associate  justice,  the  circuit  judges 
in  attendance  upon  the  court  shall  preside  in  the  order  of  the  seniority 
of  their  respective  commissions.  In  case  the  full  court  at  any  time 
shall  not  be  made  up  by  the  attendance  of  the  Chief  Justice  or  the  as- 
sociate justice,  and  the  circuit  judges,  one  or  more  district  judges 
within  the  circuit  shall  sit  in  the  court  according  to  such  order  or 
provision  among  the  district  judges  as  either  by  general  or  particular 
assignment  shall  be  designated  by  the  court :  Provided,  That  no  judge 
before  whom  a  cause  or  question  may  have  been  tried  or  heard  in  a 
district  court,  or  existing  circuit  court,  shall  sit  on  the  trial  or  hearing 
of  such  cause  or  question  in  the  circuit  court  of  appeals. 

Designation  of  Terms. 

Sec.  121.  The  words  "circuit  justice"  and  "justice  of  a  circuit," 
when  used  in  this  title,  shall  be  understood  to  designate  the  justice 
of  the  Supreme  Court  who  is  allotted  to  any  circuit ;  but  the  word 
"judge,"  when  applied  generally  to  any  circuit,  shall  be  understood 
to  include  such  justice. 

Forms  of  Process. 

Sec.  122.  Each  of  said  circuit  courts  of  appeals  shall  prescribe  the 
form  and  style  of  its  seal,  and  the   form  of  writs  and  other  process 


814  Important  Feder.\l  Laws 

and  procedure  as  may  be  conformable  to  the  exercise  of  its  jurisdic- 
tion; and  shall  have  power  to  establish  all  rules  and  regulations  for 
the  conduct  of  the  business  of  the  court  within  its  jurisdiction  as  con- 
ferred by  law. 

Marshals. 

Sec.  123.  The  United  States  marshals  in  and  for  the  several  dis- 
tricts of  said  courts  shall  be  the  marshals  of  said  circuit  courts  of 
appeals,  and  shall  exercise  the  same  powers  and  perform  the  same 
duties,  under  the  regulations  of  the  court,  as  are  exercised  and  per- 
formed by  the  marshal  of  the  Supreme  Court  of  the  United  States, 
so  far  as  the  same  may  be  applicable. 

Clerks. 

Sec.  124.  Each  court  shall  appoint  a  clerk,  who  shall  exercise  the 
same  powers  and  perform  the  same  duties  in  regard  to  all  matters 
within  its  jurisdiction,  as  are  exercised  and  jier formed  by  the  clerk  of 
the  Supreme  Court,  so  far  as  the  same  may  be  applicable. 

Deputy  Clerks. 

Sec.  125.  The  clerk  of  the  circuit  court  of  appeals  for  each  circuit 
may,  with  the  approval  of  the  court,  appoint  such  number  of  deputy 
clerks  as  the  court  may  deem  necessary.  Such  deputies  may  be  re- 
moved at  the  pleasure  of  the  clerk  appointing  them,  with  the  approval 
of  the  court.  In  case  of  the  death  of  the  clerk  his  deputy  or  deputies 
shall,  unless  removed  by  the  court,  continue  in  office  and  perform  the 
duties  of  the  clerk  in  his  name  until  a  clerk  is  appointed  and  has  qual- 
ified; and  for  the  defaults  or  misfeasances  in  office  of  any  such  dep- 
uty, whether  in  the  lifetime  of  the  clerk  or  after  his  death,  the  clerk 
and  his  estate  and  the  sureties  on  his  official  bond  shall  be  liable,  and 
his  executor  or  administrator  shall  have  such  remedy  for  such  de- 
faults or  misfeasances  committed  after  his  death  as  the  clerk  would 
be  entitled  to  if  the  same  had  occurred  in  his  lifetime. 

Terms. 

Sec.  126.  A  term  shall  be  held  annually  by  the  circuit  courts  of 
appeals  in  the  several  judicial  circuits  at  the  following  places,  and  at 
such  times  as  may  be  fixed  by  said  courts,  respectively :  In  the  first 
circuit,  in  Boston ;  in  the  second  circuit,  in  New  York ;  in  the  third 
circuit,  in  Philadelphia ;  in  the  fourth  circuit,  in  Richmond ;  in  the 
fifth  circuit,  in  New  Orleans,  Atlanta,  Forth  Worth,  and  Montgomery; 
in  the  sixth  circuit  in  Cincinnati ;  in  the  seventh  circuit,  in  Chicago ; 
in  the  eighth  circuit,  in  Saint  Louis,  Denver  or  Cheyenne,  and  Saint 
Paul ;  in  the  ninth  circuit,  in  San  Francisco,  and  each  year  in  two 
other  places  in  said  circuit  to  be  designated  by  the  judges  of  said 
court ;  and  in  each  of  the  above  circuits,  terms  may  be  held  at  such 
other  times  and  in  such  other  places  as  said  courts,  respectively,  may 
from  time  to  time  designate :  Provided,  That  terms  shall  be  held  in 
Atlanta  on  the   first   Monday   in  October,   in   Fort  Worth  on  the  first 


Federal  Judicial  Code  815 

Monday  in  November,  in  Alontgomery  on  the  third  Monday  in  Octo- 
ber, in  Denver  or  in  Cheyenne  on  the  first  Monday  in  September,  and 
in  Saint  Paul  on  the  first  Monday  in  May.  All  appeals,  writs  of  er- 
ror, and  other  appellate  proceedings  which  may  be  taken  or  prose- 
cuted from  the  district  courts  of  the  United  States  in  the  State  of 
Georgia,  in  the  State  of  Texas,  and  in  the  State  of  Alabama,  to  the 
circuit  court  of  appeals  for  the  fifth  judicial  circuit  shall  be  heard  and 
disposed  of,  respectively,  by  said  court  at  the  terms  held  in  Atlanta, 
in  Fort  Worth,  and  in  Montgomery,  except  that  appeals  or  writs  of 
error  in  cases  of  injunctions  and  in  all  other  cases  which,  under  the 
statutes  and  rules,  or  in  the  opinion  of  the  court,  are  entitled  to  be 
brought  to  a  speedy  hearing  may  be  heard  and  disposed  of  wherever 
said  court  may  be  sitting.  All  appeals,  writs  of  errors,  and  other  ap- 
pellate proceedings  which  may  hereafter  be  taken  or  prosecuted  from 
the  district  court  of  the  United  States  at  Beaumont,  Texas,  to  the 
circuit  court  of  appeals  for  the  fifth  circuit,  shall  be  heard  and  dis- 
posed of  by  the  said  circuit  court  of  appeals  at  the  terms  of  court  held 
at  New  Orleans:  Provided,  That  nothing  herein  shall  prevent  the 
court  from  hearing  appeals  or  writs  of  error  wherever  the  said  courts 
shall  sit,  in  cases  of  injunctions  and  in  all  other  cases  which,  under 
the  statutes  and  the  rules,  or  in  the  opinion  of  the  court,  are  entitled 
to  be  brought  to  a  speedy  hearing.  All  appeals,  writs  of  error,  and 
other  appellate  proceedings  which  may  be  taken  or  prosecuted  from 
the  district  courts  of  the  United  States  in  the  States  of  Colorado,  Utah, 
and  Wyoming,  and  the  supreme  court  of  the  Territory  of  New  Alex- 
ico  to  the  circuit  court  of  appeals  for  the  eighth  judicial  circuit,  shall 
be  heard  and  disposed  of  by  said  court  at  the  terms  held  either  in 
Denver  or  in  Cheyenne,  except  that  any  case  arising  in  any  of  said 
States  or  Territory  may,  by  consent  of  all  the  parties,  be  heard  and 
disposed  of  at  a  term  of  said  court  other  than  the  one  held  in  Denver 
or  Cheyenne. 

Court  Rooms. 

Sec.  127.  The  marshals  for  the  several  districts  in  which  said  cir- 
cuit courts  of  appeals  may  be  held  shall,  under  the  direction  of  the  At- 
torney General,  and  with  his  approval,  provide  such  rooms  in  the  pub- 
lic buildings  of  the  United  States  as  may  be  necessary  for  the  busi- 
ness of  said  courts,  and  pay  all  incidental  expenses  of  said  court,  in- 
cluding criers,  bailififs,  and  messengers :  Provided,  That  in  case  proper 
rooms  can  not  be  provided  in  such  buildings,  then  the  marshals,  with 
the  approval  of  the  Attorney  General,  may,  from  time  to  time,  lease 
such  rooms  as  may  be  necessary  for  such  courts. 

Jurisdiction. 

Sec.  128.  The  circuit  courts  of  appeals  shall  exercise  appellate  ju- 
risdiction to  review  by  appeal  or  writ  of  error  final  decisions  in  the 
district  courts,  including  the  United  States  district  court  for  Hawaii, 
and  the  United  States  district  court  for  Porto  Rico,  in  all  cases  other 


816  Important  Federal  Laws 

than  those  in  which  appeals  and  writs  of  error  may  be  taken  direct  to 
the  Supreme  Court,  as  provided  in  section  two  hundred  and  thirty- 
eight,  unless  otherwise  provided  by  law;  and,  except  as  provided  in 
sections  two  hundred  and  thirty-nine  and  two  hundred  and  forty,  the 
judgments  and  decrees  of  the  circuit  courts  of  appeals  shall  be  final  in 
all  cases  in  which  the  jurisdiction  is  dependent  entirely  upon  the  opposite 
parties  to  the  suit  or  controversy  being  aliens  and  citizens  of  the  United 
States,  or  citizens  of  different  States;  also  in  all  cases  arising  under 
the  patent  laws,  under  the  trade-mark  laws,  under  the  copyright  laws, 
under  the  revenue  laws,  and  under  the  criminal  laws,  and  in  admiralty 
cases.     (As  amended  January  28,  1915.) 

Appeals  in  Injunction  or  Receiver  Cases. 

Sec.  129.  Where  upon  a  hearing  in  equity  in  a  district  court,  or 
by  a  judge  thereof  in  vacation,  an  injunction  shall  be  granted,  con- 
tinued, refused,  or  dissolved  by  an  interlocutory  order  or  decree,  or 
an  application  to  dissolve  an  injunction  shall  be  refused,  or  an  inter- 
locutory order  or  decree  shall  be  made  appointing  a  receiver,  an  ap- 
peal mar  be  taken  from  such  interlocutory  order  or  decree  granting, 
continuing,  refusing,  dissolving,  or  refusing  to  dissolve,  an  injunc- 
tion, or  appointing  a  receiver,  to  the  circuit  court  of  appeals,  notwith- 
standing an  appeal  in  such  case  might,  upon  final  decree  under  the 
statutes  regulating  the  same,  be  taken  directly  to  the  Supreme  Court: 
Provided,  That  the  appeal  must  be  taken  within  thirty  days  from  the 
entry  of  such  order  or  decree,  and  it  shall  take  precedence  in  the  ap- 
pellate court ;  and  the  proceedings  in  other  respects  in  the  court  be- 
low shall  not  be  stayed  unless  otherwise  ordered  by  that  court,  or  the 
appellate  court,  or  a  judge  thereof,  during  the  pendency^  of  such  ap- 
peal:  Provided,  however.  That  the  court  below  may,  in  its  discretion, 
require  as  a  condition  of  the  appeal  an  additional  bond. 

Appeals  in  Bankruptcy. 

Sec.  130.  The  circuit  courts  of  appeals  shall  have  the  appellate  and 
supervisory  jurisdiction  conferred  upon  them  by  the  Act  entitled  "An 
Act  to  establish  a  uniform  system  of  bankruptcy  throughout  the 
United  States,"  approved  July  first,  eighteen  hundred  and  ninetj^ 
eight,  and  all  laws  amendatory  thereof,  and  shall  exercise  the  same  in 
the  manner  therein  prescribed. 

China  Court. 

Sec.  131.  The  circuit  court  of  appeals  for  the  ninth  circuit  is  em- 
powered to  hear  and  determine  writs  of  error  and  appeals  from  the 
United  States  court  for  China,  as  provided  in  the  Act  entitled  "An 
Act  creating  a  United  States  court  for  China  and  prescribing  the  ju- 
risdiction thereof,"  approved  June  thirtieth,  nineteen  hundred  and  six. 

Powers  of  Judges. 

Sec.  132.  Any  judge  of  a  circuit  court  of  appeals,  in  respect  of 
cases  brought  or  to  be  brought  before  that  court,  shall  have  the  same 


Federal  Judicial  Code  817 

powers  and  duties  as  to  allowances  of  appeals  and  writs  of  error,  and 
the  conditions  of  such  allowances,  as  by  law  belong  to  the  justices  or 
judges  in  respect  of  other  courts  of  the  United  States,  respectively. 

Appeals,  Arizona  and  New  Mexico  Courts. 

Sec.  133.  The  circuit  courts  of  appeals,  in  cases  in  which  their  judg- 
ments and  decrees  are  made  final  by  this  title,  shall  have  appellate 
jurisdiction,  by  writ  of  error  or  appeal,  to  review  the  judgments,  or- 
ders, and  decrees  of  the  supreme  courts  of  Arizona  and  New  Mexico, 
as  by  this  title  they  may  have  to  review  the  judgments,  orders,  and 
decrees  of  the  district  courts ;  and  for  that  purpose  said  Territories 
shall,  by  orders  of  the  Supreme  Court  of  the  United  States,  to  be 
made  from  time  to  time,  be  assigned  to  particular  circuits. 

Alaska  Courts. 

Sec.  134.  In  all  cases  other  than  those  in  which  a  writ  of  error  or 
appeal  will  lie  direct  to  the  Supreme  Court  of  the  United  States  as 
provided  in  section  two  hundred  and  forty-seven,  in  which  the  amount 
involved  or  the  value  of  the  subject-matter  in  controversy  shall  ex- 
ceed five  hundred  dollars,  and  in  all  criminal  cases,  writs  of  error  and 
appeals  shall  lie  from  the  district  court  for  Alaska  or  from  any  divi- 
sion thereof,  to  the  circuit  court  of  appeals  for  the  ninth  circuit,  and 
the  judgments,  orders,  and  decrees  of  said  court  shall  be  final  in  all 
such  cases.  But  whenever  such  circuit  court  of  appeals  may  desire 
the  instruction  of  the  Supreme  Court  of  the  United  States  upon  any 
question  or  proposition  of  law  which  shall  have  arisen  in  any  such 
case,  the  court  may  certify  such  question  or  proposition  to  the  Su- 
preme Court,  and  thereupon  the  Supreme  Court  shall  give  its  instruc- 
tion upon  the  question  or  proposition  certified  to  it,  and  its  instruc- 
tions shall  be  binding  upon  the  circuit  court  of  appeals. 

Appeals  at  San  Francisco,  Portland  or  Seattle. 

Sec.  135.  All  appeals,  and  writs  of  error,  and  other  cases,  coming 
from  the  district  court  for  the  district  of  Alaska  to  the  circuit  court  of 
appeals  for  the  ninth  circuit,  shall  be  entered  upon  the  docket  and 
heard  at  San  Francisco,  California,  or  at  Portland,  Oregon,  or  at 
Seattle,  Washington,  as  the  trial  court  before  whom  the  case  was  tried 
below  shall  fix  and  determine :  Provided,  That  at  any  time  before  the 
hearing  of  any  appeal,  writ  of  error,  or  other  case,  the  parties  there- 
to, through  their  respective  attorneys,  may  stipulate  at  which  of  the 
above-named  places  the  same  shall  be  heard,  in  which  case  the  case 
shall  be  remitted  to  and  entered  upon  the  docket  at  the  place  so  stipu- 
lated and  shall  be  heard  there. 

CHAPTER  VII. 
The  Court  of  Claims. 

Sec.  136.     The  Court  of  Claims,  established  by  the  Act  of  February 
twenty-fourth,   eighteen  hundred  and  fifty-five,   shall  be  continued.     It 
(52) 


818  Important  Federal  Laws 

shall  consist  of  a  chief  justice  and  four  judges,  who  shall  be  ap- 
pointed by  the  President,  by  and  with  the  advice  and  consent  of  the 
Senate,  and  hold  their  offices  during  good  behavior.  Each  of  them 
shall  take  an  oath  to  support  the  Constitution  of  the  United  States, 
and  to  discharge  faithfully  the  duties  of  his  office.  The  chief  justice 
shall  be  entitled  to  receive  an  annual  salary  of  six  thousand  live  hun- 
dred dollars,  and  each  of  the  other  judges  an  annual  salary  of  six 
thousand  dollars,  payable  monthly,  from  the  Treasury. 

Seal.  ,     ,     . 

Sec.  137.     The  Court  of  Claims  shall  have  a  seal,  with  such  device 

as  it  may  order. 

Annual  Session. 

Sec.  138.  The  Court  of  Claims  shall  hold  one  annual  session  at  the 
city  of  Washington,  beginning  on  the  first  Monday  in  December  and 
continuing  as  long  as  may  be  necessary  for  the  prompt  disposition  of 
the  business  of  the  court  Any  three  of  the  judges  of  said  court  shall 
constitute  a  quorum,  and  may  hold  a  court  for  the  transaction  of 
business:  Provided,  That  the  concurrence  of  three  judges  shall  be 
necessary  to  the  decision  of  any  case. 

Officers. 

Sec.  139.  The  said  court  shall  appoint  a  chief  clerk,  an  assistant 
clerk,  if  deemed  necessarv,  a  bailiff',  and  a  chief  messenger.  The 
clerks  shall  take  an  oath  for  the  faithful  discharge  of  their  duties,  and 
shall  be  under  the  direction  of  the  court  in  the  performance  thereof; 
and  for  misconduct  or  incapacity  they  may  be  removed  by  it  from  of- 
fice; but  the  court  shall  report  such  removals,  with  the  cause  thereof, 
to  Congress,  if  in  session,  or  if  not,  at  the  next  session.  The  bailiff 
shall  hold  his  office  for  a  term  of  four  years,  unless  sooner  removed 
by  the  court  for  cause. 

Salaries  of  Clerks. 

Sec.  140.  The  salary  of  the  chief  clerk  shall  be  three  thousand  five 
hundred  dollars  a  year;  of  the  assistant  clerk  two  thousand  five  hun- 
dred dollars  a  vear;  of  the  bailiff'  one  thousand  five  hundred  dollars  a 
year,  and  of  the  chief  messenger  one  thousand  dollars  a  year,  payable 
monthly  from  the  Treasury. 

Chief  Clerk  Bond. 

Sec.  141.  The  chief  clerk  shall  give  bond  to  the  United  States  in 
such  amount,  in  such  form,  and  with  such  security  as  shall  be  ap- 
proved by  the  Secretary  of  the  Treasury. 

Contingent  Fund. 

Sec.  142.  The  said  clerk  shall  have  authority  when  he  has  giveii 
bond  as  provided  in  the  preceding  section,  to  disburse,  under  the  di- 
rection of  the  court,  the  contingent  fund  which  may  from  time  to  time 
be  appropriated   for   its   use;  and  his  accounts   shall  be  settled  by   the 


Federal  Judicial  Code  819 

proper  accounting   officers   of   the   Treasury   in   the   same   way   as   the 
accounts  of  other  disbursing  agents  of  the  Government  are  settled. 

Statement  of  Judgment  to  Congress. 

Sec.  143.  On  the  first  day  of  every  regular  session  of  Congress, 
the  clerk  of  the  Court  of  Claims  shall  transmit  to  Congress  a  full  and 
complete  statement  of  all  the  judgments  rendered  by  the  court  during 
the  previous  year,  stating  the  amounts  thereof  and  the  parties  in  whose 
favor  they  were  rendered,  together  with  a  brief  synopsis  of  the  nature 
of  the  claims  upon  which  they  were  rendered.  At  the  end  of  every 
term  of  the  court  he  shall  transmit  a  copy  of  its  decisions  to  the  heads 
of  departments ;  to  the  Solicitor,  the  Comptroller,  and  the  Auditors 
of  the  Treasury ;  to  the  Commissioner  of  the  General  Land  Office  and 
of  Indian  Affairs ;  to  the  chiefs  of  bureaus,  and  to  other  officers 
charged  with  the  adjustment  of  claims  against  the  United  States. 

Members  of  Congress  Not  to  Practice  In. 

Sec.  144.  Whoever,  being  elected  or  appointed  a  Senator,  Member 
of,  or  Delegate  to  Congress,  or  a  Resident  Commissioner,  shall,  after 
his  election  or  appointment,  and  either  before  or  after  he  has  qualified, 
and  during  his  continuance  in  office,  practice  in  the  Court  of  Claims, 
shall  be  fined  not  more  than  ten  thousand  dollars  and  imprisoned  not 
more  than  two  years ;  and  shall,  moreover,  thereafter  be  incapable  of 
holding  any  office  of  honor,  trust,  or  profit  under  the  Government 
of  the  United  States. 

Jurisdiction. 

Sec.  145.  The  Court  of  Claims  shall  have  jurisdiction  to  hear  and 
determine  the  following  matters : 

First.  All  claims  (except  for  pensions)  founded  upon  the  Constitu- 
tion of  the  United  States  or  any  law  of  Congress,  upon  any  regula- 
tion of  an  Executive  Department,  upon  any  contract,  express  or  im- 
plied, with  the  Government  of  the  United  States,  or  for  damages,  liq- 
uidated or  unliquidated,  in  cases  not  sounding  in  tort,  in  respect  of 
which  claims  the  party  would  be  entitled  to  redress  against  the  United 
States  either  in  a  court  of  law,  equity,  or  admiralty  if  the  United 
States  were  suable :  Provided,  however,  That  nothing  in  this  section 
shall  be  construed  as  giving  to  the  said  court  jurisdiction  to  hear  and 
determine  claims  growing  out  of  the  late  civil  war,  and  commonly 
known  as  "war  claims,"  or  to  hear  amd  determine  other  claims  which, 
prior  to  March  third,  eighteen  hundred  and  eighty-seven,  had  been 
rejected  or  reported  on  adversely  by  any  court,  department,  or  com- 
mission authorized  to  hear  and  determine  the  same. 

Second.  All  set-offs,  counterclaims,  claims  for  damages,  whether 
liquidated  or  unliquidated,  or  other  demands  whatsoever  on  the  part  of 
the  Government  of  the  United  States  against  any  claimant  against  the 
Government  in  said  court:  Provided.  That  no  suit  against  the  Gov- 
ernment  of  the  United   States,  brought  by  any  officer   of  the  United 


820  Important  Federal  Laws 

States  to  recover  fees  for  services  alleged  to  have  been  performed  for 
the  United  States,  shall  be  allowed  under  this  chapter  until  an  ac- 
count for  said  fees  shall  have  been  rendered  and  finally  acted  upon 
as  required  by  law,  unless  the  proper  accounting  officer  of  the  Treas- 
ury fails  to  act  finally  thereon  within  six  months  after  the  account  is 
received  in  said  office. 

Third.  The  claim  of  any  paymaster,  quartermaster,  commissary  of 
subsistence,  or  other  disbursing  officer  of  the  United  States,  or  of  his 
administrators  or  executors,  for  relief  from  responsibility  on  account 
of  loss  by  capture  or  otherwise,  while  in  the  line  of  his  duty,  of  Gov- 
ernment funds,  vouchers,  records,  or  papers  in  his  charge,  and  for 
which  such  officer  was  and  is  held  responsible. 

Counterclaims. 

Sec.  146.  Upon  the  trial  of  any  cause  in  wdiich  any  set-ofif,  coun- 
terclaim, claim  for  damages,  or  other  demand  is  set  up  on  the  part  of 
the  Government  against  any  person  making  claim  against  the  Gov- 
ernment in  said  court,  the  court  shall  hear  and  determine  such  claim 
or  demand  both  for  and  against  the  Government  and  claimant ;  and 
if  upon  the  whole  case  it  finds  that  the  claimant  is  indebted  to  the 
Government  it  shall  render  judgment  to  that  effect,  and  such  judg- 
ment shall  be  final,  with  the  right  of,  appeal,  as  in  other  cases  pro- 
vided for  by  laM\  Any  transcript  of  such  judgment,  filed  in  the  clerk's 
office  of  any  district  court,  shall  be  entered  upon  the  records  thereof, 
and  shall  thereby  become  and  be  a  judgment  of  such  court  and  be  en- 
forced as  other  judgments  in  such  court  are  enforced. 

Decrees  on  Account  of  Disbursing  Officers. 

Sec.  147.  Whenever  the  Court  of  Claims  ascertains  the  facts  of 
any  loss  by  any  paymaster,  quartermaster,  commissary  of  subsistence, 
or  other  disbursing  officer,  in  the  cases  hereinbefore  provided,  to  have 
been  without  fault  or  negligence  on  the  part  of  such  officer,  it  shall 
make  a  decree  setting  forth  the  amount  thereof,  and  upon  such  de- 
cree the  proper  accounting  officers  of  the  Treasury  shall  allow  to  such 
officer  the  amount  so  decreed  as  a  credit  in  the  settlement  of  his  ac- 
counts. 

Claims  Referred  by  Departments. 

Sec.  148.  When  any  claim  or  matter  is  pending  in  any  of  the  ex- 
ecutive departments  which  involves  controverted  questions  of  fact  or 
law,  the  head  of  such  department  may  transmit  the  same,  with  the 
vouchers,  papers,  documents  and  proofs  pertaining  thereto,  to  the 
Court  of  Claims  and  the  same  shall  be  there  proceeded  in  under  such 
rules  as  the  court  may  adopt.  When  the  facts  and  conclusions  of  law 
shall  have  been  found,  the  court  shall  report  its  findings  to  the  de- 
partment by  which  it  was  transmitted  for  its  guidance  and  action: 
Provided,  however.  That  if  it  shall  have  been  transmitted  with  the 
consent  of  the  claimant,  or  if  it  shall  appear  to  the  satisfaction  of  the 


Federal  Judicial  Code  821 

court  upon  the  facts  established,  that  under  existing  laws  or  the  pro- 
visions of  this  chapter  it  has  jurisdiction  to  render  judgment  or  de- 
cree thereon,  it  shall  proceed  to  do  so,  in  the  latter  case  giving  to  either 
party  such  further  opportunity  for  hearing  as  in  its  judgment  jus- 
tice shall  require,  and  shall  report  its  findings  therein  to  the  depart- 
ment by  v^^hich  the  same  was  referred  to  said  court.  The  Secretary 
of  the  Treasury  may,  upon  the  certificate  of  any  auditor,  or  of  the 
Comptroller  of  the  Treasury,  direct  any  claim  or  matter,  of  which  by 
reason  of  the  subject-matter  or  character,  the  said  court  might  under 
existing  laws,  take  jurisdiction  on  the  voluntary  action  of  the  claim- 
ant to  be  transmitted,  with  all  the  vouchers,  papers,  documents  and 
proofs  pertaining  thereto,  to  the  said  court  for  trial  and  adjudication. 

Procedure. 

Sec.  149.  All  cases  transmitted  by  the  head  of  any  department,  or 
upon  the  certificate  of  any  auditor,  or  of  the  Comptroller  of  the  Treas- 
ury, according  to  the  provisions  of  the  preceding  section,  shall  be  pro- 
ceeded in  as  other  cases  pending  ini  the  Court  of  Claims,  and  shall, 
in  all  respects,  be  subject  to  the  same  rules  and  regulations. 

Payment  of  Judgment. 

Sec.  150.  The  amount  of  any  final  judgment  or  decree  rendered  in 
favor  of  the  claimant,  in  any  case  transmitted  to  the  Court  of  Claims 
under  the  two  preceding  sections,  shall  be  paid  out  of  any  specific 
appropriation  applicable  to  the  case,  if  any  such  there  be  ;  and  where 
no  such  appropriation  exists,  the  judgment  or  decree  shall  be  paid 
in  the  same  manner  as  other  judgments  of  the  said  court. 

Claims  Referred  to  Congress. 

Sec.  151.  Whenever  any  bill,  except  for  a  pension,  is  pending  in 
either  House  of  Congress  providing  for  the  payment  of  a  claim  against 
the  United  States,  legal  or  equitable,  or  for  a  grant,  gift,  or  bounty 
to  any  person,  the  House  in  which  such  bill  is  pending  ma3^  for  the 
investigation  and  determination  of  facts,  refer  the  same  to  the  Court 
of  Claims,  which  shall  proceed  with  the  same  in  accordance  with  such 
rules  as  it  may  adopt  and  report  to  such  House  the  facts  in  the  case 
and  the  amount,  where  the  same  can  be  liquidated,  including  any 
facts  bearing  upon  the  question  whether  there  has  been  delay  or  laches 
in  presenting  such  claim  or  applying  for  such  grant,  gift,  or  bounty, 
and  any  facts  bearing  upon  the  question  whether  the  bar  of  any  statute 
of  limitation  should  be  removed  or  which  shall  be  claimed  to  excuse 
the  claimant  for  not  having  resorted  to  any  established  legal  remedy, 
together  with  such  conclusions  as  shall  be  sufficient  to  inform  Congress 
of  the  nature  and  character  of  the  demand,  either  as  a  claim,  legal  or 
equitable,  or  as  a  gratuity  against  the  United  States,  and  the  amount, 
if  any,  legally  or  equitably  due  from  the  United  States  to  the  claimant : 
Provided,  how^ever.  That  if  it  shall  appear  to  the  satisfaction  of  the 
court  upon  the  facts  established,  that  under  existing  laws  or  the  provi- 


822  Important  Federal  Laws 

sions  of  this  chapter,  the  subject  matter  of  the  bill  is  such  that  it  has 
jurisdiction  to  render  judgment  or  decree  thereon,  it  shall  proceed  to  do 
so,  giving  to  either  party  such  further  opportunity  for  hearing  as  in 
its  judgment  justice  shall  require,  and  it  shall  report  its  proceedings 
therein  to  the  House  of  Congress  by  which  the  same  was  referred  to 
said  court. 

Allowance  of  Costs. 

Sec.  152.  If  the  Governmeiat  of  the  United  States  shall  put  in  is- 
sue the  right  of  the  plaintiff  to  recover,  the  court  may,  in  its  dis- 
cretion, allow  costs  to  the  prevailing  party  from  the  time  of  joining 
such  issue.  Such  costs,  however,  shall  include  only  what  is  actually 
incurred  for  witnesses,  and  for  summoning  the  same,  and  fees  paid 
to  the  clerk  of  the  court. 

Treaty  Claims  Barred. 

Sec.  153.  The  jurisdiction  of  the  said  court  shall  not  extend  to 
any  claim  against  the  Government  not  pending  therein  on  December 
first,  eighteen  hundred  and  sixty-two,  growing  out  of  or  dependent 
on  any  treaty  stipulation  entered  into  with  foreign  nations  or  with  the 
Indian  tribes. 

Claims  in  Other  Courts. 

Sec.  154.  No  person  shall  file  or  prosecute  in  the  Court  of  Claims, 
or  in  the  Supreme  Court  on  appeal  therefrom,  any  claim  for  or  in 
respect  to  which  he  or  any  assignee  of  his  has  pending  in  any  other 
court  any  suit  or  process  against  any  person  who,  at  the  time  when 
the  cause  of  action  alleged  in  such  suit  or  process  arose,  was,  in  respect 
thereto,  acting  or  professing  to  act,  mediately  or  immediately,  under 
the  authority  of  the  United  States. 

Aliens. 

Sec.  155.  Aliens  who  are  citizens  or  subjects  of  any  government 
which  accords  to  citizens  of  the  United  States  the  right  to  prosecute 
claims  against  such  government  in  its  courts,  shall  have  the  privilege 
of  prosecuting  claims  against  the  United  States  in  the  Court  of  Claims, 
whereof  such  court,  by  reason  of  their  subject-matter  and  character, 
might  take  jurisdiction. 

Claims  to  be  Filed  Within  Six  Years. 

Sec.  156.  Every  claim  against  the  United  States  cognizable  by 
the  Court  of  Claims,  shall  be  forever  barred  unless  the  petition  setting 
forth  a  statement  thereof  is  filed  in  the  court,  or  transmitted  to  it  by 
the  Secretary  of  the  Senate  or  the  Clerk  of  the  House  of  Representa- 
tives, as  provided  by  law,  within  six  years  after  the  claim  first  ac- 
crues: Provided,  That  the  claims  of  married  women,  first  accrued 
during  marriage,  of  persons  under  the  age  of  twenty-one  years,  first 
accrued  during  minority,  and  of  idiots,  lunatics,  insane  persons,  and 
persons  beyond  the  seas  at  the  time  the  claim  accrued,  entitled  to  the 


Federal  Judicial  Code  823 

claim,  shall  not  be  barred  if  the  petition  be  filed  in  the  court  or  trans- 
mitted, as  aforesaid,  within  three  years  after  the  disability  has  ceased; 
but  no  other  disability  than  those  enumerated  shall  prevent  any  claim 
from  being  barred,  nor  shall  any  of  the  said  disabilities  operate  cum- 
ulatively. 

Rules  of  Practice, 

Sec.  157.  The  said  court  shall  have  power  to  establish  rules  for 
its  government  and  for  the  regulation  of  practice  therein,  and  it  may 
punish  for  contempt  in  the  manner  prescribed  by  the  common  law, 
may  appoint  commissioners,  and  may  exercise  such  powers  as  are  neces- 
sary to  carry  into  effect  the  powers  granted  to  it  by  law. 

Oaths. 

Sec.  158.  The  judges  and  clerks  of  said  court  may  administer 
oaths  and  affirmations,  take  acknowledgments  of  instruments  in  writ- 
ing, and  give  certificates  of  the  same. 

Petitions. 

Sec.  159.  The  claimant  shall  in  all  cases  fully  set  forth  in  his  peti- 
tion the  claim,  the  action  thereon  in  Congress  or  by  any  of  the  depart- 
ments, if  such  action  has  been  had,  what  persons  are  owners  thereof 
or  interested  therein,  when  and  upon  what  consideration  such  per- 
sons became  so  interested ;  that  no  assignment  or  transfer  of  said 
claim  or  of  any  part  thereof  or  interest  therein  has  been  made,  except 
as  stated  in  the  petition ;  that  said  claimant  is  justly  entitled  to  the 
amount  therein  claimed  from  the  United  States  after  allowing  all 
just  credits  and  offsets ;  that  the  claimant  and,  where  the  claim  has 
been  assigned,  the  original  and  every  prior  owner  thereof,  if  a  citi- 
zen, has  at  all  times  borne  true  allegiance  to  the  Government  of  the 
United  States,  and,  whether  a  citizen  or  not,  has  not  in  any  way 
voluntarily  aided,  abetted,  or  given  encouragement  to  rebellion  against 
the  said  Government,  and  that  he  believes  the  facts  as  stated  in  the 
said  petition  to  be  true.  The  said  petition  shall  be  verified  by  the 
affidavit  of  the  claimant,  his  agent  or  attorney. 

Dismissal  of  Allegiance  Disproven. 

Sec.  160.  The  said  allegations  as  to  true  allegiance  and  voluntary 
aiding,  abetting,  or  giving  encouragement  to  rebellion  against  the  Gov- 
ernment may  be  traversed  by  the  Government,  and  if  on  the  trial 
such  issues  shall  be  decided  against  the  claimant,  his  petition  shall  be 
dismissed. 

Proof  of  Loyalty. 

Sec.  161.  Whenever  it  is  material  in  any  claim  to  ascertain  whether 
any  person  did  or  did  not  give  any  aid  or  comfort  to  forces  or  gov- 
ernment of  the  late  Confederate  States  during  the  Civil  _War,  the 
claimant  asserting  the  loyalty  of  any  such  person  to  the  United  States 
during  such  Civil  War  shall  be  required  to  prove  affirmatively  that 
such   person    did,    during    said    Civil    War,    consistently    adhere    to    the 


824  Important  Federal  Laws 

United   States   and  did  give  no  aid  or  comfort  to  persons  engaged  in 
said  Confederate  service  in  said  Civil  War. 

Property  Taken  After  June  1,  1865. 

Sec.  162.  The  Court  of  Claims  shall  have  jurisdiction  to  hear  and 
determine  the  claims  of  those  whose  property  was  taken  subsequent 
to  June  the  first,  eighteen  hundred  and  sixty-five,  under  the  provi- 
sions of  the  Act  of  Congress  approved  March  twelfth,  eighteen  hun- 
dred and  sixty-three,  entitled  "An  Act  to  provide  for  the  collection 
of  abandoned  property  and  for  the  prevention  of  frauds  in  insur- 
rectionary districts  within  the  United  States,"  and  Acts  amendatory 
thereof  where  the  property  so  taken  was  sold  and  the  net  proceeds 
thereof  were  placed  in  the  Treasury  of  the  United  States ;  and  the 
Secretary  of  the  Treasury  shall  return  said  net  proceeds  to  the  own- 
ers thereof,  on  the  judgment  of  said  court,  and  full  jurisdiction  is 
given  to  said  court  to  adjudge  said  claims,  any  statute  of  limitations 
to  the  contrary  notwithstanding. 

Commissioners  to  Take  Testimony. 

Sec.  163.  The  Court  of  Claims  shall  have  power  to  appoint  com- 
missioners to  take  testimony  to  be  used  in  the  investigation  of  claims 
which  come  before  it,  to  prescribe  the  fees  which  they  shall  receive 
for  their  services,  and  to  issue  commissions  for  the  taking  of  such 
testimony,  whether  taken  at  the  instance  of  the  claimant  or  of  the 
United  States. 

Information  from  Officials. 

Sec.  164.  The  said  court  shall  have  power  to  call  upon  any  of  the 
departments  for  any  information  or  papers  it  may  deem  necessary, 
and  shall  have  the  use  of  all  recorded  and  printed  reports  made  by 
the  committees  of  each  House  of  Congress,  when  deemed  necessary 
in  the  prosecution  of  its  business.  But  thei  head  of  any  department 
may  refuse  and  omit  to  comply  with  any  call  for  information  or  pa- 
pers when,  in  his  opinion,  such  compliance  would  be  injurious  to  the 
public  interest. 

Vv''hen  Testimony  is  Not  Taken. 

Sec.  165.  When  it  appears  to  the  court  in  any  case  that  the  facts 
set  forth  in  the  petition  of  the  claimant  do  not  furnish  any  ground 
for  relief,  it  shall  not  authorize  the  taking  of  any  testimony  therein. 

Examination  of  Claimants. 

Sec.  166.  The  court  may,  at  the  instance  of  the  attorney  or  solicitor 
appearing  in  behalf  of  the  United  States,  make  an  order  in  any  case 
pending  therein,  directing  any  claimant'  in  such  case  to  appear,  upon 
reasonable  notice,  before  any  commissioner  of  the  court  and  be  ex- 
amined on  oath  touching  any  or  all  matters  pertaining  to  said  claim. 
Such  examination  shall  be  reduced  to  writing  by  the  said  commis- 
sioner, and  be  returned  to  and  filed  in  the  court,  and  may,  at  the 
discretion   of   the   attorney   or   solicitor   of   the   United   States   appear- 


Federal  Judicial  Code  825 

ing  in  the  case,  be  read  and  used  as  evidence  on  the  trial  thereof. 
And  if  any  claimant,  after  such  order  is  made  and  due  and  reason- 
able notice  thereof  is  given  to  him,  fails  to  appear,  or  refuses  to  tes- 
tify or  answer  fully  as  to  all  matters  within  his  knowledge  mate- 
rial to  the  issue,  the  court  may,  in  its  discretion,  order  that  the  said 
cause  shall  not  be  brought  forward  for  trial  until  he  shall  have  fully 
complied  with  the  order  of  the  court  in  the  premises. 

Places  for  Taking  Testimony. 

Sec.  167.  The  testimony  in  cases  pending  before  the  Court  of 
Claims  shall  be  taken  in  the  county  where  the  witness  resides,  when 
the  same  can  be  conveniently  done. 

Subpoenas. 

Sec.  168.  The  Court  of  Claims  may  issue  subpoenas  to  require  the 
attendance  of  witnesses  in  order  to  be  examined  before  any  person 
commissioned  to  take  testimony  therein.  Such  subpoenas  shall  have 
the  same  force  as  if  issued  from  a  district  court,  and  compliance 
therewith  shall  be  compelled  under  such  rules  and  orders  as  the  court 
shall  establish. 

Cross  Examinations. 

Sec.  169.  In  taking  testimony  to  be  used  in  support  of  any  claim, 
opportunity  shall  be  given  to  the  United  States  to  file  interrogatories, 
or  by  attorney  to  examine  witnesses,  under  such  regulations  as  said 
court  shall  prescribe ;  and  like  opportunity  shall  be  afforded  the  claim- 
ant, in  cases  w^iere  testimony  is  taken  on  behalf  of  the  United  States, 
under  like  regulations. 

Oaths. 

Sec.  170.  The  commissioner  taking  testimony  to  be  used  in  the 
Court  of  Claims  shall  administer  an  oath  or  affirmation  to  the  witnesses 
brought  before  him  for  examination. 

Commissioners'  Fees. 

Sec.  171.  When  testimony  is  taken  for  the  claimant,  the  fees  of 
the  commissioner  before  whom  it  is  taken,  and  the  cost  of  the  com- 
mission and  notice,  shall  be  paid  by  such  claimant;  and  when  it  is 
taken  at  the  instance  of  the  Government,  such  fees  shall  be  paid  out 
of  the  contingent  fund  provided  for  the  Court  of  Claims,  or  other 
appropriation  made  by  Congress  for  that  purpose. 

Fraud. 

Sec.  172.  Any  person  who  corruptly  practices  or  attempts  to  prac- 
tice any  fraud  against  the  United  States  in  the  proof,  statement,  es- 
tablishment, or  allowance  of  any  claim  or  of  any  part  of  any  claim 
against  the  United  States  shall,  ipso  facto,  forfeit  the  same  to  the 
Government;  and  it  shall  be  the  duty  of  the  Court  of  Claims,  in  such 
cases,  to  find  specifically  that  such  fraud  was  practiced  or  attempted 
to  be   practiced,    and   thereupon   to   give   judgment   that    such   claim    is 


826  Important  Federal  Laws 

forfeited  to  the  Government,  and  that  the  claimant  be  forever  barred 
from  prosecuting  the  same. 

False  Claims. 

Sec.  173.  No  claim  shall  be  allowed  by  the  accounting  officers  un- 
der the  provisions  of  the  Act  of  Congress  approved  June  sixteenth, 
eighteen  hundred  and  seventy-four,  or  by  the  Court  of  Claims,  or  by 
Congress,  to  any  person  where  such  claimant,  or  those  under  whom 
he  claims,  shall  willfully,  knowingly,  and  with  intent  to  defraud  the 
United  States,  have  claimed  more  than  was  justly  due  in  respect  of 
such  claim,  or  presented  any  false  evidence  to  Congress,  or  to  any 
department  or  court,  in  support  thereof. 

New  Trials. 

Sec.  174.  When  judgment  is  rendered  against  any  claimant,  the 
court  may  grant  a  new  trial  for  any  reason  which,  by  the  rules  of 
common  law  or  chancery  in  suits  between  individuals,  would  furnish 
sufficient  ground  for  granting  a  new  trial. 

Same. 

Sec.  175.  The  Court  of  Claims,  at  any  time  while  any  claim  is 
pending  before  it,  or  on  appeal  from  it,  or  within  two  years  next  after 
the  final  disposition  of  such  claim,  may,  on  motion,  on  behalf  of  the 
United  States,  grant  a  new  trial  and  stay  the  payment  of  any  judg- 
ment therein,  upon  such  evidence,  cumulative  or  otherwise,  as  shall 
satisfy  the  court  that  any  fraud,  wrong,  or  justice  in  the  premises 
has  been  done  to  the  United  States ;  but  until  an  order  is  made  stay- 
ing the  payment  of  a  judgment,  the  same  shall  be  payable  and  paid 
as  now  provided  by  law. 

Cost  of  Record. 

Sec.  176.  There  shall  be  taxed  against  the  losing  party  in  each  and 
everv  cause  pending  in  the  Court  of  Claims  the  cost  of  printing  the 
record  in  such  case,  which  shall  be  collected,  except  when  the  judg- 
ment is  against  the  United  States,  by  the  clerk  of  said  court  and  paid 
into  the  Treasury  of  the  United  States. 

Interest  Allowance. 

Sec.  177.  No  interest  shall  be  allowed  on  any  claim  up  to  the  time 
of  the  rendition  of  judgment  thereon  by  the  Court  of  Claims,  unless 
upon  a  contract  expressly  stipulating  for  the  payment  of  interest. 

Payment  on  Full  Discharge. 

Sec.  178.  The  payment  of  the  amount  due  by  any  judgment  of  the 
Court  of  Claims,  and  of  anv  interest  thereon  allowed  by  law,  as  pro- 
vided by  law,  shall  be  a  full  discharge  to  the  United  States  of  all 
claim  and  demand  touching  any  of  the  matters  involved  in  the  con- 
troversy. 

Final  Judgment  a  Bar. 

Sec.   179.     Any  final  judgment  against  the  claimant  on  any  claim 


Federal  Judicial  Code  827 

prosecuted  as  provided  in  this  chapter  shall  forever  bar  any  further 
claim  or  demand  against  the  United  States  arising  out  of  the  matters 
involved  in  the  controversy. 

Petitions  for  Settlement  of  Unadjusted  Accounts. 

Sec.  180.  Whenever  any  person  shall  present  his  petition  to  the 
Court  of  Claims  alleging  that  he  is  or  has  been  indebted  to  the  United 
States  as  an  officer  or  agent  thereof,  or  by  virtue  of  any  contract 
therewith,  or  that  he  is  the  guarantor,  or  surety,  or  personal  repre- 
sentative or  any  officer  or  agent  or  contractor  so  indebted,  or  that  he 
or  tlie  person  for  whom  he  is  such  surety,  guarantor,  or  personal  rep- 
resentative has  held  any  office  or  agency  under  the  United  States,  or 
entered  into  any  contract  therewith,  under  which  it  may  be  or  has 
been  claimed  that  an  indebtedness  to  the  United  States  had  arisen 
and  exists,  and  that  he  or  the  person  he  represents  has  applied  to  the 
proper  department  of  the  Government  requesting  that  the  account  of 
such  office,  agency,  or  indebtedness  may  be  adjusted  and  settled,  and 
that  three  years  have  elapsed  from  the  date  of  such  application^  and 
said  account  still  remains  unsettled  and  unadjusted,  and  that  no  suit 
upon  the  same  has  been  brought  by  the  United  States,  said  court  shall, 
due  notice  first  being  given  to  the  head  of  said  department  and  to 
the  Attorney  General  of  the  United  States,  proceed  to  hear  the  parties 
and  to  ascertain  the  amount,  if  any,  due  the  United  States  on  said 
account.  The  Attorney  General  shall  represent  the  United  States  at 
the  hearing  of  said  cause.  The  court  may  postpone  the  same  from 
time  to  time  whenever  justice  shall  require.  The  judgment  of  said 
court  or  of  the  Supreme  Court  of  the  United  States,  to  which  an  ap- 
peal shall  lie,  as  in  other  cases,  as  to  the  amount  due,  shall  be  binding 
and  conclusive  upon  the  parties.  The  payment  of  such  amount  so 
found  due  by  the  court  shall  discharge  such  obligation.  An  action  shall 
accrue  to  the  United  States  against  such  principal,  or  surety,  or  rep- 
resentative to  recover  the  amount  so  found  due,  which  may  be  brought 
at  any  time  within  three  years  after  the  final  judgment  of  said  court; 
and  unless  suit  shall  be  brought  within  said  time,  such  claim  and  the 
claim  on  the  original  indebtedness  shall  be  forever  barred.  The  pro- 
visions of  section  one  hundred  and  sixty-six  shall  apply  to  cases  under 
this  section. 

Appeals. 

Sec.  181.  The  plaintiff  or  the  United  States,  in  any  suit  brought 
under  the  provision  of  the  section  last  preceding,  shall  have  the  same 
right  of  appeal  as  is  conferred  under  sections  two  hundred  and  forty- 
two  and  two  hundred  and  forty-three ;  and  such  right  shall  be  exer- 
cised only  within  the  time  and  in  the  manner  therein  prescribed. 

Appeals  in  Indian  Cases. 

Sec.  182.  In  any  case  brought  in  the  Court  of  Claims  under  any 
Act  of  Congress  by  which  that  court  is  authorized  to  render  a  judg- 


828  Important  Federal  Laws 

ment  or  decree  against  the  United  States,  or  against  any  Indian  tribe 
or  any  Indians,  or  against  any  fund  held  in  trust  by  the  United  States 
for  any  Indian  tribe  or  for  any  Indians,  the  claimant,  or  the  United 
States,  or  the  tribe  of  Indians,  or  other  party  in  interest  shall  have 
the  same  right  of  appeal  as  is  conferred  under  sections  two  hundred 
and  forty-two  and  two  hundred  and  forty-three ;  and  such  right  shall 
be  exercised  only  within  the  time  and  in  the  manner  therein  prescribed. 

Reports  of  Suits  on  Bond. 

Sec.  183.  The  Attorney  General  shall  report  to  Congress,  at  the 
beginning  of  each  regular  session,  the  suits  under  section  one  hundred 
and  eighty,  in  which  a  final  judgment  or  decree  has  been  rendered,  giv- 
ing the  date  of  each  and  a  statement  of  the  costs  taxed  in  each  case. 

Loyalty  in  Civil  War  Cases. 

Sec.  184.  In  any  case  of  a  claim  for  supplies  or  stores  taken  by  or 
furnished  to  any  part  of  the  military  or  naval  forces  of  the  United 
States  for  their  use  during  the  late  Civil  War,  the  petition  shall  aver 
that  the  person  who  furnished  such  supplies  or  stores,  or  from  whom 
such  supplies  or  stores  were  taken,  did  not  give  any  aid  or  comfort  to 
said  rebellion,  but  was  throughout  that  war  loyal  to  the  Government 
of  the  United  States,  and  the  fact  of  such  loyalty  shall  be  a  jurisdic- 
tional fact ;  and  unless  the  said  court  shall,  on  a  preliminary  inquiry, 
find  that  the  person  who  furnished  such  supplies  or  stores,  or  from 
whom  the  same  were  taken  as  aforesaid,  was  loyal  to  the  Govern- 
ment of  the  United  States  throughout  said  war,  the  court  shall  not 
have  jurisdiction  of  such  cause,  and  the  same  shall,  without  further 
proceedings,  be  dismissed. 
Duty  of  Attorney  General. 

Sec.  185.  The  Attorney-General,  or  his  assistants  under  his  direc- 
tion, shall  appear  for  the  defense  and  protection  of  the  interests  of 
the  United  States  in  all  cases  which  may  be  transmitted  to  the  Court 
of  Claims  under  the  provisions  of  this  chapter,  with  the  same  power 
to  interpose  counter  claims,  offsets,  defenses  for  fraud  practiced  or 
attempted  to  be  practiced  by  claimants,  and  other  defenses,  in  like 
manner  as  he  is  required  to  defend  the  United  States  in  said  court. 
Witnesses  Not  Excluded  on  Account  of  Color  or  Interest. 

Sec.  186.  No  person  shall  be  excluded  as  a  witness  in  the  Court  of 
Claims  on  account  of  color  or  because  he  or  she  is  a  party  to  or  inter- 
ested in  the  cause  or  proceeding;  and  any  plaintifT  or  party  in  inter- 
est may  be  examined  as  a  witness  on  the  part  of  the  Government.  (As 
?mended  February  5,  1912.) 

Report  to  Congress. 

Sec.  187.  Reports  of  the  Court  of  Claims  to  Congress,  under  sec- 
tions one  hundred  and  forty-eight  and  one  hundred  and  fifty-one, 
if  not  finally  acted  upon  during  the  session  at  which  they  were  reported, 
shall  be  continued  from  session  to  session  and  from  Congress  to  Con- 
gress until  the  same  shall  be  finally  acted  upon. 


Federal  Judicial  Code  829 

CHAPTER  Vni. 

The  Court  of  Customs  Appeals. 

Sec.  188.  There  shall  be  a  United  States  Court  of  Customs  Ap- 
peals, which  shall  consist  of  a  presiding  judge  and  four  associate 
judges,  each  of  whom  shall  be  appointed  by  the  President,  by  and  with 
the  advice  and  consent  of  the  Senate,  and  shall  receive  a  salary  of 
seven  thousand  dollars  a  year.  The  presiding  judge  shall  be  so  desig- 
nated in  the  order  of  appointment  and  in  the  commission  issued  to  him 
by  the  President ;  and  the  associate  judges  shall  have  precedence  ac- 
cording to  the  date  of  their  commissions.  Any  three  members  of 
said  court  shall  constitute  a  quorum,  and  the  concurrence  of  three 
members  shall  be  necessary  to  any  decision  thereof.  In  case  of  a 
vacancy  or  of  the  temporary  inability  or  disqualification,  for  any  rea- 
son, of  one  or  two  of  the  judges  of  said  court,  the  President  may, 
upon  the  request  of  the  presiding  judge  of  said  court,  designate  any 
qualified  United  States  circuit  or  district  judge  or  judges  to  act  in 
his  or  their  place ;  and  such  circuit  or  district  judges  shall  be  duly 
qualified  to  so  act. 

Sessions  in  Circuits. 

Sec.  189.  The  said  Court  of  Customs  Appeals  shall  always  be 
open  for  the  transaction  of  business,  and  sessions  thereof  may,  in  the 
discretion  of  the  court,  be  held  in  the  several  judicial  circuits,  and  at 
such  places  as  said  court  may  from  time  to  time  designate.  Any  judge 
who,  in  pursuance  of  the  provisions  of  this  chapter,  shall  attend  a  ses- 
sion of  said  court  at  any  place  other  than  the  city  of  Washington, 
shall  be  paid,  upon  his  written  and  itemized  certificate,  by  the  mar- 
shal of  the  district  in  which  the  court  shall  be  held,  his  actual  and 
necessary  expenses  incurred  for  travel  and  attendance,  and  the  ac- 
tual and  necessary  expenses  of  one  stenographic  clerk  who  may  ac- 
company him ;  and  such  payments  shall  be  allowed  the  marshal  in 
the  settlement  of  his  accounts  with  the  United  States. 

Marshal. 

Sec.  190.  Said  courts  shall  have  the  services  of  a  marshal,  with  the 
same  duties  and  powers,  under  the  regulations  of  the  court,  as  are 
now^  provided  for  the  marshal  of  the  Supreme  Court  of  the  United 
States,  so  far  as  the  same  may  be  applicable.  Said  services  within 
the  District  of  Columbia  shall  be  performed  by  a  marshal  to  be  ap- 
pointed by  and  to  hold  office  during  the  pleasure  of  the  court,  who 
shall  receive  a  salary  of  three  thousand  dollars  per  annum.  Said 
services  outside  of  the  District  of  Columbia  shall  be  performed  by 
the  United  States  marshals  in  and  for  the  districts  where  sessions  of 
said  court  may*  be  held ;  and  to  this  end  said  marshals  shall  be  the 
marshals  of  said  court.  The  marshal  of  said  court,  for  the  District 
of  Columbia,  is  authorized  to  purchase,  under  the  direction  of  the 
presiding   judge,    such   books,    periodicals,    and    stationery,    as   may   be 


830  Important  Federal  Laws 

necessary  for  the  use  of  said  court;  and  such  expenditures  shall  be 
allowed  and  paid  by  the  Secretary  of  the  Treasury  upon  claim  duly 
made  and  approved  by  said  presiding  judge. 

Clerk. 

Sec.  191.  The  court  shall  appoint  a  clerk,  whose  office  shall  be  in 
the  city  of  Washington,  District  of  Columbia,  and  who  shall  perform 
and  exercise  the  same  duties  and  powers  in  regard  to  all  matters  within 
the  jurisdiction  of  said  court  as  are  now  exercised  and  performed  by 
the  clerk  of  the  Supreme  Court  of  the  United  States,  so  far  as  may  be 
applicable.  The  salary  of  the  clerk  shall  be  three  thousand  live  hundred 
dollars  per  annum,  which  sum  shall  be  in  full  payment  for  all  service 
rendered  by  such  clerk ;  and  all  fees  of  any  kind  whatever,  and  all  costs 
shall  be  by  him  turned  into  the  United  States  Treasury.  Said  clerk 
shall  not  be  appointed  by  the  court  or  any  judge  thereof  as  a  commis- 
sioner, master,  receiver,  or  referee.  The  costs  and  fees  in  the  said 
court  shall  be  fixed  and  established  by  said  court  in  a  table  of  fees  to 
be  adopted  and  approved  by  the  Supreme  Court  of  the  United  States 
within  four  months  after  the  organization  of  said  court:  Provided,  That 
the  costs  and  fees  so  fixed  shall  not,  with  respect  to  any  item,  exceed 
the  costs  and  fees  charged  in  the  Supreme  Court  of  the  United  States; 
and  the  same  shall  be  expended,  accounted  for,  and  paid  over  to  the 
Treasury  of  the  United  States. 

Assistants. 

Sec.  192.  In  addition  to  the  clerk,  the  court  may  appoint  an  as- 
sistant clerk  at  a  salary  of  two  thousand  dollars  per  annum,  five  sten- 
ographic clerks  at  a  salary  of  one  thousand  six  hundred  dollars  per 
annum  each,  one  stenographic  reporter  at  a  salary  of  two  thousand 
five  hundred  dollars  per  annum,  and  a  messenger  at  a  salary  of  eight 
hundred  and  forty  dollars  per  annum,  all  payable  in  equal  monthly  in- 
stallments, and  all  of  whom,  including  the  clerk,  shall  hold  office  during 
the  pleasure  of  and  perform  such  duties  as  are  assigned  them  by  the 
court.  Said  reporter  shall  prepare  and  transmit  to  the  Secretary  of  the 
Treasury  once  a  week  in  time  for  publication  in  the  Treasury  Decisions 
copies  of  all  decisions  rendered  to  that  date,  by  said  court,  and  prepare 
and  transmit,  under  the  direction  of  said  court,  at  least  once  a  year,  re- 
ports of  said  decisions  rendered  to  that  date,  constituting  a  volume,  which 
shall  be  printed  by  the  Treasury  Department  in  such  numbers  and  dis- 
tributed or  sold  in  such  manner  as  the  Secretary  of  the  Treasury  shall 
direct. 

Rooms  in  Public  Buildings. 

Sec.  193.  The  marshal  of  said  court  for  the  District  of  Columbia 
and  the  marshals  of  the  several  districts  in  which  said  Court  of  Cus- 
toms Appeals  may  be  held  shall,  under  the  direction  of  the  Attorney 
General,  and  with  his  approval,  provide  such  rooms  in  the  public  build- 
ings of  the  United  States  as  may  be  necessary  for  said  court :  Provided, 


Federal  Judicial  Code  831 

That  in  case  proper  rooms  can  not  be  provided  in  such  buildings,  then 
the  said  marshals,  with  the  approval  of  the  Attorney  General,  may, 
from  time  to  time,  lease  such  rooms  as  may  be  necessary  for  said  court. 
Thd  bailiffs  and  messengers  of  said  court  shall  be  allowed  the  same 
compensation  for  their  respective  services  as  are  allowed  for  similar 
services  in  the  existing  district  courts.  In  no  case  shall  said  marshals 
secure  other  rooms  than  those  regularly  occupied  by  existing  district 
courts,  or  other  public  officers,  except  where  such  can  not,  by  reason  of 
actual  occupancy  or  use,  be  occupied  or  used  by  said  Court  of  Customs 
Appeals. 

General  Powers. 

Sec.  194.  The  said  Court  of  Customs  Appeals  shall  be  a  court  of 
record,  with  jurisdiction  as  in  this  chapter  established  and  limited.  It 
shall  prescribe  the  form  and  style  of  its  seal,  and  the  form  of  its  writs 
and  other  process  and  procedure,  and  exercise  such  powers  conferred 
by  law  as  may  be  conformable  and  necessary  to  the  exercise  of  its  juris- 
diction. It  shall  have  power  to  establish  all  rules  and  regulations  for 
the  conduct  of  the  business  of  the  court,  and  as  may  be  needful  for  the 
uniformity  of  decisions  within  its  jurisdiction  as  conferred  by  law.  It 
shall  have  power  to  review  any  decision  or  matter  within  its  jurisdic- 
tion, and  may  affirm,  modify,  or  reverse  the  same  and  remand  the  case 
with  such  orders  as  may  seem  to  it  proper  in  the  premises,  which  shall 
be  executed  accordingly. 

Exclusive  Jurisdiction  in  Certain  Appeals. 

Sec.  195.  That  the  Court  of  Customs  Appeals  established  by  this 
chapter  shall  exercise  exclusive  appellate  jurisdiction  to  review  by  ap- 
peal, as  herein  provided,  final  decisions  by  a  board  of  general  appraisers 
in  all  cases  as  to  the  construction  of  the  law  and  the  facts  respecting 
the  classification  of  merchandise  and  the  rate  of  duty  imposed  thereon 
under  such  classifications,  and  the  fees  and  charges  connected  therewith, 
and  all  appealable  questions  as  to  the  jurisdiction  of  said  board,  and  all 
appealable  questions  as  to  the  laws  and  regulations  governing  the  col- 
lection of  the  customs  revenues ;  and  the  judgments  and  decrees  of  said 
Court  of  Customs  Appeals  shall  be  final  in  all  such  cases:  Provided, 
however.  That  in  any  cases  in  which  the  judgment  or  decree  of  the  Court 
of  Customs  Appeals  is  made  final  by  the  provisions  of  this  title,  it  shall 
be  competent  for  the  Supreme  Court,  upon  the  petition  of  either  party, 
filed  within  sixty  days  next  after  the  issue  by  the  Court  of  Customs 
Appeals  of  its  mandate  upon  decision,  in  any  case  in  which  there  is 
drawn  in  question  the  construction  of  the  Constitution  of  the  United 
States,  or  any  part  thereof,  or  of  any  treaty  made  pursuant  thereto,  or 
in  any  other  case  when  the  Attorney  General  of  the  United  States  shall, 
before  the  decision  of  the  Court  of  Customs  Appeals  is  rendered,  file 
wath  the  court  a  certificate  to  the  effect  that  the  case  is  of  such  import- 
ance as  to  render  expedient  its  review  by  the  Supreme  Court,  to  require, 


832  Important  Federal  Laws 

by  certiorari  or  otherwise,  such  case  to  be  certified  to  the  Supreme 
Court  for  its  reiew  and  determination,  with  the  same  power  and  author- 
ity in  the  case  as  if  it  had  been  carried  by  appeal  or  writ  of  error  to  the 
Supreme  Court :  And  provided  further,  That  this  Act  shall  not  apply 
to  any  case  involving  only  the  construction  of  section  one,  or  any  por- 
tion thereof,  of  an  Act  entitled  "An  Act  to  provide  revenue,  equalize 
duties,  and  encourage  the  industries  of  the  United  States,  and  for  other 
purposes,"  approved  August  fifth,  nineteen  hundred  and  nine,  nor  to 
any  case  involving  the  construction  of  section  two  of  an  Act  entitled 
"An  Act  to  promote  reciprocal  trade  relations  with  the  Dominion  of 
Canada,  and  for  other  purposes,"  approved  July  twenty-sixth,  nineteen 
hundred  and  eleven.     (As  amended  August  22,  1914.) 

Appellate  Jurisdiction  of  Other  Courts  Abolished, 

Sec.  196.  After  the  organization  of  said  court  no  appeal  shall  be 
taken  or  allowed  from  any  Board  of  United  States  General  Appraisers 
to  any  other  court,  and  no  appellate  jurisdiction  shall  thereafter  be 
exercised  or  allowed  by  any  other  courts  in  cases  decided  by  said  Board 
of  United  States  General  Appraisers ;  but  all  appeals  allowed  by  law 
from  such  Board  of  General  Appraisers  shall  be  subject  to  review  only 
in  the  Court  of  Customs  Appeals  hereby  established,  according  to  the 
provisions  of  this  chapter:  Provided,  That  nothing  in  this  chapter  shall 
be  deemed  to  deprive  the  Supreme  Court  of  the  United  States  of  juris- 
diction to  hear  and  determine  all  customs  cases  which  have  heretofore 
been  certified  to  said  court  from  thei  United  States  circuit  courts  of 
appeals  on  applications  for  writs  of  certiorari  or  otherwise,  nor  to  review 
by  writ  of  certiorari  any  customs  case  heretofore  decided  or  now  pend- 
ing and  hereafter  decided  by  any  circuit  court  of  appeals,  provided  appli- 
cation for  said  writ  be  made  within  six  months  after  August  fifth,  nine- 
teen hundred  and  nine :  Provided  further.  That  all  customs  cases  decided 
by  a  circuit  or  district  court  of  the  United  States  or  a  court  of  a  Terri- 
tory of  the  United  States  prior  to  said  date  above  mentioned,  and  which 
have  not  been  removed  from  said  courts  by  appeal  or  writ  of  error,  and 
all  such  cases  theretofore  submitted  for  decision  in  said  courts  and  re- 
maining undecided  may  be  reviewed  on  appeal  at  the  instance  of  either 
party  by  the  United  States  Court  of  Customs  Appeals,  provided  such 
appeal  be  taken  within  one  year  from  the  date  of  the  entry  of  the  order, 
judgment,  or  decrees  sought  to  be  reviewed. 

Transfer  of  Pending  Cases. 

Sec.  197.  Immediately  upon  the  organization  of  the  Court  of  Cus- 
toms Appeals,  all  cases  within  the  jurisdiction  of  that  court  pending  and 
not  submitted  for  decision  in  any  of  the  United  States  circuit  courts  of 
appeals.  United  States  circuit,  territorial  or  district  courts,  shall,  with 
the  record  and  samples  therein,  be  certified  by  said  courts  to  said  Court 
of  Customs  Appeals  for  further  proceedings  in  accordance  herewith : 
Provided,  That  where  orders  for  the  taking  of  further  testimony  before 


Federal  Judicial  Code  833 

a  referee  have  been  made  in  any  of  such  cases,  the  taking  of  such  testi- 
mony shall  be  completed  before  such  certification. 

Appeals  from  Board  of  General  Appraisers. 

Sec.  198.  If  the  importer,  owner,  consignee,  or  agent  of  any  im- 
ported merchandise,  or  the  collector  or  Secretary  of  the  Treasury,  shall 
be  dissatisfied  with  the  decision  of  the  Board  of  General  Appraisers  as 
to  the  construction  of  the  law  and  the  facts  respecting  the  classification 
of  such  merchandise  and  the  rate  of  duty  imposed  thereon  under  such 
classification,  or  with  any  other  appealable  decision  of  said  board,  they, 
or  either  of  them,  may,  within  sixty  days  next  after  the  entry  of  such 
decree  or  judgment,  and  not  afterwards,  apply  to  the  Court  of  Customs 
Appeals  for  a  review  of  the  questions  of  law  and  fact  involved  in  such 
decision:  Provided,  That  in  Alaska  and  in  the  insular  and  other  outside 
possessions  of  the  United  States  ninety  days  shall  be  allowed  for  making 
such  application  to  the  Court  of  Customs  Appeals.  Such  application 
ehall  be  made  by  filing  in  the  office  of  the  clerk  of  said  court  a  concise 
statement  of  errors  of  law  and  fact  complained  of ;  and  a  copy  of  such 
statement  shall  be  served  on  the  collector,  or  on  the  importer,  owner, 
consignee,  or  agent,  as  the  case  may  be.  Thereupon  the  court  shall 
immediately  order  the  Board  of  General  Appraisers  to  transmit  to  said 
court  the  record  and  evidence  taken  by  them,  together  with  the  certified 
statement  of  the  facts  involved  in  the  case  and  their  decision  thereon; 
and  all  the  evidence  taken  by  and  before  said  board  shall  be  competent 
evidence  before  said  Court  of  Customs  Appeals.  The  decision  of  said 
Court  of  Customs  Appeals  shall  be  final,  and  such  cause  shall  be  re- 
manded to  said  Board  of  General  Appraisers  for  further  proceedings  to 
be  taken  in  pursuance  of  such  determination. 

Calendar  Hearing. 

Sec.  199.  Immediately  upon  receipt  of  any  record  transmitted  to 
said  court  for  determination  the  clerk  thereof  shall  place  the  same  upon 
the  calendar  for  hearing  and  submission;  and  such  calendar  shall  be 
called  and  all  cases  thereupon  submitted,  except  for  good  cause  shown, 
at  least  once  every  sixty  days :  Provided,  That  such  calendar  need  not 
be  called  during  the  months  of  July  and  August  of  any  year. 


CHAPTER  IX. 

The  Commerce  Court. 

The  Commerce  Court  was  abolished  by  Act  of  October  22,  1913, 
and  its  jurisdiction  transferred  to  the  District  Courts. 

The  following  sections  show  the  jurisdiction  of  the  Commerce  Court, 
transferred  to  the  District  Courts : 

Sec.  207.  The  Commerce  Court  shall  have  the  jurisdiction  pos- 
sessed by  circuit  courts  of  the  United  States  and  the  judges  thereof 
(53) 


834  Important  Federal  Laws 

immediately  prior  to  June  eighteenth,  nineteen  hundred  and  ten,  over 
all  cases  of  the  following  kinds : 

First.  All  cases  for  the  enforcement,  otherwise  than  by  adjudica- 
tion and  collection  of  a  forfeiture  or  penalty  or  by  infliction  of  criminal 
punishment,  of  any  order  of  the  Interstate  Commerce  Commission  other 
than  for  the  payment  of  money. 

Second.  Cases  brought  to  enjoin,  set  aside,  annul,  or  suspend  in 
whole  or  in  part  any  order   of  the   Interstate   Commerce   Commission. 

Third.  Such  cases  as  by  section  three  of  the  Act  entitled  "An 
Act  to  further  regulate  commerce  with  foreign  nations  and  among  the 
States,"  approved  February  nineteenth,  nineteen  hundred  and  three,  are 
authorized  to  be  maintained  in  a  circuit  court  of  the  United  States. 

Fourth.  All  such  mandamus  proceedings  as  under  the  provisions 
of  section  twenty  or  section  twenty-three  of  the  Act  entitled  "An  Act 
to  regulate  commerce,"  approved  February  fourth,  eighteen  hundred 
and  eighty-seven,  as  amended,  are  authorized  to  be  maintained  in  a 
circuit  court  of  the  United  States. 

Nothing  contained  in  this  chapter  shall  be  construed  as  enlarging 
the  jurisdiction  now  possessed  by  the  circuit  courts  of  the  United  States 
or  the  judges  thereof,  that  is  hereby  transferred  to  and  vested  in  the 
Commerce  Court. 

The  jurisdiction  of  the  Commerce  Court  over  cases  of  the  foregoing 
classes  shall  be  exclusive;  but  "this  chapter  shall  not  affect  the  jurisdic- 
tion possessed  by  any  circuit  or  district  court  of  the  United  States  over 
cases  or  proceedings  of  a  kind  not  within  the  above-enumerated  classes. 

Suits  to  Enjoin  Order  of  Commission. 

Sec.  208.  Suits  to  enjoin,  set  aside,  annul,  or  suspend  any  order 
of  the  Interstate  Commerce  Commission  shall  be  brought  in  the  Com- 
merce Court  against  the  United  States.  The  pendency  of  such  suit  shall 
not  of  itself  stay  or  suspend  the  operation  of  the  order  of  the  Inter- 
state Commerce  Commission ;  but  the  Commerce  Court,  in  its  discretion, 
may  restrain  or  suspend,  in  whole  or  in  part,  the  operation  of  the  com- 
mission's order  pending  the  final  hearing  and  determination  of  the  suit. 
No  order  or  injunction  so  restraining  or  suspending  an  order  of  the 
Interstate  Commerce  Commission  shall  be  made  by  the  Commerce  Court 
otherwise  than  upon  notice  and  after  hearing,  except  that  in  cases  where 
irreparable  damage  would  otherwise  ensue  to  the  petitioner,  said  court, 
or  a  judge  thereof  may,  on  hearing  after  not  less  than  three  days'  notice 
to  the  Interstate  Commerce  Commission  and  the  Attorney  General,  allow 
a  temporary  stay  or  suspension  in  whole  or  in  part  of  the  operation  of 
the  order  of  the  Interstate  Commerce  Commission  for  not  more  than 
sixty  days  from  the  date  of  the  order  of  such  court  or  judge,  pending 
application  to  the  court  for  its  order  or  injunction,  in  which  case  the 
said  order  shall  contain  a  specific  finding,  based  vipon  evidence  sub- 
mitted to  the  judge  making  the  order  and  identified  by  reference  thereto, 
that  such  irreparable  damage  would  result  to  the  petitioner  and  specify- 


Federal  Judicial  Code  835 

ing  the  nature  of  the  damage.  The  court  may,  at  the  time  of  hearing 
such  appHcation,  upon  a  hke  finding,  continue  the  temporary  stay  or 
suspension  in  whole  or  in  part  until  its  decision  upon  the  application. 

Filing  Petition  for  Relief. 

Sec.  209.  The  jurisdiction  of  the  Commerce  Court  shall  he  invoked 
by  filingin  the  office  of  the  clerk  of  the  court  a  written  petition  setting 
forth  briefly  and  succinctly  the  facts  constituting  the  petitioner's  cause 
of  action,  and  specifying  the  relief  sought.  A  copy  of  such  petition 
shall  be  forthwith  served  by  the  marshal  or  a  deputy  marshal  of  the 
Commerce  Court  or  by  the  proper  United  States  marshal  or  deputy 
marshal  upon  every  defendant  therein  named,  and  when  the  United 
States  is  a  party  defendant,  the  service  shall  be  made  by  filing  a  copy 
of  said  petition  in  the  ofifice  of  the  Secretary  of  the  Interstate  Com^ 
merce  Commission  and  in  the  Department  of  Justice.  Within  thirty  days 
after  the  petition  is  served,  unless  that  time  is  extended  by  order  of  the 
court  or  a  judge  thereof,  an  answer  to  the  petition  shall  "be  filed  in  the 
clerk's  office,  and  a  copy  thereof  mailed  to  the  petitioner's  attorney, 
which  answer  shall  briefly  and  categorically  respond  to  the  allegations 
of  the  petition.  No  replication  need  be  filed  to  the  answer,  and  objec- 
tions to  the  sufficiency  of  the  petition  or  answer  as  not  setting  forth  a 
cause  of  action  or  defense  must  be  taken  at  the  final  hearing  or  by 
motion  to  dismiss  the  petition  based  on  said  grounds,  which  motion 
may  be  made  at  any  time  before  answer  is  filed.  In  case  no  answer 
shall  be  filed  as  provided  herein  the  petitioner  may  apply  to  the  court 
on  notice  for  such  relief  as  may  be  proper  upon  the  facts  alleged  in  the 
petition.  The  court  may,  by  rule,  prescribe  the  method  of  taking  evi- 
dence in  cases  pending  in  said  court ;  and  may  prescribe  that  the  evi- 
dence be  taken  before  a  single  judge  of  the  court,  with  power,  to  rule 
upon  the  admission  of  evidence.  Except  as  may  be  otherwise  provided 
in  this  chapter,  or  by  rule  of  the  court,  the  practice  and  procedure  in 
the  Commerce  Court  shall  conform  as  nearly  as  may  be  to  that  in  like 
cases  in  a  district  court  of  the  United  States. 

Appeals  to  Supreme  Court. 

Sec.  210.  A  final  judgment  or  decree  of  the  Commerce  Court  may 
be  reviewed  by  the  Supreme  Court  of  the  United  States  if  appeal  to 
the  Supreme  Court  be  taken  by  an  aggrieved  party  within  sixty  days 
after  the  entry  of  said  final  judgment  or  decree.  Such  appeal  may  be 
taken  in  like  manner  as  appeals  from  a  district  court  of  the  United 
States  to  the  Supreme  Court,  and  the  Commerce  Court  may  direct  the 
original  record  to  be  transmitted  on  appeal  instead  of  a  transcript  there- 
of. The  Supreme  Court  may  affirm,  reverse,  or  modify  the  final  judg- 
ment or  decree  of  the  Commerce  Court  as  the  case  may  require.  Appeal 
to  the  Supreme  Court,  however,  shall  in  no  case  supersede  or  stay  the 
judgment  or  decree  of  the  Commerce  Court  appealed  from,  unless  the 
Supreme  Court  or  a  justice  thereof  shall  so  direct;  and  appellant  shall 
give  bond  in   such   form   and  of  such  amount  as   the   Supreme   Court, 


836  Important  Federal  Laws 

or  the  justice  of  that  court  allowing  the  stay,  may  require.  An  appeal 
may  also  be  taken  to  the  Supreme  Court  of  the  United  States  from  an 
interlocutory  order  or  decree  of  the  Commerce  Court  granting  or  con- 
tinuing an  injunction  restraining  the  enforcement  of  an  order  of  the 
Interstate  Commerce  Commission,  provided  such  appeal  be  taken  within 
thirty  days  from  the  entry  of  such  order  or  decree.  Appeals  to  the 
Supreme  Court  under  this  section  shall  have  priority  in  hearing  and 
determination  over  all  other  causes  except  criminal  causes  in  that  court. 

Proceeding  in  Name  of  United  States. 

Sec.  211.  All  cases  and  proceedings  in  the  Commerce  Court  which 
but  for  this  chapter  would  be  brought  by  or  against  the  Interstate  Com- 
merce Commission,  shall  be  brought  by  or  against  the  United  States, 
and  the  United  States  may  intervene  in  any  case  or  proceeding  in  the 
Commerce  Court  whenever,  though  it  has  not  been  made  a  party,  public 
interests  are  involved. 

Attorney  General,  Duties  Of. 

Sec.  212.     The  Attorney  General  shall  have  charge  and  control  of 
the  interests  of  the   Government  in  all   cases   and  proceedings   in  the 
Commerce  Court,  and  in  the  Supreme  Court  of  the  United  States  upon 
appeal  from  the  Commerce  Court.     If  in  his  opinion  the  public  interest 
requires  it,  he  may  retain  and  employ  in  the  name  of  the  United  States, 
within  the  appropriations  from  time  to  time  made  by  the  Congress  for 
such  purposes,  such  special  attorneys  and  counselors  at  law  as  he  may 
think  necessary  to  assist  in  the  discharge  of  any  of  the  duties  incumbent 
upon   him   and    his    subordinate    attorneys ;   and   the   Attorney    General 
shall  stipulate  with  such  special  attorneys  and  counsel  the  amount  of 
their  compensation,  which   shall  not  be  in  excess  of   the  sums   appro- 
priated therefor  by  Congress  for  such  purposes,  and  shall  have  super- 
vision of  their  action :  Provided,  That  the  Interstate  Commerce  Com- 
mission and  any  party  or  parties  in  interest  to  the  proceeding  before  the 
commission,   in  which   an   order   or   requirement   is   made,   may   appear 
as  parties  thereto  of  their  own  motion  and  as  of  right,  and  be  repre- 
sented by  their  counsel,  in  any  suit  wherein  is  involved  the  validity  of 
such  order  or  requirement  or  any  part  thereof,  and  the  interest  of  such 
party;  and  the  court  wherein  is  pending  such  suit  may  make  all  such 
rules  and  orders  as  to  such  appearances  and  representations,  the  number 
of  counsel,  and  all  matters  of  procedure,  and  otherwise,  as  to  subserve 
the  ends  of  justice  and  speed  the  determination  of  such  suits :  Provided 
further,  That  communities,   associations,   corporations,   firms,   and   indi- 
viduals  who   are   interested   in  the  controversy   or  question   before  the 
Interstate  Commerce  Commission,  or  in  any  suit  which  may  be  brought 
by  any  one  under  the  provisions  of  this  chapter,  or  the  Acts  of  which 
it  is  amendatorv  or  which  are  amendatory  of  it,  relating  to  action  of 
the   Interstate   Commerce   Commission,   may   intervene   in    said   suit   or 
proceedings  at  any  time  after  the  institution  thereof  ;  and  the  Attorney 
General  shall  not  dispose  of  or  discontinue  said  suit  or  proceeding  over 


Federal  Judicial  Code  837 

the  objection  of  such  party  or  intervenor  aforesaid,  but  said  intervener 
or  interveners  may  prosecute,  defend,  or  continue  said  suit  or  proceed- 
ing unaffected  by  the  action  or  non-action  of  the  Attorney  General 
therein. 

Right  of  Complainants  to  be  Made  Parties. 

Sec.  213.  Complainants  before  the  Interstate  Commerce  Commis- 
sion interested  in  a  case  shall  have  the  right  to  appear  and  be  made 
parties  to  the  case  and  be  represented  before  the  courts  by  counsel, 
under  such  regulations  as  are  now  permitted  in  similar  circumstances 
under  the  rules  and  practice  of  equity  courts  of  the  United  States. 

DISTRICT  COURT  JURISDICTION  ACT. 

Act  of  October  22,  1913. 

An  Act  making  appropriations  to  supply  urgent  deficiencies  in  appropriations 
for  the  fiscal  year  nineteen  hundred  and  thirteen,  and  for  other  purposes. 

Commerce  Court  Abolished — Jurisdiction  in  District  Courts. 

The  Commerce  Court,  created  and  estabUshed  by  the  Act  en- 
titled "An  Act  to  create  a  Commerce  Court  and  to  amend  the  Act 
entitled  'An  Act  to  regulate  commerce,'  approved  February  fourth, 
eighteen  hundred  and  eighty-seven,  as  heretofore  amended,  and  for 
other  purposes,"  approved  June  eighteenth,  nineteen  hundred  and  ten, 
is  abolished  from  and  after  December  thirty-first,  nineteen  hundred  and 
thirteen,  and  the  jurisdiction  vested  in  said  Commerce  Court  by  said 
Act  is  transferred  to  and  vested  in  the  several  district  courts  of  the 
United  States,  and  all  Acts  or  parts  of  Acts  in  so  far  as  they  relate  to  the 
establishment  of  the  Commerce  Court  are  repealed.  Nothing  herein 
contained  shall  be  deemed  to  affect  the  tenure  of  any  of  the  judges  now 
acting  as  circuit  judges  by  appointment  under  the  terms  of  said  Act, 
but  such  judges  shall  continue  to  act  under  assignment,  as  in  the  said 
Act  provided,  as  judges  of  the  district  courts  and  circuit  courts  of  ap- 
peals; and  in  the  event  of  and  on  the  death,  resignation,  or  removal  from 
ofifice  of  any  of  such  judges,  his  office  is  hereby  abolished  and  no  suc- 
cessor to  him  shall  be  appointed. 

The  venue  of  any  suit  hereafter  brought  to  enforce,  suspend,  or  set 
aside,  in  w^hole  or  in  part,  any  order  of  the  Interstate  Commerce  Com- 
mission shall  be  in  the  judicial  district  wherein  is  the  residence  of  the 
party  or  anv  of  the  parties  upon  whose  petition  the  order  was  made, 
except  that  where  the  order  does  not  relate  to  transportation  or  is  not 
made  upon  the  petition  of  any  party  the  venue  shall  be  in  the  district 
v/here  the  matter  complained  of  in  the  petition  before  the  Commission 
arises,  and  except  that  where  the  order  does  not  relate  either  to  trans- 
portation or  to  a  matter  so  complained  of  before  the  Commission  the 
matter  covered  by  the  order  shall  be  deemed  to  arise  in  the  district  where 
one  of  the  petitioners  in  court  has  either  its  principal  office  or  its  prin- 
cipal operating  office.     In  case  such  transportation  relates  to  a  through 


838  Important  Federal  Laws 

shipment   the   term   "destination"    shall    be   construed   as    meaning   final 
destination  of  such  shipment. 

The  procedure  in  the  district  courts  in  respect  to  cases  of  which 
jurisdiction  is  conferred  upon  them  by  this  Act  shall  be  the  same  as  that 
heretofore  prevailing  in  the  Commerce  Court.  The  orders,  writs,  and 
processes  of  the  district  courts  may  in  these  cases  run,  be  served,  and  be 
returnable  anywhere  in  the  United  States ;  and  the  right  of  appeal  from 
the  district  courts  in  such  cases  shall  be  the  same  as  the  right  of  appeal 
heretofore  prevailing  under  existing  law  from  the  Commerce  Court. 
No  interlocutory  injunction  suspending  or  restraining  the  enforcement, 
operation,  or  execution  of,  or  setting  aside,  in  whole  or  in  part,  any 
order  made  or  entered  by  the  Interstate  Commerce  Commission  shall  be 
issued  or  granted  by  any  district  court  of  the  United  States,  or  by  any 
judge  thereof,  or  by  any  circuit  judge  acting  as  district  judge,  unless 
the  application  for  the  same  shall  be  presented  to  a  circuit  or  district 
judge,  and  shall  be  heard  and  determined  by  three  judges,  of  whom  at 
least  one  shall  be  a  circuit  judge,  and  unless  a  majority  of  said  three 
judges  shall  concur  in  granting  such  application.  \\'hen  such  applica- 
tion as  aforesaid  is  presented  to  a  judge,  he  shall  mimediatelv  call  to  his 
assistance  to  hear  and  determine  the  application  two  other  judges.  Said 
application  shall  not  be  heard  or  determined  before  at  least  five  days' 
notice  of  the  hearing  has  been  given  to  the  Interstate  Commerce  Com- 
mission, to  the  Attorney  General  of  the  United  States,  and  to  such  other 
persons  as  may  be  defendants  in  the  suit:  Provided,  That  in  cases  where 
irreparable  damage  would  otherwise  ensue  to  the  petitioner,  a  majority 
of  said  three  judges  concurring,  may,  on  hearing,  after  not  less  than 
three  days'  notice  to  the  Interstate  Commerce  Commission  and  the 
Attorney  General,  allow  a  temporary  stay  or  suspension,  in  whole  or  in 
part,  of  the  operation  of  the  order  of  the  Interstate  Commerce  Com- 
mission for  not  more  than  sixty  days  from  the  date  of  the  order  of  said 
judges  pending  the  application  for  the  order  or  injunction,  in  which  case 
the  said  order  shall  contain  a  specific  finding,  based  upon  evidence  sub- 
mitted to  the  judges  making  the  order  and  identified  by  reference  thereto, 
that  such  irreparable  damage  would  result  to  the  petitioner  and  specify- 
ing the  nature  of  the  damage.  The  said  judges  may,  at  the  time  of 
hearing  such  application,  upon  a  like  finding,  continue  the  temporary 
stay  or  suspension  in  whole  or  in  part  until  decision  upon  the  applica- 
tion. The  hearing  upon  such  application  for  an  interlocutorv  injunction 
shall  be  given  precedence  and  shall  be  in  every  way  expedited  and  be 
assigned  for  a  hearing  at  the  earliest  practicable  day  after  the  expiration 
of  the  notice  hereinbefore  provided  for.  An  appeal  mav  be  taken  direct 
to  the  Supreme  Court  of  the  United  States  from  the  order  granting  or 
denying,  after  notice  and  hearing,  an  interlocutory  injunction,  in  such 
case  if  such  appeal  be  taken  within  thirty  days  after  the  order,  in  respect 
to  which  complaint  is  made,  is  granted  or  refused ;  and  upon  the  final 


Federal  Judicial  Code  839 

hearing  of  any  suit  brought  to  suspend  or  set  aside,  in  whole  or  in  part, 
any  order  of  said  Commission  the  same  requirement  as  to  judges  and 
the  same  procedure  as  to  expedition  and  appeal  shall  apply.  A  final 
judgment  or  decree  of  the  district  court  may  be  reviewed  by  the  Supreme 
Court  of  the  United  States  if  appeal  to  the  Supreme  Court  be  taken 
by  an  aggrieved  party  within  sixty  days  after  the  entry  of  such  final 
judgment  or  decree,  and  such  appeals  may  be  taken  in  like  manner  as 
appeals  are  taken  under  existing  law  in  equity  cases.  And  in  such  case 
the  notice  rec|uired  shall  be  served  upon  the  defendants  in  the  case  and 
upon  the  attorney  general  of  the  State.  All  cases  pending  in  the  Com- 
merce Court  at  the  date  of  the  passage  of  this  Act  shall  be  deemed  pend- 
ing in  and  be  transferred  forthwith  to  said  district  courts  except  cases 
which  mav  previously  have  been  submitted  to  that  court  for  final  decree 
and  the  latter  to  be  transferred  to  the  district  courts  if  not  decided  by  the 
Commerce  Court  before  December  first,  nineteen  hundred  and  thirteen, 
and  all  cases  wherein  injunctions  or  other  orders  or  decrees,  mandatory 
or  otherwise,  have  been  directed  or  entered  prior  to  the  abolition  of  the 
said  court  shall  be  transferred  forthwith  to  said  district  courts,  which 
shall  have  jurisdiction  to  proceed  therewith  and  to  enforce  said  injunc- 
tions, orders,  or  decrees.  Each  of  said  cases  and  all  the  records,  papers, 
and  proceedings  shall  be  transferred  to  the  district  court  wherein  it 
might  have  been  filed  at  the  time  it  was  filed  in  the  Commerce  Court  if 
this  Act  had  then  been  in  eft'ect ;  and  if  it  might  have  been  filed  in  any 
one  of  two  or  more  district  courts  it  shall  be  transferred  to  that  one 
of  said  district  courts  which  may  be  designated  by  the  petitioner  or 
petitioners  in  said  case,  or,  upon  failure  of  said  petitioners  to  act  in  the 
premises  within  thirty  days  after  the  passage  of  this  Act,  to  such  one  of 
said  district  courts  as  may  be  designated  by  the  judges  of  the  Com- 
merce Court.  The  judges  of  the  Commerce  Court  shall  have  authority, 
and  are  hereby  directed,  to  make  any  and  all  orders  and  to  take  any 
other  action  necessary  to  transfer  as  aforesaid  the  cases  and  all  the 
records,  papers  and  proceedings  then  pending  in  the  Commerce  Court  to 
said  district  courts.  All  administrative  books,  dockets,  files,  and  all 
papers  of  the  Commerce  Court  not  transferred  as  part  of  the  record 
of  any  particular  case  shall  be  lodged  in  the  Department  of  Justice.  All 
furniture,  carpets,  and  other  property  of  the  Commerce  Court  is  turned 
over  to  the  Department  of  Justice  and  the  Attorney  General  is  authorized 
to  supply  such  portion  thereof  as  in  his  judgment  may  be  proper  and 
necessary  to  the  United  States  Board  of  Mediation  and  Conciliation. 

Any  case  hereafter  remanded  from  the  Supreme  Court  which,  but 
for  the  passage  of  this  Act,  would  have  been  remanded  to  the  Com- 
merce Court,  shall  be  remanded  to  a  district  court,  designated  by  the 
Supreme  Court,  wherein  it  might  have  been  instituted  at  the  time  it  was 
instituted  in  the  Commerce  Court  if  this  Act  had  then  been  in  effect,  and 
thereafter  such  district  court  shall  take  all  necessary  and  proper  pro- 


840  Important  Federal  Laws 

ceedings  in  such  case  in  accordance  with  law  and  such  mandate,  order,  or 
decree  therein  as  may  be  made  by  said  Supreme  Court. 

All  laws  or  parts  of  laws  inconsistent  with  the  foregoing  provisions 
relating  to  the  Commerce  Court,  are  repealed. 

CHAPTER  X. 

The  Supreme  Court. 

Sec.  215.  The  Supreme  Court  of  the  United  States  shall  consist 
of  a  Chief  Justice  of  the  United  States  and  eight  associate  justices,  any 
six  of  whom  shall  constitute  a  quorum. 

Procedure. 

Sec.  216.  The  associate  justices  shall  have  precedence  according 
to  the  dates  of  their  commissions,  or,  when  the  commissions  of  two  or 
more  of  them  bear  the  same  date,  according  to  their  ages. 

Vacancy  in  Office  of  Chief  Justice. 

Sec.  217.     In  case  of  a  vacancy  in  the  office  of  Chief  Justice,  or  of 

his  inability  to  perform  the  duties  and  powers  of  his  office,  they  shall 

devolve  upon  the  associate  justice  who  is  first  in  precedence,  until  such 

disability  is   removed,   or  another  Chief   Justice   is   appointed  and  duly 

ciualified.      This   provision    shall    apply   to   every   associate   justice  who 
succeeds  to  the  office  of  Chief  Justice. 

Salaries. 

Sec.  218.  The  Chief  Justice  of  the  Supreme  Court  of  the  United 
States  shall  receive  the  sum  of  fifteen  thousand  dollars  a  year,  and  the 
justices  thereof  shall  receive  the  sum  of  fourteen  thousand  five  hun- 
dred dollars  a  year  each,  to  be  paid  monthly. 

Officers. 

Sec.  219.  The  Supreme  Court  shall  have  power  to  appoint  a  clerk 
and  a  marshal  for  said  court,  and  a  reporter  of  its  decisions. 

Clerk— Bond. 

Sec.  220.  The  clerk  of  the  Supreme  Court  shall,  before  he  enters 
upon  the  execution  of  his  office,  give  bond,  with  sufficient  sureties,  to 
be  approved  by  the  court,  to  the  United  States,  in  the  sum  of  not  less 
than  five  thousand  and  not  more  than  twenty  thousand  dollars,  to  be 
determined  and  regulated  bv  the  Attorney  (leneral,  faithfully  to  dis- 
charge the  duties  of  his  office,  and  seasonably  to  record  the  decrees, 
judgments,  and  determinations  of  the  court.  The  Supreme  Court  may 
at  any  time,  upon  the  motion  of  the  Attorney  General,  to  be  made  upon 
thirty  days'  notice,  require  a  new  bond,  or  a  bond  for  an  increased 
amount  within  the  limits  above  prescribed;  and  the  failure  of  the  clerk 
to  execute  the  same  shall  vacate  his  office.  All  bonds  given  by  the  clerk 
shall,  after  approval,  be  recorded  in  his  office,  and  copies  thereof  from 
the   records,   certified   by   the   clerk   under    seal   of    the   court,    shall    be 


Federal  Judicial  Code  841 

competent  evidence  in  any  court.     The  original  bonds  shall  be  filed  in 
the   Department  of   Justice. 

Deputy  Clerks. 

Sec.  221.  One  or  more  deputies  of  the  clerk  of  the  Supreme  Court 
may  be  appointed  by  the  court  on  the  application  of  the  clerk,  and  may 
be  removed  at  the  pleasure  of  the  court.  In  case  of  the  death  of  the 
clerk,  his  deputy  or  deputies  shall,  unless  removed,  continue  in  ofifice 
and  perform  the  duties  of  the  clerk  in  his  name  until  a  clerk  is  appointed 
and  qualified;  and  for  the  defaults  or  misfeasances  in  office  of  any 
such  deputy,  whether  in  the  lifetime  of  the  clerk  or  after  his  death,  the 
clerk,  and  his  estate,  and  the  sureties  on  his  official  bond  shall  be  liable ; 
and  his  executor  or  administrator  shall  have  such  remedy  for  any  such 
defaults  or  misfeasances  committed  after  his  death  as  the  clerk  would 
be  entitled  to  if  the  same  had  occurred  in  his  lifetime. 

Old  Records. 

Sec.  222.  The  records  and  proceedings  of  the  court  of  appeals, 
appointed  previous  to  the  adoption  of  the  present  Constitution,  shall 
be  kept  in  the  office  of  the  clerk  of  the  Supreme  Court,  who  shall  give 
copies  thereof  to  any  person  requiring  and  paying  for  them,  in  the 
manner  provided  by  law  for  giving  copies  of  the  records  and  proceed- 
ings of  the  Supreme  Court ;  and  such  copies  shall  have  like  faith  and 
credit  with  all  other  proceedings  of  said  court. 

Fees. 

Sec.  223.  The  Supreme  Court  is  authorized  and  empowered  to 
prepare  the  tables  of  fees  to  be  charged  by  the  clerk  thereof. 

Marshal  and  Assistants. 

Sec.  224.  The  marshal  is  entitled  to  receive  a  salary  at  the  rate  of 
four  thousand  five  hundred  dollars  a  year.  He  shall  attend  the  court 
at  its  sessions ;  shall  serve  and  execute  all  process  and  orders  issuing 
from  it,  or  made  by  the  Chief  Justice  or  an  associate  justice  in  pur- 
suance of  law  ;  and  shall  take  charge  of  all  property  of  the  United  States 
used  by  the  court  or  its  members.  With  the  approval  of  the  Chief 
Justice"  he  may  appoint  assistants  and  messengers  to  attend  the  court, 
with  the  compensation  allowed  to  officers  of  the  House  of  Represen- 
tatives of  similar  grade. 

Reporter. 

Sec.  225.  The  reporter  shall  cause  the  decisions  of  the  Supreme 
Court  to  be  printed  and  published  within  eight  months  after  they  are 
made  ;  and  within  the  same  time  he  shall  deliver  three  hundred  copies 
of  the  volumes  of  said  reports  to  the  Attorney  General.  The  reporter 
shall,  in  any  year  when  he  is  so  directed  by  the  court,  cause  to  be 
printed  and  published  a  second  volume  of  said  decisions,  of  which  he 
shall  deliver  a  like  number  of  copies  in  like  manner  and  time. 

Salary  of  Reporter. 

Sec.  226.     The  reporter  shall  be  entitled  to  receive  from  the  Treas- 


842  Important  Federal  Laws 

ury  an  annual  salary  of  four  thousand  five  hundred  dollars  when  his 
report  of  said  decisions  constitutes  one  volume,  and  an  additional  sum 
of  one  thousand  two  hundred  dollars  when,  by  direction  of  the  court, 
he  causes  to  be  printed  and  published  in  any  year  a  second  volume ; 
and  said  reporter  shall  be  annually  entitled  to  clerk  hire  in  the  sum 
of  one  thousand  two  hundred  dollars,  and  to  office  rent,  stationery,  and 
contingent  expenses  in  the  sum  of  six  hundred  dollars :  Provided,  That 
the  volumes  of  the  decisions  of  the  court  heretofore  published  shall  be 
furnished  by  the  reporter  to  the  public  at  a  sum  not  exceeding  two 
dollars  per  volume,  and  those  hereafter  published  at  a  sum  not  exceed- 
ing one  dollar  and  seventy-five  cents  per  volume ;  and  the  number  of 
volumes  now  required  to  be  delivered  to  the  Attorney  General  shall  be 
furnished  by  the  reporter  without  any  charge  therefor.  Said  salary 
and  compensation,  respectively,  shall  be  paid  only  when  he  causes  such 
decisions  to  be  printed,  published,  and  delivered  within  the  time  and  in 
the  manner  prescribed  by  law,  and  upon  the  condition  that  the  volumes 
of  said  reports  shall  be  sold  by  him  to  the  public  for  a  price  not  exceed- 
ing one  dollar  and  seventy-five  cents  a  volume. 

Supreme  Court  Reports. 

Sec.  227.  The  Attorney  General  shall  distribute  copies  of  the  Su- 
preme Court  reports,  as  follows:  To  the  President,  the  justices  of  the 
Supreme  Court,  the  judges  of  the  Commerce  Court,  the  judges  of  the 
Court  of  Customs  Appeals,  the  judges  of  the  circuit  courts  of  appeals, 
the  judges  of  the  district  courts,  the  judges  of  the  Court  of  Claims,  the 
judges  of  the  Court  of  Appeals  and  of  the  Supreme  Court  of  the 
District  of  Columbia,  the  judges  of  the  several  Territorial  courts,  the 
Secretary  of  State,  the  Secretary  of  the  Treasury,  the  Secretary  of  War, 
the  Secretary  of  the  Navy,  the  Secretary  of  the  Interior,  the  Post- 
master General,  the  Attorney  General,  the  Secretary  of  Agriculture,  the 
Secretary  of  Commerce  and  Labor,  the  Solicitor  General,  the  Assistant 
to  the  Attorney  General,  each  Assistant  Attorney  General,  each  United 
States  district  attorney,  each  Assistant  Secretary  of  each  Executive 
Department,  the  Assistant  Postmasters  General,  the  Secretary  of  the 
Senate  for  the  use  of  the  Senate,  the  Clerk  of  the  House  of  Repre- 
sentatives for  the  use  of  the  House  of  Representatives,  the  Governors 
of  the  Territories,  the  Solicitor  for  the  Department  of  State,  the  Treas- 
urer of  the  United  States,  the  Solicitor  of  the  Treasur}%  the  Register 
of  the  Treasury,  the  Comptroller  of  the  Treasury,  the  Comptroller  of 
the  Currency,  the  Commissioner  of  Internal  Revenue,  the  Director  of 
the  Mint,  each  of  the  six  Auditors  in  the  Treasury  Department,  the 
Judge  Advocate  General.  War  Department,  the  Paymaster  General, 
War  Department,  the  Judge  Advocate  General,  Navy  Department,  the 
Commissioner  of  Indian  Aftairs,  the  Commissioner  of  Pensions,  the 
Commissioner  of  the  General  Land  Office,  the  Commissioner  of  Pat- 
ents, the  Commissioner  of  Education,  the  Commissioner  of  Labor,  the 
Commissioner   of    Navigation,   the    Commissioner   of    Corporations,    the 


Federal  Judicial  Code  843 

Commissioner  General  of  Immigration,  the  Chief  of  the  Bureau  of 
Manufactures,  the  Director  of  the  Geological  Survey,  the  Director  of 
the  Census,  the  Forester,  Department  of  Agriculture,  the  Purchasing 
Agent,  Post  Office  Department,  the  Interstate  Commerce  Commission, 
the  Clerk  of  the  Supreme  Court  of  the  United  States,  the  Marshal  of 
the  Supreme  Court  of  the  United  States,  the  Attorney  for  the  District 
of  Columbia,  the  Naval  Academy  at  Annapolis,  the  Military  Academy 
at  West  Point,  and  the  heads  of  such  other  executive  offices  as  may  be 
provided  by  law,  of  equal  grade  with  any  of  said  offices,  each  one  copy; 
to  the  Law  Library  of  the  Supreme  Court,  twenty-five  copies ;  to  the 
Law  Library  of  the  Department  of  the  Interior,  two  copies ;  to  the  Law 
Library  of  the  Department  of  Justice,  two  copies ;  to  the  Secretary  of 
the  Senate  for  the  use  of  the  committees  of  the  Senate,  twenty-five 
copies ;  to  the  Clerk  of  the  House  of  Representatives  for  the  use  of 
the  committees  of  the  House,  thirty  copies ;  to  the  Marshal  of  the  Su- 
preme Court  of  the  United  States,  as  custodian  of  the  public  property 
used  by  the  court,  for  the  use  of  the  justices  thereof  in  the  conference 
room,  robing  room,  and  court  room,  three  copies,  to  the  Secretary  of 
War  for  the  use  of  the  proper  courts  and  officers  of  the  Philippine 
Islands  and  for  the  headquarters  of  military  departments  in  the  United 
States,  twelve  copies  ;  and  to  each  of  the  places  where  district  courts 
of  the  United  States  are  now  holden,  including  Hawaii,  and  Porto  Rico, 
one  copy.  He  shall  also  distribute  one  complete  set  of  said  reports, 
and  one  set  of  the  digests  thereof,  to  such  executive  officers  as  are  en- 
titled to  receive  said  reports  under  this  section  and  have  not  already 
received  them,  to  each  United  States  judge  and  to  each  United  States 
district  attorney  who  has  not  received  a  set,  to  each  of  the  places  where 
district  courts  are  now  held  to  which  said  reports  have  not  been  dis- 
tributed, and  to  each  of  the  places  at  which  a  district  court  may  here- 
after be  held,  the  edition  of  said  reports  and  digests  to  be  selected  by 
the  judge  or  officer  receiving  them.  No  distribution  of  reports  and 
digests  under  this  section  shall  be  made  to  any  place  where  the  court 
is  held  in  a  building  not  owned  by  the  United  States,  unless  there  be  at 
such  place  a  United  States  officer  to  whose  responsible  custody  they 
can  be  committed.  The  clerks  of  said  courts  (except  the  Supreme 
Court)  shall  in  all  cases  keep  said  reports  and  digest  for  the  use  of 
the  courts  and  of  the  officers  thereof.  Such  reports  and  digest  shall 
remain  the  property  of  the  United  States,  and  shall  be  preserved  by 
the  officers  above  named  and  by  them  turned  over  to  their  successors 
in  office. 

Maximum  Price. 

Sec.  228.  The  publishers  of  the  decisions  of  the  Supreme  Court 
shall  deliver  to  the  Attorney  General,  in  addition  to  the  three  hundred 
copies  delivered  by  the  Reporter,  such  number  of  copies  of  each  report 
heretofore  published,  as  the  Attorney  General  may  require,  for  which 
he  shall  pay  not  more  than  two  dollars  per  volume,  and  such  number 


844  Important  Federal  Laws 

of  copies  of  each  report  hereafter  pubHshed  as  he  may  require,  for 
which  he  shall  pay  not  more  than  one  dollar  and  seventy-five  cents  per 
volume.  The  Attorney  General  shall  include  in  his  annual  estimates 
submitted  to  Congress,  an  estimate  for  the  current  volumes  of  such 
reports,  and  also  for  the  additional  sets  of  reports  and  digests  required 
for  distribution  under  the  section  last  preceding. 

Federal  Reporter. 

Sec.  229.  The  Attorney  General  is  authorized  to  procure  complete 
sets  of  the  Federal  Reporter  or,  in  his  discretion,  other  publication 
containing  the  decisions  of  the  circuit  courts  of  appeals,  circuit  courts, 
and  district  courts,  and  digests  thereof,  and  also  future  volumes  of 
the  same  as  issued,  and  distribute  a  copy  of  each  such  reports  and 
digests  to  each  place  where  a  circuit  court  of  appeals,  or  a  district 
court,  is  now  or  may  hereafter  regularly  be  held,  and  to  the  Supreme 
Court  of  the  United  States,  the  Court  of  Claims,  the  Court  of  Customs 
Appeals,  the  Commerce  Court,  the  Court  of  Appeals  and  the  Supreme 
Court  of  the  District  of  Columbia,  the  Attorney  General,  the  Solicitor 
General,  the  Solicitor  of  the  Treasury,  the  Assistant  Attorney  General 
for  the  Department  of  the  Interior,  the  Commissioner  of  Patents,  and 
the  Interstate  Commerce  Commission ;  and  to  the  Secretary  of  the 
Senate,  for  the  use  of  the  Senate,  and  to  the  Clerk  of  the  House  of 
Representatives,  for  the  use  of  the  House  of  Representatives,  not  more 
than  three  sets  each.  Whenever  any  such  court  room,  office,  or  officer 
shall  have  a  partial  or  complete  set  of  any  such  reports,  or  digests, 
already  purchased  or  owned  by  the  United  States,  the  Attorney  General 
shall  distribute  to  such  court  room,  office,  or  officer,  only  sufficient  vol- 
umes to  make  a  complete  set  thereof.  No  distribution  of  reports  or 
digests  under  this  section  shall  be  made  to  any  place  where  the  court 
is  held  in  a  building  not  owned  by  the  United  States,  unless  there  be 
at  such  place  a  United  States  officer  to  whose  responsible  custody  they 
can  be  committed.  The  clerks  of  the  courts  (except  the  Supreme  Court) 
to  which  the  reports  and  digests  are  distributed  under  this  section,  shall 
keep  such  reports  and  digests  for  the  use  of  the  courts  and  the  officers 
thereof.  _  All  reports  and  digests  distributed  under  the  provisions  of 
this  section  shall  be  and  remain  the  property  of  the  United  States  and, 
before  distribution,  shall  be  plainly  marked  on  their  covers  with  the 
words  "The  Property  of  the  United  States,"  and  shall  be  transmitted 
by  the  officers  receiving  them  to  their  successors  in  office.  Not  to 
exceed  two  dollars  per  volume  shall  be  paid  for  the  back  and  current 
volumes  of  the  Federal  Reporter  or  other  publication  purchased  under 
the  provisions  of  this  section,  and  not  to  exceed  five  dollars  per  volume 
for  the  digest,  the  said  money  to  be  disbursed  under  the  direction  of  the 
Attorney  General ;  and  the  Attorney  General  shall  include  in  his  annual 
estimates  submitted  to  Congress,  an  estimate  for  the  back  and  current 
volumes  of  such  reports  and  digests,  the  distribution  of  which  is  pro- 
vided for  in  this  section. 


Federal  Judicial  Code  845 

Terms. 

Sec.  230.  The  Supreme  Court  shall  hold  at  the  seat  of  govern- 
ment, one  term  annually,  commencing  on  the  first  Monday  in  October, 
and  such  adjourned  or  special  terms  as  it  may  find  necessary  for  the 
dispatch  of  business.     (As  amended  September  6,  1916.) 

Lack  of  Quorum. 

Sec.  231.  If,  at  any  session  of  the  Supreme  Court,  a  quorum  does 
not  attend  on  the  day  appointed  for  holding  it,  the  justices  who  do 
attend  may  adjourn  the  court  from  day  to  day  for  twenty  days  after 
said  appointed  time,  unless  there  be  sooner  a  quorum.  If  a  quorum 
does  not  attend  within  said  twenty  days,  the  business  of  the  court  shall 
be  continued  over  till  the  next  appointed  session;  and  if,  during  a  term, 
after  a  quorum  has  assembled,  less  than  that  number  attend  on  any  day, 
the  justices  attending  may  adjourn  the  court  from  day  to  day  until 
there  is  a  quorum,  or  may  adjourn  without  day. 

Orders  by  Less  Than  a  Quorum. 

Sec.  232.  The  justices  attending  at  any  term,  when  less  than  a 
quorum  is  present,  may,  within  the  twenty  days  mentioned  in  the  pre- 
ceding section,  make  all  necessary  orders  touching  any  suit,  proceed- 
ing, or  process,  depending  in  or  returned  to  the  court,  preparatory  to 
the  hearing,  trial,  or  decision  thereof. 

Suits  Against  Ambassadors. 

Sec.  233.  The  Supreme  Court  shall  have  exclusive  jurisdiction  of 
all  controversies  of  a  civil  nature  where  a  State  is  a  party,  except 
between  a  State  and  its  citizens,  or  between  a  State  and  citizens  of  other 
States,  or  aliens,  in  which  latter  cases  it  shall  have  original,  but  not 
exclusive,  jurisdiction.  And  it  shall  have  exclusively  all  such  juris- 
diction of  suits  or  proceedings  against  ambassadors  or  other  public 
ministers,  or  their  domestics  or  domestic  servants,  as  a  court  of  law 
can  have  consistently  with  the  law  of  nations ;  and  original,  but  not 
exclusive,  jurisdiction,  of  all  suits  brought  by  ambassadors,  or  other 
public  ministers,  or  in  which  a  consul  or  vice  consul  is  a  party. 

Writs  of  Prohibition  and  Mandamus. 

Sec.  234.  The  Supreme  Court  shall  have  power  to  issue  writs  of 
prohibition  to  the  district  courts,  when  proceeding  as  courts  of  admi- 
ralty and  maritime  jurisdiction ;  and  writs  of  mandamus,  in  cases  war- 
ranted by  the  principles  and  usages  of  law,  to  any  courts  appointed 
under  the  authority  of  the  United  States,  or  to  persons  holding  office 
under  the  authority  of  the  United  States,  where  a  State,  or  an  ambas- 
sador, or  other  public  minister,  or  a  consul,  or  vice  consul  is  a  party. 

Trial  of  Facts  by  Jury. 

Sec.  235.  The  trial  of  issues  of  fact  in  the  Supreme  Court,  in  all 
actions  at  law  against  citizens  of  the  United  States,  shall  be  by  jury. 


846  Important  Federal  Laws 

Appellate  Jurisdiction. 

Sec.  236.  The  Supreme  Court  shall  have  appellate  jurisdiction  in 
the  cases  hereinafter  specially  provided   for. 

Writs  of  Error  from  State  Courts. 

Sec.  237.  A  final  judgment  or  decree  in  any  suit  in  the  highest 
court  of  a  State  in  which  a  decision  in  the  suit  could  be  had,  where 
is  drawn  in  question  the  validity  of  a  treaty  or  statute  of,  or  an  author- 
ity exercised  under,  the  United  States,  and  the  decision  is  against  their 
validity;  or  where  is  drawn  in  question  the  validity  of  a  statute  of,  or  an 
authority  exercised  under  any  State,  on  the  ground  of  their  being 
repugnant  to  the  Constitution,  treaties,  or  laws  of  the  United  States, 
and  the  decision  is  in  favor  of  their  validity,  may  be  re-examined  and 
reversed  or  affirmed  in  the  Supreme  Court  upon  a  writ  of  error.  The 
writ  shall  have  the  same  efTect  as  if  the  judgment  or  decree  complained 
of  had  been  rendered  or  passed  in  a  court  of  the  United  States.  The 
Suj^reme  Court  may  reverse,  modify,  or  affirm  the  judgment  or  decree 
of  such  State  court,  and  may,  in  its  discretion,  award  execution  or 
remand  the  same  to  the  court  from  which  it  was  removed  by  the  writ. 

It  shall  be  competent  for  the  Supreme  Court  by  certiorari  or  other- 
wise, to  require  that  there  be  certified  to  it  for  review  and  determina- 
tion with  the  same  power  and  authority  and  with  like  effect  as  if 
brought  up  by  writ  of  error,  any  cause  wherein  a  final  judgment  or 
decree  has  been  rendered  or  passed  by  the  highest  court  of  a  state  in 
which  a  decision  could  be  had.  where  is  drawn  in  question  the  validity 
of  a  treatv  or  statute  of,  or  an  authority  exercised  under,  the  United 
States,  and  the  decision  is  in  favor  of  their  validity ;  or  where  is  drawn 
in  question  the  validity  of  a  statute  of,  or  an  authority  exercised  under, 
any  state,  on  the  ground  of  their  being  repugnant  to  the  Constitution, 
treaties,  or  laws  of  the  United  States,  and  the  decision  is  against  their 
validity ;  or  where  any  title,  right,  privilege,  or  immunity  is  claimed 
under  the  Constitution,  or  any  treaty  or  statute  of,  or  commission  held 
or  authority  exercised  under  the  United  States,  and  the  decision  is  either 
in  favor  of  or  against  the  title,  right,  privilege  or  immunity  especialh'' 
set  up  or  claimed,  by  either  party,  under  such  Constitution,  treaty, 
statute,  commission,  or  authority.     (As  amended  September  6,  1916.) 

Appeals  from  District  Court. 

Sec.  238.  Appeals  and  writs  of  error  may  be  taken  from  the 
district  courts,  including  the  United  States  district  court  for  Hawaii 
and  the  United  States  district  court  for  Porto  Rico,  direct  to  the 
Supreme  Court  in  the  following  cases :  In  any  case  in  which  the  juris- 
diction of  the  court  is  in  issue,  in  which  case  the  question  of  jurisdic- 
tion alone  shall  be  certified  to  the  Supreme  Court  from  the  court  below 
for  decision ;  from  the  final  sentences  and  decrees  in  prize  causes ;  in 
any  case  that  involves  the  construction  or  application  of  the  Constitu- 
tion of  the  United  States  ;  in  any  case  in  which  the  constitutionality  of 
any  law  of  the  United   States,  or  the  validity  or  construction   of   any 


Federal  Judicial  Code  847 

treaty  made  under  its  authority  is  drawn  in  question ;  and  in  any  case 
in  which  the  constitution  or  law  of  a  State  is  claimed  to  be  in  contra- 
vention of  the  Constitution  of  the  United  States.  (As  amended  January 
28,  1915.) 

Cases  Submitted  for  Instruction. 

Sec.  239.  In  any  case  within  its  appellate  jurisdiction,  as  defined 
in  section  one  hundred  and  twenty-eight,  the  circuit  court  of  appeals  at 
any  time  may  certify  to  the  Supreme  Court  of  the  United  States  any 
questions  or  propositions  of  law  concerning  which  it  desires  the  instruc- 
tion of  that  court  for  its  proper  decision;  and  thereupon  the  Supreme 
Court  may  either  give  its  instruction  on  the  questions  and  propositions 
certified  to  it,  which  shall  be  binding  upon  the  circuit  court  of  appeals 
in  such  case,  or  it  may  require  that  the  whole  record  and  cause  be  sent 
up  to  it  for  its  consideration,  and  thereupon  shall  decide  the  whole 
matter  in  controversy  in  the  same  manner  as  if  it  had  been  brought 
there  for  review  by  writ  of  error  or  appeal. 

Certiorari  to  Circuit  Court  of  Appeals- 

Sec.  240.  In  any  case,  civil  or  criminal,  in  which  the  judgment 
or  decree  of  the  circuit  court  of  appeals  is  made  final  by  the  provisions 
of  this  Title,  it  shall  be  competent  for  the  Supreme  Court  to  require, 
by  certiorari  or  otherwise,  upon  the  petition  of  any  party  thereto,  any 
such  case  to  be  certified  to  the  Supreme  Court  for  its  review  and  deter- 
mination, with  the  same  power  and  authority  in  the  case  as  if  it  had 
been  carried  by  appeal  or  writ  of  error  to  the  Supreme  Court. 

Writs  and  Appeals  from  Circuit  Court  of  Appeals. 

Sec.  241.  In  any  case  in  which  the  judgment  or  decree  of  the  cir- 
cuit court  of  appeals  is  not  made  final  by  the  provisions  of  this  Title, 
there  shall  be  of  right  an  appeal  or  writ  of  error  to  the  Supreme  Court 
of  the  United  States  where  the  matter  in  controversy  shall  exceed  one 
thousand  dollars,  besides  costs. 

Appeals  from  Court  of  Claims. 

Sec.  242.  An  appeal  to  the  Supreme  Court  shall  be  allowed  on 
behalf  of  the  United  States,  from  all  judgments  of  the  Court  of  Claims 
adverse  to  the  United  States,  and  on  behalf  of  the  plaintiff  in  any  case 
w^here  the  amount  in  controversy  exceeds  three  thousand  dollars,  or 
where  his  claim  is  forfeited  to  the  United  States  by  the  judgment  of 
said  court  as  provided  in  section  one  hundred  and  seventy-two. 
Time  of  Appeal. 

Sec.  243.  All  appeals  from  the  Court  of  Claims  shall  be  taken 
within  ninety  days  after  the  judgment  is  rendered,  and  shall  be  allowed 
under  such  regulations  as  the  Supreme  Court  may  direct. 

(Supplemental  Section.     Acts  of  1915.) 
Appeals  in  Bankruptcy. 

Sec.  4.  That  judgments  and  decrees  of  the  circuit  courts  of  ap- 
peals in  all  proceedings  and  causes  arising  under  "An  Act  to  establish 


848  Important  Federal  Laws 

a  uniform  system  of  bankruptcy  throughout  the  United  States,"  ap- 
proved July  first,  eighteen  hundred  and  ninety-eight,  and  in  all  contro- 
versies arising  in  such  proceedings  and  causes ;  also,  in  all  causes  arising 
under  "An  Act  relating  to  the  liability  of  common  carriers  by  railroad 
to  their  employees  in  certain  cases,"  approved  April  twenty-second, 
nineteen  hundred  and  eight;  also,  in  all  causes  arising  under  "An  Act 
to  promote  the  safety  of  employees  and  travelers  upon  railroads  by 
limiting  the  hours  of  service  of  employees  thereon,"  approved  March 
fourth,  nineteen  hundred  and  seven ;  also,  in  all  causes  arising  under 
"An  Act  to  promote  the  safety  of  employees  and  travelers  upon  rail- 
roads by  compelling  common  carriers  engaged  in  interstate  commerce 
to  equip  their  cars  with  automatic  couplers  and  continuous  brakes  and 
their  locomotives  with  driving-wheel  brakes,  and  for  other  purposes," 
approved  March  second,  eighteen  hundred  and  ninety-three;  and,  also, 
in  all  causes  arising  under  any  amendment  or  supplement  to  any  one 
of  the  aforementioned  Acts  which  has  been  heretofore  or  may  here- 
after be  enacted,  shall  be  final,  save  only  that  it  shall  be  competent  for 
the  Supreme  Court  to  require  by  certiorari,  upon  the  petition  of  any 
party  thereto,  that  the  proceeding,  case,  or  controversy  be  certified  to 
it  for  review  and  determination,  with  the  same  power  and  authority 
and  with  like  effect  as  if  taken  to  that  court  by  appeal  or  writ  of  error. 
(As   amended,    1916.) 

(Supplemental   Sections.     Acts  of  1915.) 
Jurisdiction  in  Certain  Railroad  Cases. 

Sec.  5.     No  court  of  the  United  States  shall  have  jurisdiction  of 
any  action  or  suit  by  or  against  any  railroad  company  upon  the  ground 
that  said  railroad  company   was   incorporated  under   an   Act  of    Con- 
gress. 
Not  to  Affect  Pending  Cases. 

Sec.  6.  That  this  Act  shall  not  afifect  cases  now  pending  in  the 
Supreme  Court  of  the  United  States  or  cases  in  which  writs  of  error 
or  appeals  have  been  allowed  at  the  date  of  its  approval.  And  nothing 
in  this  Act  shall  be  deemed  to  repeal,  amend,  or  modify  the  provisions 
of  an  Act  entitled  "An  Act  providing  for  writs  of  error  in  certain  in- 
stances  in   criminal   cases,"   approved   March   second,   nineteen  hundred 

and  seven. 

(Supplemental  Sections.     Acts  of  1916.) 

Sec.  4.  That  no  court  having  power  to  review  a  judgment  or 
decree  rendered  or  passed  by  another  shall  dismiss  a  writ  of  error  solely 
because  an  appeal  should  have  been  taken,  or  dismiss  an  appeal  solely 
because  a  writ  of  error  should  have  been  sued  out,  but  when  such  mis- 
take or  error  occurs  it  shall  disregard  the  samd  and  take  the  action 
which  would  be  appropriate  if  the  proper  appellate  procedure  had  been 
followed. 

Sec.   5.     That  no  judgment  or  decree  rendered  or  passed  by  the 


Federal  Judicial  Code  849 

Supreme  Court  of  the  Philippine  Islands  more  than  sixty  days  after 
the  approval  of  this  Act  shall  he  reviewed  by  the  Supreme  Court  upon 
writ  of  error  or  appeal ;  but  it  shall  be  competent  for  the  Supreme 
Court,  by  certiorari  or  otherwise,  to  require  that  there  be  certified  to 
it  for  review  and  determination,  with  the  same  power  and  authority 
and  with  like  effect  as  if  brought  up  by  writ  of  error  or  appeal,  any 
cause  wherein,  after  such  sixty  days,  the  Supreme  Court  of  the  Phil- 
ippine Islands  may  render  or  pass  a  judgment  or  decree  which  would 
be  subject  to  review  under  existing  laws. 

Sec.  6.  That  no  writ  of  error,  appeal,  or  writ  or  certiorari  in- 
tended to  bring  up  any  cause  for  review  by  the  Supreme  Court  shall 
be  allowed  or  entertained  unless  duly  applied  for  wnthin  three  months 
after  entry  of  the  judgment  or  decree  complained  of:  Provided,  That 
writs  of  certiorari  addressed  to  the  Supreme  Court  of  the  Philippine 
Islands  may  be  granted  if  application  therefor  be  made  within  six 
months. 

Sec.  7.  That  this  Act  shall  take  effect  thirty  days  after  its  ap- 
proval, but  it  shall  not  apply  to  nor  affect  any  writ  of  error,  appeal, 
or  writ  of  certiorari  theretofore  duly  applied  for.  The  right  of  review 
under  existing  laws  in  respect  of  judgments  and  decrees  entered  before 
this  Act  takes  effect  shall  remain  unaffected  for  the  period  of  six 
months  thereafter,  but  at  the  end  of  that  time  such  right  shall  cease. 

Section  244  repealed,  i\ct  of  January  28,  1915. 

Appeals — Territories. 

Sec.  245.  Writs  of  error  and  appeals  from  the  final  judgments 
and  decrees  of  the  supreme  courts  of  the  Territories  of  Arizona  and 
New  Mexico  may  be  taken  and  prosecuted  to  the  Supreme  Court  of 
the  United  States  in  any  case  w4ierein  is  involved  the  validity  of  any 
copyright,  or  in  which  is  drawn  in  question  the  validity  of  a  treaty  or 
statute  of.  or  authority  exercised  under,  the  United  States,  without 
regard  to  the  sum  or  value  of  the  matter  in  dispute ;  and  in  all  other 
cases  in  which  the  sum  or  value  of  the  matter  in  dispute,  exclusive  of 
costs,  to  be  ascertained  by  the  oath  of  either  party  or  of  other  com- 
petent witnesses,  exceeds  the  sum  or  value  of  five  thousand  dollars. 

Appeals — Hawaii  and  Porto  Rico. 

Sec.  246.  Writs  of  error  and  appeals  from  the  final  judgments 
and  decrees  of  the  Supreme  Court  of  the  Territory  of  Hawaii  and  of 
the  Supreme  Court  of  Porto  Rico  may  be  taken  and  prosecuted  to  the 
Supreme  Court  of  the  United  States  within  the  same  time,  in  the  same 
manner,  under  the  same  regulations,  and  in  the  same  classes  of  cases, 
in  which  writs  of  error  and  appeals  from  the  final  judgments  and  de- 
crees of  the  highest  court  of  a  State  in  which  a  decision  in  the  suit 
could  be  had,  may  be  taken  and  prosecuted  to  the  Supreme  Court  of 
the  United  States  under  the  provisions  of  section  two  hundred  and 
thirty-seven,  and  in  all  other  cases,  civil  or  criminal,  in  the  Supreme 
Court  of  the  Territory  of  JJawaii  or  the  Supreme  Court  of  Porto  Rico, 
(54) 


850  Important  Federal  Laws 

it  shall  be  competent  for  the  Supreme  Court  of  the  United  States  to 
require  by  certiorari,  upon  the  petition  of  any  party  thereto,  that  the 
case  be  certified  to  it,  after  final  judgment  or  decree,  for  review  and 
determination,  with  the  same  power  and  authority  as  if  taken  to  that 
court  by  appeal  or  writ  of  error ;  but  certiorari  shall  not  be  allowed  in 
any  such  case  unless  the  petition  therefor  is  presented  to  the  Supreme 
Court  of  the  United  States  within  six  months  from  the  date  of  such 
judgment  or  decree.  Writs  of  error  and  appeals  from  the  final  judg- 
ments and  decrees  of  the  supreme  courts  of  the  Territory  of  Hawaii 
and  of  Porto  Rico,  wherein  the  amount  involved,  exclusive  of  costs,  to 
be  ascertained  by  the  oath  of  either  party  or  of  other  competent  wit- 
nesses, exceeds  the  value  of  $5,CKX),  may  be  taken  and  prosecuted  in  the 
circuit  courts  of  appeals.     (As  amended  January  28,  1915.) 

Appeals — Alaska. 

Sec.  247.  Appeals  and  writs  of  error  may  be  taken  and  prosecuted 
from  final  judgments  and  decrees  of  the  district  court  for  the  district 
of  Alaska  or  for  any  division  thereof,  direct  to  the  Supreme  Court 
of  the  United  States,  in  the  following  cases :  In  prize  cases ;  and  in 
all  cases  which  involve  the  construction  or  application  of  the  Constitu- 
tion of  the  United  States,  or  in  which  the  constitutionality  of  any  law 
of  the  United  States  or  the  validity  or  construction  of  any  treaty  made 
under  its  authority  is  drawn  in  question,  or  in  which  the  constitution 
or  law  of  a  State  is  claimed  to  be  in  contravention  of  the  Constitution 
of  the  United  States.  Such  writs  of  error  and  appeal  shall  be  taken 
within  the  same  time,  in  the  same  manner,  and  under  the  same  regula- 
tions as  writs  of  error  and  appeals  are  taken  from  the  district  courts  to 
the  Supreme  Court. 

Review  of  Philippine  Cases. 

Sec.  248.  The  Supreme  Court  of  the  United  States  shall  have 
jurisdiction  to  review,  revise,  reverse,  modify,  or  affirm  the  final  judg- 
ments and  decrees  of  the  supreme  court  of  the  Philippine  Islands  in 
all  actions,  cases,  causes,  and  proceedings  now  pending  therein  or  here- 
after determined  thereby,  in  which  the  Constitution  or  any  statute, 
treaty,  title,  right,  or  privilege  of  the  United  States  is  involved,  or  in 
causes  in  which  the  value  in  controversy  exceeds  twenty-five  thousand 
dollars,  or  in  which  the  title  or  possession  of  real  estate  exceeding  in 
value  the  sum  of  twenty-five  thousand  dollars,  to  be  ascertained  bv  the 
oath  of  either  party  or  of  other  competent  witnesses,  is  involved  or 
brought  in  question;  and  such  final  judgments  or  decrees  may  and  can 
be  reviewed,  revised,  reversed,  modified,  or  affirmed  by  said  Supreme 
Court  on  appeal  or  writ  of  error  by  the  party  aggrieved,  within  the 
same  time,  in  the  same  manner,  under  the  same  regulations,  and  by  the 
same  procedure,  as  far  as  applicable,  as  the  final  judgments  and  decrees 
of  the  district  courts  of  the  United  States. 


Federal  Judicial  Code  851 

When  Territory  Becomes  State. 

Sec.  249.  In  all  cases  where  the  judgment  or  decree  of  any  court 
of  a  Territory  might  be  reviewed  by  the  Supreme  Court  on  writ  of 
error  or  appeal,  such  writ  of  error  or  appeal  may  be  taken,  within  the 
time  and  in  the  manner  provided  by  law,  notwithstanding  such  Terri- 
tory has,  after  such  judgment  or  decree,  been  admitted  as  a  State;  and 
the  Supreme  Court  shall  direct  the  mandate  to  such  court  as  the  nature 
of  the  writ  of  error  or  appeal  requires. 

Appeal  from  District  of  Columbia, 

Sec.  250.  Any  final  judgment  or  decree  of  the  court  of  appeals 
of  the  District  of  Columbia  may  be  re-examined  and  affirmed,  reversed, 
or  modified  by  the  Supreme  Court  of  the  United  States,  upon  writ  of 
error  or  appeal,  in  the  following  cases : 

First.  In  cases  in  which  the  jurisdiction  of  the  trial  court  is  in 
issue ;  but  when  any  such  case  is  not  otherwise  reviewable  in  said 
Supreme  Court,  then  the  question  of  jurisdiction  alone  shall  be  certi- 
fied to  said  Supreme  Court  for  decision. 

Second.     In  prize  cases. 

Third.  In  cases  involving  the  construction  or  application  of  the 
Constitution  of  the  United  States,  or  the  constitutionality  of  any  law 
of  the  United  States,  or  the  validity  or  construction  of  any  treaty  made 
under  its  authority. 

Fourth.  In  cases  in  which  the  constitution,  or  any  law  of  a  State, 
is  claimed  to  be  in  contravention  of  the  Constitution  of  the  United 
States. 

Fifth.  In  cases  in  which  the  validity  of  any  authority  exercised 
under  the  United  States,  or  the  existence  or  scope  of  any  power  or 
duty  of  an  officer  of  the  United  States  is  drawn  in  question. 

Sixth.  In  cases  in  which  the  construction  of  any  law  of  the  United 
States  is  drawn  in  question  by  the  defendant. 

Except  as  provided  in  the  next  succeeding  section,  the  judgments 
and  decrees  of  said  court  of  appeals  shall  be  final  in  all  cases  arising 
under  the  patent  laws,  the  copyright  laws,  the  revenue  laws,  the  crim- 
inal laws,  and  in  admiralty  cases ;  and,  except  as  provided  in  the  next 
succeeding  section,  the  judgments  and  decrees  of  said  court  of  appeals 
shall  be  final  in  all  cases  not  reviewable  as  hereinbefore  provided. 

Writs  of  error  and  appeals  shall  be  taken  within  the  same  time,  in 
the  same  manner,  and  under  the  same  regulations  as  writs  of  error  and 
appeals  are  taken  from  the  circuit  courts  of  appeals  to  the  Supreme 
Court  of  the  United  States. 

Certiorari  in  Certain  Cases  in  District  of  Columbia. 

Sec.  251.  In  any  case  in  which  the  judgment  or  decree  of  said 
court  of  appeals  is  made  final  by  the  section  last  preceding,  it  shall  be 
competent  for  the  Supreme  Court  of  the  United  States  to  require,  by 
certiorari  or  otherwise,  any  such  case  to  be  certified  to  it  for  its  review 


852  Important  Federal  Laws 

and  determination,  with  the  same  power  and  authority  in  the  case  as 
if  it  had  been  carried  by  writ  of  error  or  appeal  to  said  Supreme  Court. 
It  shall  also  be  competent  for  said  court  of  appeals,  in  any  case  in  which 
its  judgment  or  decree  is  made  final  under  the  section  last  preceding, 
at  any  time  to  certify  to  the  Supreme  Court  of  the  United  States  any 
questions  or  propositions  of  law  concerning  which  it  desires  the  in- 
struction of  that  court  for  their  proper  decision ;  and  thereupon  the 
Supreme  Court  may  either  give  its  instructions  on  the  questions  and 
propositions  certified  to  it,  which  shall  be  binding  upon  said  courts  of 
appeals  in  such  case,  or  it  may  require  that  the  whole  record  and  cause 
be  sent  up  to  it  for  its  consideration,  and  thereupon  shall  decide  the 
whole  matter  in  controversy  in  the  same  manner  as  if  it  had  been 
brought  there  for  review  by  writ  of  error  or  appeal. 

Claims  in  Bankruptcy. 

Sec.  252.  The  Supreme  Court  of  the  United  States  is  hereby  in- 
vested with  appellate  jurisdiction  of  controversies  arising  in  bank- 
ruptcy proceedings,  from  the  courts  of  bankruptcy,  from  which  it  has 
appellate  jurisdiction  in  other  cases;  and  shall  exercise  a  like  jurisdic- 
tion from  courts  of  bankruptcy  not  within  any  organized  circuit  of  the 
United  States  and  from  the  supreme  court  of  the  District  of  Columbia. 

An  appeal  may  be  taken  to  the  Supreme  Court  of  the  United  States 
from  any  final  decision  of  a  court  of  appeals  allowing  or  rejecting  a 
claim  under  the  laws  relating  to  bankruptcy,  under  such  rules  and 
within  such  time  as  may  be  prescribed  by  said  Supreme  Court,  in  the 
following  cases  and  no  other : 

First.  Where  the  amount  in  controversy  exceeds  the  sum  of  two 
thousand  dollars,  and  the  question  involved  is  one  which  might  have 
been  taken  on  appeal  or  writ  of  error  from  the  highest  court  of  a  State 
to  the  Supreme  Court  of  the  United  States ;  or 

Second.  Where  some  justice  of  the  Supreme  Court  shall  certify 
that  in  his  opinion  the  determination  of  the  question  involved  in  the 
allowance  or  rejection  of  such  claim  is  essential  to  a  uniform  construc- 
tion of  the  laws  relating  to  bankruptcy  throughout  the  United   States. 

Controversies  may  be  certified  to  the  Supreme  Court  of  the  United 
States  from  other  courts  of  the  United  States,  and  the  former  court 
may  exercise  jurisdiction  thereof,  and  may  issue  writs  of  certiorari 
pursuant  to  the  provisions  of  the  United  States  laws  now  in  force  or 
such  as  may  be  hereafter  enacted. 

Procedure  of  Criminal  Cases  from  a  State  Court. 

Sec.  253.  Cases  on  writ  of  error  to  revise  the  judgment  of  a 
State  court  in  any  criminal  case  shall  have  precedence  on  the  docket  of 
the  Supreme  Court,  of  all  cases  to  which  the  Government  of  the  United 
States  is  not  a  party,  excepting  only  such  cases  as  the  court,  in  its 
discretion,  may  decide  to  be  of  public  importance. 


Federal  Judicial  Code  853 

Printing  Cost. 

Sec.  254.  There  shall  be  taxed  against  the  losing  party  in  each 
and  every  cause  pending  in  the  Supreme  Court  the  cost  of  printing  the 
record  in  such  case,  except  when  the  judgment  is  against  the  United 
States. 

Women  May  Practice  Before  United  States  Supreme  Court. 

Sec.  255.  Any  woman  who  shall  have  been  a  member  of  the  bar 
of  the  highest  court  of  any  State  or  Territory,  or  of  the  court  of  appeals 
of  the  District  of  Columbia,  for  the  space  of  three  years,  and  shall 
have  maintained  a  good  standing  before  such  court,  and  who  shall  be  a 
person  of  good  moral  character,  shall,  on  motion,  and  the  production 
of  such  record,  be  admitted  to  practice  before  the  Supreme  Court  of  the 
United  States. 

CHAPTER  XI. 
Provisions  Common  to  More  Than  One  Court. 

Exclusive  Jurisdiction. 

Sec.  256.  The  jurisdiction  vested  in  the  courts  of  the  United 
States  in  the  cases  and  proceedings  hereinafter  mentioned,  shall  be 
exclusive  of  the  courts  of  the  several  States : 

First.  Of  all  crimes  and  offenses  cognizable  under  the  authority 
of  the  United  States. 

Second.  Of  all  suits  for  penalties  and  forfeitures  incurred  under 
the  laws  of  the  United  States. 

Third.  Of  all  civil  causes  of  admiralty  and  maritime  jurisdiction; 
saving  to  suitors,  in  all  cases,  the  right  of  a  common-law  remedy,  where 
the  common  law  is  competent  to  give  it. 

Fourth.  Of  all  seizures  under  the  laws  of  the  United  States,  on 
land  or  on  waters  not  within  admiralty  and  maritime  jurisdiction;  of 
all  prizes  brought  into  the  United  States ;  and  of  all  proceedings  for  the 
condemnation  of  property  taken  as  prize. 

Fifth.  Of  all  cases  arising  under  the  patent-right,  or  copyright 
laws  of  the  United  States. 

Sixth.     Of  all  matters  and  proceedings  in  bankruptcy. 

Seventh.  Of  all  controversies  of  a  civil  nature,  where  a  State  is  a 
party,  except  between  a  State  and  its  citizens,  or  between  a  State  and 
citizens  of  other  States,  or  aliens. 

Eighth.  Of  all  suits  and  proceedings  against  ambassadors,  or  other 
public  ministers,  or  their  domestics,  or  domestic  servants,  or  against 
consuls  or  vice-consuls. 

Oath  of  Office. 

Sec.  257.  The  justices  of  the  Supreme  Court,  the  circuit  judges, 
and  the  district  judges,  hereafter  appointed,  shall  take  the  following 
oath  before  they  proceed  to  perform  the  duties  of  their  respective 
offices:     "I, ,  do  solemnly  swear   (or  afifirm)   that  I  will  ad- 


854  Important  Federal  Laws 

minister  justice  without  respect  to  persons,  and  do  equal  right  to  the 
poor  and  to  the  rich,  and  that  I  will  faithfully  and  impartially  dis- 
charge and  perform  all  the  duties  incumbent  upon  me  as  accord- 
ing to  the  best  of  my  abilities  and  understanding,  agreeably  to  the 
Constitution  and  laws  of  the  United  States :     So  help  me  God." 

Judges  Not  to  Practice  Law. 

Sec.  258.  It  shall  not  be  lawful  for  any  judge  appointed  under  the 
authority  of  the  United  States  to  exercise  the  profession  or  employment 
of  counsel  or  attorney,  or  to  be  engaged  in  the  practice  of  the  law.  Any 
person  offending  against  the  prohibition  of  this  section  shall  be  deemed 
guilty  of  a  high  misdemeanor. 

Expenses. 

Sec.  259.  The  circuit  justices,  the  circuit  and  district  judges  of  the 
United  States,  and  the  judges  of  the  district  courts  of  the  United 
States  in  Alaska,  Hawaii,  and  Porto  Rico,  shall  each  be  allowed  and 
paid  his  necessary  expenses  of  travel,  and  his  reasonable  expenses 
(not  to  exceed  ten  dollars  per  day)  actually  incurred  for  maintenance, 
consequent  upon  his  attending  court  or  transacting  other  official  busi- 
ness in  pursuance  of  law  at  any  place  other  than  his  official  place 
of  residence,  said  expenses  to  be  paid  by  the  marshal  of  the  dis- 
trict in  which  such  court  is  held  or  official  business  transacted,  upon 
the  written  certificate  of  the  justice  or  judge.  The  official  place  of 
residence  of  each  justice  and  of  each  circuit  judge  while  assigned 
to  the  Commerce  Court  shall  be  at  Washington ;  and  the  official  place 
of  residence  of  each  circuit  and  district  judge,  and  of  each  judge 
of  the  district  courts  of  the  United  States  in  Alaska,  Hawaii,  and 
Porto  Rico,  shall  be  at  that  place  nearest  his  actual  residence  at  which 
either  a  circuit  court  of  appeals  or  a  district  court  is  regularly  held. 
Every  such  judge  shall,  upon  his  appointment,  and  from  time  to 
time  thereafter  whenever  he  may  change  his  official  residence,  in  writ- 
ing notify  the  Department  of  Justice  of  his  official  place  of  residence. 

Retired  Judges. 

Sec.  260.  When  any  judge  of  any  court  of  the  United  States  ap- 
pointed to  hold  his  office  during  good  behavior  resigns  his  office,  after 
having  held  a  commission  or  commissions  as  judge  of  any  such  court 
or  courts  at  least  ten  years  continuously,  and  having  attained  the 
age  of  seventy  years,  he  shall,  during  the  residue  of  his  natural  life, 
receive  the  salary  which  is  payable  at  the  time  of  his  retirement  for 
the  office  that  he  held  at  the  time  of  his  resignation. 

Writs  of  Ne  Exeat. 

Sec.  261.  Writs  of  ne  exeat  may  be  granted  by  any  justice  of  the 
Supreme  Court,  in  cases  where  they  might  be  granted  by  the  Supreme 
Court;  and  by  any  district  judge,  in  cases  where  they  might  be  granted 
by  the  district  court  of  which  he  is  a  judge.  But  no  writ  of  ne  exeat 
shall   be   granted   unless   a   suit   in   equity   is   commenced,   and   satisfac- 


Federal  Judicial  Code  855 

tory  proof  is  made  to  the  court  or  judge  granting  the  same  that  the 
defendant  designs  quickly  to  depart  from  the  United  States. 

Power  to  Issue  Writs. 

Sec.  262.  The  Supreme  Court  and  the  district  courts  shall  have 
power  to  issue  writs  of  scire  facias.  The  Supreme  Court,  the  circuit 
courts  of  appeals,  and  the  district  courts  shall  have  power  to  issue 
all  writs  not  specifically  provided  for  by  statute,  which  may  be  nec- 
essary for  the  exercise  of  their  respective  jurisdictions,  and  agreeable 
to  the  usages  and  principles  of  law. 

Section  263  repealed  by  Clayton  Anti-Trust  Act,  page  238. 

Injunctions. 

Sec.  264.  Writs  of  injunction  may  be  granted  by  any  justice  of  the 
Supreme  Court  in  cases  where  they  might  be  granted  by  the  Supreme 
Court ;  and  by  any  judge  of  a  district  court  in  cases  where  they 
might  be  granted  by  such  court.  But  no  justice  of  the  Supreme  Court 
shall  hear  or  allow  any  application  for  an  injunction  or  restraining 
order  in  any  cause  pending  in  the  circuit  to  which  he  is  allotted,  else- 
where than  within  such  circuit,  or  at  such  place  outside  of  the  same 
as  the  parties  may  stipulate  in  writing,  except  when  it  can  not  be  heard 
by  the  district  judge  of  the  district.  In  case  of  the  absence  from  the 
district  of  the  district  judge,  or  of  his  disability,  any  circuit  judge 
of  the  circuit  in  which  the  district  is  situated  may  grant  an  injunc- 
tion or  restraining  order  in  any  case  pending  in  the  district  court, 
where  the  same  might  be  granted  by  the  district  judge. 

No  Injunction  to  State  Courts  Except  in  Bankruptcy. 

Sec.  265.  The  writ  of  injunction  shall  not  be  granted  by  anv  court 
of  the  United  States  to  stay  proceedings  in  any  court  of  a  State,  ex- 
cept in  cases  where  such  injunction  may  be  authorized  by  any  law  re- 
lating to  proceedings  in  bankruptcy. 

Injunction  on  Constitutionality  of  State  Laws. 

Sec.  266.  No  interlocutory  injunction  suspending  or  restraining  the 
enforcement,  operation,  or  execution  of  any  statute  of  a  State  by 
restraining  the  action  of  any  officer  of  such  State  in  the  enforcement 
or  execution  of  such  statute,  or  in  the  enforcement  or  execution  of  an 
order  made  by  an  administrative  board  or  commission  acting  under  and 
pursuant  to  the  statutes  of  such  state,  shall  be  issued  or  granted  by  any 
justice  of  the  Supreme  Court,  or  by  any  district  court  of  the  United 
States,  or  by  any  judge  thereof,  or  by  any  circuit  judge  acting  as  district 
judge,  upon  the  ground  of  the  unconstitutionality  of  such  statute, 
unless  the  application  for  the  same  shall  be  presented  to  a  justice  of 
the  Supreme  Court  of  the  United  States,  or  to  a  circuit  or  district 
judge,  and  shall  be  heard  and  determined  by  three  judges,  of  whom 
at  least  one  shall  be  a  justice  of  the  Supreme  Court,  or  a  circuit  judge, 
and  the  other  two  may  be  either  circuit  or  district  judges,  and  unless 


856  Important  Federal  Laws 

a  majority  of  said  three  judges  shall  concur  in  granting  such  applica- 
tion. Whenever  such  application  as  aforesaid  is  presented  to  a  jus- 
tice of  the  Supreme  Court,  or  to  a  judge,  he  shall  immediately  call  to 
his  assistance  to  hear  and  determine  the  application  two  other  judges: 
Provided,  however.  That  one  of  such  three  judges  shall  be  a  justice 
of  the  Supreme  Court,  or  a  circuit  judge.  Such  application  shall  not 
be  heard  or  determined  before  at  least  five  days'  notice  of  the  hearing 
has  been  given  to  the  governor  and  to  the  attorney  general  of  the 
State,  and  to  such  other  persons  as  may  be  defendants  in  the  suit: 
Provided,  That  if  of  opinion  that  irreparable  loss  or  damage  would 
result  to  the  complainant  unless  a  temporary  restraining  order  is 
granted,  any  justice  of  the  Supreme  Court,  or  any  circuit  or  district 
judge,  may  grant  such  temporary  restraining  order  at  any  time  be- 
fore such  hearing  and  determination  of  the  application  for  an  interloc- 
utory injunction,  but  such  temporary  restraining  order  shall  remain 
in  force  only  until  the  hearing  and  determination  of  the  application 
for  an  interlocutory  injunction  upon  notice  as  aforesaid.  The  hearing 
upon  such  application  for  an  interlocutory  injunction  shall  be  given 
precedence  and  shall  be  in  every  way  expedited  and  be  assigned  for 
a  hearing  at  the  earliest  practicable  day  after  the  expiration  of  the 
notice  hereinbefore  provided  for.  An  appeal  may  be  taken  direct  to 
the  Supreme  Court  of  the  United  States  from  the  order  granting  or 
denying,  after  notice  and  hearing,  an  interlocutory  injunction  in  such 
case.  It  is  further  provided,  that  if  before  the  final  hearing  of  such 
application,  a  suit  shall  have  been  brought  in  a  court  of  this  State  hav- 
ing jurisdiction  thereof  under  the  laws  of  such  State  to  enforce  such 
statute  or  order,  accompanied  by  a  stay  in  such  State  court,  of  proceed- 
ings under  such  statute  or  order  pending  the  determination  of  such  suit 
by  such  State  court,  all  proceedings  in  any  court  of  the  United  States 
to  restrain  the  execution  of  such  statute  or  order  shall  be  stayed  land- 
ing the  final  determination  of  such  suit  in  the  courts  of  the  State.  Such 
stav  may  be  vacated  U])on  proof  made  after  hearing  and  notice  of  ten 
days  served  upon  the  attorney  general  of  the  State  that  the  suit  in  the 
State  courts  is  not  being  prosecuted  with  diligence  and  good  faith.     (As 

amended  March  4,   1913.) 
Equity  Suit  Restrictions. 

Sec.  267.  Suits  in  equity  shall  not  be  sustained  in  any  court  of 
the  United  States  in  any  case  where  a  plain,  adequate,  and  complete 
remedy  may  be  had  at  law. 

Power  to  Administer  Oaths  and  Punish  Contempt. 

Sec.  268.  The  said  courts  shall  have  power  to  impose  and  admin- 
ister all  necessary  oaths,  and  to  punish,  by  fine  or  imprisonment,  at 
the  discretion  of  the  court,  contempts  of  their  authority:  Provided, 
That  such  power  to  punish  contempts  shall  not  be  construed  to  ex- 
tend to  any  cases  except  the  misbehavior  of  any  person  in  their  pres- 


Federal  Judicial  Code  857 

ence,  or  so  near  thereto  as  to  obstruct  the  admhiistration  of  justice, 
the  misbehavior  of  any  of  the  officers  of  said  courts  in  their  offi- 
cial transactions,  and  the  disobedience  or  resistance  by  any  such  of- 
ficer, or  by  any  party,  juror,  witness,  or  other  person  to  any  lawful 
writ,  process,  order,  rule,  decree,  or  command  of  the  said  courts. 

New  Trials. 

Sec.  269.  All  of  the  said  courts  shall  have  power  to  grant  new 
trials,  in  cases  where  there  has  been  a  trial  by  jury,  for  reasons  for 
which  new  trials  have  usually  been  granted  in  the  courts  of  law. 

Security  for  Peace  and  Good  Behavior. 

Sec.  270.  The  judges  of  the  Supreme  Court  and  of  the  circuit 
courts  of  appeals  and  district  courts,  United  States  commissioners,  and 
the  judges  and  other  magistrates  of  the  several  States,  who  are  or 
may  be  authorized  by  law  to  make  arrests  for  ofifenses  against  the 
United  States,  shall  have  the  like  authority  to  hold  to  security  of  the 
peace  and  for  good  behavior,  in  cases  arising  under  the  Constitution 
and  laws  of  the  United  States,  as  may  be  lawfully  exercised  by  any 
judge  or  justice  of  the  peace  of  the  respective  States,  in  cases  cogniz- 
able before  them. 

Enforcing  Orders  of  Foreign  Courts. 

Sec.  271.  The  district  courts  and  the  United  States  commission- 
ers shall  have  power  to  carry  into  effect,  according  to  the  true  intent 
and  meaning  thereof,  the  award  or  arbitration  or  decree  of  any  con- 
sul, vice  consul,  or  commercial  agent  of  any  foreign  nation,  made 
or  rendered  by  virtue  of  authority  conferred  on  him  as  such  consul, 
vice  consul,  or  commercial  agent,  to  sit  as  judge  or  arbitrator  in  such 
differences  as  may  arise  between  the  captains  and  crews  of  the  ves- 
sels belonging  to  the  nation  whose  interests  are  committed  to  his 
charge,  application  for  the  exercise  of  such  power  being  first  made 
to  such  court  or  commissioner,  by  petition  of  such  consul,  vice  con- 
sul, or  commercial  agent.  And  said  courts  and  commissioners  may 
issue  all  proper  remedial  process,  mesne  and  final,  to  carry  into  full 
effect  such  award,  arbitration,  or  decree,  and  to  enforce  obedience 
thereto  by  imprisonment  in  the  jail  or  other  place  of  confinement  in 
the  district  in  which  the  United  States  may  lawfully  imprison  any  per- 
son arrested  under  the  authority  of  the  United  States,  until  such 
award,  arbitration,  or  decree  is  complied  with,  or  the  parties  are  other- 
wise discharged  therefrom,  by  the  consent  in  writing  of  such  consul, 
vice  consul,  or  commercial  agent,  or  his  successor  in  office,  or  by  the 
authority  of  the  foreign  government  appointing  such  consul,  vice 
consul,  or  commercial  agent:  Provided,  however,  That  the  expenses 
of  the  said  imprisonment  and  maintenance  of  the  prisoners,  and  the 
cost  of  the  proceedings,  shall  be  borne  by  such  foreign  government, 
or  by  its  consul,  vice  consul,  or  commercial  agent  requiring  such  im- 
prisonment.    The  marshals   of   the   United   States   shall   serve   all   such 


858  Important  Federal  Laws 

process,  and  do  all  other  acts  necessary  and  proper  to  carry  into  effect 
the  premises,  under  the  authority  of  the  said  courts  and  commissioners. 

Pleadings  by  Parties. 

Sec.  272.  In  all  the  courts  of  the  United  States  the  parties  may 
plead  and  manage  their  own  causes  personally,  or  by  the  assistance 
of  such  counsel  or  attorneys  at  law  as,  by  the  rules  of  the  said  courts, 
respectively,  are  permitted  to  manage  and  conduct  causes  therein. 

Officers  Barred  from  Practice. 

Sec.  273.  No  clerk,  or  assistant  or  deputy  clerk,  of  any  Territorial, 
district,  or  circuit  court  of  appeals,  or  of  the  Court  of  Claims,  or  of 
the  Supreme  Court  of  the  United  States,  or  marshal  or  deputy  marshal 
of  the  United  States'  within  the  district  for  which  he  is  appointed, 
shall  act  as  a  solicitor,  proctor,  attorney,  or  counsel  in  anv  cause  de- 
pending in  any  of  said  courts,  or  in  any  district  for  which  he  is  acting 
as  such  officer. 

Penalties. 

Sec.  274.  Whoever  shall  violate  the  provisions  of  the  preceding 
section  shall  be  stricken  from  the  roll  of  attorneys  by  the  court  upon 
complaint,  upon  which  the  respondent  shall  have  due  notice  and  be  heard 
in  his  defense ;  and  in  the  case  of  a  marshal  or  deputy  marshal  so  act- 
ing, he  shall  be  recommended  by  the  court  for  dismissal  from  office. 
Note. — The  three  following  sections  were  added  by  act  of  March  3,  1915. 

Suits  in  Equity. 

Sec.  274a.  That  in  case  any  of  said  courts  shall  find  that  a  suit 
at  law  should  have  been  brought  in  equity  or  a  suit  in  equity  should  have 
been  brought  at  law,  the  court  shall  order  any  amendments  to  the 
pleadings  which  may  be  necessary  to  conform  them  to  the  proper  prac- 
tice. Any  party  to  the  suit  shall  have  the  right,  at  any  stage  of  the 
cause,  to  amend  his  pleadings  so  as  to  obviate  the  objection  that  his  suit 
was  not  brought  on  the  right  side  of  the  court.  The  cause  shall  pro- 
ceed and  be  determined  upon  such  amended  pleadings.  All  testimony 
taken  before  such  amendment,  if  preserved,  shall  stand  as  testimony  in 
the  cause  with  like  effect  as  if  the  pleadings  had  been  originally  in  the 
amended  form. 

Equitable  Defense  by  Answer,  Plea  or  Rejoinder. 

Sec.  274b.  That  in  all  actions  at  law  equitable  defenses  may  be 
interposed  by  answer,  plea,  or  replication  without  the  necessity  of  filing 
a  bill  on  the  equity  side  of  the  court.  The  defendant  shall  have  the 
same  rights  in  such  case  as  if  he  had  filed  a  bill  embodying  the  defense 
of  seeking  the  relief  prayed  for  in  such  answer  or  plea.  Equitable 
relief  respecting  the  subject-matter  of  the  suit  may  thus  be  obtained 
by  answer  or  plea.  In  case  affirmative  relief  is  prayed  in  such  answer 
or  plea,  the  plaintiff  shall  file  a  replication.  Review  of  the  judgment 
or   decree   entered   in    such   case   shall   be   regulated   by  -rule   of   court. 


Federal  Judicial  Code  859 

Whether  such  review  be  sought  by  writ  of  error  or  by  appeal  the  ap- 
pellate court  shall  have  full  power  to  render  suck  judgment  upon  the 
records  as  law  and  justice  shall  require. 

Diverse  Citizenship. 

Sec.  274c.  That  where,  in  any  suit  brought  in  or  removed  from 
any  State  court  to  any  district  of  the  United  States,  the  jurisdiction  of 
the  district  court  is  based  upon  the  diverse  citizenship  of  the  parties, 
and  such  diverse  citizenship  in  fact  existed  at  the  time  the  suit  was 
brought  or  removed,  though  defectively  alleged,  either  party  may  amend 
at  any  stage  of  the  proceedings  and  in  the  appellate  court  upon  such 
terms  as  the  court  may  impose,  so  as  to  show  on  the  record  such  diverse 
citizenship  and  jurisdiction,  and  thereupon  such  suit  shall  be  proceeded 
with  the  same  as  though  the  diverse  citizenship  had  been  fully  and 
correctly  pleaded  at  the  inception  of  the  suit,  or,  if  it  be  a  removed 
case,  in  the  petition  for  removal. 

CHAPTER  XII. 

Jurors. 

Sec.  275.  Jurors  to  serve  in  the  courts  of  the  United  States,  in 
each  State  respectively,  shall  have  the  same  qualifications,  subject  to 
the  provisions  hereinafter  contained,  and  be  entitled  to  the  same  exemp- 
tions, as  jurors  of  the  highest  court  of  law  in  such  State  may  have 
and  be  entitled  to  at  the  time  when  such  jurors  for  service  in  the 
courts  of  the  United  States  are  summoned. 

Drawings. 

Sec.  276.  All  such  jurors,  grand  and  petit,  including  those  sum- 
moned during  the  session  of  the  court,  shall  be  publicly  drawn  from 
a  box  containing,  at  the  time  of  each  drawing,  the  names  of  not  less 
than  three  hundred  persons,  possessing  the  qualifications  prescribed 
in  the  section  last  preceding,  which  names  shall  have  been  placed 
therein  by  the  clerk  of  such  court,  or  a  duly  qualified  deputy  clerk,  and  a 
commissioner,  to  be  appointed  by  the  judge  thereof,  or  by  the  judge  senior 
in  commission  in  districts  having  more  than  one  judge,  which  commis- 
sioner shall  be  a  citizen  of  good  standing,  residing  in  the  district  in  which 
such  court  is  held,  and  a  well-known  member  of  the  principal  political 
party  in  the  district  in  which  the  court  is  held  opposing  that  to  which  the 
clerk,  or  a  duly  qualified  deputy  clerk  then  acting,  may  belong,  the  clerk, 
or  duly  qualified  deputy  clerk  and  said  commissioner  each  to  place  one 
name  in  said  box  alternately,  without  reference  to  party  aftiliations  until 
the  whole  number  required  shall  be  placed  therein.  (As  amended  Febru- 
ary 3,  1917.) 

Apportionment  of  Jurors. 

Sec.  277.  Jurors  shall  be  returned  from  such  parts  of  the  district, 
from  time  to  time,  as  the  court  shall  direct,  so  as  to  be  most  favorable 


860  Important  Federal  Laws 

to  an  impartial  trial,  and  so  as  not  to  incur  an  unnecessary  expense, 
or  unduly  burden  the  citizens  of  any  part  of  the  district  with  such 
service. 

No  Race  or  Color  Disqualifications. 

Sec.  278.  No  citizen  possessing  all  other  qualifications  which  are 
or  may  be  prescribed  by  law  shall  be  disqualified  for  service  as  grand 
or  petit  juror  in  any  court  of  the  United  States  on  account  of  race, 
color,  or  previous  condition  of  servitude. 

Issue  and  Serving  Venire. 

Sec.  279.  Writs  of  venire  facias,  wheti  directed  by  the  court,  shall 
issue  from  the  clerk's  office,  and  shall  be  served  and  returned  by 
the  marshal  in  person,  or  by  his  deputy ;  or,  in  case  the  marshal  or 
his  deputy  is  not  an  indifferent  person,  or  is  interested  in  the  event 
of  the  cause,  by  such  fit  person  as  may  be  specially  appointed  for 
that  purpose  by  the  court,  who  shall  administer  to  him  an  oath  that 
he  will  truly  and  impartially  serve  and  return  the  writ.  Any  person 
named  in  such  writ  who  resides  elsewhere  than  at  the  place  at  which 
the  court  is  held,  shall  be  served  by  the  marshal  mailing  a  copy 
thereof  to  such  person  commanding  him  to  attend  as  a  juror  at  a  time 
and  place  designated  therein,  which  copy  shall  be  registered  and  de- 
posited in  the  postoffice  addressed  to  such  person  at  his  usual  post- 
office  address.  And  the  receipt  of  the  person  so  addressed  for  such 
registered  copy  shall  be  regarded  as  personal  service  of  such  writ 
upon  such  person,  and  no  mileage  shall  be  allowed  for  the  service 
of  such  person.  The  postage  and  registry  fee  shall  be  paid  by  the 
marshal  and  allowed  him  in  the  settlement  of  his  accounts. 

Talesmen  for  Petit  Jury. 

Sec.  280.  When,  froni  challenges  or  otherwise,  there  is  not  a  petit 
jury  to  determine  any  civil  or  criminal  cause,  the  marshal  or  his 
deputy  shall,  by  order  of  the  court  in  which  such  defect  of  jurors 
happens,  return  jurymen  from  the  bystanders  sufficient  to  complete 
the  panel ;  and  when  the  marshal  or  his  deputy  is  disqualified  as 
aforesaid,  jurors  may  be  so  returned  by  such  disinterested  person  as 
the  court  may  appoint,  and  such  person  shall  be  sworn,  as  provided 
in  the  preceding  section. 

Special  Juries- 

Sec.  281.  \\'hen  special  juries  are  ordered  in  any  district  court, 
they  shall  be  returned  by  the  marshal  in  the  same  manner  and  form 
as  is  required  in  such  cases  by  the  laws  of  the  several  States. 

Grand  Juries. 

Sec.  282.  Every  grand  jury  impaneled  before  any  district  court 
shall  consist  of  not  less  than  sixteen  nor  more  than  twenty-three  per- 
sons. If  of  the  persons  summoned  less  than  sixteen  attend,  they  shall 
be  placed  on  the  grand  jury,  and  the  court  shall  order  the  marshal  to 


Federal  Judicial  Code  861 

summon,  either  immediately  or  for  a  day  fixed,  from  the  body  of  the 
district,  and  not  from  the  bystanders,  a  sufficient  number  of  persons 
to  complete  the  grand  jury.  And  whenever  a  challenge  to  a  grand 
juror  is  allowed,  and  there  are  not  in  attendance  other  jurors  suffi- 
cient to  complete  the  grand  jury,  the  court  shall  make  a  like  order 
to  the  marshal  to  summon  a  sufficient  number  of  persons  for  that 
purpose. 

Foreman. 

Sec.  283.  From  the  persons  summoned  and  accepted  as  grand  ju- 
rors, the  court  shall  appoint  the  foreman,  who  shall  have  power  to 
administer  oaths  and  affirmations  to  witnesses  appearing  before  the 
grand  jury. 

Summoning  of  Grand  Jury. 

Sec.  284.  No  grand  jury  shall  be  summoned  to  attend  any  district 
court  unless  the  judge  thereof,  in  his  own  discretion  or  upon  a  noti- 
fication by  the  district  attorney  that  such  jury  will  be  needed,  orders 
a  venire  to  issue  therefor.  If  the  United  States  attorney  for  any  dis- 
trict which  has  a  city  or  borough  containing  at  least  three  hundred 
thousand  inhabitants  shall  certify  in  writing  to  the  district  judge,  or 
the  senior  district  judge  of  the  district,  that  the  exigencies  of  the 
public  service  require  it,  the  judge  may.  in  his  discretion,  also  order  a 
venire  to  issue  for  a  second  grand  jury.  And  said  court  may  in  term 
order  a  grand  jury  to  be  summoned  at  such  time,  and  to  serve  such 
time  as  it  may  direct,  whenever,  in  its  judgment,  it  may  be  proper  to 
do  so.  But  nothing  herein  shall  operate  to  extend  beyond  the  time 
permitted  by  law  the  imprisonment  before  indictment  found  of  a 
person  accused  of  a  crime  or  ofi^ense,  or  the  time  during  which  a 
person  so  accused  may  be  held  under  recognizance  before  indictment 
found. 

Discharge. 

Sec.  285.  The  district  courts,  the  district  courts  of  the  Territories, 
and  the  Supreme  Court  of  the  District  of  Columbia  may  discharge 
their  grand  juries  whenever  they  deem  a  continuance  of  the  sessions 
of  such  juries  unnecessary. 

Petit  Juries. 

Sec.  286.  No  person  shall  serve  as  a  petit  juror  in  any  district 
court  more  than  one  term  in  a  year ;  and  it  shall  be  sufficient  cause 
of  challenge  to  any  juror  called  to  be  sworn  in  any  cause  that  he  has 
been  summoned  and  attended  said  court  as  a  juror  at  any  term  of 
said  court  held  within  one  year  prior  to  the  time  of  such  challenge. 

Challenges.  . 

Sec.  287.  When  the  offense  charged  is  treason  or  a  capital  offense, 
the    defendant   shall   be   entitled   to   twenty   and    the   United    States    to 


862  Important  Federal  Laws 

six  peremptory  challenges.  On  the  trial  of  any  other  felony,  the 
defendant  shall  be  entitled  to  ten  and  the  United  States  to  six  peremp- 
tory challenges ;  and  in  all  other  cases,  civil  and  criminal,  each  party 
shall  be  entitled  to  three  peremptory  challenges ;  and  in  all  cases  where 
there  are  several  defendants  or  several  plaintiffs,  the  parties  on  each 
side  shall  be  deemed  a  single  party  for  the  purposes  of  all  challenges 
under  this  section.  All  challenges,  whether  to  the  array  or  panel,  or 
to  individual  jurors  for  cause  or  favor,  shall  be  tried  by  the  court  with- 
out the  aid  of  triers. 

Polygamy  Trials. 

Sec.  2SS.  In  any  prosecution  for  bigamy,  polygamy  or  unlawful 
cohabitation,  under  any  statute  of  the  United  States,  it  shall  be  suffi- 
cient cause  of  challenge  to  any  person  drawn  or  summoned  as  a  jury- 
man or  talesman — 

First,  that  he  is  or  has  been  living  in  the  practice  of  bigamy,  polyg- 
amy, or  unlawful  cohabitation  with  more  than  one  woman,  or  that  he 
is  or  has  been  guilty  of  an  offense  punishable  either  by  section  one 
or  three  of  an  Act  entitled  "An  Act  to  amend  section  fifty-three  hun- 
dred and  fifty-two  of  the  Revised  Statutes  of  the  United  States,  in 
reference  to  bigamy,  and  for  other  purposes,"  approved  March  twen- 
ty-second, eighteen  hundred  and  eighty-two,  or  by  section  fifty-three 
hundred  and  fifty-two  of  the  Revised  Statutes  of  the  United  States, 
or  the  Act  of  July  first,  eighteen  hundred  and  sixty-two,  entitled 
"An  Act  to  punish  and  prevent  the  practice  of  polygamy  in  the  Ter- 
ritories of  the  United  States  and  other  places,  and  disapproving  and 
annulling  certain  Acts  of  the  legislative  assembly  of  the  territory  of 
Utah" ;  or 

Second,  that  he  believes  it  right  for  a  man  to  have  more  than  one 
living  and  undivorced  wife  at  the  same  time,  or  to  live  in  the  practice 
of  cohabitating  with  more  than  one  woman. 

Any  person  appearing  or  off'ered  as  a  juror  or  talesman,  and  chal- 
lenged on  either  of  the  foregoing  grounds,  may  be  questioned  on  his 
oath  as  to  the  existence  of  any  such  cause  of  challenge;  and  other 
evidence  may  be  introduced  bearing  upon  the  question  raised  by  such 
challenge;  and  this  question  shall  be  tried  by  the  court. 

But  as  to  the  first  ground  of  challenge  before  mentioned,  the  person 
challenged  shall  not  be  bound  to  answer  if  he  shall  say  upon  his  oath 
that  he  declines  on  the  ground  that  his  answer  may  tend  to  criminate 
himself  ;  and  if  he  shall  answer  as  to  said  first  ground,  his  answer  shall 
not  be_  given  in  evidence  in  any  criminal  prosecution  against  him  for 
any  off"ense  above  named;  but  if  he  declines  to  answer  on  any  ground, 
he  shall  be  rejected  as  incompetent. 


Federal  Judicial  Code  863 

CHAPTER  XIII. 

General  Provisions. 

Circuit  Courts  Abolished. 

Sec.  289.  The  circuit  courts  of  the  United  States,  upon  the  taking 
effect  of  this  Act,  sliall  be,  and  hereby  are,  abohshed;  and  thereupon, 
on  said  date,  the  clerks  of  said  courts  shall  deliver  to  the  clerks  of 
the  district  courts  of  the  United  States  for  their  respective  districts 
all  the  journals,  dockets,  books,  files,  records,  and  other  books  and 
papers  of  or  belonging  to  or  in  any  manner  connected  with  said  cir- 
cuit courts ;  and  shall  also  on  said  date  deliver  to  the  clerks  of  said 
district  courts  all  moneys,  from  whatever  source  received,  then  re- 
maining in  their  hands  or  under  their  control  as  clerks  of  said  circuit 
courts,  or  received  by  them  by  virtue  of  their  said  offices.  The  jour- 
nals, dockets,  books,  files,  records,  and  other  books  and  papers  so 
delivered  to  the  clerks  of  the  several  district  courts  shall  be  and  re- 
main a  part  of  the  official  records  of  said  district  courts,  and  copies 
thereof,  when  certified  under  the  hand  and  seal  of  the  clerk  of  the 
district  court,  shall  be  received  as  evidence  equally  with  the  originals 
thereof ;  and  the  clerks  of  the  several  district  courts  shall  have  the 
same  authority  to  exercise  all  the  powers  and  to  perform  all  the  duties 
with  respect  thereto  as  the  clerks  of  the  several  circuit  courts  had 
prior  to  the  taking  effect  of  this  Act. 

Pending  Suits. 

Sec.  290.  All  suits  and  proceedings  pending  in  said  circuit  courts 
on  the  date  of  the  taking  effect  of  this  Act,  whether  originally  brought 
therein  or  certified  thereto  from  the  district  courts,  shall  thereupon 
and  thereafter  be  proceeded  with  and  disposed  of  in  the  district  courts 
in  the  same  manner  and  with  the  same  eff'ect  as  if  originally  begun 
therein,  the  record  thereof  being  entered  in  the  records  of  the  circuit 
courts  so  transferred  as  above  provided. 

Powers  to  District  Court. 

Sec.  291.  Wherever,  in  any  law  not  embraced  within  this  Act,  any 
reference  is  made  to,  or  any  power  or  duty  is  conferred  or  imposed 
upon,  the  circuit  courts,  such  reference  shall,  upon  the  taking  eff'ect 
of  this  Act,  be  deemed  and  held  to  refer  to,  and  to  confer  such  power 
and  impose  such  duty  upon,  the  district  courts. 

Law  Revised. 

Sec.  292.  Wherever,  in  any  law  not  contained  within  this  Act,  a 
reference  is  made  to  any  law  revised  or  embraced  herein,  such  refer- 
ence, upon  the  taking  effect  hereof,  shall  be  construed  to  refer  to  the 
section  of  this  Act  into  which  has  been  carried  or  revised  the  provi- 
sion of  law  to  which  reference  is  so  made. 

Construction  of  Words. 

Sec.  293.     The  provisions  of  sections  one  to  five,  both  inclusive,  of 


864  Important  Federal  Laws 

the  Revised  Statutes,  shall  apply  to  and  govern  the  construction  of 
the  provisions  of  this  Act.  The  words  "this  title,"  wherever  they  occur 
herein,  shall  be  construed  to  mean  this  Act. 

Existing  Laws  Continued. 

Sec.  294.  The  provisions  of  this  Act,  so  far  as  they  are  substan- 
tially the  same  as  existing  statutes,  shall  be  construed  as  continua- 
tions thereof,  and  not  as  new  enactments,  and  there  shall  be  no  impli- 
cation of  a  change  of  intent  by  reason  of  a  change  of  words  in  such 
statute,  unless  such  change  of  intent  shall  be  clearly  manifest. 

Legislative  Construction, 

Sec.  295.  The  arrangement  and  classification  of  .the  several  sec- 
tions of  this  Act  have  been  made  for  the  purpose  of  a  more  convenient 
and  orderly  arrangement  of  the  same,  and  therefore  no  inference  or  pre- 
sumption of  a  legislative  construction  is  to  be  drawn  by  reason  of 
the  chapter  under  which  any  particular  section  is  placed. 

Sec.  296.  This  Act  may  be  designated  and  cited  as  "The  Judicial 
Code." 

CHAPTER  FOURTEEN. 

Repealing  Provisions. 

Chapter  Fourteen  repeals  former  acts. 


PROOF  OF  HANDWRITING, 

Act  of  February  26,  1913. 
An  Act  relating  to  proof  of  signatures  and  handwriting. 

That  in  any  proceeding  before  a  court  or  judicial  officer  of  the 
United  States  where  the  genuineness  of  the  handwriting  of  any  person 
may  be  involved,  any  admitted  or  proved  handwriting  of  such  person 
shall  be  competent  evidence  as  a  basis  for  comparison  by  witnesses,  or 
by  the  jury,  court,  or  officer  conducting  such  proceeding,  to  prove  or  dis- 
prove such  genuineness. 


Public  Health  865 

PUBLIC  HEALTH. 

Act  of  August  14,  1912. 

An  Act  to  change  the  name  of  the  Public  Health  and  Marine-Hospital  Service 
to  the  Public  Health  Service,  to  increase  the  pay  of  officers  of  said  service, 
and  for  other  purposes. 

Public  Health  Service. 

That  the  Public  Health  and  Marine-Hospital  Service  of  the  United 
States  shall  hereafter  be  known  and  designated  as  the  Public  Health 
Service,  and  all  laws  pertaining  to  the  Public  Health  and  Marine-Hos- 
pital Service  of  the  United  States  shall  hereafter  apply  to  the  Public 
Health  Service,  and  all  regulations  now  in  force,  made  in  accordance 
with  law  for  the  Public  Heakh  and  Marine-Hospital  Service  of  the 
United  States  shall  apply  to  and  remain  in  force  as  regulations  of  and 
for  the  Public  Health  Service  until  changed  or  rescinded.  The  Public 
Health  Service  may  study  and  investigate  the  diseases  of  man  and  con- 
ditions influencing  the  propagation  and  spread  thereof,  including  sanita- 
tion and  sewage  and  the  pollution  either  directly  or  indirectly  of  the 
navigable  streams  and  lakes  of  the  United  States,  and  it  may  from  time 
to  time  issue  information  in  the  form  of  publications  for  the  use  of  the 
public. 

Act  of  March  27,  1890. 

Prevention  of  Plague — Rules  and  Regulations. 

Section  1.  Whenever  it  shall  appear  to  the  satisfaction  of  the 
President  that  cholera,  yellow- fever,  smallpox,  or  plague  exists  in  any 
State  or  Territory,  or  in  the  District  of  Columbia,  and  that  there  is 
danger  of  the  spread  of  such  disease,  into  other  States,  Territories,  or  the 
District  of  Columbia,  he  is  hereby  authorized  to  cause  the  Secretary  of 
the  Treasury  to  promulgate  such  rules  and  regulations  as  in  his  judgment 
may  be  necessary  to  prevent  the  spread  of  such  disease  from  one  State 
or  Territory  into  another,  or  from  any  State  or  Territory  into  the  District 
of  Columbia,  or  from  the  District  of  Columbia  into  any  State  or  Terri- 
tory, and  to  employ  such  inspectors  and  other  persons  as  may  be  neces- 
sary to  execute  such  regulations  to  prevent  the  spread  of  such  disease. 
The  said  rules  and  regulations  shall  be  prepared  by  the  supervising  sur- 
geon-general of  the  Marine  Hospital  service  under  the  direction  of  the 
Secretary  of  the  Treasury.  And  any  person  who  shall  willfully  violate 
any  rule  or  regulation  so  made  and  promulgated,  shall  be  deemed  guilty 
of  a  misdemeanor,  and  upon  conviction  shall  be  punished  by  a  fine  of 
not  more  than  five  hundred  dollars  ($500),  or  imprisonment  for  not 
more  than  two  (2)  years,  or  both,  in  the  discretion  of  the  court. 

Penalties — Officials. 

Sec.  2,     Any  officer,  or  person  acting  as  an  officer,  or  agent  of  the 

United  States  at  any  quarantine  station,  or  other  person  employed  to 

aid  in  preventing  the  spread  of  such  disease,  who  shall  willfully  violate 

any  of  the  quarantine  laws  of  the  United  States,  or  any  of  the  rules  and 

(55) 


866  Important  Federal  Laws 

regulations  made  and  promulgated  by  the  Secretary  of  the  Treasury,  as 
provided  for  in  Section  1  of  this  act,  or  any  lawful  order  of  his  superior 
officer  or  officers,  shall  be  deemed  guilty  of  a  misdemeanor,  and  upon 
conviction  shall  be  punished  by  a  fine  of  not  more  than  three  hundred 
dollars  ($300)  or  imprisonment  for  not  more  than  one  (1)  year,  or  both, 
in  the  discretion  of  the  court. 

Penalties — Common  Carriers. 

Sec.  3.  When  any  common  carrier  or  officer,  agent,  or  employee  of 
any  common  carrier  shall  willfully  violate  any  of  the  quarantine  laws  of 
the  United  States,  or  the  rules  and  regulations  made  and  promulgated  as 
provided  for  in  section  1  of  this  Act,  such  common  carrier,  officer,  agent, 
or  employee,  shall  be  deemed  guilty  of  a  misdemeanor,  and  shall,  on  con- 
viction, be  punished  by  a  fine  of  not  more  than  five  hundred  dollars 
($500)  or  imprisonment  for  not  more  than  two  (2)  years,  or  both,  in  the 
discretion  of  the  court. 

Act  of  February  15,  1893. 

Co-operation  with  State  and  City  Officials. 

The  supervising  surgeon-general  of  the  Marine  Hospital  service 
shall,  immediately  after  this  act  takes  effect,  examine  the  quarantine 
regulations  of  all  state  and  municipal  boards  of  health,  and  shall,  under 
the  direction  of  the  Secretary  of  the  Treasury,  co-operate  with  and  aid 
state  and  municipal  boards  of  health  in  the  execution  and  enforcement 
of  the  rules  and  regulations  of  such  boards  and  in  the  execution  and 
enforcement  of  the  rules  and  regulations  made  by  the  Secretary  of  the 
Treasury  to  prevent  the  introduction  of  contagious  or  infectious  diseases 
into  the  United  States  from  foreign  countries,  and  into  one  State  or 
Territory  or  the  District  of  Columbia  from  another  State  or  Territory 
or  District  of  Columbia ;  and  all  rules  and  regulations  made  by  the  Secre- 
tary of  the  Treasury  shall  operate  uniformly  and  in  no  manner  discrimi- 
nate against  any  port  or  place ;  and  at  such  ports  and  places  within  the 
United  States  as  have  no  quarantine  regulations  under  state  or  municipal 
authority,  where  such  regulations  are,  in  the  opinion  of  the  Secretary  of 
the  Treasury,  necessary  to  prevent  the  introduction  of  contagious  or 
infectious  diseases  into  the  United  States  from  foreign  countries,  or  into 
one  State  or  Territory  or  the  District  of  Columbia  from  another  State 
or  Territory,  or  the  District  of  Columbia,  and  at  such  ports  and  places 
within  the  United  States  where  quarantine  regulations  exist  under  the 
authority  of  the  State  or  Municipality  which,  in  the  opinion  of  the  Secre- 
tary of  the  Treasury,  are  not  sufficient  to  prevent  the  introduction  of  such 
diseases  into  the  United  States,  or  into  one  State  or  Territory  or  the 
District  of  Columbia  from  another  State  or  Territory  or  the  District  of 
Columbia,  the  Secretary  of  the  Treasury  shall,  if  in  his  judgment  it  is 
necessary  and  proper,  make  such  additional  rules  and  regulations  as  are 
necessary  to  prevent  the  introduction  of  such  diseases  into  the  United 
States  from  foreign  countries,  or  into  one  State  or  Territory  or  the  Dis- 


Good  Roads  Act  867 

trict  of  Columbia  from  another  State  or  Territory  or  the  District  of 
Columbia,  and  when  said  rules  and  regulations  have  been  made,  they 
shall  be  promulgated  by  the  Secretary  of  the  Treasury  and  enforced  by 
the  sanitary  authorities  of  the  states  and  municipalities,  v/here  the  state 
or  municipal  health  authorities  will  undertake  to  execute  and  enforce 
them;  but  if  the  state  or  municipal  authorities  shall  fail  or  refuse  to 
enforce  said  rules  or  regulations,  the  President  shall  execute  and  enforce 
the  same  and  adopt  such  measures,  as  in  his  judgment  shall  be  necessary 
to  prevent  the  introduction  or  spread  of  such  diseases,  and  may  detail  or 
appoint  officers  for  that  purpose.  The  Secretary  of  the  Treasury  shall 
make  such  rules  and  regulations  as  are  necessary  to  be  observed  by  ves- 
sels at  the  port  of  departure  and  on  the  voyage,  where  such  vessels  sail 
from  any  foreign  port  or  place  to  any  port  or  place  in  the  United  States, 
to  secure  the  best  sanitary  condition  of  such  vessel,  her  cargo,  passengers, 
and  crews;  which  shall  be  published  and  communicated  to  and  enforced 
by  the  Consular  Officers  of  the  United  States.  None  of  the  penalties 
herein  imposed  shall  attach  to  any  vessel  or  owner  or  officer  thereof  until 
a  copy  of  this  act,  with  the  rules  and  regulations  made  in  pursuance 
thereof,  has  been  posted  up  in  the  office  of  the  Consul  or  other  Consular 
Officer  of  the  United  States  for  ten  days,  in  the  port  from  which  said 
vessel  sailed;  and  the  certificate  of  such  Consul  or  Consular  Officer  over 
his  official  signature  shall  be  competent  evidence  of  such  posting  in  any 
port  of  the  United  States. 


FEDERAL  GOOD   ROADS  ACT. 

Act  of  July  11,  1916. 

An  Act  to  provide  that  the  United  States  shall  aid  the  states  in  the  construc- 
tion of  rural  post  roads,  and  for  other  purposes. 

Sec.  1.  That  the  Secretary  of  Agriculture  is  authorized  to  cooperate 
with  the  States,  through  their  respective  State  highway  departments,  in 
the  construction  of  rural  post  roads ;  but  no  money  apportioned  under 
this  Act  to  any  State  shall  be  expended  therein  until  its  legislature  shall 
have  assented  to  the  provisions  of  this  Act,  except  that,  until  the  final 
adjournment  of  the  first  regular  session  of  the  legislature  held  after  the 
passage  of  the  Act,  tlie  assent  of  the  governor  of  the  State  shall  be 
sufficient.  The  Secretary  of  Agriculture  and  the  State  highway  department 
of  each  State  shall  agree  upon  the  roads  to  be  constructed  therein  and  the 
character  and  method  of  construction :  Provided,  That  all  roads  con- 
structed under  the  provisions  of  this  Act  shall  be  free  from  tolls  of  all 
kinds. 

Definitions. 

Sec.  2.  That  for  the  purpose  of  this  Act  the  term  "rural  post 
road"  shall  be  construed  to  mean  any  public  road  over  which  the  United 
States  mails  now  are  or  may  hereafter  be  transported,  excluding  every 


868  Important  Federal  Laws 

street  and  road  in  a  place  having  a  population,  as  shown  by  the  latest 
available  Federal  census,  of  two  thousand  five  hundred  or  more,  except 
that  portion  of  any  such  street  or  road  along  which  the  houses  average 
more  than  two  hundred  feet  apart;  the  term  "State  highway  department" 
shall  be  construed  to  include  any  department  of  another  name,  or  com- 
mission, or  official  or  officials,  of  a  State  empowered,  under  its  laws,  to 
exercise  the  functions  ordinarily  exercised  by  a  state  highway  department ; 
the  term  "construction"  shall  be  construed  to  include  reconstruction  and 
improvement  of  roads;  "properly  maintained"  as  used  herein  shall  be 
construed  to  mean  the  making  of  needed  repairs  and  the  preservation  of 
a  reasonably  smooth  surface  considering  the  type  of  the  road ;  but  shall 
not  be  held  to  include  extraordinary  repairs,  nor  reconstruction ;  neces- 
sary bridges  and  culverts  shall  be  deemed  parts  of  the  respective  roads 
covered  by  the  provisions  of  this  Act. 

Appropriations. 

Sec.  3.  That  for  the  purpose  of  carrying  out  the  provisions  of 
this  Act  there  is  hereby  appropriated,  out  of  any  money  in  the  Treasury 
not  otherwise  appropriated,  for  the  fiscal  year  ending  June  thirtieth, 
nineteen  hundred  and  seventeen,  the  sum  of  $5,000,000;  for  the  fiscal 
year  ending  June  thirtieth,  nineteen  hundred  and  eighteen,  the  sum 
of  $10,000,000;  for  the  fiscal  year  ending  June  thirtieth,  nineteen  hundred 
and  nineteen,  the  sum  of  $15,000,000;  for  the  fiscal  year  ending  June 
thirtieth,  nineteen  hundred  and  twenty,  the  sum  of  $20,000,000;  and  for 
the  fiscal  year  ending  June  thirtieth,  nineteen  hundred  and  twenty-one,  the 
sum  of  $25,000,000.  So  much  of  the  appropriation  apportioned  to  any 
State  for  any  fiscal  year  as  remains  unexpended  at  the  close  thereof 
shall  be  available  for  expenditure  in  that  State  until  the  close  of  the 
succeeding  fiscal  year,  except  that  amounts  apportioned  for  any  fiscal 
year  to  any  State  which  has  not  a  State  highway  department  shall  be 
available  for  expenditure  in  that  State  until  the  close  of  the  third  fiscal 
year  succeeding  the  close  of  the  fiscal  year  for  which  such  apportionment 
was  made.  Any  amount  apportioned  under  the  provisions  of  this  Act 
unexpended  at  the  end  of  the  period  during  which  it  is  available  for 
expenditure  under  the  terms  of  this  section  shall  be  reapportioned,  within 
sixty  days  thereafter,  to  all  the  States  in  the  same  manner  and  on  the 
same  basis,  and  certified  to  the  Secretary  of  the  Treasury  and  to  the  State 
highway  departments  and  to  the  governors  of  States  having  no  State 
highway  departments  in  the  same  way  as  if  it  were  being  apportioned 
under  this  Act  for  the  first  time :  Provided,  That  in  States  where  the 
constitution  prohibits  the  State  from  engaging  in  any  work  of  internal 
improvements,  then  the  amount  of  the  appropriation  under  this  Act 
apportioned  to  any  such  State  shall  be  turned  over  to  the  highway  depart- 
ment of  the  State  or  to  the  governor  of  said  State  to  be  expended  under 
the  provisions  of  this  Act  and  under  the  rules  and  regulations  of  the 
Department  of  Agriculture,  when  any  number  of  counties  in  any  such 


Good  Roads  Act  869 

State  shall  appropriate  or  provide  the  proportion  or  share  needed  to  be 
raised  in  order  to  entitle  such  State  to  its  part  of  the  appropriation 
apportioned  under  this  Act. 

Administration. 

Sec.  4.  That  so  much,  not  to  exceed  three  per  centum,  of  the 
appropriation  for  any  fiscal  year  made  by  or  under  this  Act  as  the 
Secretary  of  Agriculture  may  estimate  to  be  necessary  for  administering 
the  provisions  of  this  Act  shall  be  deducted  for  that  purpose,  available 
until  expended.  Within  sixty  days  after  the  close  of  each  fiscal  year  the 
Secretary  of  Agriculture  shall  determine  what  part,  if  any,  of  the  sums 
theretofore  deducted  for  administering  the  provisions  of  this  Act  will  not 
be  needed  for  that  purpose  and  apportion  such  part,  if  any,  for  the  fiscal 
year  then  current  in  the  same  manner  and  on  the  same  basis,  and  certify 
it  to  the  Secretary  of  the  Treasury  and  to  the  State  highway  departments, 
and  to  the  governors  of  States  having  no  State  highway  departments, 
in  the  same  way  as  other  amounts  authorized  by  this  Act  to  be  appor- 
tioned among  all  the  States  for  such  current  fiscal  year.  The  Secretary 
of  Agriculture,  after  making  the  deduction  authorized  by  this  section, 
shall  apportion  the  remainder  of  the  appropriation  for  each  fiscal  year 
among  the  several  States  in  the  following  manner :  One-third  in  the 
ratio  which  the  area  of  each  State  bears  to  the  total  area  of  all  the  States ; 
one-third  in  the  ratio  which  the  population  of  each  State  bears  to  the 
total  population  of  all  the  States,  as  shown  by  the  latest  available  Federal 
census ;  one-third  in  the  ratio  which  the  mileage  of  rural  delivery  routes 
and  star  routes  in  each  State  bears  to  the  total  mileage  of  rural  delivery 
routes  and  star  routes  in  all  the  States,  at  the  close  of  the  next  preceding 
fiscal  year,  as  shown  by  the  certificate  of  the  Postmaster  General,  which 
he  is  directed  to  make  and  furnish  annually  to  the  Secretary  of  Agri- 
culture. 

Apportionment  to  States. 

Sec.  5.  That  within  sixty  days  after  the  approval  of  this  act  the 
Secretary  of  Agriculture  shall  certify  to  the  Secretary  of  the  Treasury 
and  to  each  State  highway  department  and  to  the  governor  of  each 
State  having  no  State  highway  department  the  sum  which  he  has  esti- 
mated to  be  deducted  for  administering  the  provisions  of  this  Act  and 
the  sum  which  he  has  apportioned  to  each  State  for  the  fiscal  year  end- 
ing June  thirtieth,  nineteen  hundred  and  seventeen,  and  on  or  before 
January  twentieth  next  preceding  the  commencement  of  each  succeeding 
fiscal  year  shall  make  like  certificates  for  such  fiscal  year. 

Requirements  of  the  States. 

Sec.  6.  That  any  State  desiring  to  avail  itself  of  the  benefits  of  this 
Act  shall,  by  its  State  highway  department,  submit  to  the  Secretary  of 
Agriculture  project  statements  setting  forth  proposed  construction  of  any 
rural  post  road  or  roads  therein.  If  the  Secretary  of  Agriculture  approve 
a  project,  the  State  highway  department  shall  furnish  him  such  surveys, 


870  Important  Federal  Laws 

* 

plans,  specifications,  and  estimates  therefor  as  he  may  require :  Provided, 
however.  That  the  Secretary  of  Agricuhure  shall  approve  only  such  proj- 
ects as  may  be  substantial  in  character  and  the  expenditure  of  funds 
hereby  authorized  shall  be  applied  only  to  such  improvements.  Items 
included  for  engineering,  inspection  and  unforeseen  contingencies  shall 
not  exceed  ten  per  centum  of  the  total  estimated  cost  of  the  work.  If 
the  Secretary  of  Agriculture  approve  the  plans,  specifications  and  esti- 
mates, he  shall  notify  the  State  highway  department  and  immediately 
certify  the  fact  to  the  Secretary  of  the  Treasury.  The  Secretary  of  the 
Treasury  shall  thereupon  set  aside  the  share  of  the  United  States  pay- 
able under  this  Act  on  account  of  such  project,  which  shall  not  exceed 
fifty  per  centum  of  the  total  estimated  cost  thereof.  No  payment  of  any 
money  apportioned  under  this  Act  shall  be  made  on  any  project  until 
such  statement  of  the  project,  and  the  plans,  specifications  and  estimates 
therefor,  shall  have  been  submitted  to  and  approved  by  the  Secretarv  of 
Agriculture. 

When  the  Secretary  of  Agriculture  shall  find  that  any  project  so 
approved  by  him  has  been  constructed  in  compliance  with  said  plans  and 
specifications  he  shall  cause  to  be  paid  to  the  proper  authority  of  said 
State  the  amount  set  aside  for  said  project :  Provided.  That  the  Secre- 
tary of  Agriculture  may,  in  his  discretion,  from  time  to  time  make  pay- 
ments on  said  construction  as  the  same  progresses,  but  these  payments 
including  previous  payments,  if  any,  shall  not  be  more  than  the  United 
States'  pro  rata  part  of  the  value  of  the  labor  and  materials  which  have 
been  actually  put  into  said  construction  in  conformity  to  said  plans  and 
specifications ;  nor  shall  any  such  payment  be  in  excess  of  $10,000  per 
mile,  exclusive  of  the  cost  of  bridges  of  more  than  twenty  feet  clear  span. 
The  construction  work  and  labor  in  each  State  shall  be  done  in  accord- 
ance with  its  laws  and  under  the  direct  supervision  of  the  State  highway 
department,  subject  to  the  inspection  and  approval  of  the  Secretary  of 
Agriculture  and  in  accordance  with  the  rules  and  regulations  made  pur- 
suant to  this  Act. 

The  Secretary  of  Agriculture  and  the  State  highway  department  of 
each  State  may  jointly  determine  at  what  times  and  in  what  amounts, 
payments,  as  work  progresses,  shall  be  made  under  this  Act.  Such  pay- 
ments shall  be  made  by  the  Secretary  of  the  Treasury,  on  warrants  drawn 
by  the  Secretary  of  Agriculture  to  such  official,  or  officials,  or  depository, 
as  may  be  designated  by  the  State  highway  department  and  authorized 
under  the  laws  of  the  State  to  receive  public  funds  of  the  State  or  county. 

Maintenance. 

Sec.  7.  To  maintain  the  roads  constructed  under  the  provisions  of 
this  Act  shall  be  the  duty  of  the  States,  or  their  civil  subdivisions,  ac- 
cording to  the  laws  of  the  several  States.  If  at  any  time  the  Secretary 
of  Agriculture  shall  find  that  any  road  in  any  State  constructed  under  the 
provisions  of  this  Act  is  not  being  properly  maintained  he  shall  give 


Good  Roades  Act  871 

notice  of  such  fact  to  the  highway  department  of  such  State  and  if  within 
four  months  from  the  receipt  of  said  notice  said  road  has  not  been  put 
in  a  proper  condition  of  maintenance  then  the  Secretary  of  Agriculture 
shall  thereafter  refuse  to  approve  any  project  for  road  construction  in 
said  State,  or  the  civil  subdivision  thereof,  as  the  fact  may  be,  whose  duty 
it  is  to  maintain  said  road,  until  it  has  been  put  in  a  condition  of  proper 
maintenance. 

National  Forest  Roads. 

Sec.  8.  That  there  is  hereby  appropriated  and  made  available  until 
expended,  out  of  any  moneys  in  the  National  Treasury  not  otherwise 
appropriated,  the  sum  of  $1,000,000  for  the  fiscal  year  ending  June 
thirtieth,  nineteen  hundred  and  seventeen,  and  each  fiscal  year  thereafter, 
up  to  and  including  the  fiscal  year  ending  June  thirtieth,  nineteen  hun- 
dred and  twenty-six,  in  all  $10,000,000,  to  be  available  until  expended 
under  the  supervision  of  the  Secretary  of  Agriculture,  upon  request  from 
the  proper  officers  of  the  State,  Territory  or  county  for  the  survey,  con- 
struction and  maintenance  of  roads  and  trails  within  or  only  partly  within 
the  national  forests,  when  necessary  for  the  use  and  development  of  re- 
sources upon  which  communities  within  and  adjacent  to  the  national  for- 
ests are  dependent :  Provided,  That  the  State,  Territory  or  county  shall 
enter  into  a  cooperative  agreement  with  the  Secretary  of  x^griculture  for 
the  survey,  construction  and  maintenance  of  such  roads  or  trails  upon 
a  basis  equitable  to  both  the  State,  Territory  or  county  and  the  United 
States:  And  provided  also,  That  the  aggregate  expenditures  in  any 
State,  Territory  or  county  shall  not  exceed  ten  per  centum  of  the  value, 
as  determined  by  the  Secretary  of  Agriculture,  of  the  timber  and  forage 
resources  which  are  or  will  be  available  for  income  upon  the  national 
forest  lands  within  the  respective  county  or  counties  wherein  the  roads 
or  trails  wall  be  constructed ;  and  the  Secretary  of  Agriculture  shall  make 
annual  report  to  Congress  of  the  amounts  expended  hereunder. 

That  immediately  upon  the  execution  of  any  cooperative  agreement 
hereunder  the  Secretary  of  Agriculture  shall  notify  the  Secretary  of  the 
Treasury  of  the  amount  to  be  expended  by  the  United  States  within  or 
adjacent  to  any  national  forest  thereunder,  and  beginning  with  the  next 
fiscal  year  and  each  fiscal  year  thereafter  the  Secretary  of  the  Treasury 
shall  apply  from  any  and  all  revenues  from  such  forest  ten  per  centum 
thereof  to  reimburse  the  United  States  for  expenditures  made  under  such 
acrreement  until  the  whole  amount  advanced  under  such  agreement  shall 
have  been  returned  from  the  receipts  from  such  national  forest. 

Assistants. 

Sec.  9.  That  out  of  the  appropriations  made  by  or  under  this  Act, 
the  Secretary  of  Agriculture  is  authorized  to  employ  such  assistants, 
clerks  and  other  persons  in  the  city  of  Washington  and  elsewhere,  to  be 
taken  from  the  eligible  lists  of  the  Civil  Service  Commission,  to  rent 
buildings  outside  of  the  city  of  Washington,  to  purchase  such  supplies. 


872  Important  Federal  Laws 

material,  equipment,  office  fixtures  and  apparatus  and  to  incur  such  travel 
and  other  expense  as  he  may  deem  necessary  for  carrying  out  the  pur- 
poses of  this  Act. 

Sec.  10.  That  the  Secretary  of  Agriculture  is  authorized  to  make 
rules  and  regulations  for  carrying  out  the  provisions  of  this  Act. 

Sec.  11.     That  this  Act  shall  be  in  force  from  the  date  of  its  passage. 


ADDENDUM 


EXCESS  PROFITS  TAX.^ 

Act   of    :March    3,    1917. 
Terms  Construed. 

Sec.  200.     That  when  used  in  this  title — 

The  term  "corporation"  includes  joint-stock  companies  or  associa- 
tions, and  insurance  companies ; 

The  term  "United  States"  means  only  the  States,  the  Territories 
of  Alaska  and  Hawaii,  and  the  District  of  Columbia ;  and 

The  term  "taxable  year"  means  the  twelve  months  ending  Decem- 
ber thirty-first,  except  in  the  case  of  a  corporation  or  partnership 
allowed  to  fix  its  own  fiscal  year,  in  which  case  it  means  such  fiscal 
year.  The  first  taxable  year  shall  be  the  year  ending  December  thirty- 
first,  nineteen  hundred  and  seventeen. 

Extra  Tax  on  Incomes  of  Corporations  and  Partnerships. 

Sec.  201.  That  in  addition  to  the  taxes  under  existing  laws  there 
shall  be  levied,  assessed,  collected,  and  paid  for  each  taxable  year  upon 
the  net  income  of  every  corporation  and  partnership  organized,  author- 
ized, or  existing  under  the  laws  of  the  United  States,  or  of  any  State, 
Territory,  or  District  thereof,  no  matter  how  created  or  organized,  except- 
ing income  derived  from  the  business  of  life,  health,  and  accident  insur- 
ance combined  in  one  policy  issued  on  the  weekly  premium  payment 
plan,  a  tax  of.  eight  per  centum  of  the  amount  by  which  such  net  income 
exceeds  the  sum  of  (a)  $5,000  and  (b)  eight  per  centum  of  the  actual 
capital  invested. 

Every  foreign  corporation  and  partnership,  including  corporations 
and  partnerships  of  the  Philippine  Islands  and  Porto  Rico,  shall  pay 
for  each  taxable  year  a  like  tax  upon  the  amount  by  which  its  net  income 
received  from  all  sources  within  the  United  States  exceeds  the  sum  of 
(a)  eight  per  centum  of  the  actual  capital  invested  and  used  or  employed 
in  the  business  in  the  United  States,  and  (b)  that  proportion  of  $5,000 
which  the  entire  actual  capital  invested  and  used  or  employed  in  the  busi- 
ness in  the  United  States  bears  to  the  entire  actual  capital  invested :  and 
in  case  no  such  capital  is  used  or  employed  in  the  business  in  the  United 
States  the  tax  shall  be  imposed  upon  that  portion  of  such  net  income 
which  is  in  excess  of  the  sum  of  (a)  eight  per  centum  of  that  proportion 
of  the  entire  actual  capital  invested  and  used  or  employed  in  the  business 
which  the  net  income  from  sources  within  the  United  States  bears  to  the 
entire  net  income,  and  (b)  that  proportion  of  $5,000  which  the  net  income 
from  sources  within  the  United  States  bears  to  the  entire  net  income. 

C)  Supplementary  section   to   corporation  tax,  see  p.   328. 


874  Important  Federal  Laws 

Actual  Capital  Meaning  of  Term. 

Sec.  202.  That  for  the  purpose  of  this  title,  actual  capital  invested 
means  (1)  actual  cash  paid  in,  (2)  the  actual  cash  value,  at  the  time 
of  payment,  of  assets  other  than  cash  paid  in,  and  (3)  paid  in  or  earned 
surplus  and  undivided  profits  used  or  employed  in  the  business ;  but 
does  not  include  money  or  other  property  borrowed  by  the  corporation  or 
partnership. 

Assessed  from  Income  Tax  Returns. 

Sec.  203.  That  the  tax  herein  imposed  upon  corporations  and 
partnerships  shall  be  computed  upon  the  basis  of  the  net  income  shown 
liy  their  income  tax  returns  under  Title  I  of  the  Act  entitled  "An  Act  to 
increase  the  revenue,  and  for  other  purposes,"  approved  September 
eighth,  nineteen  hundred  and  sixteen,  or  under  this  title,  and  shall  be 
assessed  and  collected  at  the  same  time  and  in  the  same  manner  as  the 
income  tax  due  under  Title  I  of  such  Act  of  September  eighth,  nineteen 
hundred  and  sixteen :  Provided,  That  for  the  purpose  of  this  title  a 
partnership  shall  have  the  same  privilege  with  reference  to  fixing  its 
fiscal  year  as  is  accorded  corporations  under  section  thirteen  (a)  of  Title 
I  of  such  Act  of  September  eighth,  nineteen  hundred  and  sixteen :  And 
provided  further,  That  where  a  corporation  or  partnership  makes  return 
prior  to  March  first,  nineteen  hundred  and  eighteen,  covering  its  own 
fiscal  vear  and  includes  therein  anv  income  received  during-  the  calendar 
year  ending  December  thirty-first,  nineteen  hundred  and  sixteen,  the  tax 
herein  imposed  shall  be  that  proportion  of  the  tax  based  upon  such  full 
fiscal  year  which  the  time  from  January  first,  nineteen  hundred  and 
seventeen,  to  the  end  of  such  fiscal  year  bears  to  the  full  fiscal  year. 

Corporations  and  Partnerships  Exempt. 

Sec.  204.  That  corporations  exempt  from  tax  under  the  provisions 
of  section  eleven  of  Title  I  of  the  Act  approved  September  eighth,  nine- 
teen hundred  and  sixteen,  and  partnerships  carrying  on  or  doing  the 
same  business  shall  be  exempt  from  the  provisions  of  this  title,  and  the 
tax  imposed  by  this  title  shall  not  attach  to  incomes  of  partnerships 
derived  from  agriculture  or  from  personal  services. 

Corporations  to  State  Actual  Capital  Invested. 

Sec.  205.  That  every  corporation  having  a  net  income  of  $5,000  or 
more  for  the  taxable  year  making  a  return  under  Title  I  of  such  Act 
of  September  eighth,  nineteen  hundred  and  sixteen,  shall  for  the  pur- 
poses of  this  title  include  in  such  return  a  detailed  statement  of  the  actual 
capital  invested. 

Every  partnership  having  a  net  income  of  $5,000  or  more  for  the 
taxable  year  shall  render  a  correct  return  of  the  income  of  the  part- 
nership for  the  taxable  year,  setting  forth  specifically  the  actual  capital 
invested  and  the  gross  income  for  such  year  and  the  deductions  here- 
inafter allowed.  Such  returns  shall  be  rendered  at  the  same  time  and 
in  the  same  manner  and  form  as  is  prescribed  for  income-tax  returns 


Addendum  875 

under  Title  I  of  such  Act  of  September  eighth,  nineteen  hundred  and 
sixteen.  In  computing  net  income  of  a  partnership  for  the  purposes 
of  this  title  there  shall  be  allowed  like  deductions  as  are  allowed  to 
individuals  in  sections  five  (a)  and  six  (a)  of  such  Act  of  September 
eighth,  nineteen  hundred  and  sixteen. 

General  Laws  Applicable. 

Sec.  206.  That  all  administrative,  special,  and  general  provisions 
of  law,  including  the  laws  in  relation  to  the  assessment,  remission,  collec- 
tion, and  refund  of  internal-revenue  taxes  not  heretofore  specifically 
repealed  and  not  inconsistent  with  the  provisions  of  this  title  are  hereby 
extended  and  made  applicable  to  all  the  provisions  of  this  title  and  to  the 
tax  herein  imposed,  and  all  provisions  of  Title  I  of  such  Act  of  Septem- 
ber eighth,  nineteen  hundred  and  sixteen,  relating  to  returns  and  pay- 
ment of  the  tax  therein  imposed,  including  penalties,  are  hereby  made 
applicable  to  the  tax  required  by  this  title. 

Regulations  to  be  Made. 

Sec.  207.  That  the  Commissioner  of  Internal  Revenue,  with  the 
approval  of  the  Secretary  of  the  Treasury,  shall  make  all  necessary 
regulations  for  carrying  out  the  provisions  of  this  title,  and  may  require 
any  corporation  or  partnership  subject  to  the  provisions  of  this  title  to 
furnish  him  with  such  facts,  data,  and  information  as  in  his  judgment  are 
necessary  to  collect  the  tax  provided  for  in  this  title. 

Returns  of  Dividends. 

Sec.  402.  That  Title  I  of  the  Act  entitled  "An  Act  to  increase  the 
revenue,  and  for  other  purposes,"  approved  September  eighth,  nineteen 
hundred  and  sixteen,  be  amended  by  adding  to  Part  III  a  new  section, 
as  follows : 

"Sec.  26.  Every  corporation,  joint-stock  company  or  association, 
or  insurance  company  subject  to  the  tax  herein  imposed,  when  required 
by  the  Commissioner  of  Internal  Revenue,  shall  render  a  correct  return, 
duly  verified  under  oath,  of  its  payments  of  dividends,  whether  made  in 
cash  or  its  equivalent  or  in  stock,  including  the  names  and  addresses  of 
stockholders  and  the  number  of  shares  owned  by  each,  in  such  form  and 
manner  as  may  be  prescribed  by  the  Commissioner  of  Internal  Revenue, 
with  the  approval  of  the  Secretary  of  the  Treasury." 


PLANT  QUARANTINE. 

Amended  Section. 
Act  of  March  4,  1917. 

That  section  eight  of  an  Act  entitled  "An  Act  to  regulate  the  impor- 
tation of  nursery  stock  and  other  plants  and  plant  products;  to  enable 
the  Secretary  of  Agriculture  to  establish  and  maintain  quarantine  dis- 
tricts for  plant  diseases  and  insect  pests ;  to  permit  and  regulate  the  move- 


876  Important  Federal  Laws 

merit  of  fruits,  plants,  and  vegetables  therefrom,  and  for  other  purposes," 
approved  August  twentieth,  nineteen  hundred  and  twelve,  be,  and  the 
same  is  hereby,  amended  so  as  to  read  as  follows : 

Interstate  quarantine  against  plant  diseases  or  insect  infestation,  au- 
thorized. 

"Sec.  8.  That  the  Secretary  of  Agriculture  is  authorized  and  di- 
rected to  quarantine  any  State,  Territory,  or  District  of  the  United 
States,  or  any  portion  thereof,  when  he  shall  determine  that  such  quaran- 
tine is  necessary  to  prevent  the  spread  of  a  dangerous  plant  disease  or 
insect  infestation,  new  to  or  not  theretofore  widely  prevalent  or  distrib- 
uted within  and  throughout  the  United  States ;  and  the  Secretary  of 
Agriculture  is  directed  to  give  notice  of  the  establishment  of  such  quar- 
antine to  common  carriers  doing  business  in  or  through  such  quarantined 
area,  and  shall  publish  in  such  newspapers  in  the  quarantined  area  as  he 
shall  select  notice  of  the  establishment  of  quarantine.  That  no  person 
shall  ship  or  offer  for  shipment  to  any  common  carrier,  nor  shall  any 
common  carrier  receive  for  transportation  or  transport,  nor  shall  any 
person  carry  or  transport  from  any  quarantined  State  or  Territory  or 
District  of  the  United  States,  or  from  any  quarantined  portion  thereof, 
into  or  through  any  other  State  or  Territory  or  District,  any  class  of 
nursery  stock  or  any  other  class  of  plants,  fruits,  vegetables,  roots,  bulbs, 
seeds,  or  other  plant  products,  or  any  class  of  stone  or  quarry  products, 
or  any  other  article  of  any  character  whatsoever,  capable  of  carrying 
any  dangerous  plant  disease  or  insect  infestation,  specified  in  the  notice 
of  quarantine  except  as  hereinafter  provided.  That  it  shall  be  unlawful 
to  move,  or  allow  to  be  moved,  any  class  of  nursery  stock  or  any  other 
class  of  plants,  fruits,  vegetables,  roots,  bulbs,  seeds,  or  other  plant  prod- 
ucts, or  any  class  of  stone  or  quarry  products  or  any  other  article  of  any 
character  whatsoever,  capable  of  carrying  any  dangerous  plant  disease 
or  insect  infestation,  specified  in  the  notice  of  quarantine  hereinbefore 
provided,  and  regardless  of  the  use  for  which  the  same  is  intended, 
from  any  quarantined  State  or  Territory  or  District  of  the  United  States 
or  quarantined  portion  thereof,  into  or  through  any  other  State  or  Ter- 
ritory or  District,  in  manner  or  method  or  under  conditions  other  than 
those  prescribed  by  the  Secretary  of  Agriculture.  That  it  shall  be  the 
duty  of  the  Secretary  of  Agriculture,  when  the  public  interests  will  per- 
mit, to  make  and  promulgate  rules  and  regulations  which  shall  permit 
and  govern  the  inspection,  disinfection,  certification,  and  method  and 
manner  of  delivery  and  shipment  of  the  class  of  nursery  stock  or  of  any 
other  class  of  plants,  fruits,  vegetables,  roots,  bulbs,  seeds,  or  other  plant 
products,  or  any  class  of  stone  or  quarry  products,  or  any  other  article 
of  any  character  whatsoever,  capable  of  carrying  any  dangerous  plant 
disease  or  insect  infestation,  specified  in  the  notice  of  quarantine  here- 
inbefore provided,  and  regardless  of  the  use  for  which  the  same  is 
intended,  from  a  quarantined  State  or  Territory  or  district  of  the  United 
States,    or    quarantined    portion    thereof,    into    or    through    any    other 


Addendum  877 

State  or  Territory  or  District;  and  the  Secretary  of  Agriculture  shall 
give  notice  of  such  rules  and  regulations  as  hereinbefore  provided  in  this 
section  for  the  notice  of  the  establishment  of  quarantine:  Provided, 
That  before  the  Secretary  of  Agriculture  shall  promulgate  his  determi- 
nation that  it  is  necessary  to  quarantine  any  State,  Territory,  or  Dis- 
trict of  the  United  States,  or  portion  thereof,  under  the  authority  given 
in  this  section,  he  shall,  after  due  notice  to  interested  parties,  give  a  pub- 
lic hearing  under  such  rules  and  regulations  as  he  shall  prescribe,  at 
which  hearing  any  interested  party  may  appear  and  be  heard,  either 
in  person  or  by  attorney." 


SUMMARY 

The  preceding  pages  have  given  the  text  of  seventy-two  Federal 
Statutes  which,  in  one  way  or  another,  affect  the  people  of  the  nation 
at  large.  Prior  to  1887,  only  thirty  years  ago,  there  was  scarcely  an 
Act  of  Congress  concerned  with  the  relations  of  citizens,  one  with  an- 
other, or  with  states,  one  with  another.  Up  to  that  year  a  railroad  could 
charge  one  rate  in  one  state,  another  rate  in  a  contiguous  state,  and  still 
another  rate  in  a  third  state ;  in  other  words,  the  railroads  could  charge  a 
dift"erent  rate  for  each  state  in  the  Union  and,  if  they  cared,  they  could 
charge  a  dift'erent  rate  for  every  shipper  with  w-hom  they  had  dealings. 
It  was  the  creation  of  the  Interstate  Commerce  Commission  in  1887 
which  put  a  stop  to  this  practice,  and  this  act  may  be  taken  as  the  be- 
ginning of  a  new^  era  in  Federal  control. 

Thirty  years  ago  no  one  would  have  believed  that  the  time  would 
come  when  the  Federal  government  would  step  in  and  say  that  every 
beef  butchered  for  interstate  commerce  must  be  inspected  by  the  govern- 
ment ;  that  no  goods  could  be  shipped  from  one  place  to  another  which 
w^ere  made  by  children ;  or  that  a  druggist  could  not  sell  opium  or  cocaine 
without  a  special  permit  from  the  government.  The  tendency  of  the 
times  points  to  a  closer  supervision  over  the  aft'airs  of  the  citizens  of 
the  United  States  by  Congress ;  the  old  states  rights  idea  has  given 
way  to  the  belief  that  Federal  supervision  makes  for  a  better  nation. 

The  most  casual  reader  who  picks  up  this  volume  will  find  a  large 
number  of  acts  touching  him  personally.  For  instance,  even  the  farmer 
will  find  that  he  cannot  ship  a  barrel  of  apples  out  of  his  state  without 
having  his  barrels  properly  stamped  by  the  Federal  government.  There  is 
not  an  individual  who  is  not  aft'ected  in  one  way  or  another  by  some 
of  these  acts  of  Congress.  In  the  following  pages  is  given  a  brief  sum- 
mary of  these  acts,  setting  forth,  in  language  for  the  layman,  the  gen- 
eral purport  of  the  Federal  Statutes  found  in  this  volume.  No  attempt 
has  been  made  to  present  a  detailed  analysis  of  the  statutes,  the  sole  de- 
sire being  to  indicate  only  in  a  brief  way  how  they  affect  the  general 
public. 

Farm  Loan  Act. 

July  17,  1916. 

The  purposes  of  this  act  are  to  lower  and  equalize  rates  for  farm 
loans ;  to"  provide  longer  times  for  payments ;  to  mobilize  money  for 
farm  credits ;  to  stimulate  co-operation  among  farmers ;  and  to  check 
land  monopoly  by  giving  greater  opportunities  for  the  man  wdth  little 
monev  to  own  land. 

The  act  creates  a  Farm  Loan  Board  of  five  members  including  the 
Secretary  of  the  Treasury.     The  appointed  members  receive  $10,000  a 


880  Important  Federal  Laws 

year.  The  board  was  authorized  to  establish  twelve  land  bank  districts, 
with  a  federal  land  bank  in  each,  and  appoint  temporary  directors.  The 
banks  are  required  to  have  a  capital  of  at  least  $750,000.  Twenty-five 
per  cent,  of  this  must  be  kept  in  quick  assets.  The  land  banks  may  be 
designated  by  the  Secretary  of  the  Treasury  as  public  depositories.  The 
banks  are  not  permitted  to  do  a  general  banking  business. 

The  local  machinery  of  the  act  consists  of  farm  loan  associations, 
which  are  organized  by  ten  or  more  persons  who  desire  to  become  bor- 
rowers. The  farm  loan  associations  elect  a  board  of  at  least  five  directors, 
a  president,  vice-president,  secretary-treasurer  and  a  loan  committee  of 
three  members.  The  farm  loan  associations  look  after  the  loans  to  their 
members  and  collect  interest  and  payments.  The  secretary-treasurer  is 
the  paid  executive  of  the  association. 

Loans  range  from  $100  to  $10,000  and  each  association  must 
have  at  least  $'20,000.  The  limit  of  the  loan  is  fifty  per  cent,  of  the 
appraised  value  of  the  land  and  twenty  per  cent,  of  the  value  of  im- 
provem.ents.  Each  borrower  must  invest  five  per  cent,  of  the  amount  of 
his  loan  in  the  stock  of  the  association.  The  money  is  used  to  buy  stock 
in  the  federal  land  bank,  which  in  turn  uses  the  money  to  make  more 
loans.  The  farm  land  bank  handles  the  mortgages  received  from  the 
local  associations  and  sells  bonds  based  upon  the  mortgages  held.  The 
money  received  by  the  sale  of  bonds  is  used  to  make  more  loans.  The 
rate  of  interest  to  the  farmer  depends  upon  the  interest  rate  of  the 
bonds. 

The  local  associations  are  liable  for  failure  of  their  members  who 
are  borrowers  to  the  extent  of  their  five  per  cent,  subscription  and  an- 
other five  per  cent,  which  may  be  assessed.  He  is  thus  liable  only  for 
ten  per  cent,  of  his  own  loan,  but  since  the  loans  are  for  fifty  per  cent, 
of  value,  only  the  most  careless  work  would  ever  make  it  likely  that 
the  member  would  be  liable. 

The  conditions  of  loans  are  as  follows :  Loans  are  upon  first  mort- 
gages ;  pavments  are  made  annually  or  semi-annually ;  rates  of  interest 
shall  not  be  over  six  per  cent.  Loans  are  for  purchase  of  land  for 
agriculture,  equipment,  fertilizer,  live  stock,  and  improvement.  Loans 
are  to  be  made  only  to  bona  fide  farmers  or  those  who  are  about  to 
become  farmers. 

The  powers  and  duties  of  the  Federal  Land  Banks  are  set  out  in 
sections  13  and  14.  They  handle  the  farm  loan  business  of  their  district 
subject  to  the  Federal  Board.  In  any  locality  where  it  appears  to  be 
impossible  to  start  a  farm  loan  association,  the  land  banks  may  loan  di- 
rectly, subject  to  the  approval  of  the  Federal  Board.  Joint  stock  land 
banks  may  be  formed  to  carry  on  a  farm  loan  business  subject  to  the 
inspection  of  the  Federal  Board. 

The  Federal  Farm  Loan  Board  has  general  powers  over  all  of  the 
operations  under  this  act.  They  charter  federal  land  banks,  farm  loan 
associations  and  joint  stock  land  banks;  fix  rates  of  interest  for  federal 


Summary  881 

land  banks  ;  control  the  issue  of  bonds  ;  require  reports ;  make  rules 
and  regulations  ;  prescribe  the  form  of  bonds ;  require  payments  from 
one  bank  to  another  of  sums  advanced ;  suspend  or  remove  land  bank 
officers  or  assistants  ;    and  have  general  supervisory  power. 

The  farm  loan  Act  consists  then  of  three  main  parts:  (1)  The  Fed- 
eral Farm  Loan  Board;  (2)  the  Twelve  Federal  Land  Banks;  (3)  the 
Federal  Farm  Loan  Associations. 

The  farm  loan  associations  are  subject  to  the  land  banks  and  all  are 
subject  to  the  Federal  Farm  Loan  Board. 

Agricultural  Education  Acts. 

1S62.  1SS7.  1800,  in06,  1914  and  1917. 
Several  acts  provide  for  national  aid  and  co-operation  in  agricultural 
education.  The  Morrill  act  of  1862  gave  public  lands  to  each  of  the 
states  for  the  establishment  of  schools  of  agriculture  and  mechanic  arts. 
The  Hatch  act  of  1887  established  experiment  stations  in  each  of  the 
states.  The  second  JMorrill  act  of  1890  gave  further  national  aid  for 
agricultural  colleges.  The  x^dams  act  of  1906  increased  materially  the 
aid  for  experiment  work.  The  Smith-Lever  act  of  1914  gave  large  sums 
for  the  purpose  of  extension  work  in  demonstrating  directly  to  farmers. 
The  Vocational  act  of  1917  gives  aid  for  secondary  schools  of  agricul- 
ture. 

Animal  Disease  Acts. 
May  29,  1884;  Februiiry  2.  1903. 
The  Bureau  of  Animal  Industry  was  created  in  1884  and  was  given 
power  to  control  and  suppress  contagious  diseases  among  animals.  The 
bureau  is  given  authority  to  investigate  animal  diseases  and  to  make 
rules  and  regulations  to  prevent  the  spread  of  diseases.  The  law  pro- 
hibits the  transportation  of  infected  stock  and  gives  power  to  establish 
quarantine.  The  act  of  1903  confers  the  whole  power  on  the  Secretary 
of  Agriculture,  under  whose  control  the  Bureau  is  placed.  Extensive 
powers  to  seize  and  condemn  infected  stock  are  given. 

Cruelty  to  Animals  Act. 

June  20.  lOOG. 
This  act  prohibits  carriers  from  confining  animals  in  cars  for  more 
than  twenty-eight  consecutive  hours,  and  requires  that  the  animals  be 
unloaded  for  a  period  of  five  consecutive  hours  and  properly  fed.  The 
owner  may,  upon  request  in  writing,  have  the  time  extended  to  thirty-six 
hours.    The  penalty  is  a  fine  of  one  hundred  to  five  hundred  dollars. 

Grain  Standards  Act. 

September  S,  1916. 
The  Secretary  of  Agriculture  is  authorized  to  establish  standards  of 
quality  and  condition  of  grain,  and  such  standards  are  the  official  grain 
'(56) 


882  Important  Federal  Laws 

standards  of  the  United  States.  When  standards  are  fixed  no  grain  may 
be  shipped  in  interstate  commerce  unless  it  has  been  inspected  and  graded 
according  to  the  standard.  An  appeal  may  be  taken  to  the  Secretary  of 
Agriculture  from  the  grading  of  the  inspectors.  The  Secretary  issues 
licenses  to  competent  persons  to  grade  grain.  Violators  of  the  act  are 
subject  to  a  penalty  of  not  more  than  one  thousand  dollars  fine  or  im- 
prisonment for  one  year,  or  both. 

Warehouse  Act. 
September  8,  1916. 

This  act  applies  to  all  warehouses  used  in  storing  agricultural  prod- 
ucts, including  cotton,  wool,  grains,  tobacco  and  flaxseed.  The  Secre- 
tary of  Agriculture  is  authorized  to  investigate  the  storage,  warehousing, 
classifying,  weighing  and  certification  of  agricultural  products ;  upon 
application  to  him  by  any  person  applying  for  license  to  conduct  a  ware- 
house under  this  act,  to  inspect  such  warehouse  or  cause  it  to  be  in- 
spected ;  at  any  times,  with  or  without  application  to  him,  to  inspect  or 
cause  to  be  inspected  all  warehouses  licensed  under  this  act ;  to  deter- 
mine whether  warehouses  for  which  licenses  are  applied  for  or  have 
been  issued  under  this  act  are  suitable  for  the  proper  storage  of  any 
agricultural  product  or  products ;  to  classify  warehouses  licensed  or  ap- 
plying for  a  license  in  accordance  with  their  ownership,  location,  sur- 
roundings, capacity,  conditions,  and  other  qualities,  and  as  to  the  kinds 
of  licenses  issued  or  that  may  be  issued  for  them  pursuant  to  this  act; 
and  to  prescribe,  within  the  limitations  of  this  act,  the  duties  of  the  ware- 
housemen conducting  warehouses  licensed  under  this  act  with  respect  to 
their  care  of  and  responsibility  for  agricultural  products  stored  therein. 

The  Secretary  of  Agriculture  is  authorized  to  issue  licenses  to  ware- 
housemen for  a  term  not  exceeding  one  year.  Every  person  licensed 
must  give  bond  for  the  faithful  performance  of  his  duties  and  obliga- 
tions. The  Secretary  may  also  issue  Hcenses  to  persons  to_  act  as  weigh- 
ers and  classifiers.  Every  warehouseman  must  accept  agricultural  prod- 
ucts for  storage  without  discrimination.  The  act  requires  that  receipts 
be  given  and  prescribes  the  form  of  the  receipt.  No  other  receipt  may 
be  given  until  the  original  is  cancelled.  The  warehouseman  is  required 
to  deliver  without  any  unnecessary  delay  any  agricultural  products  to 
the  depositor  upon  satisfaction  of  claims.  The  warehouseman  is  com- 
pelled to  keep  a  record.  Warehouses  are  subject  to  inspection  by  the 
Secretary  of  Agriculture  and  licenses  may  be  revoked  for  cause.  The 
Secretary  may  make  investigations  and  examine  books  and  documents. 
He  mavalso  make  rules  and  regulations.  The  act  does  not  conflict  with 
state  laws  or  limit  their  operation.  Any  person  who  forges  a  license,  or 
who  issues  a  false  receipt,  or  who  represents  falsely  that  a  warehouse  is 
bonded,  is  subject  to  a  fine  of  not  more  than  five  hundred  dollars  or 
imprisonment  for  six  months,  or  both. 


Summary  883 

Plant  Quarantine  Act. 

August  20,  1912. 
This  act  prohibits  the  importation  of  nursery  stock  until  the  same 
has  been  inspected  by  the  Secretary  of  Agriculture  and  approved.  Every 
case,  box  or  package  used  in  importing  or  in  interstate  commerce  shall 
be  marked  to  show  the  character  of  contents,  country  where  grown, 
quantity,  name  and  address  of  shipper  and  the  name  of  the  consignee. 
The  Secretary  of  Agriculture  may  establish  quarantine  to  prevent  the 
entry  or  shipment  of  diseased  shrubbery,  trees  and  plants,  and  may  make 
rules  and  regulations.  The  Federal  Horticultural  Board  is  created  by 
the  act  to  carry  out  its  provisions. 

Pure  Seeds  Act. 

August  24,  1912. 
The  importation  of  adulterated  agricultural  seeds  is  prohibited  by 
this  act.  The  act  defines  what  shall  be  considered  adulterated  seeds,  and 
also  what  are  considered  unfit  for  seeding  purposes.  The  penalty  for 
violation  is  a  fine  of  not  less  than  two  hundred  dollars  nor  more  than 
five  hundred  dollars.  The  Secretary  of  the  Treasury  and  the  Secretary 
of  Agriculture  make  rules  and  regulations  for  the  further  control  of  im- 
portation of  seeds. 

Standard  Apple  Barrel  Act. 
August  3.  1912. 
This  act  fixes  a  standard  barrel   for  apples  as  defined  in  the  first 
section  of  the  act.     The  act  fixes  the  grades  of  apples  and  requires  bar- 
rels to  be  marked  with  the  grade.     ^Misbranding  is  defined  and  penalized 
by  a  fine  of  one  dollar  per  barrel  and  costs. 

Standard  Fruit  Basket  Act. 
August  31,  1916. 
This  act  fixes  the  standard  Climax  baskets  for  two  quarts,  four 
quarts  and  twelve  quarts,  and  also  standard  smaller  baskets  for  smaller 
fruits  and  berries.  The  shipment  in  interstate  commerce  of  any  baskets 
but  the  standard  basket  is  forbidden  under  a  penalty  of  twenty-five  dol- 
lars. Baskets  for  exports  are  exempt  if  they  comply  with  form  require- 
ments. The  department  of  Agriculture  makes  tests  of  baskets  and  formu- 
lates the  rules  and  regulations.  The  guarantee  of  the  manufacturer  or 
wholesaler  protects  the  dealer. 

Standard  Lime  Barrel  Act. 

August  23,  1910. 

This  act  establishes  two  standard  barrels  for  lime,  a  large  barrel  of 

two  hundred  and  eighty  pounds  and  a  small  barrel  of  one  hundred  and 

eighty  pounds.    Every  barrel  used  in  foreign  or  interstate  commerce  must 


884  Important  Federal  Laws 

be  marked  with  the  weight  of  the  barrel  and  name  of  the  manufacturer, 
where  manufactured,  and,  if  imported,  the  name  of  the  country  from 
which  imported.  If  shipment  is  made  in  smaller  containers  the  weight 
must  be  clearly  marked.  Violation  of  the  act  is  followed  by  a  fine  of 
not  more  than  one  hundred  dollars.  The  Bureau  of  Standards  makes 
further  rules  and  regulations  for  the  enforcement  of  the  act. 

Insecticides  Act. 
April  26.  iniO. 
This  act  prohibits  the  manufacture  of  adulterated  insecticides,  in- 
cluding paris  green,  lead,  arsenates,  etc.  Any  person  who  ships  or  sells 
any  adulterated  or  misbranded  insecticides  is  guilty  of  a  violation  of  the 
act.  Examination  of  insecticide  is  made  by  the  Secretary  of  Agriculture, 
and  if  it  appears  that  there  is  any  adulteration  or  misbranding,  notice  is 
given  to  the  offending  party.  After  a  hearing  th^  Secretary  may  notify 
the  prosecuting  officers,  whose  duty  is  then  to  prosecute  the  oft'ending 
party.  This  act  defines  what  is  considered  adulterated  and  misbranded 
insecticides.  The  guarantee  of  the  wholesaler  protects  the  retail  dealer. 
Any  adulterated  or  misbranded  insecticides  may  be  seized  and  destroyed. 
Insecticides  may  be  imported,  but  are  subject  to  examination  in  like  man- 
ner. The  Secretary  of  the  Treasury,  Secretary  of  Agriculture  and  Sec- 
retary of  Commerce  and  Labor  are  instructed  to  make  further  rules  and 
regulations  for  the  carrying  out  of  the  provisions  of  this  act. 

Vocational  Education  Act. 
February  27.  1917. 

This  act  provides  federal  aid  for  vocational  education  in  agriculture, 
trades  and  industries,  home  economics  and  in  training  vocational  teach- 
ers. The  amount  of  aid  when  the  appropriation  reaches  its  maximum 
is  $3,000,000  for  agriculture,  a  similar  amount  for  trades  and  industries, 
including  home  economics,  and  $L000,000  for  training  teachers,  or  a  total 
of  $7,000,000. 

The  law  creates  a  federal  board  to  administer  the  act  and  leaves 
the  states  to  determine  upon  the  board  to  handle  the  states'  part.  The 
state  board  formulates  the  plans  for  its  state  and  submits  them  to  the 
Federal  Board,  and  if  they  are  approved  the  federal  aid  is  given.  The 
state  has  entire  control,  but  must  satisfy  the  federal  requirements.  Spe- 
cific conditions  are  fixed  for  each  kind  of  grants  which  the  state  must 
meet.  The  states  are  required  to  accept  the  conditions  of  the  act  by 
their  legislatures  and  to  appoint  the  state  treasurer  as  custodian  of  the 
fund.  If  a  state  fails  to  live  up  to  the  requirements  the  federal  aid  may 
be  withheld. 

Federal  Reserve  Act. 
December  2.3.  1913. 

This  act  provides  for  the  creation  of  twelve  Federal  Reserve  Dis- 
tricts, and  for  a  Federal  Reserve  Bank  in  each.     The  whole  system  is 


Summary  885 

under  the  control  of  the  Federal  Reserve  Board,  consisting  of  seven 
members  appointed  by  the  President  for  a  term  of  ten  years  at  a  salary 
of  ten  thousand  dollars.  A  preliminary  organization  committee  was  pro- 
vided which  established  the  districts. 

The  capital  stock  of  the  Reserve  Banks  is  made  up  by  subscriptions 
from  national  bank  associations,  each  one  subscribing  one-sixth  of  their 
capital  stock.  All  national  banks  were  compelled  to  come  into  the  sys- 
tem, and  state  banks  were  authorized  to  become  members  by  complying 
with  the  conditions.  The  powers  of  the  Federal  Reserve  Banks  are  set 
forth  in  general  in  section  4  of  the  act. 

The  banks  are  managed  by  a  board  of  directors  consisting  of  three 
classes — Class  A,  Class  B  and  Class  C.  Class  A  directors  are  chosen  by 
the  stockholding  banks ;  Class  B  directors  are  chosen  by  the  stockhold- 
ing banks  from  persons  engaged  in  commerce,  agriculture  or  industrial 
pursuits ;  Class  C  directors  consist  of  members  appointed  by  the  Federal 
Board. 

The  act  provides  in  detail  for  the  method  of  conducting  business; 
for  the  increase  or  decrease  of  capital  stock;  the  division  of  earnings; 
the  conversion  of  state  banks  into  national  banks ;  the  powers  of  the 
Federal  Reserve  Board  ;  provides  for  an  advisory  counsel ;  designates 
the  method  of  issuing  circulating  notes  and  their  redemption;  fixes  the 
reserve  requirements  of  banks ;  authorizes  the  establishment  of  foreign 
branches  of  national  banks ;  permits  national  banks  to  loan  on  farm 
lands ;  establishes  the  liability  of  stockholders,  and  gives  broad  powers 
to  the  Federal  Board  to  supervise  and  mobilize  the  banking  business. 

Postal  Savings  Act. 
June  25,  1910. 
This  act  provides  for  the  establishment  of  postal  savings  banks  in 
connection  with  the  postoffice  system.  The  board  in  charge  of  the  sys- 
tem consists  of  the  Postmaster  General,  the  Secretary  of  the  Treasury 
and  the  Attorney  General.  The  board  designates  the  postoffices  which 
are  to  be  postal  savings  banks.  Any  person  over  ten  years  of  age  may 
be  a  depositor,  but  no  one  may  have  more  than  one  thousand  dollars 
to  his  credit  at  any  time.  Interest  at  the  rate  of  two  per  cent,  is  paid. 
The  funds  are  kept  in  depository  banks,  which  may  be  either  national  or 
state  banks.  The  depositor  may  transfer  his  deposits  in  sums  of  twenty 
dollars  or  more  into  postal  savings  bonds.  The  postal  savings  deposits 
are  kept  entirely  separate  from  other  funds  by  the  postmaster.  Under 
this  act  the  government  serves  as  a  depository  for  small  sums,  which  it 
in  turn  deposits  in  solvent  banks. 

National  Bank  Act. 

June  20,  1874. 
The  first  national  Ijank  act  was  passed  February  23.  1863,  and  has 
been  revised  and  supplemented   from  time  to  time  by   Congress.     The 


886  Important  Federal  Laws 

whole  banking  system  was  revised  by  the  act  of  June  20,  1874.  This  act 
authorizes  the  formation  of  national  banking  associations  to  carry  on 
the  business  of  banking;  establishes  the  method  of  organization;  fixes 
the  powers  of  the  associations ;  provides  for  the  conduct  of  the  business 
of  the  associations  and  for  their  dissolution;  defines  the  power  to  hold 
property;  fixes  the  minimum  capital;  defines  the  time  and  method  of 
payment ;  provides  for  increase  and  decrease  of  capital  stock ;  fixes  the 
qualifications  of  directors,  and  requires  an  oath  by  directors;  and  pro- 
vides for  conversion  of  state  banks  into  national  banks. 

On  July  1,  1917,  there  were  7,635  national  banks  in  operation,  a 
greater  number  than  ever  before,  and  with  large  resources  and  deposits. 
During  the  year  ending  June  30,  1917,  163  new  national  banks  were 
chartered,  as  against  117  during  the  same  period  in  1916;  150  national 
banks  increased  their  capital  in  the  sum  of  $25,607,400,  as  against  92 
increases  in  the  sum  of  $9,607,700  during  the  preceding  year.  During 
the  year  1917  new  national  banks  were  organized  in  thirty-six  states.  The 
Federal  Reserve  Act  of  December  23,  1913,  modifies  this  act  in  many 
particulars,  and  the  two  should  be  consulted  together. 

Immigration  Act.  ^ 

February  5,  1917. 
This  act  is  a  revision  and  summary  of  previous  acts  on  immigration. 
It  levies  a  tax  upon  immigrants  ;  defines  who  shall  be  excluded ;  requires 
a  literacy  test ;  prohibits  immigration  for  immoral  purposes ;  prohibits 
importation  of  contract  laborers  and  advertising  for  immigrants  in  a  for- 
eign country;  regulates  transportation;  penalizes  importation  of  defec- 
tives ;  requires  entry  to  be  made  at  designated  ports  ;  requires  lists  of 
immigrants  from  steamship  companies ;  provides  for  examinations  of 
immigrants  and  for  deportation  in  certain  cases ;  places  the  enforcement 
in  the  hands  of  the  commissioner  general  of  immigration ;  prohibits  an- 
archists from  entering ;   and  regulates  entry  of  seamen. 

Naturalization  Laws. 
June  29,  1906;  March  4.  1P09;  June  25,  1910. 
These  laws  furnish  the  conditions  upon  which  an  alien  may  become 
a  citizen  and  the  method  of  becoming  a  citizen.  The  work  of  naturali- 
zation is  in  charge  of  the  Bureau  of  Naturalization  in  the  department 
of  labor.  Naturalization  may  take  place  in  any  federal  court  or  any  state 
court  of  record.  An  alien  desiring  citizenship  must  file  a  declaration  of 
intention  with'  the  court,  setting  forth  the  necessary  facts  of  his  resi- 
dence. After  a  continuous  residence  of  five  years  he  may  apply  by  peti- 
tion for  citizenship.  He  must  declare  his  allegiance  to  the  country  and 
renounce  other  allegiance.  He  must  not  be  an  anarchist.  If  the  court 
finds  that  the  requirements  are  met  the  applicant  is  admitted  to  citizen- 
ship. No  certificate  of  naturalization  can  be  issued  within  thirty  days 
preceding  the  holding  of  a  general  election.     All  applicants  must  speak 


Summary  887 

English.  The  act  sets  forth  in  detail  the  form  of  petition  and  all  the 
details  of  procedure.  Methods  of  bringing  suits  to  set  aside  citizenship 
for  cause  are  provided.  Penalties  are  attached  for  all  violations  and 
evasions. 

Naturalization  is  limited  to  white  persons  or  to  persons  of  African 
descent.  Naturalization  of  Chinese  is  prohibited.  Naturalization  of  alien 
enemies  is  also  prohibited.  Honorably  discharged  soldiers,  sailors  or 
seamen  are  exempt  from  many  formalities.  The  minor  children  of  an 
alien  naturalized  are  thereby  naturalized.  The  wife  becomes  a  citizen 
upon  the  naturalization  of  her  husband.  A  woman  citizen  who  marries 
a  foreigner  loses  her  citizenship. 

Trade  Commission  Act. 
September  2G,  1914. 

This  act  created  a  Federal  Trade  Commission  of  five  members,  at  a 
salary  of  $10,000  each,  to  regulate  business  practices  and  to  control  the 
general  conduct  of  business  of  an  interstate  character.  The  act  declares 
that  unfair  methods  of  business  shall  not  be  practiced  and  the  commis- 
sion is  empowered  to  enforce  the  provision.  Whenever  the  commission 
believes  that  unfair  methods  are  used  they  may  begin  proceedings,  and 
if  the  charges  are  sustained  they  may  order  the  practice  discontinued. 
An  appeal  may  be  taken  to  the  circuit  court  of  appeals,  and,  the  case  takes 
precedence  over  all  other  cases. 

The  commission  has  power  to  make  investigations  and  gather  in- 
formation ;  to  require  reports  and  information  from  all  corporations, 
except  banks  and  common  carriers ;  to  investigate  manner  in  which  de- 
crees of  court  under  anti-trust  acts  are  being  carried  out ;  to  investigate 
alleged  violations  of  the  anti-trust  acts ;  to  make  public  such  information 
as  thev  deem  for  public  benefit ;  tO'  make  annual  and  special  reports  to 
Congress  ;  to  make  rules  and  regulations  under  the  act ;  and  to  investi- 
gate trade  conditions  and  practices  in  foreign  commerce. 

The  commission  acts  as  a  master  in  chancery  in  anti-trust  cases  when 
directed  by  a  court.  The  commission  has  power  to  compel  testimony 
and  the  production  of  books  and  papers  in  any  case  before  it.  Wit- 
nesses may  not  be  excused  from  testifying  because  the  evidence  may 
tend  to  criminate  him,  but  such  person  may  not  be  prosectued  on  account 
of  the  matter  so  testified.  Any  person  refusing  to  testify  or  produce 
documents  is  subject  to  a  fine  of  one  thousand  dollars  to  five  thousand 
dollars  and  imprisonment  for  one  year.  Any  person  who  makes  false 
entry  or  fails  to  make  correct  reports  asked  for  by  the  commission  is 
subject  to  a  fine  of  one  thousand  dollars  to  five  thousand  dollars  and 
imprisonment  for  three  years.  Corporations  are  subject  to  a  penalty  of 
one  hundred  dollars  a  day  for  each  day  they  fail  to  make  an  annual  or 
special  report.  Violations  of  the  anti-trust  acts  are  subject  to  the  pen- 
alties of  those  acts. 


888  Important  Federal  Laws 

Sherman  Act. 
July  2,  1S90. 
This  act  prohibits  contracts  or  combinations  in  restraint  of  trade. 
Monopoly  is  prohibited.     The  penalty  is  a  fine  not  exceeding  five  thou- 
sand dollars  or  imprisonment  for  not  more  than  one  year,  or  both.     Any 
person  injured  by  restraint  of  trade  may  recover  triple  damages. 

Clayton  Act. 
October  15,  1914. 
This  act  defines  and  prohibits  the  practices  which  restrain  trade.  It 
is  made  unlawful  to  discriminate  in  price,  or  to  compel  purchasers  not 
to  handle  competitors'  goods.  Corporations  may  not  acquire  stock  in 
another  corporation  if  it  tends  to  make  monopoly.  Interlocking  direc- 
torates are  prohibited  in  certain  cases,  and  contracts  of  carriers  may  not 
be  made  with  corporations  which  have  on  their  boards  any  officer  or 
director  of  the  carrier.  The  power  to  enforce  this  provision  is  placed 
in  the  Interstate  Commerce  Commission  as  to  carriers,  the  Federal  Re- 
serve Board  as  to  banks,  and  the  Federal  Trade  Commission  as  to  other 
business.  Officers  and  directors  are  made  liable  as  well  as  the  corpora- 
tion. The  issue  of  injunction  is  regulated  and  preliminary  injunctions 
are  prohibited  without  notice.  Labor  is  declared  not  to  be  a  commodity, 
and  the  anti-trust  acts  are  made  to  exempt  labor  societies  and  agricultural 
and  horticultural  societies. 

Cotton  Futures  Act. 

September  8,  1916. 
This  act  is  a  substitute  for  the  cotton  futures  act  passed  in  1914. 
It  places  a  tax  of  two  cents  a  pound  upon  cotton  sold  for  future  delivery 
unless  such  sales  comply  with  the  act.  Contracts  for  future  delivery  must 
be  in  writing.  No  tax  is  levied  if  the  conditions  of  the  act  regulating 
such  sales  are  met.  The  markets  which  are  to  be  considered  bona  fide 
spot  markets  are  those  which  have  been  approved  by  the  Secretary  of 
Agriculture.  Taxes  under  the  act  are  paid  by  stamp.  Contracts  not 
complying  with  the  act  are  void. 

Food  and  Drugs  Act. 
June  30,  1906. 
This  act  prohibits  the  manufacture  of  any  articles  of  food  or  of  any 
drugs  which  are  misbranded  or  adulterated  in  the  District  of  Columbia 
or  the  territories,  and  the  interstate  commerce  in  foods  or  drugs  which 
are  misbranded  or  adulterated.  Samples  of  food  and  drugs  are  exam- 
ined by  the  Bureau  of  Chemistry  of  the  Department  of  Agriculture  and, 
if  found  misbranded  or  adulterated,  notice  is  given  to  the  party  from 
whom  the  samples  were  obtained.  The  person  is  given  a  hearing,  and 
if  it  appears  that  the  provisions  are  violated  the  district  attorney  is  given 
the  case.  Sections  7  and  8  of  the  act  define  the  meaning  of  adulterated 
and  misbranded  food  and  drugs.     The  guarantee  of  the  wholesaler  pro- 


Summary  ^  889 

tects  the  retail  dealer.  Whenever  any  food,  drug  or  liquor  is  found  to 
be  adulterated  it  may  be  sold  or  destroyed.  Imported  foods  or  drugs  are 
subject  to  examination,  and  may  be  prohibited  if  found  adulterated  or 
misbranded. 

Meat  Inspection  Act. 
March  4,  1907. 

This  act  seeks  to  prevent  shipments  of  unsound  or  unwholesome 
meat  or  meat  products  in  interstate  commerce  The  Secretary  of  Agri- 
culture is  empowered  to  inspect  all  animals  before  slaughter  and  all  meat 
after  slaughter,  and  to  stamp  approval  of  good  meat  and  compel  the 
destruction  of  unhealthy  meat.  The  Secretary  is  also  authorized  to  in- 
spect all  meat  food  products  and  approve  or  condemn  the  same.  A  label 
shall  be  attached  to  all  meat  and  meat  food  products  showing  that  they 
have  been  inspected  and  passed.  The  Secretary  also  has  power  to  in- 
spect the  sanitary  conditions  of  all  establishments  where  meat  or  meat 
food  products  are  produced.  It  is  made  unlawful  to  offer  for  transport, 
or  for  carriers  to  accept  for  transport,  any  meat  or  meat  food  products 
not  stamped  as  approved.  Meat  for  export  is  also  examined  for  disease 
and  certificates  of  condition  are  given. 

Any  person,  firm  or  corporation  violating  this  act  is  subject  to  a  fine 
of  not  more  than  ten  thousand  dollars  and  imprisonment'  for  not  more 
than  tw'O  years,  or  both  fine  and  imprisonment.  Any  inspector  who  re- 
ceives a  bribe,  or  any  person  wdio  oft"ers  or  gives  a  bribe  to  any  officer 
or  inspector,  is  subject  to  a  fine  of  not  less  than  one  thousand  dollars  nor 
more  than  ten  thousand  dollars,  and  imprisonment  for  from  one  to  three 
years. 

This  act  does  not  apply  to  farmers,  retail  butchers  or  dealers,  but 
if  such  persons  knowingly  sell  in  interstate  commerce  diseased  meat  they 
are  subject  to  a  fine  of  one  thousand  dollars  or  imprisonment  for  one 
year,  or  both  fine  and  imprisonment.  By  the  tariff"  act  of  1913  imported 
meat  was  made  subject  to  the  Meat  Inspection  Act  and  the  pure  food 
law. 

Opium  and  Narcotics  Acts. 
January  17,  1914,  aud  December  17,  1914. 
The  first  step  of  Congress  to  regulate  the  importation  and  sale  of 
opium  and  other  narcotics  w^as  made  with  the  passage  of  an  act  on  Feb- 
ruary 9,  1909,  which  was  amended  January  17,  1914,  in  several  par- 
ticulars in  order  to  make  it  more  eff'ective.  Importation  of  all  smoking 
opium  or  opium  prepared  for  smoking  was  absolutely  prohibited  from 
and  after  July  1,  1913.  On  the  same  date  Congress  passed  another  act 
which  placed  a  tax  of  $300  a  pound  upon  all  opium  manufactured  in 
the  United  States  for  smoking  purposes.  Furthermore,  the  act  prohib- 
ited all  persons  not  citizens  oit  the  United  States  from  engaging  in  such 
manufacture.  The  result  of  this  act  was  to  prohibit  the  manufacture  of 
opium  products. 


890  Important  Federal  Laws 

The  third  act  relating  to  narcotics  was  passed  by  Congress  on  De- 
cember 17,  1914.  This  third  act  provided  that  on  and  after  Alarch  1, 
1915,  the  importation  and  manufacture  of  opium  or  cocoa  leaves  or  any 
compound  thereof  shall  be  prohibited.  Any  manufacturer  or  dealer  shall 
register  with  the  Collector  of  Internal  Revenue  of  his  district.  The  ad- 
ditional provisions  of  the  act  placed  numerous  restrictions  around  the 
manufacture  and  sale  of  all  narcotics  and  provided  penalties  for  their 
violation.  The  penalty  for  the  violation  of  any  one  of  the  provisions  of 
the  act  carries  with  it  a  fine  of  two  thousand  dollars,  or  imprisonment 
of  five  years,  or  both,  in  the  discretion  of  the  court.  In  order  to  make 
the  act  effective  Congress  appropriated  $150,000  for  carrying  out  its 
provisions. 

Mediation  and  Arbitration  Act. 
July  15.  1913. 

This  act  provides  a  method  for  settling  disputes  between  employers 
and  employees  on  railroads.  Whenever  a  controversy  arises  concerning 
wages,  hours  of  labor,  or  condition  of  employment,  either  party  may 
applv  to  the  Board  of  Mediation  and  Arbitration  created  by  the  act, 
which  shall  proceed  to  try  to  settle  the  matter.  The  Board  may  also  pro- 
ceed upon  its  own  motion  when  it  appears  that  interruption  of  traffic  is 
imminent.  If  mediation  fails  the  board  next  seeks  to  obtain  arbitration  by 
boards  chosen  by  the  employers  and  employees.  The  agreement  to  arbi- 
trate stipulates  the  method  of  procedure,  and  that  the  parties  will  accept 
the  award.  The  boards  of  arbitration  are  given  power  to  compel  at- 
tendance and  testimony  of  witnesses  and  the  production  of  books  and 
papers.  The  findings  of  the  board  are  binding  upon  the  parties,  but  no 
person  is  thereby  compelled  to  render  personal  services  without  his  con- 
sent. 

The  Mediation  Board  consists  of  the  Commissioner  of  ■Mediation 
and  Arbitration  and  two  officials  of  the  government  designated  by  the 
President.  The  Commissioner  of  Mediation  and  Arbitration  receives  an 
annual  salarv  of  seven  thousand  five  hundred  dollars. 

Employers'  Liability  Act. 
April  22,  1908. 
This  act  applies  to  railroads  doing  an  interstate  business  and  fixes 
the  liability  for  damages  for  personal  injury  of  employees.  It  removes 
the  defenses  of  contributory  negligence  and  assumption  of  risk  and 
prohibits  contracts  for  exemption.  Actions  must  be  commenced  within 
two  years  after  injury. 

Safety  Appliance  Acts. 
March  2,  1893;  February  23.  1905;  May  30,  1908;  May  6,  1910;  February  17,  1911. 

These  acts  apply  to  common  carriers  and  require  certain  equipment 
for  safety  of  employees  and  travelers.     Among  the  safety  devices   re- 


Summary  891 

quired  are  the  following:  Power  driving  wheel  brake  and  appliances, 
automatic  couplers,  grab  irons  and  hand  holds,  standard  height  of  draw- 
bars, power  brakes.  Cars  may  not  be  used  which  do  not  have  sill  steps 
and  efficient  hand  brakes,  ladders  and  running  boards,  hand  holds  or 
grab  irons  on  the  roofs,  and  engines  must  have  automatic  ash  pans.  The 
boiler  inspection  act  requires  that  all  engines  used  in  interstate  commerce 
be  inspected  by  the  inspectors  of  boilers  created  by  this  act.  All  accidents 
are  to  be  reported  to  the  Interstate  Commerce  Commission.  The  Presi- 
dent is  authorized  to  have  a  medal  of  honor  prepared  to  be  conferred 
upon  persons  who  endanger  their  lives  to  save  others. 

Hours  of  Service  Act. 
March  4,  1907. 
This  act  makes  it  unlawful  to  require  or  permit  any  employee  to 
remain  on  duty  more  than  sixteen  consecutive  hours,  and  requires  that 
an  employee  who  has  been  on  duty  continuously  sixteen  hours  must  have 
ten  hours'  rest,  and  any  person  who  has  been  on  duty  sixteen  hours  in 
twenty-four  must  have  at  least  eight  hours  ofif.  Train  dispatchers  are 
not  permitted  to  work  more  than  nine  hours  in  twenty-four,  when  ser- 
vice is  operated  night  and  day,  nor  more  than  thirteen  hours  when  there 
is  day  service  only,  except  in  case  of  emergency. 

Compensation  for  Injuries  of  Federal  Employees  Act. 

September  7,  1916. 

This  act  is  the  usual  workmen's  compensation  act  applying  only  to 
federal  employees.  Since,  however,  there  are  millions  of  workers  who 
in  one  form  or  another  are  serving  the  government  the  act  has  wide 
interest.  For  the  first  three  days  after  injury  no  compensation  is  al- 
lowed. The  rate  for  total  disability  is  sixty-six  and  two-thirds  per  cent, 
of  the  monthly  pay.  The  rate  for  partial  disability  is  at  the  same  rate, 
but  the  possible  earnings  of  the  injured  party  are  deducted.  The  em- 
ployee uses  his  annual  or  sick  leave  first.  In  case  of  death  the  compen- 
sation is  adjusted  to  the  number  and  nearness  of  dependents.  Burial 
expenses  are  allowed.     Provision  is  made  for  lump-sum  settlements. 

Claims  must  be  made  in  writing  within  sixty  days  after  injury.  Med- 
ical examinations  are  required  whenever  necessary.  Assignments  are 
void.  The  injured  party  may  be  required  to  assign  any  legal  claim  he 
may  have  for  damages  against  other  parties  causing  the  injury.  The 
compensation  from  other  sources  figures  in  his  claim  against  the  United 

States. 

The  act  is  administered  by  a  commission  of  three  members  appointed 
for  six  years  at  an  annual  salary  of  four  thousand  dollars.  They  have 
all  the  powers  necessary  to  carry  out  their  work.  They  investigate  all 
cases  of  injury  and  adjust  the  compensation.  The  President  may  trans- 
fer the  administration  of  the  act  so  far  as  it  relates  to  the  Panama  Canal 
and  Alaska  railway  to  the  officers  respectively  in  charge.     No  compen- 


892  Important  Federal  Laws 

sation  is  allowed  in  any  case  unless  received  while  in  the  performance 
of  duty,  and  no  compensation  shall  be  paid  for  injury  wilfully  caused, 
or  caused  by  wilful  misconduct,  or  while  intoxicated. 

Child  Labor  Act. 
September  1.  1916. 
This  act  prohibits  the  shipment  in  interstate  commerce  of  any  goods 
manufactured  by  the  labor  of  children  under  fourteen  years  of  age,  or 
of  any  products  of  mines  and  cjuarries  produced  by  the  labor  of  chil- 
dren under  sixteen  years  of  age.  The  Attorney  General,  Secretary  of 
Commerce  and  Secretary  of  Labor  are  constituted  a  board  to  make  rules 
and  regulations  to  administer  this  act,  while  the  enforcement  of  the  act 
is  placed  in  the  hands  of  the  Secretary  of  Labor.  The  penalty  is  two 
hundred  dollars  fine  for  first  offense  and  one  hundred  dollars  to  one 
thousand  dollars  for  second  offense,  to  which  may  be  added  imprison- 
ment for  three  weeks.     This  act  takes  effect  September  1,  1917. 

Children's  Bureau  Act. 

April   0.   1012. 
This  bureau  was  established  to  investigate  the  care  and  safeguard- 
ing of  children  and  to  make  reports  for  the  information  and  education 
of  the  public.     It  is  in  charge  of  a  chief,  who  is  appointed  by  the  Presi- 
dent, at  an  annual  salary  of  five  thousand  dollars. 

Eight  Hour  Day  Act. 
September  3  and  5,  1916. 
In  all  contracts  for  labor  in  the  operation  of  railroads  in  interstate 
commerce  eight  hours  was  fixed  as  a  day's  work.  A  board  of  inquiry 
was  created  and,  pending  its  report,  wages  were  not  to  be  reduced  below 
the  existing  standard  and  all  time  over  eight  hours  was  to  be  paid  for 
overtime  at  the  same  ratio. 

Eight  Hours  on  Public  Works  Act. 
March  3,  1913. 
This  act  fixes  eight  hours  as  a  day's  work  for  all  laborers  and  me- 
chanics employed  by  the  United  States  or  the  District  of  Columbia,  or 
by  any  contractor  or  subcontractor  upon  a  public  work  in  the  United 
States.  It  is  made  unlawful  to  employ  or  to  allow  any  one  to  work 
more  than  eight  hours. 

Income  Tax  Act. 

September  8,  1916. 

This  act  is  a  substitute  for  the  original  income  tax  act  passed  in 

1913.     It  levies  a  tax  of  two  per  centum  upon  the  income  of  residents 

and  the  same  rate  upon  the  income  of  non-resident  aliens  from  all  sources 

in  the  United  States.     In  addition  a  graduated  tax  is  levied  upon  incomes 


Summary  893 

as  follows:  $20,000  to  $40,000,  one  per  centum;  $40,000  to  $60,000,  two 
per  centum;  $60,000  to  $80,000,  three  per  centum;  $80,000  to  $100,- 
000,  four  per  centum;  $100,00  to  $150,000,  live  per  centum;  $150,000 
to  $200,000,  six  per  centum ;  $200,000  to  $250,000,  seven  per  centum ; 
$250,000  to  $300,000,  eight  per  centum ;  $300,000  to  $500,000,  nine  per 
centum;  S50O,00O  to  $1,000,000.  ten  per  centum;  $1,000,000  to  $1,500,- 
000,  eleven  per  centum;  $1,500,000  to  $2,000,000,  twelve  per  centum; 
above  $2,000,000,  thirteen  per  centum. 

The  act  defines  income  in  section  2  and  specifies  what  shall  be  ex- 
empt in  section  4.  The  following  deductions  may  be  made  in  computing 
net  incomes :  Necessary  expenses  of  the  business  ;  interest  paid  ;  taxes 
paid ;  losses  sustained  ;  losses  in  transactions  but  not  exceeding  profits ; 
worthless  debts  charged  off ;  depreciations ;  exhaustion  or  depletion  of 
natural  resources. 

Tax  is  computed  as  of  December  21  of  each  year.  Report  is  re- 
quired on  or  before  March  1.  Taxes  are  payable  on  or  before  June  15. 
The  law  is  administered  by  the  Commissioner  of  Internal  Revenue  under 
the  direction  of  the  Secretary  of  the  Treasury. 

Corporation  Tax  Act. 
September  8.  1916. 
This  act  rewrites  the  original  corporation  tax  of  1909.  The  act 
levies  a  tax  of  two  per  cent,  upon  the  net  income  of  all  corporations 
doing  business  in  the  United  States.  No  tax  is  levied  upon  labor,  agri- 
cultural and  horticultural  associations  ;  mutual  savings  banks  not  having 
capital  stock  represented  by  shares  ;  fraternal  beneficiary  societies  ;  build- 
ing and  loan  associations  and  co-operative  banks ;  cemetery  companies 
for  benefit  of  members  ;  religious,  charitable,  scientific  and  educational 
work ;  chambers  of  commerce,  etc.,  not  for  profit ;  civic  leagues ;  pleas- 
ure clubs ;  farmers'  mutual  insurance  companies ;  farmers  and  fruit 
growers'  associations ;  federal  land  banks  and  federal  farm  loan  associa- 
tions and  joint  stock  land  banks.  The  tax  is  computed  as  of  December 
31,  and  report  is  made  on  or  before  March  1.  The  taxes  are  pay- 
able on  or  before  June  15.  The  administration  of  this  act  is  under 
the  Commissioner  of  Internal  Revenue  subject  to  control  of  the  Sec- 
retary of  Treasury. 

Administrative  Features  of  Tax  Laws  Act. 
September  8,  1916. 
These  provisions  amend  existing  statutes  to  make  them  conform  to 
the  new  requirements  for  the  collection  of  income  and  corporation  taxes. 

Inheritance  Tax. 
September  8.  1916. 
An  inheritance  tax  is  levied   at  the   following  rates   upon  the   net 
estate:     One  and  one-half  per  centum  up  to  $50,000;   three  per  centum, 


894  Important  Federal  Laws 

$50,000  to  $150,000;  four  and  one-half  per  centum,  $150,000  to  $250,- 
000:  six  per  centum,  $250,000  to  $450,000;  seven  and  one-half  per 
centum,  $450,000  to  $1,000,000;  nine  per  centum,  $1,000,000  to  $2,000,- 
000;  ten  and  one-half  per  centum,  $2,000,000  to  $3,000,000;  twelve  per 
centum,  $3,000,000  to  $4,000,000;  thirteen  and  one4ialf  per  centum, 
$4,000,000  to  $5,000,000;   fifteen  per  centum,  $5,000,000  and  upwards. 

The  law  sets  forth  the  method  of  determining  the  gross  and  net 
estates  in  sections  202  to  203.  The  tax  is  due  within  one  year  of  death. 
A  deduction  at  the  rate  of  five  per  centum  is  made  for  payments  before 
they  are  due.  Interest  at  ten  per  centum  is  charged  after  ninety  days 
overdue.  An  executor  must  give  notice  to  the  collector  within  thirtv 
days  of  his  appointment  and  must  at  the  proper  time  file  reports  of  the 
estate.  The  tax  is  assessed  by  the  Commissioner  of  Internal  Revenue. 
The  executor  pays  the  tax  to  the  Collector.  In  case  of  failure,  pro- 
ceedings are  brought  in  the  United  States  courts  to  enforce  payment. 
Penalties  for  false  returns  are  five  thousand  dollars  fine,  or  imprison- 
ment for  one  year,  or  both.  The  law  is  administered  by  the  Commis- 
sioner of  Internal  Revenue,  with  the  approval  of  the  Secretarv  of  the 
Treasury.     Rules  and  regulations  are  issued  by  the  Commissioner. 

Munition  Manufacturers'  Tax  Act. 
September  S,  1916. 

This  act  imposes  a  tax  of  twelve  and  one-half  per  centum  of  the  net 
profits  of  munitions  manufactured,  in  addition  to  other  income  and  cor- 
poration taxes.  In  computing  net  profits,  the  following  deductions  are 
allowed :  Cost  of  raw  materials,  running  expenses,  interest  paid,  taxes, 
losses  actually  sustained  and  depreciations. 

A  report  is  made  on  March  1  to  the  Collector  of  Internal  Revenue. 
The  tax  is  payable  within  thirty  days  of  notice.  The  administration  of 
the  act  is  in  the  hands  of  the  Commissioner  of  Internal  Revenue,  who 
is  under  the  control  of  the  Secretary  of  the  Treasury.  Ofiicials  are 
penalized  for  disclosing  information  received.  The  penalty  for  violation 
is  a  fine  of  not  more  than  ten  thousand  dollars,  or  imprisonment  for  not 
more  than  one  year,  or  both. 

Miscellaneous  Taxes. 
September  8,  1916. 
The  taxes  imposed  by  this  part  of  the  revenue  act  of  1916  amend 
several  sections  of  the  revenue  acts  and  include  several  new  taxes  levied 
upon  various  kinds  of  business. 

Tariff  Act. 

October  .3,  1913. 

The  Tariff  Act  consists  of  three  main  parts :    First,  the  dutiable  list, 

or  the  articles  upon  which  duty  is  paid ;    second,  the  free  list,  or  those 

articles  upon  which  no  duty  is  paid ;  third,   administrative   provisions, 

which  deal  with  the  assessment  and  collection  of  duties. 


Summary  895 

The  Tariff  Act  is  divided  into  schedules  as  follows:  A,  chemicals, 
oils  and  paints ;  B,  earths,  earthenware  and  glassware ;  C,  metals  and 
manufactures  of;  D,  wood  and  manufactures  of;  E,  sugar,  molasses 
and  manufactures  of ;  F,  tobacco  and  manufactures  of ;  G,  agricul- 
tural products  and  provisions ;  H,  spirits,  wines  and  other  beverages ;  I, 
cotton  manufactures ;  T.  flax,  hemp  and  jute  manufactures ;  K,  wool 
and  manufactures  of;"L,  silk  and  silk  goods;  M,  papers  and  books; 
N,  sundries. 

In  each  case  the  specific  tariff  duty  is  given.  Additional  provisions 
of  the  act  of  September  8,  1916,  are  intended  to  protect  dyestuffs  from 
foreign  competition.  The  administrative  provisions  of  the  act  detail 
methods  by  which  the  revenue  officers  fix  the  valuations  and  assess  the 
tariff  duties  on  each  product.  For  other  summaries  see  Tariff  Commis- 
sion and  Unfair  Competition. 

Tariff  Commission. 
September  8.  1916.  . 
This  act  creates  a  Tariff  Commission  for  the  purpose  of  investi- 
gating tariff"  rates.  The  commission  consists  of  six  members,  with  an 
annual  salary  of  $7,500  each.  They  are  empowered  to  investigate  the 
tariff  laws,  the  cost  of  production  at  home  and  abroad,  and  the  classi- 
fication of  articles.  Their  reports  are  to  be  made  to  the  President  and 
Congress.  The  commission  has  power  to  compel  testimony  and  the  pro- 
duction of  books  and  papers. 

Unfair  Competition. 
September  S.  1916. 
This  act  makes  it  unlawful  to  sell  goods  in  this  country  at  a  lower 
rate  than  they  are  sold  on  the  usual  markets  of  the  country  where  pro- 
duced. A  penaltv  of  five  thousand  dollars  fine  and  one  year  imprison- 
ment is  fixed  for  violations.  A  special  duty  is  levied  upon  goods  im- 
ported under  an  agreement  which  restricts  the  importer  or  dealer  from 
using  the  goods  of  other  persons.  The  President  is  given  power  to  pro- 
hibit the  importation  of  goods  from  a  country  which  prohibits  the  im- 
portation of  American  goods.  The  President  is  also  given  retaliatory 
power  during  a  war  in  which  the  United  States  is  not  engaged. 

Interstate  Commerce  Act. 
February  4,  1887. 
This  act  was  one  of  the  first  acts  by  which  the  federal  government 
began  to  control  business.  It  was  passed  in  1887  and  was  changed  in 
important  particulars  in  1906  and  again  in  1910.  The  law  lays  down 
the  proposition  that  service  and  charges  must  be  just  and  reasonable  and 
that  no  discriminations  shall  be  allowed.  The  law  prohibits  free  passes 
except  in  certain  cases.     The  long  and  short  haul  clause,  found  in  this 


896  Important  Federal  Laws 

act,  prohibits  a  lower  proportionate  rate  for  a  long  than  for  a  short 
haul  over  the  same  lines.    Pooling  of  the  profits  of  railroads  is  forbidden. 

The  schedule  of  rates  must  be  open  to  the  public  and  thirty  days' 
notice  must  be  given  of  a  change.  A  provision  passed  in  August.  1916, 
gave  the  President  power  to  have  the  first  call  on  the  use  of  the  railroads 
for  military  purposes  in  preference  to  other  purposes.  Railroads  must 
file  schedules  of  rates  with  the  Interstate  Commerce  Commission  on 
forms  prescribed  by  the  commission.  The  act  creates  the  Interstate  Com- 
merce Commission,  to  consist  of  seven  members  appointed  for  seven  years 
at  an  annual  salary  of  ten  thousand  dollars.  The  commission  is  given 
power  to  inquire  into  the  conduct  of  the  business  of  carriers  and  to 
compel  production  of  books  and  papers  and  the  testimony  of  witnesses. 
Any  person,  company  or  organization  may  appeal  to  the  commission  as 
to  rates  or  service  and,  after  a  hearing,  the  commission  may  set  aside 
any  rate  or  require  any  service  The  commission  may  also  proceed  upon 
its  own  motion  to  investigate  rates  and  service. 

The  commission  may  award  damages  to  any  shipper.  The  railroads 
must  comply  with  the  orders  of  the  commission,  but  may  appeal  to  the 
district  court  in  certain  cases.  The  commission  is  given  power  to  make 
a  physical  valuation  of  all  railroads  and  is  given  the  necessarv  means  to  do 
it.  The  commission  may  require  annual  reports  and  uniform  accounts. 
Every  railroad  is  required  to  give  a  bill  of  lading  and  to  stand  any  losses 
incurred  through  negligence  in  shipment. 

Immunity  of  Witnesses  Act. 
June  30.  imG. 
Immunity  of  witnesses  in  certain  cases  extends  only  to  natural  per- 
sons who,  in  obedience  to  a  subpoena,  give  testimony  under  oath  or  pro- 
duce evidence,  documentary  or  otherwise,  under  oath. 

Anti-Rebate  Act. 
Februai-y  19.  1903. 
This  act.  known  as  the  Elkins  Act,  prohibits  common  carriers  from 
giving  any  rebate,  concession  or  discrimination,  and  prohibits   shippers 
from  acceptance  of  the  same. 

Expediting  Act. 
June  25,  1910. 
This  act  is  designed  to  expedite  cases  appealed  to  the  court  under 
the  interstate  commerce  act. 

Compulsory  Testimony  Act. 
February  11,  1893. 
This  act  is  amendatory  of  an  act  approved  February  4,  1887.     It  is 
concerned  with  trials  before  the  Interstate  Commerce  Commission,  and 


Summary  897 

provides  for  compelling  witnesses  to  give  testimony  in  such  trials  as  may 
come  before  the  commission.  The  same  rule  holds  in  these  trials  as  in 
all  trial  courts  ;  that  is,  no  witness  is  compelled  to  testify  in  such  a  manner 
as  to  incriminate  himself,  or  subject  himself  to  fine  or  imprisonment.  The 
act  compels  the  production  of  books,  papers  and  records  which  may  be 
needed  in  presenting  facts  to  the  commission.  Failure  to  testify  or  pro- 
duce such  records  as  may  be  called  for  subjects  the  individual  to  fine  or 
imprisonment,  or  both. 

Bill  of  Lading  Act. 
August  29,  1916. 
This  act  regulates  the  issue  and  use  of  bills  of  lading  in  interstate 
and  foreign  commerce.  The  act  defines  bills  of  lading  and  fixes  the 
liability  of  the  carrier  in  the  transportation  and  delivery  of  goods.  The 
legal  rights  of  creditors  and  others  are  defined  and  also  the  method  of 
transfer  of  bills  is  determined. 

Federal  Election  Laws. 
January  26,  1907;  June  25,  1910. 

The  act  for  publicity  of  campaign  contributions,  passed  in  1910, 
requires  that  no  money  shall  be  spent  except  through  constituted  com- 
mittees, and  that  every  expenditure  of  ten  dollars  or  more  shall  be  evi- 
denced by  a  receipted  bill.  Every  committee  must  keep  a  record  of  all 
contributions  and,  at  least  ten  days  and  not  more  than  fifteen  days  be- 
fore election,  must  file  in  the  office  of  the  clerk  of  the  House  of  Rep- 
resentatives in  Washington  an  itemized  report  of  all  contributions.  A 
supplemental  report  must  be  issued  on  each  sixth  day  thereafter  until 
election.  Every  person,  firm  or  corporation  expending  more  than  fifty 
dollars  for  the  purpose  of  influencing  a  federal  election  in  two  or  more 
states  must  also  file  a  statement.  The  candidate  must  also  file  a  com- 
plete statement  of  receipts. 

No  candidate  for  either  house  of  Congress  may  promise  any  office 
or  position  for  support.  Campaign  expenditures,  if  limited  by  a  state, 
are  subject  to  that  limit,  but  in  no  case  may  a  candidate  for  the  United 
States  Senate  spend  more  than  ten  thousand  dollars  nor  a  candidate  for 
a  seat  in  the  lower  House  more  than  five  thousand  dollars  for  nomi- 
nation and  election.  Candidates  may  pay  their  own  personal  expenses 
without  being  subject  to  this  act.  An  act  of  January,  1907,  prohibits 
corporations  from  contributing  to  campaign  funds.  The  Criminal  Code 
also  penalizes  crimes  against  the  elective  franchise.  Conspiracy  to  con- 
trol federal  elections  is  penalized,  as  is  also  the  use  of  troops  at  the  polls. 

National  Defense  Act. 
June  3,  1916. 
This  act  covers  the  whole  field  of  army  organization  and  manage- 
ment,  and  was   called   forth   because   of   the  great   world   war.     Under 
it  the  army  is  made  to  consist  of  the  regular  army,  the  volunteer  army, 
(57) 


898  Important  Federal  Laws 

the  officers  reserve  corps,  the  enhsted  reserve  corps  and  the  national 
guard. 

The  act  fixes  the  composition  of  the  regular  army  and  the  organi- 
zation of  the  departments,  including  general  officers  of  the  line,  general 
staff  officers,  adjutant  general's  department,  inspection  general's  depart- 
ment, judge  advocate  general's  department,  the  quartermaster  corps,  the 
medical  department,  the  corps  of  engineers,  the  ordnance  department,  the 
signal  corps,  bureau  of  insular  afifairs,  chaplains,  veterinarians,  the  com- 
position of  infantry,  cavalry  and  artillery  units,  the  coast  artillery  and 
the  Porto  Rico  regiment  of  infantry.  The  act  defines  the  methods  of 
appointment,  promotion  and  retirement  of  officers ;  regulates  enlistment 
and  pay  of  men ;  fixes  the  regular  army  reserve ;  provides  for  the  train- 
ing of  the  officers  reserve  corps  and  the  national  guard,  and  for  mili- 
tary instruction  at  schools  and  colleges. 

The  composition,  organization  and  maintenance  of  the  national  guard 
are  given  in  detail  in  the  act.  Enlistment  in  the  guard  is  fixed  at  six 
years,  three  of  active  service  and  three  in  reserve.  The  appointment  of 
officers  and  the  draft  into  the  national  service  are  specified.  The  guard 
is  equipped  with  the  same  equipment  as  the  regular  army.  The  actual 
control  is  left  to  the  states,  subject  to  close  supervision  by  the  War  De- 
partment. The  national  guard  is  inspected  at  least  once  a  year  by  the 
War  Department,  and  provisions  are  made  for  annual  maneuvers  of  all 
or  some  part  of  the  guard. 

The  law  authorizes  the  survey  of  all  industrial  plants  by  the  Sec- 
retary of  War  for  purposes  of  mobilization  of  industrial  power  and  also 
for  the  investigation  of  government  manufacture  of  arms,  etc.,  and  for 
the  procurement  of  necessary  equipment.  The  President  is  authorized 
to  make  an  investigation  of  the  nitrate  supply  and  to  take  steps  to  acquire 
control  of  sufficient  supply. 

Conscription  Act. 
May  IS,  1917. 

This  act  authorized  the  President  to  raise  all  army  divisions  to  full 
strength ;  to  draft  men  into  the  service  of  the  United  States  as  provided 
by  the  National  Defense  Act;  to  draft  an  army  of  500,000  men  and 
such  additional  armies  as  may  be  necessary ;  to  raise  recruit  training  units 
bv  draft;  to  raise  and  organize  ammunition  and  depot  batteries  and  bat- 
talions ;    and  to  raise  armies  by  voluntary  enlistment. 

The  act  provided  for  the  registration  of  all  men  between  the  ages 
of  21  and  30.  inclusive.  This  registration  took  place  on  June  5,  1917, 
at  which  time  nearly  10,000,000  men  were  registered  for  military  service. 
Bounties  and  substitutes  were  prohibited.  The  law  exempted  the  legis- 
lative, executive  and  judicial  officers  of  the  United  States  and  of  the 
states  and  territories.  ]\Iinisters  of  religion,  students  preparing  for  the 
ministrv,  and  members  of  denominations  whose  creed  forbids  participa- 
tion in  war  my  be  drafted  for  noncombatant  duty.     The  President  was 


Summary  899 

authorized  to  exempt  certain  officials  and  others  whose  duties  might  be 
such  as  to  make  their  services  more  necessary  in  a  civil  than  in'- a  mili- 
tary capacity. 

The  work  of  the  draft  is  carried  on  by  means  of  state  and  local 
boards  created  by  the  President.  The  President  formulates  the  rules 
and  regulations  to  carry  on  the  draft.  The  President  is  authorized  to 
appoint  such  officers  as  are  necessary  and  to  make  such  appointments 
for  the  period  of  the  war. 

The  pay  of  officers  and  enlisted  men  is  fixed  in  this  act.  It  pro- 
hibits the  sale  of  intoxicating  liquor  to  soldiers  in  uniform  and  prohibits 
houses  of  prostitution  within  such  distance  from  camps  as  the  Secretary 
of  War  shall  determine. 

Shipping  Board  Act. 
September  7,  1916. 

This  act  has  for  its  purpose  the  development  of  a  merchant  marine 
and  a  naval  auxiliary  reserve  to  meet  the  needs  of  commerce  and  to 
regulate  carriers  by  w-ater.  It  is  one  of  several  acts  which  have  been 
called  forth  as  a  result  of  the  great  World  War.  The  act  creates  a 
United  States  Shipping  Board  of  five  commissioners  appointed  by  the 
President  for  six  years  at  an  annual  salary  of  $7,500. 

The  board  is  given  power  to  build,  charter  or  buy  vessels,  with  the 
approval  of  the  President,  for  use  as  naval  auxiliaries  or  transports.  The 
President  may  transfer  government  owned  vessels  to  the  board.  The 
board  may  sell  or  lease  any  vessels  owned  by  it.  Any  ship  purchased 
or  leased  may  be  registered  as  a  vessel  of  the  United  States.  The  Presi- 
dent is  given  broad  powers  to  take  over  any  vessel  for  military  or  naval 
purposes. 

The  board  is  authorized  to  form  shipping  corporations  for  the  pur- 
chase, construction,  equipment,  lease,  charter,  maintenance  and  operation 
of  merchant  vessels  with  a  total  capital  stock  not  exceeding  fifty  million 
dollars.  The  board  may  subscribe  for  half  the  stock.  The  corporation 
may  build,  purchase  or  charter  ships,  but  under  the  terms  of  the  act  its 
corporate  existence  automatically  ceases  "at  the  expiration  of  five  years 
from  the  conclusion  of  the  present  European  war."  The  President  is 
authorized  to  issue  a  proclamation  declaring  the  date  on  which  the  war 
formally  closes. 

The  board  is  authorized  to  investigate  cost  of  ship  building  and 
of  shipping  business  and  the  navigation  and  other  laws.  Bonds  of  $50,- 
000,000  are  authorized  for  the  purpose  of  the  act. 

The  act  regulates  carriers  by  water  to  prevent  monopoly,  discrim- 
ination, retaliation  and  unfair  methods.  All  carriers  by  water  must  file 
wdth  the  board  all  rate  agreements  with  other  carriers.  The  board  may 
disapprove,  cancel  or  amend  any  agreement.  Preferential  rates  of  all 
kinds  and  unjust  rates  are  prohibited  and  the  board  is  given  power  in 
regard  thereto.     The  board  may  require  reports  from  carriers  by  water. 


900  Important  Federal  Laws 

Upon  complaint  they  may  make  an  investigation  of  rates  or  service  and 
may  order  correction.  The  board  may  investigate  unequal  treatment  of 
American  vessels  by  foreign  governments.  The  board  may  compel  tes- 
timony and  production  of  books  and  papers.  The  Federal  District  Court 
is  given  jurisdiction  in  matters  arising  out  of  the  operation  of  this  act. 

War  Risk  Insurance  Act. 
September  2,  1914;  March  3,  1917. 
This  act  creates  the  Bureau  of  War  Risk  Insurance  in  the  treasury 
department  for  the  insurance  of  American  vessels  against  the  risks  of 
war.  The  Bureau  is  authorized  to  adopt  and  publish  a  standard  war 
risk  policy.  An  advisory  board  is  provided.  An  amendment  approved 
on  March  3,  1917,  provided  an  appropriation  of  $15,000,000  for  paying 
losses  accruing  from  the  provisions  of  the  act  of  1914. 

Trade-mark  Laws. 

February  20.  1905;   May  4.  1906;    Fel)riiary    18,    1909. 

This  act  prescribes  the  method  of  registering  trade-marks  and  se- 
curing protection  from  their  use  by  others.  The  owner  makes  a  writ- 
ten declaration  setting  forth  the  necessary  facts  with  respect  to  his  trade- 
mark. His  application  is  filed  in  the  Patent  Office  and,  if  the  examina- 
tion shows  that  it  is  in  compliance  with  the  law,  a  trade-mark  is  granted. 
The  law  specifies  many  conditions  whereby  a  trade-mark  will  be  refused. 
Notice  of  interference  is  filed  with  the  Commissioner  of  Patents  and  no- 
tice is  given  to  the  applicant.  An  appeal  may  be  taken  from  the  exam- 
iner to  the  commissioner  and  from  the  commissioner  to  the  Court  of 
Appeals  of  the  District  of  Columbia.  Trade-marks  are  assignable.  All 
certificates  are  issued  in  the  name  of  the  United  States  under  the  seal 
of  the  patent  office.  The  certificates  are  in  force  for  twenty  years.  Any 
person  injured  by  a  trade-mark  may  appeal  to  the  Commissioner  of  Pat- 
ents and  the  commissioner  may  cancel  the  certificate. 

The  law  fixes  the  fees  for  filing  applications  and  notices.  Regis- 
tration is  made  prima  facie  evidence  of  ownership.  Court  procedure  is 
prescribed.  Proceedings  in  equity  for  damages  are  authorized.  Fraud- 
ulent registration  is  penalized  and  the  Commissioner  of  Patents  is  au- 
thorized to  establish  rules  and  regulations.  Articles  imported  must  not 
imitate  the  name  of  a  domestic  product.  The  registrant  must  give  notice 
of  a  trade-mark  by  the  words  "Registered  in  U.  S.  Patent  Office,"  or 
"Reg.  U.  S.  Pat.  Ofif." 

Copyright  Law. 
March  4,  1909. 
This  act  consolidates  all  previous  laws  relating  to  copyrights.     The 
law  specifies  the  matter  which  may  be  copyrighted.     The  protection  ex- 
tends to  the  work  as  a  whole  and  to  component  parts  of  the  work.     The 
following  classes  of  works  may  be  copyrighted  under  the  act :    (a)  Books, 


Summary  901 

including  composite  and  cyclopaedic  works,  directories,  gazetteers  and 
other  compilations;  (b)  periodicals,  including  newspapers:  (c)  lec- 
tures, sermons,  addresses  (prepared  for  oral  delivery)  ;  (d)  dramatic 
or  dramatico-musical  compositions;  (e)  musical  compositions;  (f) 
maps ;  (g)  works  of  art,  models  or  designs  for  works  of  art ;  (h)  re- 
productions of  a  work  of  art;  (i)  drawings  or  plastic  works  of  a  scien- 
tific or  technical  character;  (j)  photographs;  (k)  prints  and  pictorial 
illustrations;  (1)  motion  picture  photo  plays;  (m)  motion  pictures  other 
than  photo-plays. 

There  are  some  things  specified  which  are  not  copyrightable.  The 
registration  of  copyright  is  secured  by  fihng  in  the  office  of  the  Register 
of  Copyrights  two  copies  of  the  work,  together  with  the  fee  required. 
The  law  requires  that  the  book  must  be  printed  from  type  set  within  the 
limits  of  the  United  States,  or  from  plates  made  in  the  United  States, 
and  must  be  bound  within  the  limits  of  the  United  States. 

Notice  of  copyright  must  be  given  on  each  separate  publication  wher- 
ever printed,  but  the  omission  of  the  notice  through  accident  or  mistake 
does  not  invalidate  a  copyright.  False  notice  of  copyright  is  punishable 
by  fine  and  imprisonment. 

The  duration  of  a  copyright  is  for  the  period  of  twenty-eight  years, 
and  may  be  extended  for  another  period  of  the  same  length.  Any  per- 
son may  be  restrained  from  infringement  of  copyright  or  may  be  com- 
pelled to  pay  damages  for  infringement.  The  act  limits  the  importation 
of  books  within  certain  specifications.  The  act  is  administered  by  the 
Register  of  Copyrights  in  the  Library  of  Congress,  who  has  power  to 
formulate  additional  rules  and  regulations. 

White  Slave  Traffic  Act. 
June  25,  1910. 
This  act  prohibits  transportation   across   state  lines   of  any  female 
for  immoral  purposes,  and  also  penalizes  the  inducing  of  any  female  to 
travel  across  state  lines  for  immoral  pvirposes. 

Prize  Fight  Films. 
July  31,  1912. 
This  act  prohibits  the  transportation  in  interstate  commerce  of  any 
moving  picture  films  showing  prize  fights. 

Liquor  Shipments. 
March  1,  1913. 
This  act,  known  as  the  Webb-Kenyon  Act,  prohibits  the  shipment  of 
liquor  into  "dry"  territory  in  violation  of  the  laws  of  the  state  or  terri- 
tory, or  into  the  District  of  Columbia.  A  subsequent  liquor  act,  passed 
March  3,  1917,  prohibits  its  shipment  into  any  "dry"  state  or  territory, 
and  prohibits  the  advertisement  of  any  intoxicating  liquor  in  "dry"  ter- 
ritory. 


902  Important  Federal  Laws 

Bankruptcy  Act. 
July  1,  1S98. 
The  Constitution  of  the  United  States  gives  Congress  power  to  reg- 
ulate bankruptcies  (Art.  I,  Sec.  8).  On  July  1.  1898,  the  present  Bank- 
rupt Code  was  estabhshed  for  the  regulation  of  bankruptcies  in  the 
United  States.  The  act  defines  a  large  number  of  terms  used  and  des- 
ignates certain  existing  federal  courts  as  courts  of  bankruptcy,  and  fixes 
their  jurisdiction.  The  District  Courts,  Supreme  Court  of  the  District 
of  Columbia,  and  the  District  Courts  of  the  several  territories,  and  of 
Alaska,  may  hear  bankruptcy  cases.  The  act  specifies  what  shall  be 
considered  acts  of  bankruptcy,  and  defines  who  may  become  bankrupts, 
and  determines  the  efifect  upon  partnerships.  The  duties  of  bankrupts 
are  set  forth  in  detail.     The  procedure  of  courts  is  also  fixed. 

Criminal  Code. 
March  4,   1009. 

In  1909  Congress  consolidated  the  laws  relating  to  crimes  and  set 
forth  in  one  act  the  oft'enses  for  which  penalties  were  attached.  The 
act  divides  crimes  into  the  following  classes :  Ofifenses  against  the  ex- 
istence of  the  government ;  offenses  against  neutrality ;  offenses  against 
the  elective  franchise  and  civil  right  of  citizens ;  oft'enses  against  the  op- 
eration of  government ;  oft'enses  relating  to  ofticial  duties  ;  oft'enses  re- 
lating to  public  justice;  offenses  against  currency  and  coinage;  offenses 
against  the  postal  service ;  oft'enses  against  foreign  and  interstate  com- 
merce;  offenses  within  the  admiralty,  maritime  and  territorial  jurisdic- 
tion of  the  United  States ;  certain  oft'enses  in  territories ;  piracy  and 
other  oft'enses  upon  the  high  seas ;  general  and  special  provisions ;  slave 
trade  and  peonage.  There  are  other  criminal  sections  of  statutes  and 
many  acts  have  been  passed  since  the  passage  of  the  criminal  code  penal- 
izing other  oft'enses. 

Federal  Judicial  Code. 
March  3,  1911. 

This  act  revised  and  codified  the  laws  relating  to  the  judiciary  and 
established  the  following  courts :  District  courts  ;  Circuit  Court  of  Ap- 
peals ;  Court  of  Claims ;  Court  of  Customs  Appeals ;  Commerce  Court 
(later  abolished)  :    and  provided  new  rules  for  the  Supreme  Court. 

The  lowest  Federal  Court  is  the  District  Court.  There  are  at  pres- 
ent one  hundred  and  three  District  courts,  each  comprising  a  territory 
consisting  of  a  part  of  a  state,  of  a  whole  state,  or  of  a  group  of  con- 
tiguous states.  The  court  is  presided  over  by  a  district  judge,  who  is 
appointed  by  the  President  for  life. 

The  next  higher  court  is  the  Circuit  Court  of  Appeals,  of  which 
there  are  nine,  each  consisting  of  three  judges  appointed  for  life  by  the 
President. 

The  Court  of  Claims  hears  and  decides  claims  against  the  United 
States,  and  they  are  very  numerous  because  of  the  great  range  of  the 


Summary  903 

activities  of  the  United  States  in  its  dealings  with  individuals  and  states. 
Any  person  who  is  not  satisfied  with  the  decision  of  this  court  may  ap- 
peal to  the  Supreme  Court. 

The  Court  of  Customs  Appeals  has  jurisdiction  over  questions  aris- 
ing out  of  the  importation  of  goods  into  the  country.  Any  person  who 
is  dissatisfied  with  the  assessment  of  tarifif  duties  made  by  the  custom 
house  officers  may  appeal  to  the  Court  of  Custom  Appeals. 

The  Commerce  Court  was  abolished  by  the  Act  of  December  22, 
1913.  and  its  jurisdiction  placed  in  the  United   States  District  Courts. 

The  Supreme  Court  was  established  by  the  Constitution  in  1787. 
It  consists  of  nine  justices  appointed  by  the  President  for  life.  Cases 
may  be  appealed  to  the  Supreme  Court  from  the  Circuit  Court  of  Ap- 
peals, Court  of  Claims,  or,  in  some  cases,  direct  from  the  District  Court. 
Appeals  also  come  from  State  Supreme  Courts. 

The  Federal  Judicial  Code  outlines  the  specific  powers  and  duties 
of  each  one  of  these  courts. 

Parole  of  Prisoners  Act. 

June  2.5,  1910;  June  23,  1913. 
This  act  provides  for  the  release  of  prisoners  on  parole  from  fed- 
eral prisons.  The  Board  of  Parole  of  each  prison  consists  of  the  su- 
perintendent of  prisons,  of  the  Department  of  Justice  and  the  warden 
and  physician  of  each  United  States  penitentiary.  They  establish  rules 
and  regulations  subject  to  the  approval  of  the  attorney  general.  When- 
ever it  appears  that  an  applicant  for  parole  will  live  and  remain  at  lib- 
ertv  without  violating  the  laws,  the  Board  may  release  such  person  on 
parole,  and  the  prisoner  is  released  subject  to  re-arrest  for  breaking  his 
parole.  Any  prisoner  arrested  is  given  a  chance  of  hearing  and  the 
Board  may  revoke  the  parole  if  it  finds  it  has  been  violated,  or  it  may 
modify  the  terms  and  conditions  of  the  parole. 

The  Board  of  Parole  appoints  a  parole  officer  for  each  penitentiary, 
whose  dutv  it  is  to  visit  and  exercise  supervision  of  persons  on  parole. 
The  gratuities  given  to  discharged  prisoners  are  also  allowed  paroled 
prisoners.  Persons  confined  in  state  prisons  under  federal  laws  may  also 
be  paroled  under  the  provisions  of  the  act.  The  President's  pardon 
power  is  not  afifected  by  this  act. 

District  Court  Jurisdictions  Act. 
December   22,  1913. 
This  act  abolished  the  Commerce  Court  and  transferred  the  juris- 
diction of  that  court  over  interstate  commerce  cases  to  the  United  States 
District  Courts. 

Proof  of  Handwriting  Act. 
February  26,  1913. 
This  act  provides  that  when  the  genuineness  of  handwriting  is  in- 
volved any  admitted  or  approved  handwriting  of  a  person  is  competent 


904  Important  Federal  Laws 

evidence  as  a  basis  for  comparison  with  the  handwriting  in  question  to 
prove  or  disprove  genuineness. 

Public  Health  Act. 
August  14,  1012;  March  27,  ISfR);  February  15,  1S93. 

The  federal  government's  work  for  public  health  is  confined  largely 
to  the  investigations  made  by  the  Public  Health  Service,  and  the  edu- 
cational work  which  comes  from  the  work  and  publications  of  the  ser- 
vice. The  Public  Health  Service  is  authorized  to  study  and  investigate 
the  diseases  of  man  and  conditions  influencing  the  propagation  and  spread 
thereof,  including  sanitation  and  sewage,  and  the  pollution  of  streams 
and  lakes. 

The  federal  government  also  has  power  to  quarantine  against  the 
spread  or  importation  of  cholera,  yellow  fever,  smallpox  or  plague.  The 
President  is  authorized  to  cause  the  Secretary  of  the  Treasury  to  pro- 
mulgate rules  and  regulations  to  prevent  the  spread  of  diseases  from  one 
state  to  another,  or  the  importation  of  diseases  from  foreign  countries. 
The  federal  authorities  are  authorized  to  co-operate  with  state  and  local 
officials  in  the  investigation  and  suppression  of  disease. 

Good  Roads  Act. 
July  11.  1916. 
This  act  gives  national  aid  to  the  states  for  the  building  of  roads. 
The  appropriation  amounts  to  $85,000,000  to  be  expended  over  a  period 
of  five  years.  The  amount  is  apportioned  to  the  states  as  follows :  One- 
third  on  population ;  one-third  on  area ;  and  one-third  on  rural  route 
and  star  route  mileage.  Any  state  to  obtain  its  quota  must  maintain  a 
highway  department  and  must  submit  their  plans  to  the  Secretary  of 
Agriculture  for  approval.  The  roads  are  constructed  subject  to  federal 
supervision.  The  states  maintain  the  roads  after  they  are  constructed, 
but  if  they  neglect  to  maintain  them,  the  federal  authorities  withhold  fur- 
ther appropriations. 

Excess  Profits  Tax. 

March  3,  1917. 
Under  this  act  an  extra  tax  was  laid  upon  the  net  income  of  cor- 
porations and  partnerships  amounting  to  eight  per  cent  of  the  actual 
capital  invested.  This  tax  applies  to  the  Philippine  Islands  and  Porto 
Rico.  The  term  "actual  capital"  is  defined  to  mean:  (1)  The  actual 
cash  paid  in;  (2)  the  actual  cash  value  at  the  time  of  payment  of  as- 
sets other  than  cash  paid  in;  (3)  paid-in  or  earned  surplus  and  undi- 
vided profits  used  or  employed  in  the  business.  This  act  appears  in  the 
addenda,  pp.  873-875,  having  been  received  too  late  for  inclusion  in  its 
proper  place  with  the  corporation  tax. 


INDEX 


ABORTION — Articles  or  medicines 

for  may  not  be  imported 450 

ACCIDENT    REPORT. 

Definitiiins 289 

Interstate  Commerce  Commission — 

Powers  of 288 

Reports  by 288 

Monthly   reports  required 287-288 

Fenalties    288 

ADAMSON  ACT. 

Sec  Hours  of  Ldhor. 
AGRICULTURAL    EDUCATION 

44-57 

Agricultural    Colleges — Federal 

Aid   44-49 

(Tlie  Morrill  Act.) 44-47 

Acceptance  by  the  states  of  re- 
strictions     46-47 

Apportionment    4.5-49 

Fees    47 

Grants  to   states 44-45,  47-48 

Investment  of  funds 45-46 

Land    scrip — Location    of 47 

Payment    to    states 48-49 

Reports    47 

Report    to    Congress 49-50 

States   liable   for   fund 49 

Extension   Work — Federal  Aid 54-57 

Appropriation    55-56 

Co-operative  extension  worli  es- 

tablislied     54-55 

Payments    56 

Secretary  of  Agriculture,  duty  of__57 
States  liable  for  fund 56-57 

Experiment  Stations — • 

Acceptance  by  states 52 

Aiipropriations 51,  52-53 

Aiipriipriation   repealable   52 

Established    in    states 50-54 

'Sot   to    affect    relations   of    col- 
leges   to    states 52 

Payments    53 

Publications   of   51 

Purpose   of   50 

Secretary    of    Agriculture,    duty 

of    50-.51,    54 

Separate    52 

States  lialde  for  fund 53-54 

Summary  of  the  Act 873 


AGRICULTURE. 

See  Federal  Farm  Loans.  Animal  Dis- 
eases, Apple  Barrels,  Cruelty  to  Ani- 
mals, Fruit  Baskets,  Standards,  Good 
Roads,  Grain  Sta)idards.  Inseetieides, 
Meat,  Plant  Quarantine,  Pure  Sccd^s, 
Vocational  Education,  Warehouses, 
Litne  Barrels. 

ALCOHOL,    Denatured,   farmers 

may  manufacture   455-456 

ANIMALS— Cruelty  to 64-66 

Civil    action    65 

Confinement  in  cars,  limit  of 64 

Cruelty  in  transportation  forbidden 64 

Feeding    and    watering    of    animals 

required    , 64-65 

Penalty     65 

Reports    65 

Summary    of   the   Act 873 

Twenty-eight-hour  law 64-65 

ANIMAL    DISEASES    57-63 

Bureau   of  Animal   Industry 57-58 

Agents — Appointment  of 58 

Ajipi'opriation    60 

Contag'ious    diseases — -luvestiga- 

tion'of 58-59 

Notice  to  carrier  of  infected  areas-59 

Penalty  for  violation 62 

Power  to  seize  goods  or  stock 61 

Report    r 60 

Rules  and  regulations 60 

Suppression    of   animal    diseases 

by  60-61 

Carriers  not  to  transport  infected 

stock   59 

Quarantine  of  animals — 

Penalty   63-64 

Resistance    to    enforcement 63 

Rules  and  regulations 62-63 

Transiwrtation  prohibited  in  cer- 
tain cases   62 

Transportation  only  as  approved — 63 
Secretary    of   Agriculture — Powers 
transferred  from   Secretary  of 

the    Treasury    60-61 

Summary  of  the  Act 873 

ANTI-REBATES. 

See  Rebates. 


905 


906 


Important  Federal  Laws 


ANTI-TRUST   ACTS    233-239 

/S'ce  Federal    Trade    Commission.   ,^her- 
man  Aet  and  Clayton  Act. 

APPLE    BARRELS— Standard    __-85-86 

Branding    of    ^5 

Grades  of  apples  established So 

Misbranding  prohibited 86 

Penalties    86 

Standard  barrels — Reqniremeut  for__85 

Standard  barrel   established 8'2 

Snnimaiy  of  the  Act 875 

ASH-PAN     294-295 

Application    of   act 295 

Ash-pan  eqnipnient   reqnired 204 

Interstate     Connnerce     Commission. 

powers   of   29;) 

Penalties    294 

BANKHEAD   ACT. 

See  Good  Roads. 

BANKRUPTCY  ACT. 

Definitions 659 

Time  of  taking  effect  of  act 694 

Bankrupts — 

Acts   of  l)ankrnptcy 662' 

Compositions  by.  when  confirmed__667 

Death  or  insanity  of 666 

Discharge    of 66.S 

Duties  of 665 

Exemptions  of 665 

Extradition  of 666 

Partners  664 

Protection  and  detention  of 666 

When  set  aside 66'S 

Who  may  become 663 

Custody  of"  Property  During  Proceed- 
ings— 

Possession   692 

Title  to  propertj' 693 

Courts — 

Jurisdiction — 

Arbitration    673 

Circuit  Courts  of  Appeals 672 

District  Courts 672 

State  Courts 672 

Supreme  Court  of  United  States_672 
Supreme  Courts  of  Territories__672 

Transfer  of  cases 675 

Procedure — 

Appeals  and  Writs  of  Errors___672 

Arbitration    673 

Compromises    673 

Computation   of   Time 674 

Evidence    671 

Notices,  puljlicatiou  of 673 

Oaths   and    Atfirmations 670 


Offenses,  punishment  of 674 

Petitions,    filing   of 686 

Process   and    Pleadings 669 

Iteference.  after  Ad.iudication — 671 

Rules,   Forms  and  Orders 674 

Trials  by  Jury 670 

Officers- 
Referees — 

Absence  or  Disability  of 678 

Appointment  and  Qualifications_675 

Bonds  of   681 

Compensation   of 677 

Contempts  before  677 

Jurisdiction  and  Duties  of_-676,  683 

Number  and  Districts  of 675 

Records  of 678 

Reference    of    Cases     to     After 

Ad.iudication  of 671 

Trustees — 

Accounts  and  Payees  of 681 

Appointment  and  Qualifications 

of 678 

Bonds  of   681 

Compensation   of 679 

Death  or  Removal  of 678 

Duties  of 678.  683 

Clerks- 
Compensation  of 682 

Duties  of 682,  683 

Receivers — 

Comjiensation  of 679 

Marshals — 

Compensation  of 679,  6.82 

Attornev  General — 

Duties  of 683 

Settlement    and    Distribution   of   Es- 
tates in  Bankruptcy — 
Claims.    Proof   and   Allowance 

of 684,   685 

Compositions 667,  668 

Del)ts  Dischargeable 669 

Debts— what  provable 688 

Depositories  for  Money  of  Estate— 688 

Dividends,   how   declared 689 

Dividends,  unclaimed 690 

Exiienses  of   6'SS 

Liens   690-691 

Meetings   of   Creditors 683-684 

Notices  to  Creditors 686 

Possession  of  Property 692 

Preferred  Creditors   687 

Priority  of  Debts 689 

Set-offs  and  Counter-claims 692 

Title  to   Property 693 

Summary  of  the  Act 894 

Actions  by  and  Against  Bankrupts_-666 


Index 


907 


Discharges  of  Bankrupts — 

Debts  Dischar2:eable 609 

•    I<:ffec-t  on  Codehtor 669 

When  Granted 668 

When  Revoked 668 

BANKS   AND    BANKING. 

,s'f  r    Fc'lcral    h'cscrrr    Banks,    National 
Bank  Act  and  Postal  Savings  Act. 

BEER— Measurements    of    358 

BILLS     OF     LADING 511-521 

Alterations  void    514 

Creditors — Le^al  rights 516 

Delivery  of  goods  by  carrier 512 

Liability — 

if  bill  is  not  taken  up 513 

for  refusing   514 

for  unauthorized 513 

Partial    513 

Persons  entitled   to 512-513 

Duplicate — Character  noted 511-512 

Liability   on   514 

Issues   in   part   forbidden 511 

Liability    of    carrier    for    act    of 

agents  516 

Liens,  carrier  limit  of 516-517 

Lost  bills,  delivery  on  order  of  court_514 

Non-notidlialiility  to  be  marked 512 

Order  lull   defined 511 

Ownership — 

Protection  in  adverse  claims 514 

Time  to  ascertain 514-515 

Third   i)arties — enforcing  rights 515 

Responsibility  for  goods — 

Loaded  by   carrier  515 

Loaded  hx  shipper 515-516 

Straight  bill  defined 511 

Summary  of  Act --8Sn 

BOILER    INSPECTION    289-294 

Accidents  reported  to  chief  inspec- 
tor   292-293 

Administration  of  act 290 

Assistant  inspector 290 

Chief  inspector 290 

Applicable  to  all  parts  of  engine 293 

Definitions 289 

Inspection — 

Bv  carriers 291 

By  districts 290 

Locomotive  boilers  must  be  safe 289 

Penalties 293 

Report  of  chief  inspector 292 

CAMPAIGN    CONTRIBUTIONS 

522-528 

Candidate  defined 524 

Committees — Political — 

Chairman  and  treasurer 522 

Contributions  to  account  of — 522-523 


Definitions ' 522 

Expenses  by  publicity 524 

Contributions — • 

Account  of 522-.523 

Publicity  of .523 

Statement  of 52.3-524 

Corporations,      political     contribu- 
tions by,  prohibited .528 

Expenses — 

Legal  candidates  may  pay .528 

Personal  candidates  may  pay .528 

Statement  of  by  candidates  and 
committees    .524 

Penalties    528 

Representatives  in  Congress — 
Appointments  to  office  not  to  be 

promised  by  .526 

Limitation  of  expenses  of 526 

Provisions  as  to 524-527 

Senators — 

Appointments  to  office  not  to  be 

promised  by   526 

Limitation  of  expenses  by 526 

Provisions  as  to 524-.527 

CHILD    LABOR    310-311 

Board   to   enforce   act 310 

Definitions 312 

District  attorney,  duties  of 310-311 

Penalties .311-312 

Prohibited  in  certain  cases .310 

Secretary  of  Labor,  ])owers  of .310 

Summary  of  the  Act 884 

CHILDREN'S    BUREAU    312-313 

Duties .313 

Established   312 

Summary  of  the  Act 8.84 

CLAYTON    ACT    225-239 

Carriers,  regulation  of  purchases  230-231 
Penalty 2.31 

Competitor's     goods — unlawful     to 

compel  purchaser  not  to  handle 226 

Contempt  in  presence  of  court 2.38 

Time  of  beginning  proceedings 239 

Damages  for  violation  of  Anti-Trust 

Act 226-227 

Definitions   22.5-226 

Directors — Liable   to    penalty 2.34 

Discriminations   prohibited    226 

District  courts  restrain  violation  of 234 

Embezzlement,  penalty  forJ 2.30 

Federal  reserve  board,  powers  of  231-2.32 
Final  .iudgment,  prima  facie  evidence  227 
In.iunctions — 

Against  threatened  loss  by  vio- 
lation of  the  Anti-Trust  laws 2.35 

Bond   required  236 

Labor  disputes  236-237 


908 


Important  Federal  Laws 


Preliminary    injunctions    not    to 

be  issued  without  notice 235-236 

Specific   injunction   236 

Interlocliing     directorates     prohib- 
ited     228-229 

Banks  and  trust  companies 228-229 

Corporations  having  one  million 
dollars  capital   and   undivided 

profits    229-230 

Interstate    commerce    commission. 

powers  of 231 

Labor  not  a  commodity 227 

Monopoly  unlawful 227-228 

Corporations  not  to  acquire  stock 

in    competing   corporations 227-228 

Penalties    ^^-__237 

Scope    of    Anti-Trust    Act— Defini- 
tion   225-226 

Subpoenas   234 

Summary  of  the  Act 880 

Trade     Commission — Powers     and 

duties   232 

Jurisdiction  of  the  courts 233 

Orders  of  the  commission 232 

Prwedure    232-233 

Service   of  process 233 

Writ  of  error 238 

COCAINE  AND  NARCOTICS. 

Sec   Food   (111(1   Dnnis. 

COMPENSATION   FOR   INJU- 
RIES—Federal    Employees 298-309 

Alaska     Iviiilroad     employees,     ap- 
plication to 309 

Allowance   for   disability 298-299 

Annual  estimates 30G-307 

Appropriation  for 307 

Assignments,  void 304 

Awards,   review   of 308 

Burial  ex]ienses 302 

Comiiensation  for  injuries 298 

Computing  pay    302 

Claims  filed 303 

Claims— Determination  of 307-308 

Commission  established 305-306 

Damages  received  from  other  party 

deducted 305 

Death    allowance    299-302 

Definitions 308 

Disability    298 

Partial    298 

Total 298 

Examination,  medical 304 

False  statement  concerning  person- 
al   injuries    308 

Forms  prescribed   303 

Injuries  by  others 304-305 

Compensation  for 298 


Medical  assistance 299-304 

Notice,  no  pay  without 303 

Other  pay  restricted   299 

Panama  canal  employees,   applica- 
tion to   .309 

Re-examination    304 

Repeals 308-.309 

Report  by  commission 307 

Report  by  superior  oflacer 304 

Review   of   awards .308 

Rules  and  regulations  by  the  com- 
mission   307 

Summary  of  the  Act 883 

Time  for  filing  claims 30.3-304 

Wage-earning   capacity    302 

Written  notice  of  injury 303 

CONSCRIPTION   596-605 

Enlistment,   voluntary   allowed 603 

Exemption   boards   _'_ 6O1V6OI 

Intoxicating   liquor   prohibited 605 

Officers — 

Appointment   of   603-604 

Pay    of    604 

P;iy  (if  nfficers  and  enlisted  men 604 

President's  i)owers — 

To   draft   National    Guard 596 

To  draft   army   of  .590.000 597 

To  draft  additional  army 597-598 

To  draft  recruit  training  units 598 

To   inci'ease  regular  army .596 

To  create  volunteer  divisions .598 

Prostitution,  houses  of,  prohibited 

near  camp 605 

Registration    601-602 

Ages   of   registrants 601 

Qualifications  for  602 

Repeal    605 

Restrictions   suspended   605 

Selective  draft — - 

Bounties  prohibited  599 

Exemptions    .599-600 

President's  pf>wers .598-599 

Substitutes  prohibited 599 

State  and  local  officials,  co-opera- 
tion  with    602-603 

Summary  of  the  Act 890 

CONSTITUTION  OF  THE 

UNITED     STATES     1-13 

Amendment — ^Method    of    8-9 

Amendments  to 9-13 

Executive   department    5-7 

Federal  and  state  relations 8 

.Judicial    Department    7-8 

Legislative  Department  1-5 

Miscellaneous  provisions 9 

Ratification    of    9 


Index 


909 


CONTRACT    LABOR— Importa- 
tion  of  products   of,  prohibited        451 

COPYRIGHTS     634-652 

Ad  interim 640-641 

Affidavits  639 

Penalty   639-640 

Assignments,  foreign,  to  be  acknowl- 
edged    G47-64.S 

Classification    636 

Costs  allowed 647 

Courts — jurisdiction  of 646 

Definitions    652 

Disposal  of 647 

Duration  of 641-642 

Exclusive  rights 634-635 

Extension    642 

False   notice   of  copyright 644 

Importation  of  books  with 644-645 

Importation    of    books 645-646 

Seizure   of   luilawfully   imported 

copies    646 

Infringement — Remedies   642-644 

Damages    642-643 

Injunction   642 

Recovery    643 

Wilfnl 644 

Injunctions  may   be  granted 646-(347 

Judgments    reviewed    647 

Limitations,    statute    of 647 

Notice   of  copyright 640 

Omission   of   640 

Postmaster's  receipt   638-639 

Property   interest,   copyright 647 

Registration    of   637 

Register  of  copyrights 648-652 

Bond 1 649 

Certificate  of  registration 649-650 

Deposits,  disposition  of 651 

Entries,   catalogues   of 650-651 

Fees    651 

handling  of 648-649 

Index    650 

Records    649 

Report    649 

Seal 649 

Restrictions    639 

Books  to  be  bound  in  U.  S 639 

Lithograph  and  illustrations  to  be 

produced  in  United  States 639 

Type  must  be  set  in  United  States. 639 

Rules  and  regulations 646 

Summary  of  the  Act 892 

Terms  of  copyright 637 

Two  copies  deposited 638 

Failure  to  deposit 638 

Uniting  proceedings 644 

Unpublished    works,    copyright    pro- 
tection     637 


CORPORATION  TAX. 

See  Income  Ta.r,  Corporation,  l^.rcess 
Profits  T(iT\  Munition  Manufdctur- 
ers'  Tax.  Corporation  Exrif<e  Tax. 

CORPORATIONS— Excise  Tax  361-362 

CORPORATIONS. 

See  Income  Tax.  Corporations.  Excess 
Profits  Tax,  Federal  Trade  Commis- 
sion. Claijton  Act,  Sherman  Act. 

COTTON  FUTURES. 

Apiirnpriation 246 

Conditions  exempting  from  tax 240-241 

Contracts  to  be  in  writing 240 

In    violation — Not    enforceable 245 

Definitions 239 

Markets    to    be    approved    by    Secre- 
tary of  Agriculture 248 

Not  taxed   if  complying  with  condi- 
tions     240 

Penalties    245-246 

Price  of  cotton,  determining 243-244 

Standards  of  cotton  determined_243-244 

Summarv  of  the  Act 8.80 

Tax   239 

Exemption 245 

Liability,  not  exempt  from 246 

Paid  in   stamps 242 

Rules  for  collection  of 245 

Witnesses  not  immune 246 

COURTS. 

Sec  V.  S.  .Judicial  Code. 

CRIMINAL  CODE. 
Offenses — 

Admiralty  and  Territorial 

Jurisdiction     695-784 

of  the  United  States 770 

Assault    with    intent    to    commit 

murder,  rape  or  robbery 771 

Attempt    to    commit    murder    or 

manslaughter   771 

Larceny    773 

Loss  of  life  by  misconduct  of  of- 
ficers   ' 772 

Maiming 772 

Manslaughter    770-771 

Rape   771 

Receiving   stolen  goods 773 

Robbery  772 

Seduction   771-772 

Against  Commerce,  Foreign  and 
Interstate — - 
Explosives,  transportation 

of    758-760 

Larceny    in    interstate    com- 
merce   763-764 

Liquors,  transportation  of 761 


910 


Important  Federal  Laws 


Lottery  tickets,  transportation__760 
Obscene  matter,  depositing  with 

carrier 763 

Wild  animals,  birds  and  rep- 
tiles,  importation  of 762-763 

Against  Currency  and  Coinage — 
Bank    notes,    imitating  with 
p  r  i  n  t  e  d    advertisements 

thereon 741 

Coinage,   debasing  by  officers  of 

the  mint 738 

Coins,    malving    resembling 

money    738-739 

Coins,  making  or  having  in  pos- 
session tokens,  prints,  similar 
to  the  United  States  or  for- 
eign coins  730 

Coinage,    mutilations   738 

Connecting     parts     of     different 

notes 737 

Corporations,  defunct,  circulat- 
ing bills  of 741 

Counterfeiting  United  States  se- 
curities   732 

Counterfeiting  hank  notes 732 

Counterfeiting   notes    of    foreign 

governments   735 

Passing  such 736 

Counterfeiting     gold     or     silver 

coins   737 

Counterfeiting  minor  coins 737 

Coiniterfeiting  dies 730 

Forged  obligations,  passing  of 733 

Forged  bonds,  dealing  in 734 

Forged  notes,  passing  of 735 

Forged  notes  of  foreign  countries. 

having   in   possession 730 

Possessing  or  using  plates  for 736 

National   bank  notes,  defacing__742 
Notes,  using  plates  to  print  with- 
out authority 732 

Notes,  issuing  for  less  than  $1_742 

Tools,  taking  impression  of 733 

Having  impression  of,  in  pos- 
session   734 

Tools,  used  in  printing  bonds,  re- 
moval of 734 

United  States  securities.  Imita- 
ting or  printing  business  cards 

thereon  742 

Acainst  Elective  Franchise  and  Civil 

Rights   700-701 

Civil  rights,  depriving  persons  of  700 
Conspiracy     to     control     federal 

elections    700 

Persons  convicted,  disqualified 
from  holding  ofiice 701 


Intimidation  of  voters  of  army 
and  navy 701 

Troops,  unlawful  presence  of  at 
elections 70O 

See.  also.  Elections. 
Against   Existence   of   Govern- 
ment     605-696 

Conspiracy    696 

Criminal  correspondence  with 
foreign   government   606 

Rebellion    606 

Recruiting  and  enlisting  against 
United  States 696 

Treason    605 

Against    Neutrality   607-609 

Enforcement    60S-690 

Foreign  service,  aiding  equipment 
of  vessels  for 607 

Military  expeditions 60S 

Against  Official  Misconduct — 

Account,  failure  to  render 718 

Bribe,  officers,  acce]iting 724 

Bribery,    members    of    Con- 
gress     722-723 

Claims,  officers  interested  in 722 

Conti'acting  beyond  specific  ap- 
I)r(ipriations    . 720 

Contract,  officers  making  with 
members   of   Congress 724 

Crop  reports,  giving  advance  in- 
formation   of    726 

Croi)  reports,  false  certificates 726 

Deposits,  failure  to  make,  as  re- 
quired   718 

Deposits,  receiving  unauthor- 
ized     719 

Embezzlement  by  internal  reve- 
nue officer  719 

Extortion  by  public  officer 717 

Failure  to  make  reports 720 

False  certificates 721 

Inspector  steaml)oats,  receiving 
illegal   fees   721 

Member  of  Congress,  soliciting  or 
accepting  bribe 722 

Member  of  Congres.s,  taking  con- 
sideration for  procuring  of  con- 
tracts     723 

Member  of  Congress,  taking  com- 
pensation in  matters  to  which 
United  States  is  party 723 

]\Iember  of  Congress,  not  to  be 
interested   in   contracts 724 

Officer  of  court,  failing  to  deposit 
money 720 

Officer  of  court,  receiving  depos- 
its from 720 


Index 


911 


Obscene  literature,  aiding  trade 
in 720 

Pension  agent,  Illegal  fees 721 

Political  contributions,  not  to  be 

solicited    by   certain   offices 725 

Political  contributions,  not  to  be 

received  In  public  offices 725 

Political  contributions,  no  repri- 
sals for  failure  to  contribute 725 

Political  contributions,  not  to  lie 

paid  to  officer 725-726 

Public  funds,  collecting  and  dis- 
bursing   officers    forbidden    to 

trade  in   721 

Public    money,    failure    to    keep 

keep  safely   718 

Public  money,  converting 717 

Receii)ting  for  excess  sums 717 

Record    of    deeds,    falsely    certi- 
fying   721 

Witness  fees,  purchasing 721 

Against  Operations  of  Govern- 
ment     701-717 

Agreement    to    prevent    bids    on 

public   lands   710 

Breeding  grounds,  hunting  birds, 

or  eggs 717 

Bribery    of    United    States    offi- 
cers    705 

Bureau  of  Animal   Industry,   in- 
terfering  with    711 

Campaign   contributions  by   cor- 
porations    716 

Certificates  of  entry,  forging  of-711 
Citizenship,  forging  certificate  of. 713 
Citizenship,  engraving  certificate 

of   714 

Citizenship,    using    false    certifi- 
cate of 714 

Citizenship,   falsely  claiming 715 

Custom   duties,    evading   of 712 

Desertion,  enticing  of 706 

Embezzling  arms 704 

Embezzling  public  property 707 

False  acknowledgment 70.3 

False  demand 703 

Fires,  failing  to  extinguish 700 

Forging  letters  patent 701 

Forging  deeds,  ix)wers  of  attor- 
ney,  etc    702 

Fortifications,    injuries    to 707 

Foreign     military     bounty     land 

warrant    713 

Forged  papers,  having  in  posses- 
sion   703 

Inducing   intoxicated   persons  to 
go  on  vessel 716 


Interested  parties  not  to  act  as 

government  agents 706 

Larceny  from  United  States 707 

Military     reservations,     entering 

upon    707 

Monuments,  injuring  of 710 

Naturalization,  false  personation. 714 

Naturalization,  false  oath 716 

Personation  of  holder  of  public 

stocks   703 

Pretending  to  be   United   States 

officer    703 

Prize  property,   defrauding   cap- 
tor of  705 

Public  forests,  setting  fire  to 709 

Receiving  stolen  proi>erty 707 

Reserved  lands,  breaking  fences 

of 709 

Revenue  ofllcers,  resisting  of 711 

Revenue    officers,    offering    pres- 
ents to  712 

Ship  papers,  altering 713 

Surveys,    interrupting    710 

Taking  claims,  papers 705 

Telegraph,  injuries  to 710 

Timlier,    depredations    on    public 

lands 708 

Trespassing  on  Bull  Run,  Nation- 
al  Park,   Oregon 709 

Turpentine,   boxing  for 708 

Weather  forecast,  counterfeiting_710 
Workmen,  enticing 706 

Piracy  and  Offenses  on  the  High 
Seas 774 

Abandonment  of  mariners  in  for- 
eign port  775 

Arming  vessels  to  cruise  against 
citizens  of  the  T'nited  States__777 

Attacking  commander   775 

Destroying  vessels  at  sea 776 

Foreigners  as  pirates 777 

Maltreatment  of  crew 774 

Pirates,  confederating  with 777 

Plundering  vessels  in  distress 775 

Revolt  and  mutiny  on  shipboard-774 
Rol^bery    on    shore    by    piratical 
crew    776 

Against  Postal   Service 742 

Address,   using  fictitious 753 

Bonds,  illegally  approving 756 

Cancelled  stamps,   using  or  sell- 
ing   749 

Contracts,   employees,   not  to   be 

interested  in 757 

Conveying  letters  out  of  mail  on 
board  vessels 743 


912 


Important  Federal  Laws 


Explosives,    mailing   of 753 

False  returns,  by  postmaster  to 

increase  compensation 749 

False  claims,  inducing  or  prose- 
cuting    756 

False  evidence  as  to  second  class 

mail  matter 756 

Ferryman,  delaying  the  mail — 74S 
Foreign  mails,  letters  carried  in_748 
Foreign  stamps,  counterfeiting — 755 
Foreign  mail  in  transit,  offenses 

against   758 

Fraud,  use  of  mails  to  promote--753 

Imitating  mail  wagons 744 

Increase  of  mail  fraudulently — 758 
Letters,  detaining  or  eniliezzling 

by  postmaster  or  employees — 746 
Letter  boxes  or  mail  matter,  in- 

.iuring  747 

Lotteries,     prohibiting     circulars 

of 752 

Lottery  agents,   postmasters  not 

to  be 752 

Mail,  illegal  carrying 742 

Mail,  conveying  by  private  ex- 
press   743 

Mail,  transporting      persons     to 

carry 743 

Mail  bags,  injuring 744 

Mail  locks,   or  keys,   stealing  or 

forging  744 

Mail  matter,  or  contents,  steal- 
ing   745 

Mali  carrier,  assaulting  with  in- 
tent to   rob 746 

Mail  carrier,  deserting  mail  by— 747 

]\rail.  obstructing 748 

^      Masters  of  ship,  delivery  of  let- 
ters    747 

Misappropriation  of  postal  funds 

or  ]iroperty 757 

Money     order,     issuing     without 

payment 750 

Newspapers,  detaining  or  de- 
stroying by  postmaster  or  em- 
ployees    746 

Obscene  mail,  prohibiting 750 

Using    obscene    envelopes    and 

wrappers   751 

Official  envelopes,  fraudulent  use 

of 757 

Poisons,   mailing   753 

Post    office,    conducting    without 

authority    742 

Post     routes,     conveying    letters 

over <-io 

Post  office  property,  stealing 744 


Post  office,  breaking  into 745 

Postal  car.  breaking  into 745 

Postage,  collecting  unlawful 740 

Postage,  failing  to  account  for__750 
Private  express,   sending  letters 

by    743 

Private  persons  may  convey  let- 
ters    744 

Sending  higher  class  mail  as  low- 
er  class    756 

Stamjis.     unlawful     pledging    or 

sale  of 750 

Stamps,  failing  to  cancel 750 

T'niform  of  carrier,  wearing 744 

Against    Public    Justice 726-727 

Rribery  of  judge 728 

Felony,  misprision  of 731 

Forging  signature  of  judge 727 

Internal    revenue  informers,   ex- 
tortion     731 

Intimidation  of  witness  or  jnror_720 
Judicial  officer  accepting  bribe__728 

Obstructing  process 730 

Perjury    726 

Perjury,    subornation   of 727 

Prisoners,  rescuing 731 

Prisoners,  allowing  to  escape 730 

Process,    stealing   or   altering 727 

Public  reoords.   destroying 727 

Witness  accepting   bribe 720 

Against  Slave  Trade  and  Peonage — 
Bringing  slaves  into  the  United 

States   765 

Confining  slaves  on  vessels 764 

Hovering  on  coasts  with   slaves 

on  board 765 

Kidnaping   769 

Kidnaped    person,    bringing    into 

the  United  States 769 

Peonage,  holding  person  to 769 

Receiving  or  carrying  away 

slaves 766-767 

Seizing  slaves  on  foreign  shore-765 
Serving    on    vessels    engaged    in 

the  slave  trade 766 

Slave    trade,    seizure    of    vessels 

engaged  in 767-768 

Slave    trade,    equipping    vessels 

for 766 

Territories.  Offenses  in — 

Abortion,  promoting 779 

Adulterv 779 

Bull    fights    780 

Certificate  of  marriage,  failure  to 

record  780 

Cohabitation,  unlawful 779 

Fornication  780 


Index 


913 


Incest    780 

Obscene     litertiture,     circulation 

of 7T;t 

rol.v,ir:ini.v Tin 

Prize   fi^'hts   78()-T.sl 

Train   r()l)l)eries 781 

Criminal   rroceduro — 

Accessories,    punishment   of is:] 

Body   of   executed    offender,   dis- 
posal  of 7N-'! 

Capital     punishment,     .jury    may 

hrins    in    verdict    without 7.S.'! 

Corrujition  of  !)!ood  or  foi-tViture 

of  estate,   not  jiermillcd 7S1 

Definition  of  terms 784 

Felonies   and   misdemeanors,   de- 
fined     784 

llanjrins.  i>unishmeiit  of  death 781 

Indians,    how   punished 782 

State  courts,  .iurisdiction  of 782 

3fui-der  and  manslanirhter.  place 
where   crime   deemed    to    have 

been  committed   784 

Pardon  ins  power 7S2 

Pi'incipals.    definition    of 78:i 

Whippinii  .-ind  jiillory  al)olished_782 
Snnnnary  of  tiie  Act 894 

CURRENCY— Offenses    against. 

Src    ('riiiiiiKil    CihIc.    (' inTciici/   (111(1    Coin- 

(KJC 

CUSTOMS    ADMINISTRATION 
—Tariff  Act   433-447 

DRUGS. 

Sec  Food  and  Dnint^. 

EIGHT  HOUR  DAY. 

.V|ii(ro]»riation  for  administration  ex- 

l)enses   .'^>14 

Commission  created  to  investigate IU4 

Deemed  a  day's  work ol.'t 

Electric  street  railroads  excepted 31:! 

Internrlian   railroads   excepted '.'A'-'> 

Kailroads.     exce[)tions     shall     not     ap- 
ply  to   .314 

Independently  owned,  excepted oi:'> 

Summary  of  the  Act 884 

Time   of   investigation 314 

Wages  not  to  be  reduced  during  in- 
vestigations   314 

EIGHT  HOURS  ON  PUBLIC  WORKS 
Contracts,  shall  not  apply.  ])rior  to__:;ir> 

Emergency  cases,  excepted :11~> 

Employment,  limit  to 31."'> 

Penalty   for   violation 315-3K) 

Summary  of  the  Act 884 

T'nlawful     to    permit     employees    to 

work  more  than 315 

(5S) 


ELECTION  OFFENSES. 

Sec  Criiiiiiial  Code.  EU'vtirc  I'ldiichi.sc : 
see,  also,  Campaign  Couirihutious. 

ELKINS  ACT. 

Sec   I'cJxilcx. 

EMPLOYEES'    COMPENSATION. 

Nrc      <'oiiiii('iix(ili(jii     for     I  n  jii  lic^—i'cd- 
(•r<il  cm phniccx. 

EMPLOYERS  LIABILITY. 
Carriers — 

Liable   for   damages 280 

For  damages  in  case  of  death 280 

Limitation  of  dut.v  or  liability 281 

(Vaitracts   to   exempt    from    liability. 

void   ^_281 

Contributory  negligence  no  defense 280 

Definitions 281 

.Turisdiction 281 

Right  of  .action  survives 281 

Snnnnary    of    the   Act 882 

EXCESS    PROFITS   TAX    873-874 

.\ssessment    874 

Exemption    874 

Ttates     873 

Summary  of  the  Act 800 

FARM  LOAN  ACT. 
P.oard,  Farm  Loan — 

Ai)praisers    and     e.vamincrs    ap- 
pointed    1o 

Distribution    of    information K! 

Examinatiou   of   land    lianks :_1G 

Farm  Loan  Commissioner,  exec- 
utive officer 14 

Farm  loan  registrars.  api)ointed 15 

Powers   of   32-33 

Examiners,    appointment   of 30-40 

Farm  loan  bonds,  authorize  is- 
sue and  prescribe  forms 33-34 

General   suiiervision    33 

Orgjinizatiou    of  land    banks 32 

Pecelvei's.    ai>pointment    40-41 

State    law:^.    investigation 41-42 

Qualifications    14-15 

Keport   to   Coiigress  by 10 

Salaries,  payment  of 15 

Term  of  sei'vice 14-15 

Ponds.  Farm  Loan — 
Amortization  and  interest  payments  30 

Aiijilication   for   issue  of .33-34 

P>anks.  responsibilit.v  for 33-34 

(V)llateral  held  by  registrar 34 

Defaulted    loans   38-30 

Definitions    ^ 14 

Denominations 35 

Dividends    38 

Land   banks   38 


914 


Important  Federal  Laws 


National  farm  loan  association__38 

Farm  Loan  Board  authorizes 33-34 

First  mortgages  required  as  col- 
lateral     34 

(Jovernment  depositors — laud  bank 

as ^i 

Investment  in  farm  loan  bonds 3!) 

Joint  Sto<:-k  Land  Banks — 

Capital  stock  required 32 

Issue  of  bonds  on  mortgage 32 

Liability  of  stockholders 31 

liate  of  interest,  commissions  and 

charges •^- 

Laud  Banks — 

Agents  of  in  case  farm  loan  asso- 
ciation is  not  organized 30 

Board  of  Directors 17-10 

Capital  stock 1-'--«> 

Amount  required -♦' 

Subscriptions    20 

Par  value 2<^' 

Dividend  limitations -0 

Oi>ening  of  subscription  books_--20 
Original   subscriptions,  retire- 
ment of   -^ 

Quick  assets,  percentage  of 20 

(Tovernment  depositories,  desig- 
nated as 20-21 

Incoriwration   17 

Organization,  preliminary 17 

Organization,   permanent   -17 

Powers   of    29-30 

Restrictions  on 30 

National  Farm  Loan  Associations— _ 
Agreement  to  use  money  as  speci- 

tied    ^--28 

Amortization  2U-2^ 

Application  for  loan  to 2.j 

Appraisal  by  loan  committee 2o-2G 

Board  of  Directors  of 21 

Capital  stock  of.  par  value 24 

Charter  of  issued  by  Farm  Loan 

Board  23 

Insurance    required    28 

Limit   of  loans   28 

Loans  based  on  first  mortgage_-26-27 

Officers ;— 21 

Organization  of  22-23 

Powers  of 26 

Purposes  of  loan 2^ 

Rate  of  interest  ---27 

Secretary-treasurer   21-22 

Duties   21-22 

Bonds    21-22 

Shareholders'  responsibility 2.) 

Stockholders  limited  to  borrowers. -24 
Penalties — „_^_.--.^--*42-44 


Reserves — 

Of  land  l)anks 38 

Of  National  farm  loan  associations_.".8 
Summary  of  the  Act 871 

Taxation,  exemption  from •">0 

FEDERAL  ELECTIONS. 

,s'cc  Criminnl   Cixlr  <ni(l  Campaiffii  Con- 
tributinn><. 
FEDERAL    JUDICIAL    CODE_78S-864 

FEDERAL  RESERVE  BANK  ACT. 
I'.Muks.  Federal  Reserve — 

F.ranches.   organization   of 109 

Certificate  of 11<^ 

Powers  of   124-127 

Capital  stock — 

Increase  and  decrease 114-115 

Shnreliolders*  resiionsibility 107 

Subscription  to — 

By  banks 107 

Bv  the  public 108 

By  the  I'nited  States 108 

Transfer,  rules  of 100 

Voting   ]K)wer    108-10!) 

Checks  and  drafts  received  at  par_132 

Cii-culating  notes — Issue  of 135 

Deposits  of  Government  funds  in__12S 
Gold    deposits   with    Secretary    of 

Treasury    i-^-* 

Gold  notes — Issuance  of 135-13(; 

Open  market  o])erations 127 

Reserve  requirements 129-130 

United  States  Bonds,  purchase  of-134 
Directors — 

Class  C,  appointment  of 113 

Classification HI,  112 

Compensation  113 

Class  A  and  B.  election  of il2 

First    meeting    of 114 

Meeting  of   m 

Class  B  and  C  not  to  be  inter- 
ested in  other  banks 112 

Compensation 113 

Qualifications  of 111.112 

Senators  and  representatives  not 

to   be   directors 112 

Term   of  office HI 

Comptroller  of  Currency- 
Appoints  examiners 138-139 

Fxpenses.  reserve  banks 138-139 

Issues  certificate  of  organization__110 

Orticers.  created 138-139 

Alembers  of   organization   commit- 

'    tee   - 106 

Member  of  Federal  Board -„— ^P 

Powers  as  to  issue  of  notes 130-131 


Index 


915 


Definitions !<'<■' 

Farm  lands,  loans  on 140-141 

Federal    Reserve   Board ](X>-M  1 

Advisory  eonncil ,12o-12l 

Creation    of    110-120 

ICxannners.  salaries  lixed  by 1-'!'.> 

Expenses,    jiaid    hy   banks 120 

Covernor   of   120 

Members,    terms,    salaries 119-120 

Not  to  be  interested  in  bankinj; — 120 

Powers  of 121-12n 

Report    121 

Vacancies 120-121 

y  ice-Governor 120 

Federal  Reserve  Districts 106-1OT 

Organization  committee 106-107 

Reserve  banks,  organization  of 107 

Federal  Iteserve  Notes — 

Application   for   120 

Anthorized    12S 

Circnlation   privilege   1'^(> 

Issuance   and    redemption 130-131 

Cold  bonds,  interest 13r» 

Preparation  of 131-132 

Retirement  of 134 

Loans  and  gratuities  to  bank  ex- 
aminers  ])roliil)ited   130-140 

National  Banks — 

Branches — foreign    anthorized_141-142 

Cajiital   stock,   reductions  of 144 

Circulatory  notes,  retirement  of — 134 
Deposits,  demanil  and  time  defined-137 

Failure  to  accept  terms  of  act 107 

Failure  to  become  memlier  of  bank_107 
Farm  lands,  loans  on,  author- 
ized     140-141 

Reserve  rerpiirements 136-13S 

Redemption   fund   not  to  be 

considered  reserve 138 

Subscription  to  stock  of  Federal 

Reserve  P.ank 107 

Repealing  ]>rovisions 142 

Secretary  of  the  Treasury — 

Chairman  of   Federal  Board 120 

I'owers  with  reference  to  issu- 
ing notes   130-131 

Powers  not   affected 121 

:Menibei'  of  organization  board 106 

State  Banks- 
Conversion  to  National  Banks 116 

Subscription    by    117-110 

Suuunary    of   the   Act ST6 

FOOD  AND  DRUGS. 

Adulterated,    defined    251-202 

Cocaine  and  Narcotics — 

Api)ropriation 260 


Commissioner    of    Iut(>rnal     Rev- 
enue— 

Coniiiounils  not   to  ajiply  to   _2(i7-2<iS 
Aulborizcd  to  ai>]>oint  assislaiits_260 

Tus]K'ctii)n.  (U'ders  oi»<mi   to 267 

Tacensed  dealers,  imlawful  for 

other   I  ban   2'66-2G7 

Penaltv    268 

Provisions    263-264 

Registratiou — 

Must   be   made  l>y  producer,   man- 
ufacturer,   importer    263 

Time   of    263 

PiCpeal.    not    to    affect    pure    food 

and   drug   act 260 

Reports,   required   266 

Written  order  for  sale 264-26r> 

Exceptions 264-266 

Provisions   266 

Conmierce    in    adulterated    or    mis- 
branded.  prohiI)ited 240 

Condemnation,  process  of  libel  for__2.">4 

Confiscatiou.  seizure  for 2.">4 

Corporations,  liable  for  failure  of  of- 
ficers   2r.r> 

Court  procedure 2."4 

Dealers  ]>rotected  by  guaranty 253 

District  Attorney,  duties 250-251 

Drug,   defined 251 

Examinations  250 

ITearings.   for  violations 250 

Imports,  adulterated  or  misbranded. 

refused  admission 254 

Examination 254 

Manufacture  of  adulterated  or  mis- 
branded.   ]irohibited    240 

Misbranded,  defined 252^253 

Penalties    249-250 

Rules  and  regulations 250 

Snnunai'y  of  the  Act 880 

FRUIT    BASKETS    86-88 

Climax   grape   baskets 86 

Department  of  Agriculture,  duties 

of    87-88 

Innnunity    through    guarantee    of 

wholesaler  88 

Interstate    shipment   not   conform- 
ing, unlawful   87 

Penalties   '^'"^ 

Smaller  baskets  for  fruit 87 

Standards   established    for 86-87 

Sunnnary  of  the  Act S75 

GOOD     ROADS— Federal    Aid_-867-873 
Administration. 

I'xpeuses,  3  per  centum  to  be  de- 
ducted  from   appropriation 860 


916 


Important  Federaj.  Laws 


rnoxpi'iKk'd  b.iliiiice  to   hi'  ro;i]i- 

jiortiuiitHl N(JU 

A]ip()rtioiiinent — 

]'.;is('(l      oil     .-ircn.      ]io|inl;iI  ion      niitl 
iiiile;i.tii'  of     riinil     <lfli\('i\     ;iii(l 

still-   routes sii'.) 

("ertiticate  of — 

To  Secretary  of  Treasury Sdl) 

To   state   liisliway   departments SOU 

To  (governor Nt!;) 

Approi)riatioii — 

Annual  increases SOS 

T^nexpended  l)alances Si's 

lvea])])ortionineiit   .SdS 

Assistants.    Secretary   of  Agricnltnr.> 

authorized  to  enii)]oy s~] 

Kridiies  and  culverts siis 

Co-oiieration     with    states     for    ron- 

striiction  of.  aulliori/.ed >'iT 

Dehnltions  ,S(;7-S(i,s 

Governor,    assent   of.    sufficient   irilil 

session  of  Lc-iislatHre  N()T 

Le.:iislatiire  niiisl  assent  to  provisions 

of  act   Nf:7 

Maintenance  by  state  anthorities^STo  '-71 
Suspension    of     npportionnient     in 

case  of  failure  STnsTI 

Secretary  of  A.iiriculture — 

Approval  of  plans  by STo 

Apiiortionnient  of  amounts  !>y_l_^S7i> 
Authorized      1o      co-o))erate      with 
states     throuiih     state     hi.iihway 

departments    SH7 

ronstruction  pro.lects  to  be  subipit- 

ted  to.  by  stntes S(!!)-S7(» 

States- 
Payment  to.  diiriii.i:  construction — 870 

Supervision  of  work  by 870 

Summary   of   the   Act -806 

Tolls,  all  roads  to  be  free  from s<;7 

GOVERNMENT— Offenses  against. 
Sec    Criiiiinnl    Code. 

GOVERNMENT— Operation   of. 

Nee     CriiiiiiKil     Code — (tjjciixcs     Ai/aiiixt 
Operation  of  (iorcnniioit. 

GRAIN   STANDARDS— Estab- 
lishment   of    66-70 

Appeals  from  Inspector (58 

Ap])ropriation   for 70 

Ccrtilicates  from  persons  not  licensed. 

unlawful   08-(!0 

Detinitions tit! 

Fees  assessed 08 

Findiui^s.   prima    facie   evidenc(! 08 

(irade  or  by  sample,  .crain  sold  by 66-07 

Ins])e<:'tors  not  to  have  interest  in 

elevators    tV.) 


Inlerferiiiir  with   (>(ticials   70 

Licenses  issued  lo   insiiectors t!.S-0!l 

Kevocation  or  susi)ension  of (i!) 

Misr(>i)reseiita1  ion   forbidden 07-68 

rii't'ereiice  to   persons   under   state 

laws    (ro 

Penalties  for  violation  of  act 70 

Ivules  and  rejiulations 00 

Otiicial    standards   60 

Secretary   of   Auricuiture.    inspection 

by    _-'- 68 

Standard^   of   (pia^'ty   and   condition 

to   he   fixed <iO 

Summary  of  the  Act 873 

HANDWRITING— Proof    of    864 

Summary  of  the  Act 89."» 

HEALTH— Public     865-867 

PenaUies     805-800 

PlajTue  prevention 86") 

Public  health   service 86.'i 

(Quarantine    8(1.") 

.    Pules  and  regulations 86r> 

State  and  city   oflicials.  co-operation 

with    : 800-807 

Summary    of    the    Act 806 

HORTICULTURE. 

Src    ridiit    (Jiinnnirnic.    I'liic    Kccd.s,    I ii- 
xcctlcideK. 

HOURS  OF  SERVICE. 

( ■oniiiion   carriers.   aiii)li<-able   to ll'.x; 

Hours  of  emitloyee  off  duty 20(5 

luter.state  Commerce  Commission,  in- 
formation of  violations  to  be  fur- 
nished by 207 

Duties  of 207 

Maximum  service  for  employee 206 

Penalty    for    violation 207 

Provisions,  when  not   to  apply 207 

T'nited  States  District  Attorney,  suits 

brought  by 207 

Summary   of   the  Act 88.'! 

Time  limit  for  bringins  suit  on  vio- 
lations     207 

IMMIGRATION    164-194 

Ponds — 

Admission  under 18r)-1S(> 

Conditions  of 1*^'' 

Deposits  in  lieu  of 186 

Commissioner  General  of  Immigration — 

Duties  of   186-187 

Information   received 1*^7 

Inspectors  appointed  by 180 

Rules  and  regulations 187 

Contract  Labor — 

Advertising  for.  prohibited 170 

Fees  to  informer ITO 


Index 


917 


Iiiil>()ri;iti(tii  of.  unlawful 100-170 

IVuaJty 170 

Dt'linifious    104-10.") 

1  )('ii<>i'tati()n — 

Adniissidii    inidcr   bond INo-lSO 

Aiiaivliisls   1,S:{ 

Criniiuals IS:! 

I)is(>asefl  luTsons 1,S2 

llieirally   LukUmI    iniuilsrauts ISo 

I'rostitutes IS'} 

Detention,  temporary 180 

District  Court — 

( "onii>roniise  restricted ISO 

Jurisdiction 180 

I'rocedure 180 

Kxaniinntiou — 

Lilerac.v    lest    100-107.    173-174 

.Medical   173-174 

International   Conference.   ])resident 

aiithorized  to  call 100 

Tmnuiral  I'ui'iioses — 

Dejiorted  aliens,  return  of 100 

i:vidence  of  husliand  and  wife  ad- 

niissalile   KJO 

Inunijiration   for.  forbidden TOO 

renames    100 

Sjiecial   P.oards.  powers  of,  in  excln- 
sion    <'ases   ISO 

Tax- 
Children  under  10  exenii)t 104 

Lev.v  and   collection 105 

Philippines,  collection  in 105 

TransiK)rtation   re.uulated    170-171 

Asiatics,   hriuirins    in.    ])rohihited__172 

1  )ep(Utation    181-183 

Defectives,  brinjiing  in,  prohib- 
ited   171-173 

Examination  on  shipboard 173 

Insjiectiou  of  condition  of  vessel__174 

Landins  at  unlawful  place 171 

Lists  of  aliens  arriviufr 174 

of  alien   emplo.vees 103 

of  passen.wrs  fj'om  home  or   in- 
sular ix.ints 17.1 

Solicitiui:  inunitfratiou  prohibited 171 

A'es.sel.   ins]iecti(»n  of  ct)ndition   of-174 

Insjieetion — 

Appeals  from  insjiector 180 

At  immigjrant  stations 177 

Challenge  of  favorable  decision 180 

Condition  of  vessels  sub.iect  t<t 174 

Detention   of  doubtful   ca.«es 180 

Inspectors,  appointment  of 188 

authorit.v    of    170 

Medical    178 

Mentally   diseased,   by   experts 178 


(tn  shipboai'd 177 

Sjiecial  boards iso 

Kxclusions— 

Anarchists k;.", 

Ari-eslcd    persons 100 

Asiatics,  certain l(;(; 

Classes   excluded    104-100 

C(»ntract   laborers 100 

Criminals i(;7» 

Prostitutes icr. 

Spe<.'ial  boards  to  consider 180 

Literacy  Test — 

Ability  to  read 107 

Kxiiositiou  emplo.vees  excepted-108-i(;!i 

Families  of  residents  excepted 107 

Political  offenders  excepted 107 

I'rofessional   classes,  certain,  ex- 

cei)ted   100 

lielisious  refugees  excei)ted 107 

Skilled  labor,  certain,  excepted 168 

Seamen,  alien 102 

Arrest  of 102 

liringing  in  with  intent  to  land 102 

Diseased,  emiiloyment  of 102 

Pestrictions  on  landing 102 

Siunmarv    of    the    Act 878 

INCOME    TAX— Corporations__328-343 

Administration    of ;!30-;!.".8 

Amount  of 328-320 

Appeals  .342-343 

Assessment  of .330-.3.38 

Collector,  investigation  by .338 

Deductions — Domestic  Coriiora- 

lions .:>.)L-.:).i.) 

P.ank  de])osits,  interest  on .331 

Betterments,  exclnded .331 

P>usiness  expenses .331 

Exceptions ,331 

Konds  guaranteed  free  from  tax  331 

Insurance  reserves,  additions  to .331 

Indebtedness,   interest   on 331 

Life  insurance  com])anies .331 

Losses  and  depreciation 331 

Mutual  insurance  companies .331 

Taxes    331 

Deductions — Foreign  Corpora- 
tions   . .3.31-.3.33 

Rank  deixisits.  interest  on .3.32 

Betterments,  excluded .331 

Business  expenses  in  United  States  ,331 

Exceptions 331 

Bonds  guaranteed  free  from  tax_.331 

Indebtedness,   interest   on 3.32 

Insurance  reserves,  additions  to__.331 

Life  insurance  comitanies .331 

Losses  and  depreciation 331 


918 


Important  Federal  Laws 


^lutnal   iiisiir.-mce  coiiiiiiinies ool 

T;i\('s  p;ii(l  in  T'liitfd   Stntes 'XV.\ 

District  court,  jnrisdiciiou  of ;>4'_' 

Exemptions    P,2!)-:r>l 

Tnforniaf ion  not  to  lio  divnlsorl 'V.',s 

I'(Mia]li(>s  for  violation  of 34n-:>41 

I'liilijiliincs.   aiii>li<-al  ion   to ;!4-! 

Porto  liico.   a]»plication   to ■"542 

Receipts,  provision  for o4l 

Iletnins.  wlion  made 334-oo('> 

Bv  wliom  made 334-a.3(; 

lieturn  of  list 339-340 

Statistics  of.  publication  of 342 

Summary  of  tlie  Act SS." 

INCOME    TAX— Personal    317-328 

Administration  of 32r)-32N 

Amount  of ^'^"-^'^? 

Appeals 343-34." 

As.sessment  of 32.j-32s 

Collectoi'.  investigation  by 33s 

Credits  allowed 321 

Koductions  allowed  citizens 32(» 

Betterments  not  allowed 320-324 

Busiriess  expenses 320 

Deterioration  of  business  property_3>2'n 

Oil  and  SJ^s  wells 320 

Mines    320 

Imterest   on   debts 320 

Losses  bv  casualty 320 

Taxes    _1 320 

Worthless  debts  charged  off 320 

Deductions  Allowed  Xon-Resident 
Aliens — 

Betterments,  not  allowed 322 

Business  expenses  in  T'nited  States  321 
Deterioration  of  business  property_322 
General  taxes  paid  in  the  United 

States  321 

T^osses   by   casualty 321-322 

Proportion  of  interest  on  debts 321 

Worthless  debts  charged  oft 32 1 

Definitions    of    Income 318-310 

District  Court,  jurisdiction  of 342 

Exemptions    319-320 

Personal    o22-o2.) 

Informatiou  not  to  be  divulged 338 

Penalties  for  violation  of 340-341 

Philipi)ines.   api)lication  to 342 

Porto  Rico,  application  to 342 

Receipts,   provision   for 341 

Returns,  when  made 323 

Bv   whom   made 323-32". 

Return  of  list 339-340 

Statistics   of,  publication  of 342 

Summary  of  the  Act 884 

Undistributed   pi'ofit — additional   tax 
includes    319 


INHERITANCE    TAX    345-348 

( "iimmissioner  of   Internal   Reve- 
nue, duties  of 34G-34S 

I  »ctiiiil  ions 34:5 

i:x.(iil..i-s.  duties  of 345-34(i 

Cross  value  oC  estates,  method  of 

tixing 344 

Net  value  of  estates,  method  of 

fixing 34." 

Payment,   enforcement   of .34fi-34S 

Penalties 347-348 

Rate  of  tax 343 

Summary  of  the  Act 885 

Tei'ui   of  payment 345 

INJUNCTION. 

Sec    i  .    N.    •/iKlicidl    Coilr    oiid    Chn/fon 
Art — Tn  jiinitioii. 

INSECTICIDES. 

Adulteratetl.  defined   92 

Dotinitions 91-92.  95 

District   Attorney,   duties 91 

Examinations,   notice  of 91 

Hearing  under 91 

Guaranty  lu'otecis  dealer 93 

Imports,    delivery    refused 94 

Destruction   of   ; 94 

Tm))oi'tation.   rules  and   regulations 

governing    94-95 

Interstate     Connuerce.     shipment    of 
adulterated  insecticides.  prohibited_90 

Original    i)ackages,    confiscation 94 

Disposal   of 94 

^Manufacture  of  adulterated  or  mis- 
branded,  prohibited 89-90 

Penalties    90 

Rules   .-ind   Regulations 90,   92 

Secretary    of   Agriculture,    violations 

certified   l)y 91 

Shipment     of     adulterated     or     mis- 
branded,    prohibited    90 

Snnunary    of   the    Act 870 

INSURANCE— War    Risk. 
.See  ll"/-  Hisk  Iii'Surance. 

INTERSTATE  COMMERCE- _  468-511 
( 'arriers — 

Agent   in    Washington   to  l)e  desig- 
nated   504 

Continuous  passage  required 479 

Discrimination  prohibited 472 

Fi'ee  passes  prohibited 470-471 

Liability  for  damages 480 

Post  name  of  agent 478 

Rates,  change  of  thirty-day  notice-47C» 
Rate.s.  .iiist  and  reasonable,  re- 

qnir(>d    4G9-470 


Index 


919 


Service,  just  nud  reasouablo,  re- 
quired     4(i!l-4T() 

Switch  connection  required 471-472 

Parriers  snlijert  to  the  twi 4G8-4G9 

Charges  to  he  just  ;ind  reason- 
able     4«!)-47(> 

Competing   lines,   ownership 473-474 

Connnodities  clause 471 

('oniniissit)n.   the   Interstate  Com- 
merce— 

Annual  repoit  to  (  oiv^ress 501 

Award   daniai;es 4S7-401 

("ommission    ci'eated    4S2-4.S."> 

Compel   testimony    483-4S4 

Investigate  on  own   initiative 484 

Investigate  <-omplaints 483-484 

Make  reports  of  investisations_4S4-4Sr> 

Office  and   records 492-493 

Physical     valuation     of     rail- 
roads    493-497 

I'owers  of  commission 483-484 

Procedure,  determine 4ft2 

Pates  and  name,  tix 48f!-489 

Ifehearinss,   smnt    491-492 

Pequire  annual   reports 497-500 

Salaries 492,   503-504 

T'niform  accounts,  may  require 497 

Water  traffic  regulated  by 478-479 

Court   .inrisdiction   507-508 

Definitions 468 

Discriminations    defined    and    forbid- 
den     472 

Damages — 

Liability  for.  by  carriers 480 

Procedure 480 

Expediting   of   cases 509-510 

Fi'ee  passes  prohibited 470-471 

Exceptions   _-_501-503 

Immunity  of  Witnesses 505 

Long  and  short-hanl  provision 472-473 

Military  use  of  railroads 477 

Penalties 480-482 

Pooling  forbidden 473 

Rates- 
Carriers  to  furnish  written  state- 
ments of  rates 477 

Joint   476 

Just  and  reasonable  reqnired-_469-470 

Notice  of  change — thirty  days 476 

Schedules  open  to  imblic 475-476 

Schedules  of  form  of.   may  be 

jtrescribed   liy  connnission 476-477 

Rebates   prohibited   505-507 

Penalties 506 

Repeals 508 

Service    to    be   just    and    reason- 
able   . ......_  =  ...-.. 460-470' 


Ship  ownership  by  railroads 473-474 

Sununary  of  the  Act 887 

Switch  connections,  carriers" 

duty   471-472 

Witnesses,   Imminiity  of 505 

INTERSTATE    COMMERCE— 
Offenses  in. 

.SV'c  Criminal  Code — lutcrssUilc  mid  i'oi- 
eigii  Cornmcicc. 

INTOXICATING  LIQUOR. 

!<((■    JJ<ii((n\     Liijiioj-    I^Hiipiiiviily.     ISccv, 
M'i)K\  (dul  Distilled  kSpirits. 
JUDICIAL    CODE,   FEDERAL^788-864 

LAND  BANKS. 

aS'cc  Federal  Farm  Loans. 

LEAD   ARSENATES. 

See  I irscelicidex. 

LIME  BARRELS— Standard. 

Barrels — 

Labeled  and   marked 88 

Standard  sizes  estaldished 88 

Directoi-  of  P.nreau  of  Standai'ds.  rules 
and  regulations  prescrilied  by 89 

Interstate  Commerce,  shipments 

marked    unlawful    89 

Penalty 89 

Procedure    89 

Rules  and  regulations  to  include  rea- 
sonable variations  or  tolerances — 89 

Sununary    of   the   Act 875 

LIQUOR,  fermented,  tax   on 351 

LIQUOR  SHIPMENTS. 
(Webb-Kenyon  Act.) 
Advertisement    in   dry   territory,    un- 
lawful    657 

r»elivery  by  mail  forbidden 657 

Dry    territory — shipments    into    un- 
lawful  —1 657 

Summary    of    the   Act 893 

LOTTERY   TICKETS,   importa- 
tion,   prohibited    • 450 

MANN  ACT. 

Her  While  Hlare  Aef. 

MEAT  INSPECTION. 

Application  to  all  meat  products_256-257 

Carcasses — 

Inspection    25r> 

;\[arked,   stamped,   or  tagged 256 

Destroyed    25*; 

Ileinspected 25r> 

Compliance   with    provisions 258 

Establishments — 

Inspection    258 

Rules,  regulations;  and  sanitation-25S 


920 


Important  Federal  Laws 


Exports — 

Carcasses  inspected  fur 2r>!> 

Tattle,  inspected  for 2'."!» 

deai'Mnco  witliunt  certificate  for- 
bidden     •j.'in 

Iinjiorted  Meat — 

Condition   of 2(il' 

Exenii)t  from  duty 201.' 

Deemed  and  treated  as  domes- 
tic   202-2n:} 

Tiules  and    rejinlations 2ti2-2r>.'^) 

Ins]iectors — 

Access  to   establishments 2."(7 

Ai)pointed    2.")." 

Antliorized   to   issue  certificates 2f>o 

Kxaniinarion   of  food   products   for 

interstate  and  foi-tMirn  connnerce-2.">7 
Examination   and    insiiection   made 

by 2r.7 

Marie.   lal)el   or  tajr 2r»7 

Itenioval   of  for  failure  to  comply_2."i(i 

Inspection — 

Farmers  and  retail  butchers  not  to 

ai)i)ly  to 2(i2 

Label    to    indicate 2r>7 

Secretary  of  Agriculture  may  cause 

to  l)e  made 2.">.''> 

'i'o  be  made  of  all  meat  products. _2.Vi 
Tnl.-nvful  to  transport  witliout 2r.s 

I'enalties    2."tn.   2(i<t-2f;i 

liules  and  regulations  prescribed   by 
Secretary  of  Agriculture 2."2' 

Sbiughtered  cattle,  swine,  etc..  show- 
ing synipt(nns  of  disease 2.")(i 

Sununary  of  the  Act 8sl 

Trade  names,  not  fal.se  or  deceptive-2r)8 

MEDALS  OF  HONOR. 

A  PI  ►ro]  trial  ion   2f)G 

Bestowed    ui»on    jiersons    preventing 

accidents    upon    r.iilroads 29." 

-  President — 

Authorized  to  cause  to  be  prepared.2;).'5 
To  issue  rosettes  and  ribbons 21t.j 

MEDIATION  AND  ARBITRA- 
TION. 

Administration    expenses    278 

Agreement.s — 

Acknowledgment    276 

Filed  with   Board 27G 

Form     27."> 

Provisions    27."i 

ApplicMtion  to  carriers,  officers.  etc__27.". 

Appropriation 287 

Arluti'ators.  ]-iowers  of 27(! 

Administer  oaths 276 

Invoke  aid  of  United  States  courts.27(i 


Is.sue  subpoenas 270 

Ke<juire  attendance  an<l  testimouy_270 
Production  of  books,  etc 27(( 

Arbitrators — 

Names  furnished  boai-d 27(> 

Notice  served  of  aiipointmeut 270 

Awards — 

Certified   copy  of 277 

Effective  on  disi^osal  of  exceptious_277 

Exceptions  filed 277 

Judgment  setting  aside 278 

Operati<^u.    time   of 277 

Pieconvcning  of  bo.-ird  to  pass  on 270 

P.oard  of  .Vrbiti'afion — 

Appointments,  failure  to  agree 270 

rompensation   278 

Duties 277 

Noti<'es  issued  to  arbitrators 270 

Number    274 

Organization   274 

Powers   277 

Selected    274 

P.oard  of  .Mediation  and  Conciliation — 

Agreements   274 

Appointment  of  members  of  board_274 

Comiiosition    270 

Couununiration   with   l)oard 27<> 

Exitressions  of  oi)inion  l)y 274 

Circuit  Court  of  Ai)peal.s — 

Deternunafion   final    278 

Connnissioner  of  Mediation  and  Con- 
ciliation— 

Compensation   270 

How  apiiointed 270 

Term    of  office 270 

Pemoval)le 270 

CompuKsory   employment   prohibited_278 

Definitions 27:] 

Excei)tions — 

Ajijieals    277 

Judgment  entered   277 

Final    disposal    277 

Master  of  vessels,  seamen 277 

Time  of  tiling 277 

Notice — 
Appointment   of  arbitrators  neces- 
sary   270 

Meeting  of  Iwai'd 270 

To   Board   of  Mediation  and   Con- 
ciliation     270 

Time,  iieriod  of 270 

IJeconvening  Board — 

Duties    270 

fleeting,  time  and  place  of 276-277 

Pvepeals  "_ . 279 

Summary    of   the   Act SS2 


Index 


921 


MORAL  REFORM. 

/See  Prize  Fi<iht   Picture^,   White  Slave 
Act.  and  Liquor  Shiptuents. 

MORRILL  ACT. 

,s'rr  AfiricuUurnl  Educntinn. 

MUNITION   MANUFACTUR- 
ERS' TAX   348-351 

Assessment  in  certain  cases 350 

Commissioner  of  Internal   Reve- 
nue— 

Powers  of 350-351 

Rules  and  regulations  to  be 
made   by.   with   approval    of 

Secretary  of  the  Treasury 351 

Definition    of   tei'ms 348 

Excise  Tax — 

To  lie  paid  on  net  profits  from 
sale  or  disposition  of  muni- 
tions   manufactured    within 

the  United    States 348-349 

Exceptions,  munitions  manu- 
factured for  industrial  pur- 
poses   348 

Termination  of 349 

Fair  Market  Price — 

Determination  of.  if  sales  are  made 

at  les.s,  for  personal  benefit 349 

Genera]   laws  applicable 351 

Information,  unauthorized   divulgins: 

of.   unlawful   351 

Net  Profits^ 

Computing,  method  of 349 

Deductions    •519 

Penalties    351 

Returns — 

Annual,   under   oath,   by   manufac- 
turers   of    specified    articles    of 

munitions 350 

Transmitted  to  district  collector  of 

internal   revenue  350 

Transmitted  by  collector  to   Com- 
missioner of  Internal  Revenue— 350 
Taxes  assessed  on.  by  Commission- 
er of  Internal  Revenue 351 

Commissioner  authorized  to   make 

investigation  on.  if  dissatisfied_-351 

Hearing,  written  request  filed  for__351 

Summary  of  the  Act 886 

NARCOTICS. 

^cc   Food   and   Drugs. 

NATIONAL  BANKS  152-153 

^pc  also  Federal  Reserve  Banks. 

P.anks  deemed   citizens 154 

Chane  of  name  of  bank 154 

Change  of  location  of  bank 154 

Change  not  to  affect  liability 154 

(59) 


Debts  not  affected  by  change 154 

Dissenting    stockholders    may    with- 
draw    1 156 

Dissolution   of   banks   not   extending 

existence    157 

Extension  of  corporate  existence_154-156 
;\Iethod  of  acknowledgment  of  certifi- 
cates    153 

National    Ranking  Associations,   for- 
mation of 152 

Powers  of 153-1&4 

Requirements  for  organizing 152 

Redemption    of   circulating   notes   is- 
sued prior  to  extension 156 

Re-extension  157 

Real  estate,  loans  on 140-141 

Real  property,  power  to  hold  by_157-158 
Special    examination    for    exten- 
sion of 155-156 

Capital  Stock 158 

Installments  unpaid 158 

Increase  of  1.59 

Payments,  how  made 158 

Procedure 1.58-1.59 

Reduction  of 159-160 

Right  to  vote 160 

Shares  of  $100  each 158 

Directors    160 

Election  of 160 

Oath  of 160-161 

Proceedings  where  no  election  held_161 

President  elected  by 161 

Qualifications  of 160 

Vacancies,  how  filled 161 

Shareholders 161 

Executors     and      trustees     not 

liable   161-163 

Liability  of 161 

State    Banks,    authorized    to    become 

National  Banks 162 

Summary  of  the  Act 877 

NATIONAL  DEFENSE 327 

Adjutant    General's   Department 533 

Constitution  of .533 

Bureau  of  Insular  Affairs;    organiza- 
tion     542 

Cavalry  units   545-546 

Chaplains    542 

Coast   artillery   corps 547-548 

Detached  officers'  list .551-553 

Composition  of 551-553 

Engineers,  corps  of 538-5.39 

Constitution  of .538 

Constituted  part  of  line 539 

Mounted    battalions   and   com- 
panies     538-539 


922 


Important  Federal  Laws 


Officers  and  enlisted  men 538-539 

Regimental   battalion  and  com- 
pany   units,    band 539 

Enlistment  in  the  Regular  Army 554 

Discharge  of  enlisted  men 555 

Pay  of  enlisted  men 555-556 

Regular  Army  reserve 554 

Term    of   service 554 

Enlisted  Reserve  Corps 566-569 

Enlisted  men  prohibited  from  taking 
civil  employment 558 

Field  Artillery   546-547 

Gun  or  howitzer  company 546 

Headquarters  company    546-547 

Regiment 546 

Supply  company   547 

General  Staff  Corps 531 

Constitution  of 531 

Coast  artillery,  chief  of,  made  an 
additional    member  of 5.32 

Detail  to;    limitations 531 

District  of  Columbia,  employment 
iu 531 

Duties  defined 531 

Position  of  officers  while  detailed 
to   532 

Reconnnendations.  restrictions  on. 
selection    532 

Specific  duties  to  be  strictly  ad- 
hered to 5.32 

War    college    duties 532 

Mobile  army  and  coast  artillery  di- 
visions in.  abolished ;  duties 
transferred    5.32 

Restriction  on  details  to 532 

Infantry  units 544 

Battalion  officers  and  organization_544 

Infantry  headquarters  company, 
officers  and  organization 544 

Infantry  supply  company 545 

Machine  guns  company,  officers  and 
organization 544-545 

Regiment  officers  and  organization_.544 
Inspector  GeneraTs  department 5.33 

Constitution    of   533 

Judge     Advocate     General's     depart- 
ment    533 

Appointment  from  civil  life;  rank, 
conditions    533 

Constitution  of 5.33 

Detail  of  acting  judge  advocates; 
duties   5.33 

Detail  limited  to  acting  judge  ad- 
vocates     533-.5.34 

For  study  of  law  forbidden .5.34 

Examination  for  promotion 534 


Lieutenant  colonels,  found  phy- 
sically disqualified ;  further  ac- 
tion     534 

Majors,  found  physically  disqual- 
ified ;    further  action 534 

National  Guard 569-590 

Adjutant  General  to  make  reports 
to  Secretary  of  War 572 

Annual  estimates 590 

Armament,  equipment  and  uniform 
of  the  National  Guard 578 

Issue  of  arms,  equipment  to  ;  con- 
ditions     578 

New    types   of   equipment   to   be 

furnisheil  without  charge  to 578 

Purchase  of  supplies  from  War 

Department  allowe<I 578 

Return  of  prior  issues 578-579 

Army  stores  may  be  purchased  by 

states   for    cash .579 

Apiirojiriation  and  disbursement  of 

funds   572-573 

Assignment    of   guard-  to    brigades 

and  divisions  571 

Chiefs  of  staff  of  guard  divisions 573 

Composition  of 569 

Courts   martial    584 

Drills,  required  581 

Conditions  for   581 

Credit  of 581 

Discharge  of  enlisted  men 575 

Discii»line  of.  to  conform  to  army 

regulations    .581 

Encampment   and    maneuvers 581 

Allotment  of  expenses 581 

Command     to     be     retained     by 

army    officers    582 

Details  from  army  for  instruc- 
tion     582 

Enlistments  iu  National  Guard 574 

Enlistment  contract   574 

Land  forces  constituting  the  army 529 

Miiuufacture  of  arms ,592-593 

Procurement    of    gauges,    dies 

and  jigs  .592-593 

Medals  of   Honor — Investigation 

concerning 592 

Medical   Department 5.35-538 

Appointment  and  promotions,   re- 
strictions of   535 

Constitution  of 535 

Dent.-il    Corps  538 

Dental  surgeons  to  be  appointed 538 

Enlisted  men,  not  included  in 

strength  of  army 5.36-537 

Grades  established ;  original  enlist- 
ments and  promotions 537 


Index 


923 


Honorable  discharge  of  increase  made 

for  time  of  war 536 

Percentage  to  army  strength  al- 
lowed;    additional    for    time    of 

war    537 

Promotions  restricted  when  army 
rednced ;  re-enlistments  permit- 
ted   537 

Qualifications  for  original  appoint- 
ments:   itromotions 536 

Red  Cross,  details  for  duty 536 

quarters  for  allowed 538 

Militai-y   supplies 590-591 

Government     manufacture     of 

arms,  investigation  as  to 591-592 

Purchase  or   procurement   in   time 

of  war   591 

X  Militia    569 

Composition  of 569 

Exemptions  from  militia  duty 569 

Military  Academy,  existing  laws  con- 
tinued   549 

Military    instruction   at    schools   and 

colleges    569 

Federal  oath 575 

Fedex'al  service,  when  drafted  into_5S7 

Horses   for    580 

Instruction  camps  may  be  provided 

for  582 

Pay   for   attendance 582 

Inspection   required    581 

Details   581 

Report    581 

Land  forces,  applicable  to 589-590 

Leaves  of  absence  for  certain  gov- 
ernment employment   577 

Location  of  units 573-574 

Military  property  issiied  to  Na- 
tional Guard  to  remain  property 

of  United  States 579 

Disposal    of    unserviceable 579 

Payment  of  value  is  lost,  through 

carelessness 579 

Proceeds  of  sales  to  be  covered 

into  the  treasury 580 

Refusal    to   pay   for   lost   debars 
from    participation    in    appi'o- 

priation    580 

Report    on    survey    of    damaged 

property  579 

Militia  Board  abolished 577 

Militia  Bureau  to  be  separate  bu- 
reau   577 

National  Guard  Reserves 576 

Non-compliance  with  Federal  Act--5S9 

Number  of  National  Guard 570-571 

Officers,  regular,  ase  of  by 582 


Officers  at  service  school 583 

Officers  of,  discharge  of 576 

Officers,   qualifications  for 575 

Pay  of  National  Guard  officers 585 

Pay  of  enlisted  men 586-587 

Pensions   587-588 

Physical  examination 589 

Reserve  Battalions  for  recruit  ser- 
vice   576-577 

Regular   army   officers   detailed   to 

duty   with   National   Guard 583 

Regular  Army,  vacancies  due  to  de- 
tail to  National  Guard 588-589 

RifJe  practice,  encouragement  of 588 

Rules  and  regulations 590 

States     not     to     maintain     other 

troops     570 

Nitrate     supply,     investigation 

of    5a3-594 

Subject    to    laws    governing    regu- 
lar army  when  in  service 583 

Units,   organization  of  guard 570 

Officers'  Reserve  Corps 559-569 

Age  limit 559 

Annual    duty    with    troops   for   in- 
struction     561 

Appointments  by  the  President 559 

Duty  in  time  of  war 560-561 

Medical  Reserve  Corps  abolished- -560 

Organization  of 559 

Persons  certified  under  present  law 

eligible    550 

Officers — Promotion  of 550 

Philippine  Scouts,  retirement  of  offi- 
cers    554 

Porto     Rico     Regiment     of     In- 
fantry     548-549 

Quartermaster  Corps 535 

Constitution  of 535 

Construction  and  repair  work 535 

Officers,  status  of  pay  cferks 535 

Regular  Army   529 

CoTistitution  of 529 

Enlisted   strength,  minimum  to  be 

maintained 529 

Limit  of  unassignecl  recruits_529-530 
Maximum  not  to  be  exceeded  ex- 
cept in  time  of  war 529 

General  officers  of  line 530 

Number     of     line     generals     in- 
creased   531 

Promotion  in  time  of  peace 531 

Mobile  troops  oranization  of 530 

Brigades  and   divisions 530 

Changes  authorized 530 

Corps  and  armies  in  time  of  war  530 
Supply  trains 530 


924 


Important  Federal  Laws 


Regular  Army  Reserve 55(?-558 

Bounty  payable  on   re-enlisting — 55S 

Composition  of 556-557 

In  time  of  war 557 

Re-enlistment  in  time  of  war 558 

Use  of  departments  of  government 

in  paying  and  mobilizing 558 

Reserve  Officers  Training  Corps_562-5P)r» 

Detail   of  officers 563 

Orsanizefl  at  college  and  universi- 
ties  562 

Secretary  of  War  prescribed  course 

of  instruction 562-56;^ 

Secretary  of  War  authorized  to 
maintain  camps  for  practical  in- 
struction   564 

Signal   Corps 540-542 

Aviation   section,  details 540-541 

Aviators  from  civil  life 541 

Increased  rank  and  pay 542 

Constitution  of 540 

Enlisted    men;     strength    limited;^ 

grades  authorized 542 

Percentage  of  grades 542 

Officers WO 

X'nit  organizations  authorized 542 

Summary   of   the   Act 88!> 

Training  Camps — Secretary  of    War 

authorized  to  maintain 566 

Uniform — Protection  of 594-5f>5 

Vacancies — Filling    550 

Veterinarians 542-544 

Assistant  veterinarians 542 

Qualifications    of    542-54P, 

I^xamination  of 543 

Provisions  for  appointing 542 

War   strength — authorized    550 

NATURALIZATION. 

Anarchists  i>ro]iiliited   from 198 

Alien  enemies  not  to  be  natural- 

i5;ed    209-210 

Alien  seamen   210 

Aliens    who    believe    themselves 

citizens — exceptions 211-212 

Bureau  of  naturalization 194-105 

Courts  which  may  naturalize 195 

Cross-examination 199 

Citizenship  defined 212 

Of  children   l)orn   abroad 212 

Of  women  by  marriage 212 

Expatriation    213-214 

Declaration  to  be  filed  with  Bu- 
reau of  Naturalization 199-202 

Elections — Naturalization   before 

prohibited    198 

Expatriation    213-214 

Fees - 200-202 


Hearings    198-199 

Process  of 195-197 

Petition  for 196-198 

Petition,  notice  of  by  clerk 198 

Petitions  and  declarations  to  be 

bound    202 

Petition,   form  of 205-208 

Penalties 203-204,  723-726 

Rei>eal   204-205 

Residence,  proof  of 199 

Residence  required 209 

Suits  to  set  aside  citizenship 202-203 

Summary  of  the  Act 878 

Soldiers  and  sailors  alien 210-211 

Woman's  citizenship  follows  that 

of  her  husband 213-214 

NEAT  CATTLE  AND  HIDES— 

Importation   prohibited   -^  451 

NEUTRALITY— Offenses  against. 

.s'cr  CrimiiKil  Coih\  XrufniUtil. 

NITRATE    SUPPLY,    investiga- 
tion of 593-594 

OBSCENE   LITERATURE,   impor- 
tation prohibited 450 

OFFICERS— Offenses. 

iS'cc  Criiiihidl  Voile,  OfflvUil  Duties. 

OPIUM. 

See  Food  and   Drufjs. 

OPIUM  ACTS. 

Exjiorts — 

Penalties  for  violation 271 

Secretary     of     State     to    prescribe 

rules  and  regulations  for 271 

Unlawful    270-271 

Provisions    271 

Imiiorts — 

For    medicinal    jMiriioses 269 

Penaltv  for  violation  of  provi- 
sions     269-270 

Proof  of  time 270 

Secretary  of  Treasury  to  prescribe 
rules  and  regulations  for 269 

Opium — 

ImiTOrtation,  unlawful 269 

Penalty  for  carriers  in  violation  of 
])ro visions    270 

Rules  and  regulations 271 

Secretary  of  State  to  request  rules 
and  regulations  of  foreign  coun- 
tries __'- 271 

Summary  of  the  Act 881 

Transportation  through  United  States 
unlawful     270 

PARIS   GREEN, 

Sec  InseAiUcides. 


Index 


925 


PAROLE  OF  PRISONERS. 

AitiJlicatiuu  for 785 

Arrest  for  violation  of  parole 786 

Officers  who  may 786 

Board  of  Parole — 

Composition   of    785 

Rules  and  regulations  for  proced- 
ure, prescribed 785 

Limits   of   residence   fixed 785 

May  revoke  or  modify  parole 786 

Release  of  prisoners,  autliorized__7S5 

Gratuities  to  paroled  prisoners 787 

Hearing   on    violation   of    parole 786 

Parole  officers,  duties 786-787 

Prisoners  of  United  States — 

Parole  of  under  state  laws 787 

Cost  of  parole  of,  paid  by  United 

States   787 

Conditions  of  pai'ole  of 785 

Prisoners  permitted  to  return  liome-785 

Terms  and  conditions 785 

I'enalties  for   violation 787 

President's  power  to  pardon,  or  com- 
mute,   not   affected 787 

Sentence,  remainder  to  be  served,  if 
parole   is  revoked 786 

Summary    of   the   Act 895 

PEONAGE. 

!<(■(     Criminal    Code — Slave    Trade    and 
Peonage. 

PIRACY. 

Sec     rriininnl    Code — Piracy     and     Of- 
fenses on  the  hi'jh  seas. 
PLANT  QUARANTINE. 

Amendment  to  Sec.  8.  see  p.  81 875 

Certificates    of    Inspection;     nursery 

stock  must  be  accompanied 78.  81 

Definitions 83,  86 

Federal  Horticultural  Board — 

Composition    8.3 

Purpose    83 

Nursery  Stock — 

Certificate  of  inspection,  accompa- 
nied by 78 

Importation    for    experimental    or 

scientific  purposes 70 

Inspection   of   78 

Labeled  and  marked 78 

Plant  diseases,  free  from 78 

Rules  and    regulations   for   admis- 
sion    ''^ 

Penalties    ^2 

Quarantine,    notice   of   to   be   pub- 
lished   Sl-82 

Rules  and  regulations 82 

Secretary  of  Agriculture,  duties  of_78-82 
Summary  of  the  Act 875 


POLITICAL  CONTRIBUTIONS. 

See  CtiniiKiign   Coiiirihiition,'^. 

POSTAL  SAVINGS  BANKS. 

Accounts,  opening  of 145 

Apj>ropriation  for 150 

Adjudication  of  Courts — 

Conclusive  as  to  funds 151 

Board  of  Trustees 144-145 

Bonds,  Postal   Savings 148-140 

Criminal  statutes  applicable  to__150-151 

Depository    offices   145-146 

Deposit  cards  and  stamps 146 

Deposits,   size  of 146 

Withdrawal 147 

Depository   Banks   147-148 

Funds  of  kept  separate 150 

Interest  on   deposits 146-147 

Investment  of  funds 147-148 

Pass  books   140 

Pledge    of    payment    of    deposits    by 

United  States 151 

Postmaster-General    to   designate   of- 
fices     151-152 

Postmaster-General,      executive 

head 151-152 

Summai-y  of  the  Act 887 

United    States  investment   in 149 

POSTAL    SERVICE— Offenses   against. 

Sec  Criminal  Code — Postal  Service. 

PRIZE  FIGHT  FILMS. 

Penalty  for  violation  of  provisions — 653 
Receiving   from    mail.    etc..   with   in- 
tent to  sell 653 

Sending  by  mail,  unlawful 653 

Summary    of   the   Act 803 

PUBLIC  JUSTICE— Offenses  against. 

See  Criminal  Code — Public  Justice. 

PURE  SEEDS. 

Adulterated   seeds 84 

Bond.   se(^ds  delivered   on 83 

Imjiortation  of  adulterated  seeds,  pro- 
hibited     83 

Rules  and   regulations  to  be   made 
.iointly     83 

Secretary  of  Treasury,  rules  and  reg- 
ulations made  by 83 

Secretary   of  Agriculture,   rules  and 
regulations  made  by 83 

Seeds — • 

Delivered  on  bond 83 

Recleaned    84 

Released 84 

Adulterated 84 

Summaiy   of  the   Act 875 

RAILROADS. 

See  Rebates  and  Interstate  Commerce. 


926 


Important  Federal  Laws 


REBATES. 

Immunity 507-508 

Prohibited    505-507 

Enforcement  through  court 507-508 

Summary  of  the  Act 888 

REVENUE   AND   TAXATION. 

See  Income  Tax — Personal,  Income  Tax 
Ccrporations,  Tariff,  Mxmitions  Manu- 
facturers' Tax.  Inheritanee  Tax,  Ex- 
cess Profits  Tax.  Corporation  Excise 
Tax. 

SAFETY  APPLIANCES. 

Application  of  act 284 

Automatic  couplers 282 

Brakes — • 

Power    282-284 

Hand     285 

Carriers,   may  refuse  cars 282 

Drawbars,  standard  height 2S2'-2.S3 

Driving  wheels 282 

Grab  irons  and  handholds 282.285 

Interstate  Commerce  Commission. 

duties  of 2.83.285.280,287 

Penalties 28.3,  280-287 

Punning  boards 285 

Sill  steps 285 

Summary  of  the  Act 882 

SHERMAN  ACT. 
Attorney    (Jeneral    to    institute    pro- 
ceedings    224 

Circuit  Courts,  .inrisdictiou 224 

Damages — injuries     to     business     or 

proi^erty 225 

Right  to  sue  for 225 

Recoveiy    225 

Definitions 225 

District  Attorney,  duties 224 

Hearings    224 

Monopoly  prohibited 224 

Notice  of  petition 224 

Proceedings  in  equity 224 

May  be  by  petition 224 

Proi>erty— 

Condemnation    of    22o 

Seizure  of 225 

Restraint  of  trade— illegal 223-224 

Restraining  order __224 

Summary  of  the  Act 880 

Trade  restraint — in  states,  illegal — 223 

In  territories,  illegal 224 

Penalties 22.3-224 

SHIPPING 606-620 

American  vessels  not  to  be  sold  to 
foreigners  while  the  covmtry  is 
at  war  without  first  being  offered 
to  the  Board 609 


Board— The  Shipping 606-620 

Creation  of 007 

Employees — Civil   service 607 

Powers   of    to    compel    testimony, 
etc.    618 

Procedure  of 607 

Qualification  of  members 607 

Unfair     treatment,     complaint     to 

board    617 

Violations,    investigation    of    com- 
plaints by 616-617 

Board,  investigation  by 611 

Classifying   and   rating 611 

Cost  of  shipbuilding,  to  investigate.611 

Loans  on  vessels,  status  of 611 

Marine  insurance 611 

Navigation   laws   611 

Carriers,   by   water 612-613 

Discrimination  prohibited 614 

Fighting  ships,  prohibited  use 612 

Rebates  by,   prohibited 613 

Retaliatory   measures  prohibited __613 

Courts,  .inrisdictiou  of 018-619 

Definitions 606 

Foreign  registry,  transfer  of  ships  to. 
forbidden   609 

Government  vessels,  transfer  to  ship- 
ping  board    608 

Interstate     Conunerce     Commission, 
jurisdiction   of 619 

Merchant  Vessels — Board  authorized 

to   build   607 

American  ship  yards,  jireference  to.607 

Military    or    naval    use.    powers    of 
President   610 

Panama  Bonds,  issued  for  exiienses__611 

Rates,  board  to  authorize  increase__616 

Discrimination  prohibited 614 

Filed  with  board 615 

Preferences  prohibited 614 

Through   rates  615 

Reasonable  rates  required 615 

Regulation  of 613-616 

Shipping  Corporation — 

Cliarter 610 

Dissolution    of   611 

Formed  by  board 610 

Stock.    United   States  to   own   ma- 
jority     610 

Stock  of,  redemption 611 

Shipping  laws  applicable — 

Teases    restricted    609 

Time  of  war,  sale  restricted 609 

Unserviceable  vessels  to  be  disposed 
of 609 

Vessels  may  be  chartered  to  citizens_60S 


Index 


927 


SLAVE  TRADE. 

Sec  CriniiiKil  Offenses,  Slave  Trade  aiid 
Pconafie. 
SPIRIT    METERS   357-358 

TARIFF. 

See  Unfair  Competition,  Tariff  Comnm- 
sinn.   Dycstuffs.    Tariff  Duties.    Tariff 
Administration.    Tariff,    General    Pro- 
visions. 
Summary  of  the  Act 886 

TARIFF  ADMINISTRATION__433-460 

Appraisal   uf  goods 4on-441 

Assessment  of  duty 441-443 

Bribery   of   officials — penalty 44<5-447 

Collector  not  liable  for  rulings.  etC-_446 
Cost  of   jiroduction   of  imported 

articles  to  be  determined 4.38-4.39 

Deterioration   and   decay,   allow- 
ance for   444-445 

Importer   to   ])roduce  books,   pa- 
pers,  etc..   upon  demand 444 

Invoices — requirements    433-4.38 

Penalties  for  false 434-4.38 

Market  value — determination  of 443 

Repayment  of  excess  charges 44.5-446 

Summary  of  the  Act 885 

TARIFF  COMMISSION 460-464 

Appropriatiim 464 

Co-operation  with  other  departments_463 

Members  of 460-461 

Trade  se<:'rets 464 

Divulging  unlawful 464 

Penalties  for 464 

Summary  of  the  Act 887 

TARIFF  DUTIES 365-460 

Agricultural   products 388-392 

Chemicals — Oils  and  paints 365-372 

Cotton   manufactures   .395-398 

Dutiable  list 365-372 

Dyestuffs 4.32-433 

Earths,    earthenware   and   glass- 
ware   .372-377 

Free  list 414-4.31 

Flax,  hemp  and  jute 398-400 

Glassware     .372-.377 

Metals  and   manufactures  of 377-386 

Paints,  oils  and  chemicals 36.5-372 

Papers  and  books 403-406 

Schedule  (n)   365-372 

Schedule  (b)   .372-377 

Schedule  (c)    377-386 

Schedule  (d)   .3.86-.387 

Schedule   (e)    .387-388 

Schedule   (f)    38,8-392 

Schedule    (g)    392-395 


Schedule    (i)    39.5-398 

Schedule   (.i)    .398-400 

Schedule   (k) 4<»-402 

Schedule    (1)    4U2-403 

Schedule    (m)    40.3-406 

Schedule    (n)    406-414 

Sugar 387-388 

Spirits,  wines  and  vinegars .392-395 

Silk  and  silk  goods 402-403 

Sundries   406-414 

Wood  and  manufactures  of 386-387 

"Wool  and  manufactures  of 400-402 

Summary  of  the  Act 886 

TARIFF— General  Provisions 433-460 

Alcohol,  denatured,  farmers  may 

make  free  of  tax 4.55-456 

Country  of  oi-igin   to   l»e  marked 

on  articles  imported 449 

Discriminating  duty  on  goods  im- 

I>orted  in  foreign  A^essels 4.51 

Discount  of  5  iier  cent  on  goods 

brought  in  American  ships 4.52-453 

Foreign     vessels     of     war — Pur- 

chasifig  supplies 453 

Importations  to  be  in  vessels  of 
United  States  or  of  country  of 
origin  except  in  case  of  treaty 
agreements ^ 451-452 

Imported  articles  to  be  manufac- 
tured  for  export 4.53 

Machinery   to   be  repaired  free  of 
duty 452 

Models    of    wearing    apparel    to 

be  admitted  free .' 452 

Materials   for    repair   of    vessels 

free   452 

IMerchandise  fro  m  abandoned 
ship  after  two  years  may  be 
lirought  in  free 453 

President  to  ascertain  the  amount 
of  articles  imported  and  when 
less  than  five  per  cent  of  con- 
sumption re]>ort  to  Congress 458 

Purchasing  supplies  free  of  duty 

by  foreign  vessels  of  war 453 

Reimported  articles  to  pay  duty 

equal  to  internal  revenue  tax 4.58 

Smelting  and  refining  manufac- 
tures in  bonded  warehouses 455 

TAXATION  AND  REVENUE. 

Sec  Income  Tax — personal.  Income  Tax 
— corporations.  Tariff.  Munitions  Man- 
ufacturers' Tax.  Inheritance  Tax.  Ex- 
cess Profits  Tax,  Corporation  Excise 
Tax. 


928 


Important  Federal  Laws 


TERRITORIES— Offenses  in. 

tSec  VriDiindl  Code — Territories. 

TESTIMONY— Compulsory 510-511 

TOBACCO  TAXES 363-364 

TRADE   COMMISSION   215-223 

Anti-Trust  Acts  not  affected 223 

Appeals  to  court 218-219 

Bureau    of   corporations    transferred 

to  216 

Created,  appointment,  term  of  office_215 

Definitions    216-217 

Departments  required  to  furnish  in- 
formation   221 

Investigation  by 217 

Penalties ' 222-223 

Powers  of  commission 219-220 

Gather  information 219 

Investigate  conduct  of  business 219 

Ee<iuire  reix)rts  from  corpora- 
tions  219-220 

Investigate    compliance    with    the 

Anti-Trust  Acts 220 

Make  recommendations  as  to  ille- 
gal practices 220 

Mal<e  public  information  gathered_220 
Classify     corporations    and     make 

I'ules  and  regulations 220 

Investigate  trade  conditions  in  for- 
eign  countries    220 

Act  as  masters  in   chancerj'   upon 

order  of  court 220-221 

Procedure  of  commission 218 

Salaries  and   assistants 215-216 

Summary   of   the   Act 879 

Unfair  methods  declarefl  illegal 217 

TRADE  MARK— Registration  ..623-633 

Appeals  to  court 627 

Api>eals  to  Commission 627 

Application  filed  in  foreign  coun- 
try     624-625 

Assignable 627 

Certificates  in  fox-ce  twenty  years 628 

Certificates,  records,  etc 627-628 

Classes  of— 

Foreign    owners    having    plant    in 

this  country  given  equal  rights — 633 
Merchandise  to  be   established  by 

commissioner  of  patents 633 

Commissioner  of  Patents — 

Examination  by 626 

Rules  and   regulations  formulated 

by    631 

Courts — Jurisdiction  of 629 

Damages — Suits  in  equity 631 

Declaration  for  in  writing 623-624 


Definitions  of 632-633 

Ownership,  evidence  of 629 

Fees  charged 628-629 

Fraudulent    631 

Imported  articles  not  to  imitate 

domestic  product   631-632 

Iniunctions  for  relief 630 

Orders  of  court 630 

Injured  party,  application 628 

Interference    626 

Laws  applicable 629 

Non-residents    designate    representa- 
tive   624 

Notice  of 632 

Piefusal  of  a  reason  for 625-626 

Registration,  method  of 623 

Rules  and  regulations 631 

Summary  of  the  Act 879 

Supreme  Court,  writ  of  certiorari 630 

T'nlawful  luisiness  no  relief 631 

UNFAIR  COMPETITION 464-468 

Importing  and  selling  articles  be- 
low market  price  unlawful  if 
done  to  restrain  trade  in  the 

T'nitod  States 464-465 

Double  duty  added  to  articles  im- 
ported, if  purchaser  restricted 
not    to   buy    those    of   another 

party 465 

Prohibition  of  Importation — 
From  countries  refusing  admis- 
sion of  similar  American  ar- 
ticles     465-406 

Restriction  in  time  of  war  of 
imports  from  country  deny- 
ing entry  of  similar  Ameri- 
can articles 466-467 

Proclamation  to  be  i.ssued-_466-467 

Punishment  for  violating 467 

Vessels — 

Fi'om  Ijelligerent  countries  in  which 
Americans  are  denied  equal  trade 
facilities  may  be  refused  clear- 
ances   467 

Clearances  may  be  refused  vessels 
denying  in  time  of  war  in  which 
the  United  States  is  not  engaged, 
equal  facilities  to  American  citi- 
zens and   traffic 467 

Punishment  for  departure  of  de- 
tained vessels  without  clear- 
ances   467 

Summary  of  the  Act 887 

Suspension  of  facilities  to  vessels 
of  belligerents  not  allowed  to 
them  bv  Americans 467 


Index 


929 


UNITED    STATES    COURTS— FED- 
ERAL JUDICIAL   CODE. 
Act  Governing  Construction  of--863-864 
Supreme  Court. 
Orgauization— 

Juries,  how  secured S59 

Quorum,  lack  of 845 

Quorum,  business  by  less  than — 845 

Terms  of  court 845 

Officers — ■ 

Qualifications — may  not  practice 

law    858 

Judges — 

Expenses    854 

Fees,  prescribed  by 841 

May  grant  writs  of  ue  exeat — 854 

May  grant  otber  writs 855 

May  not  practice  law 854 

Oath  of  office 853 

Precedence  of 840 

Records,  control   by 841 

Salaries   840 

Vacancy  in  office  of  Chief  Jus- 
tice  " 840 

Attorneys — - 

Women  may  be 8.53 

Clerk 840 

Bond 840 

Deputies 841 

Marshal   841 

Reporter 841 

Reports,  distribution  by 842 

Reports,  price 843 

Salary 841 

Attorney  General — 

Duties  as  to  appeals  in  Inter- 
state Commerce  cases 836 

Duties  as  to  purchase  of  Fed- 
eral Reporter 844 

Jurisdiction — • 

Original    845.  S.53 

Power  to  issue  Writs  of  Prohi- 
bition     855 

Power  to  issue  Writs  in  Injunc- 
tion cases   855 

Power  in  contempt  cases 857 

May  grant  new  trials 8.57 

Security  for  peace 857 

Appellate — ■ 

Appeals  from  Alaska 850 

Appeals  from   District  of  Co- 
lumbia   851 

Appeals  from  Hawaii  and  Por- 
to Rico 849 

;  Appeals  from  territories 849 

Appeals  after  Territory  has  be- 
come state 851 


From  Circuit  Court  of  Appeals.847 

From  Court  of  Claims 847 

From  District   Courts 846 

From  District  Courts  in  Inter- 
state Commerce  cases 835 

Appeals  in  bankruptcy 

cases 847,  852 

Appeals  in  contempt  cases _8.57 

Appeals  in  criminal  cases 852 

Appeals  in  equity  cases 856 

Appeals  in  Philippine 

cases  848,  849,  850 

Petitions  for  instructions  from 

Circuit  Court  of  Appeals 847 

Appeals  in   Federal  chartered 

railroads    848 

Certiorari  from  District  of  Co- 
lumbia     851 

Mistake  in  form  of  appeal,  not 

vital 848 

Writs    of    error     from     State 

courts  846 

Procedure — 

Costs  of  printing  record  on  ap- 
peal    858 

Parties  may  appear  personally  or 

by  attorney 858 

Trials  in  Supreme  Court 845 

Circuit  Courts  of  Appeals. 

Organization    812 

Terms  of  court 814 

Places  of  holding  court 815 

Officers — ■ 

Qualifications — may  not  practice 

law    8.58 

Judges    812 

Allotment  of 813 

Expenses   854 

May  not  practice  law 854 

Power  over  cases  appealed 816 

Power  to  prescribe  writs 813 

Terms  of 813 

Supreme   Court   Justices    may 

l)e 813 

Clerks 814 

Deputies 814 

Marshals    814 

Jurisdiction. 
Original- 
May  grant  writs 855 

May  grant  new  trials 857 

Security  for  peace 857 

Appellate — 

In  general 815,855 

In  apiieals  from  Alaska 817 

In  appeals  from  Arizona   and 
New  Mexico  817 


930 


Important  Federal  Laws 


In  iippenls  from  China  court 816 

In  bankruptcy  cases 816 

In     injunction     and     receiver 

cases  816 

Form    of    appeal,    mistake   in, 

not    vital    818 

Procedure — 

Kules  of   pi-actice 823 

Parties  may  appear  personally 

or  by  attorney 858 

Circuit  Courts. 

Abolished 863 

Transfer     of     cases     to     District 

courts   863 

Court  of  Customs  Appeals. 
Organization — 

Sessions,  v^-liere  held 829.  830 

Powers     of     court     to     prescribe 

rules   831 

Parties  may  appear  personally  or 

by  attorney 858 

Officers— 

Qualifications — may  not  practice 

law    858 

Judges    829 

Expenses   854: 

May  not  practice  law 854 

Oath  of  office 853 

Clerk 8.30 

Assistants    830 

Marshal    829 

Jurisdiction. 
Original — 

In  contemjit  cases 8.57 

May  grant  new  trials 857 

Security  for  peace 857 

Appellate — 

Exclusive   831,   832 

From  Board  of  General  Ap- 
praisers    833 

Pending  cases   832 

Commerce  Court. 

Abolished,   and   junsdictlon   given    to 

District  Courts 833-837 

Court  of  Claims. 
Organization. 

Members  of  Congress  forbidden 

to  practice  in  Court  of  Claims_819 
Report  of  Court  of  Claims  to  Con- 
gress    -828 

Seal 818 

Sessions   818 

Officers- 
Qualifications — may  not  practice 

law    - 858 

Judges 817 

Expenses   854 


May  not  practice  law 854 

Oath  of  office 853 

Clerks- 
Appointment   818 

Bond   818 

Disbursement     of     Contingent 

Fund  by 818 

Report  to  Congress  by 819 

Salaries    818 

Commissioners — 

Fees  of 825 

To   take  testimony 824 

Attorney  General — 

Report   to    Congress,    of   .iudg- 

ments    828 

Jurisdiction — 

Generally 819 

Claims  by  aliens 822 

Claims    against    disbursing    offi- 
cers   820 

Claims  referred  liy  departments_820 

Claims  referred  to  Congress 821 

Claims  by  persons  guilty  of  dis- 
loyalty     828 

Does      not      extend      to      treaty 
claims 822 

May  grant  writs 855 

New  trials 857 

Security  for  peace 857 

Procedure — 

Parties  may  appear  personally  or 
by  attorney 858 

Appeals — • 

In  general   827 

In  Indian  cases 827 

Limitation  of  actions,  six  years_822 

Petition    1 823 

For    unadjusted    accounts 827 

Counterclaims    820 

Answer — 

Another  action  pending 822 

Witnesses — 

Cross-examination  of 825 

Qualifications  of 828 

Subpoenas    for    825 

Evidence — 

Dismissal  where  allegiance  dis- 

proven 823,  828 

Examination  of  claimants 824 

False  claims 820 

Fraudulent  claims 825 

Information  from  departments.824 

I^oyalty.  proof  of 823,  828 

Not  heard,  when 824 

Where  taken 825 

New  Trial — 

When  granted 826,  857 


Index 


931 


Judgment — 

As  to  disbursing  officers 820 

Constitutes  bar   826 

■   Costs 822,  826 

Interest 826 

Payment  of 821,  826 

District  Courts. 
Organization- 
Absence    of   judge,    adjournment 

for 790 

Adjournments  in  criminal  cases_790 
Cliange  of  time  of  holding  court, 

effect 789 

Extending  term  to  finish  trial__789 
Courts   always   open    for    equity 

and   admiralty   cases 789 

Designation   of  another   judge__790 
Designation   of  judge   to   relieve 

business   790 

Designation  of  temporai-y  judge-791 

Designation,  change  of 791 

Designation  by  senior  judge 791 

Designation  of  Circuit  Judge  to 

hold   District   Court 791 

Division  of  business  by  judges__793 

Juries,  how  secured 859 

Transfer  of  records  on  admission 

of  Territory  to   Statehood 810 

Records,   where  kept 789 

Officers- 
Qualifications — may  not  practice 

law    858 

Judges- 
Authority  of 792,855 

Disqualified,  when 792 

Because  of  interest 792 

Because  of  prejudice 792 

Vacancies  in  office  of 793 

Expenses    854 

May  grant  writs  of  ne  exeat— 854 

;May  not  practice  law 854 

Clerks 788 

Cannot  be  receiver 811 

Deputies 788 

Disqualifications    ^ 811 

Marshals    789 

Disqualification    811 

Commissioners — 

For  administering  oaths  in  ap- 
praisement cases 810 

May  enforce  orders  of  foreign 

courts  857 

Jurisdiction. 
Original — 

For  Yellowstone  Park 797 

For   Indian   Reservations 797 


For  Interstate  Commerce 

cases   834 

Generally 793-795,  833,  853 

In  contempt  cases 857 

In  equity  cases 856,858 

In  injunction   cases   855 

In  polygamy  cases 862 

In  Federal   chartered   railroad 

cases 848 

May  grant  writs  of  ne  exeat__854 

May  grant  writs 854,  855 

May  grant  new  trials 857 

May  enforce  orders  of  foreign 

court   857 

Juries,  how  secured 859 

Pleadings  in  equity  cases_858,  859 

Security  for  peace 857 

Appellate^ 

From    Commissioners,    in   Chi- 

pese  exclusion  cases 797 

From    Interstate    Commerce 

Commission    833-837 

Removals  of  Cases  from  State 
Courts. 
Cases  Removable — 

In  general   797-799 

Under   State  grants 799 

Civil    rights    suits 800 

Actions  against  liens 802 

Revenue  Law  suits 801 

Procedure  for  Removal — 

Petition  for 799 

Amendments   of  pleadings 859 

Effect  of  removal  on  bonds 

and  orders 803 

Failure    to     furnish     record 

for 802 

Ti'ansfer  of  criminal  cases, 

custody   of   prisoners 801 

Proceedings  after  removal 803 

Penalty   for  clerk's  failure 

to   furnish   record .803 

Remanding  cases 803 

Venue — 

Acts  continuing  from  one  dis- 
trict into  another 804 

Petitions  for  penalties  and  for- 
feitures   804 

Actions  against  receivers,  cap- 
ital cases 804 

Cases  of  insurrectionary  prop- 
erty    805 

Cases  of  seizures  on  high  seas_80o 
Cases     against     Controller     of 

Currency    806 

Civil  suits 806 


932 


Important  Federal  Laws 


Where    district    contains   divi- 
sions    SOC 

Of  suits  of  local  nature 807 

In   local    suits,   where  defend- 
ants are  absent 808 

Where  several  defendants,   re- 
siding in  different  districts_S06 
Forfeitures  in  maritime  cases-80o 

Internal  revenue  cases 805 

Patent  cases 805 

Offenses  on  high  seas 804 

In    receiverships,    where   prop- 
erty is  in  different  districts_807 
Where    propert.v     in    different 

districts    807 

Where   new   districts  are    cre- 
ated    809 

Where  Territorv  is  admitted  as 

State 811 

Change  by  agreement  to  differ- 
ent division  of  district 809 

Judgments — 

Enforcement  of 810 

Not  affected  bv  change  of  dis- 
trict   810 

Summary  of  the  Act 894 

VOCATIONAL  EDUCATION  ..96-106 

Agricultural  Subjects — 

Minimum  allotments  for 97 

Ratio  in  proportion  to  rural  pop- 
ulation   00-97 

Requirements  for  use  of  funds  for.102' 

Allotment  not  properly  expended  to 
be  withheld 10'"> 

Appeal   to   Congress 105 

Appropriation — 

For  co-operating  with  states 96 

Administration    expenses   100 

Benefits — 

Acceptance  of.  by  States.  required_99 
In  part  allowed 99 

Certificate  to  Secretary  of  the  Treas- 
ury;    quarterly  payments 104 

Commissioner  of  Education  to  make 
recommendations 100 

Conditions — 

Equal    expenditures   by    states 

required 101-102 

Payment  of  salaries  restricted 

to   qualified    instructors 1O1-102 

Supplementary  instructions  at 

state  expense 101-102 

Federal  Board — 

Appointive  members  of 100 

Composition  of 99-100 

Organization   of   99-100 


Pay  of  members 100 

Terms   of   office 100 

Powers  and  duties  of 100 

Co-operation     with     Department 

of  Agriculture 100 

Co-operation  with  Department  of 

Labor 100 

Co-operation  with  Department  of 

Commerce 100 

Co-operation  with  Bureau  of  Ed- 
ucation     100-104 

Approve  State  plans 101-104 

Ascertain    if    fund    is    uswl    by 

State 104 

Make  annual  report 104 

Funds,   use  of.   for  buildings,   lands, 

religions    schools,    forbidden 105 

Losses  of  moneys  to  be  replaced  by 

State   105 

Portion  of  fund  not  used  to  be  de- 
ducted from  subsequent  allot- 
ment     104-105 

Refiuirements   for   use   by    States   of 
amounts  for — 

Agricultural    education    102 

Trade  and  industrial  teachers_102-10.? 

Home  Economics 102-103 

Part     time     schools    and     evening 

classes 103 

Modifications  of.  for  small  towns 103 

Training  teachers,  experience   and 

qualifications 1O3-104 

State  Board- 
Annual  report  101 

Plans  to  be  prepared  by 101 

Studies  specified   101 

Created  by  Legislature dO 

Temporary,     by     Governor,     until 

meeting  of  Legislature 99 

State  treasurers  to  receive  and  dis- 
burse alkitments  for 104 

Summary  of  the  Act 87G 

Trade.  Home  Economics  and  Indus- 
trial sul).iects 97-98 

Mininnim    allotments   for 98 

Home  economics,  projwrtion  for 102 

liatio  in  proportion  to  urban  pop- 
ulation     97 

Requirements  for  use  of  funds 

for    102-103 

Training    of    teachers    of    voca- 
tional subjects  in  co-o]ieration 

with   states 98 

Minimum   allotments    98 

Ratio   to    total    population 98 

Requirements  for  use  of  funds_104-105 


Index 


933 


WAR  RISK  INSURANCE. 

Appr(ii»rintii>ii 021 

Advisory  P.o.ird,  created 621 

Comiiensatiou 621 

Purpose   of   621 

Bureau  of  War  Risk  Insurance — 

Authorized  to  fix  i)reniiuni  rates 621 

Created    620 

Compensation   620 

Director   620 

Duties  of G21 

Provisions  for  insurance  of  Amer- 
ican  vessels,   etc 620 

Subject   to   direction   of   Secretary 
of  Agriculture   620 

Claims — 

Adjustment   of 621 

Paid  for  losses 621 

Moneys,  from  premiums  and  salvage, 
covered   into   treasury 622 

President  authorized  to  suspend  op- 
eration of  act 622 

Report  of  expenditures  and  receipts_622 

Rules  and  regulations 621 

Secretary  of  Treasury — 

Authorized    to    estal)lish    Advisory 
Board    621 

Summary  of  the  Act 892 

WAREHOUSES    70-78 

Appropriation   78 

Definitions    70-71 

Agricultural  products,  delivered  upon 

demand 76 

In  custody  of  other  persons 72 

License  to  classify,  stored  or  to  be 

stored    73 

Provisions  for  storing 74 

Receipts  to  be  issued  for  storage 73 

Bond,  additional,  may  be  required 72 

Form  and  amount 72 

Suit  to  recover  damages  on 72 

Classitiers,  licenses  to 73 

Insurance,  fire,  requirements  of 72 

Licenses  77 

Classifiers,  susjiended  or  revoked 73 

Fees  for 73 

Suspended  or  revoked 72.  77 

Suspended  without  hearing 73 

Term  of,  renewed 71 

Warehouse,  issued  on  application — 71 

Penalties 78 

Rules  and  regulations 77 


Receipts,  form  of 7-1-75 

Issued  only  for  agricultural  prod- 
ucts   74 

Issued   by  warehousemen 74 

Surrender  of 76 

Satisfactoo'   security   for 76 

Provision  for  lost 76 

Uncancelled   75-76 

Secretary  of  Agriculture — 
Agricultural   products,  to  make  ex- 
amination of 70 

Assistants    73 

Bond  of  warehousemen  filed  with 72 

Duties  of   71-77 

Fees    73 

Licenses   issued    71 

State  laws,  operation  of,  not  affected_77 

Storage,  separate  for  identification 74 

Summary   of   the   Act 874 

Surety,  snli.iect  to  service  of  process 72 

Warehousemen,     cancellation     of     re- 
ceipts by 76 

Records,  complete  and  correct,  kept 

by    76 

Discrimination   forbidden   73 

Execution  and  filing  of  bond 72 

Lien,  olfer  to  satisfy 76 

WEBB-KENYON  ACT. 

Nrc  Liquor  fihipinoits. 

WHITE  SLAVE  TRAFFIC 653-657 

Court  .iurisdiction 655 

Definitions    _' 65.3-654 

Females  under  18.  transportation 

for  immoral  purposes 654-655 

Foreign  females • 655 

Inducing  females  to  travel  interstate 

for  immoral    purposes 654 

Interstate  agreement 655-656 

Summary  of  the  Act 893 

Transportation  of  females  for  im- 
moral puii^oses 654 

WINES. 

Definition  of  natural 351-352 

Penalty  for  evading  tax .357 

Sparkling,  tax  on 356-357 

Sweet    354 

Preparation  of 354 

Manufacture  regulated 354-.355 

Withdrawal    fr<uu   bond 355-356 

WORKMEN'S   COMPENSATION. 

tS'ec  (Jonii)cnsation  for  Injuries — Federal 
Employees. 


SUPPLEMENT,  1917 


TO 


LAPP'S 


Important  Federal  Laws 


EMBRACING  THE 
IMPORTANT  ACTS  OF  THE 

SPECIAL  SESSION  OF  CONGRESS 

CONVENED  APRIL  2,  1917. 
ADJOURNED  OCT.  6.  1917. 


B.  F.  BOWEN  &  COMPANY 
Indianapolis,  Ind.,  U.  S.  A. 


Copyright,  1917, 
F.  BowEN  &  Company. 


IMPORTANT  FEDERAL  LAWS  OF  1917. 


THE  WAR  TAX  ACT. 

Act  of  October  3,  1917. 
An  Act  to  provide  revenue  to  defray  war  expenses,  and  for  other  purposes. 

Title  I. — War  Income  Tax.^ 

Section  i.  That  in  addition  to  the  normal  tax  imposed  by  sub- 
division (a)  of  section  one  of  the  Act  entitled  "An  Act  to  increase 
the  revenue,  and  for  other  purposes,"  approved  September  eighth,  nine- 
teen hundred  and  sixteen,  there  shall  be  levied,  assessed,  collected,  and 
paid  a  like  normal  tax  of  two  per  centum  upon  the  income  of  every  in- 
dividual, a  citizen  or  resident  of  the  United  States,  received  in  the  calendar 
year  nineteen  hundred  and  seventeen  and  every  calendar  year  there- 
after. 

Sec.  2.  That  in  addition  to  the  additional  tax  imposed  by  subdi- 
vision (b)  of  section  one  of  such  Act  of  September  eighth,  nineteen 
hundred  and  sixteen,  there  shall  be  levied,  assessed,  collected,  and  paid  a 
like  additional  tax  upon  the  income  of  every  individual  received  in  the 
calendar  year  nineteen  hundred  and  seventeen  and  every  calendar  year 
thereafter,  as  follows : 

One  per  centum  per  annum  upon  the  amount  by  which  the  total  net 
income  exceeds  $5,000  and  does  not  exceed  $7,500; 

Two  per  centum  per  annum  upon  the  amount  by  which  the  total 
net  income  exceeds  $7,500  and  does  not  exceed  $10,000; 

Three  per  centum  per  annum  upon  the  amount  by  which  the  total 
net  income  exceeds  $10,000  and  does  not  exceed  $12,500; 

Four  per  centum  per  annum  upon  the  amount  by  which  the  total 
net  income  exceeds  $12,500  and  does  not  exceed  $15,000; 

Five  per  centum  per  annum  upon  the  amount  by  which  the  total 
net  income  exceeds  $15,000  and  does  not  exceed  $20,000; 

Seven  per  centum  per  annum  upon  the  amount  by  which  the  total 
net  income  exceeds  $20,000  and  does  not  exceed  $40,000 ; 

Ten  per  centum  per  annum  upon  the  amount  by  which  the  total  net 
income  exceeds  $40,000  and  does  not  exceed  $60,000; 

Fourteen  per  centum  per  annum  upon  the  amount  by  which  the  total 
net  income  exceeds  $60,000  and  does  not  exceed  $80,000 ; 

Eighteen  per  centum  per  annum  upon  the  amount  by  which  the  total 
net  income  exceeds  $80,000  and  does  not  exceed  $100,000; 

Twenty-two  per  centum  per  annum  upon  the  amount  by  which  the 
total  net  income  exceeds  $100,000  and  does  not  exceed  $150,000; 

iSee   Lapp's   Important   Federal   Laws,   pp.    317-328,    for   original    Income 
Tax  Law  of  191G. 


4  Supplement  to  Important  Federal  Laws 

Twenty-five  per  centum  per  annum  upon  the  amount  by  which  the 
total  net  income  exceeds  $150,000  and  does  not  exceed  $200,000; 

Thirty  per  centum  per  annum  upon  the  amount  by  which  the  total 
net  income  exceeds  $200,000  and  does  not  exceed  $250,000; 

Thirty-four  per  centum  per  annum  upon  the  amount  by  which  the 
total  net  income  exceeds  $250,000  and  does  not  exceed  $300,000 ; 

Thirty-seven  per  centum  per  annum  upon  the  amount  by  which  the 
total  net  income  exceeds  $300,000  and  does  not  exceed  $500,000 ; 

Forty  per  centum  per  annum  upon  the  amount  by  which  the  total 
net  income  exceeds  $500,000  and  does  not  exceed  $750,000; 

Forty-five  per  centum  per  annum  upon  the  amount  by  which  the 
total  net  income  exceeds  $750,000  and  does  not  exceed  $1,000,000; 

Fifty  per  centum  per  annum  upon  the  amount  by  which  the  total 
net  income  exceeds  $1,000,000. 

Sec.  3.  That  the  taxes  imposed  by  sections  one  and  two  of.  this 
Act  shall  be  computed,  levied,  assessed,  collected,  and  paid  upon  the 
same  basis  and  in  the  same  manner  as  the  similar  taxes  imposed  by  sec- 
tion one  of  such  act  of  September  eighth,  nineteen  hundred  and  sixteen, 
except  that  in  the  case  of  the  tax  imposed  by  section  one  of  this 
Act  (a)  the  exemptions  of  $3,000  and  $4,000  provided  in  section  seven 
of  such  Act  of  September  eighth,  nineteen  hundred  and  sixteen,  as 
amended  by  this  Act,  shall  be,  respectively,  $1,000  and  $2,000,  and  (b) 
the  returns  required  under  subdivisions  (b)  and  (c)  of  section  eight  of 
such  Act,  as  amended  by  this  Act,  shall  be  required  in  the  case  of  net 
incomes  of  $1,000  or  over,  in  the  case  of  unmarried  persons,  and  $2,000 
or  over  in  the  case  of  married  persons,  instead  of  $3,000  or  over,  as 
therein  provided,  and  (c)  the  provisions  of  subdivision  (c)  of  section 
nine  of  such  Act,  as  amended  by  this  Act,  recjuiring  the  normal  tax 
of  individuals  on  income  derived  from  interest  to  be  deducted  and  with- 
held at  the  source  of  the  income  shall  not  apply  to  the  new  two  per  centum 
normal  tax  prescribed  in  section  one  of  this  Act  until  on  and  after  Jan- 
uary first,  nineteen  hundred  and  eighteen,  and  thereafter  only  one  two 
per'  centum  normal  tax  shall  be  deducted  and  withheld  at  the  source 
under  the  provisions  of  such  subdivision  (c),  and  any  further  normal 
tax  for  which  the  recipient  of  such  income  is  liable  under  this  Act  or 
such  Act  of  September  eighth,  nineteen  hundred  and  sixteen,  as  amended 
"by  this  Act,  shall  be  paid  by  such  recipient. 

Sec.  4.  That  in  addition  to  the  tax  imposed  by  subdivision  (a)  of 
section  ten  of  such  Act  of  September  eighth,  nineteen  hundred  and  six- 
teen, as  amended  by  this  Act,  there  shall  be  levied,  assessed,  collected, 
and  paid  a  like  tax  of  four  per  centum  upon  the  income  received  in  the 
calendar  year  nineteen  hundred  and  seventeen  and  every  calendar  year 
thereafter,  by  every  corporation,  joint-stock  company  or  association,  or 
insurance  company,  subject  to  the  tax  imposed  by  that  subdivision  of  that 
section,  except  that  if  it  has  fixed  its  own  fiscal  year,  the  tax  imposed 


The  War  Tax  Act  5 

by  this  section  for  the  fiscal  year  ending  during  the  calendar  year  nine- 
teen hundred  and  seventeen  shall  be  levied,  assessed,  collected,  and  paid 
only  on  that  proportion  of  its  income  for  such  fiscal  year  which  the  period 
between  January  first,  nineteen  hundred  and  seventeen,  and  the  end  of 
such  fiscal  year  bears  to  the  whole  of  such  fiscal  year. 

The  tax  imposed  by  this  section  shall  be  computed,  levied,  assessed, 
collected,  and  paid  upon  the  same  incomes  and  in  the  same  manner  as 
the  tax  imposed  by  subdivision  (a)  of  section  ten  of  such  Act  of  Sep- 
tember eighth,  nineteen  hundred  and  sixteen,  as  amended  by  this  Act, 
except  that  for  the  purpose  of  the  tax  imposed  by  this  section  the 
income  embraced  in  a  return  of  a  corporation,  joint-stock  company  or 
association,  or  insurance  company,  shall  be  credited  with  the  amount 
received  as  dividends  upon  the  stock  or  from  the  net  earnings  of  any 
other  corporation,  joint-stock  company  or  association,  or  insurance  com- 
pany, which  is  taxable  upon  its  net  income  as,  provided  in  this  title. 

Sec.  5.  That  the  provisions  of  this  title  shall  not  extend  to  Porto 
Rico  or  the  Philippine  Islands,  and  the  Porto  Rican  or  Philippine  Leg- 
islature shall  have  power  by  due  enactment  to  amend,  alter,  modify,  or 
repeal  the  income  tax  laws  in  force  in  Porto  Rico  or  the  Philippine 
Islands  respectively. 

TiTE  II. — War  Excess  Profits  Tax.- 

Sec.  200.     That  when  used  in  thi  stitle — 

The  term  "corporation"  includes  joint-stock  companies  or  associ- 
ations and  insurance  companies ; 

The  term  "domestic"  means  created  under  the  law  of  the  United 
States,  or  of  any  state,  territory,  or  district  thereof,  and  the  term  "for- 
eign" means  created  under  the  law  of  any  other  possession  of  the  United 
States  or  of  any  foreign  country  or  government; 

The  term  "United  States"  means  only  the  states,  the  territories  of 
Alaska  and  Hawaii,  and  the  District  of  Columbia  ; 

The  term  "taxable  year"  means  the  twelve  months  ending  December 
thirty-first,  excepting  in  the  case  of  a  corporation  or  partnership  which 
has  fixed  its  own  fiscal  year,  in  which  case  it  means  such  fiscal  year.  The 
first  taxable  year  shall  be  the  year  ending  December  thirty-first,  nineteen 
hundred  and  seventeen,  except  that  in  the  case  of  a  corporation  or  part- 
nership which  has  fixed  its  own  fiscal  year,  it  shall  be  the  fiscal  year 
ending  during  the  calendar  year  nineteen  hundred  and  seventeen.  If 
a  corporation  or  partnershij),  prior  to  March  first,  nineteen  hundred  and 
eighteen,  makes  a  return  covering  its  own  fiscal  year,  and  includes  therem 
the  income  received  during  that  part  of  the  fiscal  year  falling  within 
the  calendar  year  nineteen  hundred  and  sixteen,  the  tax  for  such  taxable 
year  shall  be  that  proportion  of  the  tax  computed  upon  the  net  income 
during  such  full  fiscaPyear  which  the  time  from  January  first,  nineteen 
2For  Exce.ss  Profits  Tax  Act  of  1917,  see  Lapp's  Important  Federal  Laws, 
pp.  873-875. 


6  Supplement  to  Important  Federal  Laws 

hundred  and  seventeen,  to  the  end  of  such  fiscal  year  bears  to  the  full 
fiscal  year;  and 

The  term  "prewar  period"  means  the  calendar  years  nineteen  hun- 
dred and  eleven,  nineteen  hundred  and  twelve,  and  nineteen  hundred  and 
thirteen,  or,  if  a  corporation  or  partnership  was  not  in  existence  or  an 
individual  Avas  not  engaged  in  a  trade  or  business  during  the  whole  of 
such  period,  then  as  many  of  such  years  during  the  whole  of  which  the 
corporation  or  partnership  was  in  existence  or  the  individual  was  en- 
gaged in  the  trade  or  business. 

The  terms  "trade"  and  "business"  include  professions  and  occupa- 
tions. 

The  term  "net  income"  means  in  the  case  of  a  foreign  corporation 
or  partnership  or  a  nonresident  alien  individual,  the  net  income  received 
from  sources  within  the  United  States. 

Sec.  201.  That  in  addition  to  the  taxes  under  existing  law  and  under 
this  Act  there  shall  be  levied,  assessed,  collected,  and  paid  for  each 
taxable  year  upon  the  income  of  every  corporation,  partnership,  or 
individual,  a  tax  (hereinafter  in  this  title  referred  to  as  the  tax)  equal 
to  the  following  percentages  of  the  net  income : 

Twenty  per  centum  of  the  amount  of  the  net  income  in  excess  of 
the  deduction  (determined  as  hereinafter  provided)  and  not  in  excess 
of  fifteen  per  centum  of  the  invested  capital  for  the  taxable  year; 

Twenty-five  per  centum  of  the  amount  of  the  net  income  in  excess 
of  fifteen  per  centum  and  not  in  excess  of  twenty  per  centum  of  such 
capital ; 

Thirty-five  per  centum  of  the  amount  of  the  net  income  in  excess  of 
twenty  per  centum  and  not  in  excess  of  twenty-five  per  centum  of  such 
capital ; 

Forty-five  per  centum  of  the  amount  of  the  net  income  in  excess 
of  twenty-five  per  centum  and  not  in  excess  of  thirty-three  per  centum 
of  such  capital ;  and 

Sixty  per  centum  of  the  amount  of  the  net  income  in  excess  of 
thirty-three  per  centum  of  such  capital. 

For  the  purpose  of  this  title  every  corporation  or  partnership  not 
exempt  under  the  provisions  of  this  section  shall  be  deemed  to  be  en- 
gaged in  business,  and  all  the  trades  and  businesses  in  which  it  is  engaged 
shall  be  treated  as  a  single  trade  or  business,  and  all  its  income  from 
whatever  source  derived  shall  be  deemed  to  be  received  from  such  trade 
or  business. 

This  title  shall  apply  to  all  trades  or  businesses  of  whatever  descrip- 
tion, whether  continuously  carried  on  or  not,  except — 

(a)  In  the  case  of  officers  and  employees  under  the  United  States, 
or  any  state,  territory,  or  the  District  of  Columbia,  or  any  local  sub- 
division thereof,  the  compensation  or  fees  received  Ijy  them  as  such 
officers  or  emplovees  ; 


The  War  Tax  Act  7 

(b)  Corporations  exempt  from  tax  under  the  provisions  of  section 
eleven  of  Title  I  of  such  Act  of  September  eighth,  nineteen  hundred 
and  sixteen,  as  amended  by  this  Act,  and  partnerships  and  individuals 
carrying  on  or  doing  the  same  business,  or  coming  within  the  same 
description ;  and 

(c)  Incomes  derived  from  the  business  of  life,  health,  and  accident 
insurance  combined  in  one  policy  issued  on  the  weekly  premium  pay- 
ment plan. 

Sec.  202.  That  the  tax  shall  not  be  imposed  in  the  case  of  the  trade 
or  business  of  a  foreign  corporation  or  partnership  or  a  nonresident  alien 
individual,  the  net  income  of  which  trade  or  business  during  the  taxable 
year  is  less  than  $3,000. 

Sec.  203.  That  for  the  purpose  of  this  title  the  deduction  shall 
be  as  follows,  except  as  otherwise  in  this  title  provided — 

(a)  In  the  case  of  a  domestic  corporation,  the  sum  of  (1)  an 
amount  equal  to  the  same  percentage  of  the  invested  capital  for  the 
taxable  year  which  the  average  amount  of  the  annual  net  income  of  the 
trade  or  business  during  the  prewar  period  was  of  the  invested  capital 
for  the  prewar  period  (but  not  less  than  seven  or  more  than  nine  per 
centum  of  the  invested  capital  for  the  taxable  year),  and  (2)  $3,000; 

(b)  In  the  case  of  a  domestic  partnership  or  of  a  citizen  or  resident 
of  the  United  States,  the  sum  of  (1)  an  amount  equal  to  the  same 
percentage  of  the  invested  capital  for  the  taxable  year  which  the  average 
amount  of  the  annual  net  income  of  the  trade  or  business  during  the 
prewar  period  was  of  the  invested  capital  for  the  prewar  period  (but  not 
less  than  seven  or  more  than  nine  per  centum  of  the  invested  capital  for 
the  taxable  year),  and  (2)  $6,000; 

(c)  In  the  case  of  a  foreign  corporation  or  partnership  or  of  a 
nonresident  alien  individual,  an  amount  ascertained  in  the  same  manner 
as  provided  in  subdivisions  (a)  and  (b),  without  any  exemption  of 
$3,000  or  $6,000. 

(d)  If  the  Secretary  of  the  Treasury  is  unable  satisfactorily  to 
determine  the  average  amount  of  the  annual  net  income  of  the  trade 
or  business  during  the  prewar  period,  the  deduction  shall  be  determined 
in  the  same  manner  as  provided  in  section  two  hundred  and  five. 

Sec.  204.  That  if  a  corporation  or  partnership  was  not  in  existence, 
or  an  individual  was  not  engaged  in  the  trade  or  business,  during  the 
whole  of  any  one  calendar  year  during  the  prewar  period,  the  deduction 
shall  be  an  amount  equal  to  eight  per  centum  of  the  invested  capital  for 
the  taxable  year,  plus  in  the  case  of  a  domestic  corporation  $3,000,  and 
in  the  case  of  a  domestic  partnership  or  a  citizen  or  resident  of  the 
United  States,  $6,000. 

A  trade  or  business  carried  on  by  a  corporation,  partnership,  or  in- 
dividual although  formally  organized  or  reorganized  on  or  after  January 
second,   nineteen   hundred   and   thirteen,   which   is    substantially   a   con- 


8  Supplement  to  Important  Federal  Laws 

tinuation  of  a  trade  or  business  carried  on  prior  to  that  date,  shall, 
for  the  purpose  of  this  title,  be  deemed  to  have  been  in  existence  prior 
to  that  date,  and  the  net  income  and  invested  capital  of  its  predecessor 
prior  to  that  date  shall  be  deemed  to  have  been  its  net  income  and  in- 
vested capital. 

Sec.  205.  (a)  That  if  the  Secretary  of  the  Treasury,  upon  com- 
plaint finds  either  ( 1 )  that  during  the  prewar  period  a  domestic  corpora- 
tion or  partnership,  or  a  citizen  or  resident  of  the  United  States,  had 
no  net  income  from  the  trade  or  business,  or  (2)  that  during  the  prewar 
period  the  percentage,  which  the  net  income  was  of  the  invested  capital, 
was  low  as  compared  with  the  percentage  which  the  net  income  during 
such  period  of  representative  corporations,  partnerships,  and  individuals, 
engaged  in  a  like  or  similar  trade  or  business,  was  of  their  invested 
capital,  then  the  deduction  shall  be  the  sum  of  (1)  an  amount  equal 
to  the  same  percentage  of  its  invested  capital  for  the  taxable  year  which 
the  average  deduction  (determined  in  the  same  manner  as  provided 
in  section  two  hundred  and  three,  without  including  the  $3,000  or 
$6,000  therein  referred  to)  for  such  year  of  representative  corporations, 
partnerships,  or  individuals,  engaged  in  a  like  or  similar  trade  or  business, 
is  of  their  average  invested  capital  for  such  year,  plus  (2)  in  the  case 
of  a  domestic  corporation  $3,000,  and  in  the  case  of  a  domestic  partner- 
ship or  a  citizen  or  resident  of  the  United  States  $6,000. 

The  percentage  which  the  net  income  was  of  the  invested  capital  in 
each  trade  or  business  shall  be  determined  by  the  Commissioner  of 
Internal  Revenue,  in  accordance  with  regulations  prescribed  by  him, 
with  the  approval  of  the  Secretary  of  the  Treasury.  In  the  case  of  a 
corporation  or  partnership  which  has  fixed  its  own  fiscal  year,  the 
percentage  determined  for  the  calendar  year  ending  during  such  fiscal 
year  shall  be  used. 

(b)  The  tax  shall  be  assessed  upon  the  basis  of  the  deduction 
determined  as  provided  in  section  two  hundred  and  three,  but  the 
taxpayer  claiming  the  benefit  of  this  section  may  at  the  time  of  making 
the  return  file  a  claim  for  abatement  of  the  amount  by  which  the  tax 
so  assessed  exceeds  a  tax  computed  upon  the  basis  of  the  deduction 
determined  as  provided  in  this  section.  In  such  event,  collection  of 
the  part  of  the  tax  covered  by  such  claim  for  abatement  shall  not  be 
made  until  the  claim  is  decided,  but  if  in  the  judgment  of  the  Com- 
missioner" of  Internal  Revenue,  the  interests  of  the  United  States  would 
be  jeopardized  thereby  he  may  require  the  claimant  to  give  a  bond  in 
such  amount  and  with  such  sureties  as  the  Commissioner  may  think 
wise  to  safeguard  such  interests,  conditioned  for  the  payment  of  any 
tax  found  to  be  due,  with  the  interest  thereon,  and  if  such  bond,  sat- 
isfactory to  the  Commissioner,  is  not  given  within  such  time  as  he  pre- 
scribes, the  full  amount  of  tax  assessed  shall  be  collected  and  the  amount 


The  War  Tax  Act  9 

overpaid,  if  any,  shall  upon  final  decision  of  the  application  be  refunded 
as  a  tax  erroneously  or  illegally  collected. 

Sec.  206.  That  for  the  purposes  of  this  title  the  net  income  of  a 
corporation  shall  be  ascertained  and  returned  (a)  for  the  calendar  years 
nineteen  hundred  and  eleven  and  nineteen  hundred  and  twelve  upon  the 
same  basis  and  in  the  same  manner  as  provided  in  section  thirty-eight 
of  the  Act  entitled  "An  Act  to  provide  revenue,  equalize  duties,  and  en- 
courage the  industries  of  the  United  States,  and  for  other  purposes," 
approved  August  fifth,  nineteen  hundred  and  nine,  except  that  income 
taxes  paid  by  it  within  the  year  imposed  by  the  authority  of  the  United 
States  shall  be  included;  (b)  for  the  calendar  year  nineteen  hundred  and 
taxable  year,  upon  the  same  basis  and  in  the  same  manner  as  provided  in 
Section  II  of  the  Act  entitled  "An  Act  to  reduce  tariff  duties  and  to  pro- 
vide revenue  for  the  government,  and  for  other  purposes,"  approved 
October  third,  nineteen  hundred  and  thirteen,  except  that  income  taxes 
paid  by  it  within  the  year  imposed  by  the  authority  of  the  United  States 
shall  be  included,  and  except  that  the  amounts  received  by  it  as  dividends 
upon  the  stock  or  from  the  net  earnings  of  other  corporations,  joint- 
stock  companies  or  associations,  or  insurance  companies,  subject  to  the 
tax  imposed  by  Section  II  of  such  Act  of  October  third,  nineteen  hun- 
dred and  thirteen,  shall  be  deducted;  and  (c)  for  the  taxable  year  upon 
the  same  basis  and  in  the  same  manner  as  provided  in  Title  I  of  the  Act 
entitled  "An  Act  to  increase,  the  revenue,  and  for  other  purposes,"  ap- 
proved September  eighth,  nineteen  hundred  and  sixteen,  as  amended  by 
this  Act,  except  that  the  amounts  received  by  it  as  dividends  upon  the 
stock  or  from  the  net  earnings  of  other  corporations,  joint- 
stock  companies  or  associations,  or  insurance  companies,  subject  to  the 
tax  imposed  by  Title  I  of  such  Act  of  September  eighth,  nineteen  hun- 
dred and  sixteen,  shall  be  deducted. 

The  net  income  of  a  partnership  or  individual  shall  be  ascertained 
and  returned  for  the  calendar  years  nineteen  hundred  and  eleven,  nine- 
teen hundred  and  twelve,  and  nineteen  hundred  and  thirteen,  and  for  the 
taxable  year,  upon  the  same  basis  and  in  the  same  manner  as  provided  in 
Title  I  of  such  Act  of  September  eighth,  nineteen  hundred  and  sixteen, 
as  amended  by  this  Act,  except  that  the  credit  allowed  by  subdivision 
(b)  of  section  five  of  such  Act  shall  be  deducted.     There  shall  be  allowed 

(a)  in  the  case  of  a  domestic  partnership  the  same  deductions  as  allowed 
to  individuals  in  subdivision  (a)  of  section  five  of  such  Act  of  Sep- 
tember eighth,  nineteen  hundred  and  sixteen,  as  amended  by  this  Act ;  and 

(b)  in  the  case  of  a  foreign  partnership  the  same  deductions  as  allowed 
to  individuals  in  subdivision  (a)  of  section  six  of  such  Act  as  amended 
by  this  Act. 

Sec.  207.  That  as  used  in  this  title  the  term  "invested  capital"  for 
any  year  means  the  average  invested  capital  for  the  year,  as  defined  and 
limited  in  this  title,  averaged  monthly. 


10  Supplement  to  Important  Federal  Laws 

As  used  in  this  title  ''invested  capital"  does  not  include  stocks,  bonds 
(other  than  obligations  of  the  United  States),  or  other  assets,  the  income 
from  which  is  not  subject  to  the  tax  imposed  by  this  title,  nor  money  or 
other  property  borrowed,  and  means,  subject  to  the  above  limitations: 

(a)  In  the  case  of  a  corporation  or  partnership:  (1)  actual  cash 
paid  in,  (2)  the  actual  cash  value  of  tangible  property  paid  in  other  than 
cash,  for  stock  or  shares  in  such  corporation  or  partnership,  at  the  time 
of  such  payment  (but  in  case  such  tangible  property  was  paid  in  prior 
to  January  first,  nineteen  hundred  and  fourteen,  the  actual  cash  value 
of  such  property  as  of  January  first,  nineteen  hundred  and  fourteen,  but 
in  no  case  to  exceed  the  par  value  of  the  original  stock  or  shares  spe- 
cifically issued  therefor),  and  (3)  paid  in  or  earned  surplus  and  undivided 
profits  used  or  employed  in  the  business,  exclusive  of  undivided  profits 
earned  during  the  taxable  year:  Provided,  That  (a)  the  actual  cash 
value  of  patents  and  copyrights  paid  in  for  stock  or  shares  in  such  corpo- 
ration or  partnership,  at  the  time  of  such  payment,  shall  be  included  as 
invested  capital,  but  not  to  exceed  the  par  value  of  such  stock  or  shares 
at  the  time  of  such  payment,  and  (b)  the  good  will,  trade  marks,  trade 
brands,  the  franchise  of  a  corporation  or  partnership,  or  other  intangible 
property,  shall  be  included  as  invested  capital  if  the  corporation  or  part- 
nership made  payment  bona  fide  therefor  specifically  as  such  in  cash  or 
tangible  property,  the  value  of  such  good  will,  trade-mark,  trade  brand, 
franchise,  or  intangible  property,  not  to  exceed  the  actual  cash  or  actual 
cash  value  of  the  tangible  property  paid  therefor  at  the  time  of  such 
payment  but  good  will,  trade-marks,  trade  brands,  franchise  of  a  corpo- 
ration or  partnership,  or  other  intangible  property,  bona  fide  purchased, 
prior  to  March  third,  nineteen  hundred  and  seventeen,  for  and  with 
interests  or  shares  in  a  partnership  or  for  and  with  shares  in  the  capital 
stock  of  a  corporation  ( issued  prior  to  March  third,  nineteen  hundred 
and  seventeen),  in  an  amount  not  to  exceed,  on  March  third,  nineteen 
hundred  and  seventeen,  twenty  per  centum  of  the  total  interests  or  shares 
in  the  partnership  or  of  the  total  shares  of  the  capital  stock  of  the  corpo- 
ration, shall  be  included  in  invested  capital  at  a  value  not  to  exceed  the 
actual  cash  value  at  the  time  of  such  purchase,  and  in  case  of  issue  of 
stock  therefor  not  to  exceed  the  par  value  of  such  stock ; 

(b)  In  the  case  of  an  individual,  (1)  actual  cash  paid  into  the  trade 
or  business,  and  (2)  the  actual  cash  value  of  tangible  property  paid  into 
the  trade  or  business,  other  than  cash,  at  the  time  of  such  payment  (but 
in  case  such  tangible  property  was  paid  in  prior  to  January  first,  nineteen 
hundred  and  fourteen,  the  actual  cash  value  of  such  property  as  of  Jan- 
uary first,  nineteen  hundred  and  fourteen),  and  (3)  the  actual  cash  value 
of  patents,  copyrights,  good  will,  trade  marks,  trade  brands,  franchises, 
or  other  intangible  property,  paid  into  the  trade  or  business,  at  the  time 
of  such  payment,  if  payment  was  made  therefor  specifically  as  such  in 
cash  or  tangible  property,  not  to  exceed  the  actual  cash  or  actual  cash 


The  War  Tax  Act  ■  11 

value  of  the  tangible  property  bona  fide  paid  therefor  at  the  time  of  such 
payment. 

In  the  case  of  a  foreign  corporation  or  partnership  or  of  a  non- 
resident alien  individual  the  term  ''invested  capital"  means  that  propor- 
tion of  the  entire  invested  capital,  as  defined  and  limited  in  this  title, 
which  the  net  income  from  sources  within  the  United  States  bears  to  the 
entire  net  income. 

Sec.  208.  That  in  case  of  the  reorganization,  consolidation,  or 
change  of  ownership  of  a  trade  or  business  after  March  third,  nineteen 
hundred  and  seventeen,  if  an  interest  or  control  in  such  trade  or  business 
of  fifty  per  centum  or  more  remains  in  control  of  the  same  persons,  cor- 
porations, associations,  partnerships,  or  any  of  them,  then  in  ascertaining 
the  invested  capital  of  the  trade  or  business  no  asset  transferred  or  re- 
ceived from  the  prior  trade  or  business  shall  be  allowed  a  greater  value 
than  would  have  been  allowed  under  this  title  in  computing  the  invested 
capital  of  such  prior  trade  or  business  if  such  asset  had  not  been  so 
transferred  or  received,  unless  such  asset  was  paid  for  specifically  as 
such,  in  cash  or  tangible  property,  and  then  not  to  exceed  the  actual  cash 
or  actual  cash  value  of  the  tangible  property  paid  therefor  at  the  time 
of  such  payment. 

Sec.  209.  That  in  the  case  of  a  trade  or  business  having  no  invested 
capital  or  not  more  than  a  nominal  capital  there  shall  be  levied,' assessed, 
collected,  and  paid,  in  addition  to  the  taxes  under  existing  law^  and  under 
this  act,  in  lieu  of  the  tax  imposed  by  section  two  hundred  and  one,  a 
tax  equivalent  to  eight  per  centum  of  the  net  income  of  such  trade  or 
business,  in  excess  of  the  following  deductions :  in  the  case  of  a  domestic 
corporation,  $3,000,  and  in  the  case  of  a  domestic  partnership,  or  a 
citizen  or  resident  of  the  United  States,  $6,000,  in  the  case  of  all  other 
trades  or  business,  no  deduction. 

Sec.  210.  That  if  the  Secretary  of  the  Treasury  is  unable  in  any 
case  satisfactorily  to  determine  the  invested  capital,  the  amount  of  the 
deduction  shall  be  the  sum  of  (1)  an  amount  equal  to  the  same  propor- 
tion of  the  net  income  of  the  trade  or  business  received  during  the  taxable 
year  as  the  proportion  which  the  average  deduction  (determined  hi  the 
same  manner  as  provided  in  section  two  hundred  and  three,  without 
including  the  $3,000  or  $6,000  therein  referred  to)  for  the  same  calendar 
year  of  representative  corporations,  partnerships,  and  individuals,  en- 
gaged in  a  like  or  similar  trade  or  business,  bears  to  the  total  net  income 
of  the  trade  or  business  received  by  such  corporations,  partnerships,  and 
individuals,  plus  (2)  in  the  case  of  a  domestic  corporation  $3,000,  and 
in  the  case  of  a  domestic  partnership  or  a  citizen  or  resident  of  the  United 

States  $6,000.  . 

For  the  purpose  of  this  section  the  proportion  between  the  deduction 
and  the  net  income  in  each  trade  or  business  shall  be  determined  by  the 
Commissioner  of  Internal  Revenue  in  accordance  with  regulations  pre- 


12  Supplement  to  Important  Federal  Laws 

scribed  by  him,  with  the  approval  of  the  Secretary  of  the  Treasury.  In 
the  case  of  a  corporation  or  partnership  which  has  fixed  its  own  fiscal 
year,  the  proportion  determined  for  the  calendar  year  ending  during  such 
fiscal  year  shall  be  used. 

Sec.  211.  That  every  foreign  partnership  having  a  net  income  of 
$3,000  or  more  for  the  taxable  year,  and  every  domestic  partnership 
having  a  net  income  of  $6,000  or  more  for  the  taxable  year,  shall  render 
a  correct  return  of  the  income  of  the  trade  or  business  for  the  taxable 
year,  setting  forth  specifically  the  gross  income  for  such  year,  and  the 
deductions  allowed  in  this  title.  Such  returns  shall  be  rendered  at  the 
same  time  and  in  the  same  manner  as  is  prescribed  for  income-tax  returns 
under  Title  I  of  such  Act  of  September  eighth,  nineteen  hundred  and  six- 
teen, as  amended  by  this  Act. 

Sec.  212.  That  all  administrative,  special,  and  general  provisions 
of  law,  including  the  laws  in  relation  to  the  assessment,  remission,  col- 
lection, and  refund  of  internal-revenue  taxes  not  heretofore  specifically 
repealed,  and  not  inconsistent  with  the  provisions  of  this  title,  are  hereby 
extended  and  made  applicable  to  all  the  provisions  of  this  title  and  to  the 
tax  herein  imposed,  and  all  provisions  of  Title  I  of  such  Act  of  September 
eight,  nineteen  hundred  and  sixteen,  as  amended  by  this  Act,  relating  to 
returns  and  payment  of  the  tax  therein  imposed,  including  penalties,  are 
hereby  made  applicable  to  the  tax  imposed  by  this  title. 

Sec.  213.  That  the  Commissioner  of  Internal  Revenue,  with  the 
approval  of  the  Secretary  of  the  Treasury,  shall  make  all  necessary  regu- 
lations for  carrying  out  the  provisions  of  this  title,  and  may  require  any 
corporation,  partnership,  or  individual,  subject  to  the  provisions  of  this 
title,  to  furnish  him  with  such  facts,  data,  and  information  as  in  his 
judgment  are  necessary  to  collect  the  tax  imposed  by  this  title. 

Sec.  214.  That  Title  II  (sections  two  hundred  to  two  hundred 
and  seven,  inclusive)  of  the  Act  entitled  "An  Act  to  provide  increased 
revenue  to  defray  the  expenses  of  the  increased  appropriations  for  the 
army  and  navy,  and  the  extensions  of  fortifications,  and  for  other  pur- 
poses," approved  March  third,  nineteen  hundred  and  seventeen,  is  hereby 
repealed.^ 

Any  amount  heretofore  or  hereafter  paid  on  account  of  the  tax 
-mposed  by  such  Title  II,  shall  be  credited  toward  the  payment  of  the 
tax  imposed  by  this  title,  and  if  the  amount  so  paid  exceeds  the  amount 
of  such  tax  the  excess  shall  be  refunded  as  a  tax  erroneously  or  illegally 
collected. 

Subdivision  (1)  of  section  three  hundred  and  one  of  such  Act 
of  September  eighth,  nineteen  hundred  and  sixteen,  is  hereby  amended 
so  that  the  rate  of  tax  for  the  taxable  year  nineteen  hundred  and  seven- 
teen shall  be  ten  per  centum  instead  of  twelve  and  one-half  per  centum, 
as  therein  provided. 

sSee  Lapp's  Important  Federal  Laws,  pp.  87  4-8  75. 


The  War  Tax  Act  13 

Subdivision  (2)  of  such  section  is  hereby  amended  to  read  as  follows  : 
"(2)   This  section  shall  cease  to  be  of  effect  on  and  after  January 
first,  nineteen  hundred  and  eighteen." 

Title  III. — War  Tax  on  Beverages. 

Sec.  300.  That  on  and  after  the  passage  of  this  Act  there  shall  be 
levied  and  collected  on  all  distilled  spirits  in  bond  at  the  time  or  that 
have  been  or  that  may  be  then  or  thereafter  produced  in  or  imported 
into  the  United  States,  except  such  distilled  spirits  as  are  subject  to  the 
tax  provided  in  section  three  hundred  and  three,  in  addition  to  the  tax 
now  imposed  by  law,  a  tax  of  $1.10  (or,  if  withdrawn  for  beverage  pur- 
poses or  for  use  in  the  manufacture  or  production  of  any  article  used  or 
intended  for  use  as  a  beverage,  a  tax  of  $2.10)  on  each  proof  gallon, 
or  wine  gallon  when  below  proof,  and  a  proportionate  tax  at  a  like  rate 
on  all  fractional  parts  of  such  proof  or  wine  gallon,  to  be  paid  by  the 
distiller  or  importer  when  withdrawn,  and  collected  under  the  provisions 
of  existing  law. 

That  in  addition  to  the  tax  under  existing  law  there  shall  be  levied 
and  collected  upon  all  perfumes  hereafter  imported  into  the  United  States 
containing  distilled  spirits,  a  tax  of  $1.10  per  wine  gallon,  and  a  propor- 
tionate tax  at  a  like  rate  on  all  fractional  parts  of  such  wine  gallon.  Such 
tax  shall  be  collected  by  the  collector  of  customs  and  deposited  as  internal- 
revenue  collections,  under  such  rules  and  regulations  as  the  Commissioner 
of  Internal  Revenue,  with  the  approval  of  the  Secretary  of  the  Treasury, 
may  prescribe. 

Sec.  301.  That  no  distilled  spirits  produced  after  the  passage  of 
this  Act  shall  be  imported  into  the  United  States  from  any  foreign  coun- 
try, or  from  the  West  Indian  Islands  recently  acquired  from  Denmark 
(unless  produced  from  products  the  growth  of  such  islands,  and  not  then 
into  any  State  or  Territory  or  District  of  the  United  States  in  which 
the  manufacture  or  sale  of  intoxicating  liquors  is  prohibited),  or  from 
Porto  Rico,  or  the  Philippine  Islands.  Under  such  rules,  regulations,  and 
bonds  as  the  Secretary  of  Treasury  may  prescribe,  the  provisions  of  this 
section  shall  not  apply  to  distilled  spirits  imported  for  other  than  (1) 
beverage  purposes  or  (2)  use  in  the  manufacture  or  production  of  any 
article  used  or  intended  for  use  as  a  beverage. 

Sec.  302.  That  at  registered  distilleries  producing  alcohol,  or  other 
high-proof  spirits,  packages  may  be  filled  with  such  spirits  reduced  to  not 
less  than  one  hundred  proof  from  the  receiving  cisterns  and  tax  paid 
without  being  entered  into  bonded  warehouse.  Such  spirits  may  also  be 
transferred  from  the  receiving  cisterns  at  such  distilleries,  by  means  of 
pipe  lines,  direct  to  storage  tanks  in  the  bonded  warehouse  and  may  be 
warehoused  in  such  storage  tanks.  Such  spirits  may  be  also  transferred  in 
tanks  or  tank  cars  to  general  bonded  warehouses  for  storage  therein, 
either  in  storage  tanks  in  such  warehouses  or  in  the  tanks  in  which  they 


14  Supplement  to  Important  Federal  Laws 

were  transferred.  Such  spirits  may  also  be  transferred  after  tax  pay- 
ment from  receiving  cisterns  or  warehouse  storage  tanks  to  tanks  or  tank 
cars  and  may  be  transported  in  such  tanks  or  tank  cars  to  the  premises 
of  rectifiers  of  spirits.  The  Commissioner  of  Internal  Revenue,  with  the 
approval  of  the  Secretary  of  the  Treasury,  is  hereby  empowered  to 
prescribe  all  necessary  regulations  relating  to  the  drawing  off,  transferr- 
ing, gauging,  storing  and  transporting  of  such  spirits ;  the  records  to  be 
kept  and  returns  to  be  made ;  the  size  and  kind  of  packages  and  tanks 
to  be  used ;  the  marking,  branding,  numbering  and  stamping  of  such 
packages  and  tanks ;  the  kinds  of  stamps,  if  any,  to  be  used ;  and  the  time 
and  manner  of  paying  the  tax ;  the  kind  of  bond  and  the  penal  sum  of 
same.  The  tax  prescribed  by  law  must  be  paid  before  such  spirits  are 
removed  from  the  distillery  premises,  or  from  general  bonded  warehouse 
in  the  case  of  spirits  transferred  thereto,  except  as  otherwise  provided 
by  law. 

Under  such  regulations  as  the  Commissioner  of  Internal  Revenue, 
with  the  approval  of  the  Secretary  of  the  Treasury,  may  prescribe,  dis- 
tilled spirits  may  hereafter  be  drawn  from  receiving  cisterns  and  de- 
posited in  distillery  warehouses  without  having  affixed  to  the  packages 
containing  the  same  distillery  warehouse  stamps,  and  such  packages, 
when  so  deposited  in  warehouse,  may  be  withdrawn  therefrom  on  the 
original  gauge  where  the  same  have  remained  in  such  warehouse  for  a 
period  not  exceeding  thirty  days  from  the  date  of  deposit. 

Under  such  regulations  as  the  Commissioner  of  Internal  Revenue, 
with  the  approval  of  the  Secretary  of  the  Treasury,  may  prescribe,  the 
manufacture,  warehousing,  withdrawal,  and  shipment,  under  the  provi- 
sions of  existing  law,  of  ethyl  alcohol  for  other  than  (1)  beverage  pur- 
poses or  (2)  use  in  the  manufacture  or  production  of  any  article  used 
or  intended  for  use  as  a  beverage,  and  denatured  alcohol,  may  be  ex- 
empted from  the  provisions  of  section  thirty-two  hundred  and  eighty- 
three.  Revised  Statutes  of  the  United  States. 

Under  such  regulations  as  the  Commissioner  of  Internal  Revenue, 
with  the  approval  of  the  Secretary  of  the  Treasury,  may  prescribe,  manu- 
facturers of  ethyl  alcohol  for  other  than  beverage  purposes  may  be 
granted  permission  under  the  provisions  of  section  thirty-two  hundred 
and  eighty-five,  Revised  Statutes  of  the  United  States,  to  fill  fermenting 
tubs  in  a  sweet-mash  distillery  not  oftener  than  once  in  forty-eight  hours. 

Sec.  303.  That  upon  all  distilled  spirits  produced  in  or  imported  into 
the  United  States  upon  which  the  tax  now  imposed  by  law  has  been 
paid,  and  which,  on  the  day  this  Act  is  passed,  are  held  by  a  retailer  in 
a  quantity  in  excess  of  fifty  gallons  in  the  aggregate,  or  by  any  other 
person,  corporation,  partnership,  or  association  in  any  quantity,  and  which 
are  intended  for  sale,  there  shall  be  levied,  assessed,  collected,  and  paid 
a  tax  of  $1.10  (or,  if  intended  for  sale  for  beverage  purposes  or  for  use 
in  the  manufacture  or  production  of  any  article  used  or  intended   for 


The  War  Tax  Act  15 

use  as  a  beverage,  a  tax  of  $2.10)  on  each  proof  gallon,  and  a  propor- 
tionate tax  at  a  like  rate  on  all  fractional  parts  of  such  proof  gallon: 
Provided,  That  the  tax  on  such  distilled  spirits  in  the  custody  of  a  court 
of  bankruptcy  in  insolvency  proceedings  on  June  first,  nineteen  hundred 
and  seventeen,  shall  be  paid  by  the  person  to  whom  the  court  delivers 
such  distilled  spirits  at  the  time  of  such  delivery,  to  the  extent  that  the 
amount  thus  delivered  exceeds  the  fifty  gallons  hereinbefore  provided. 

Sec.  304.  That  in  addition  to  the  tax  now  imposed  or  imposed  by 
this  Act  on  distilled  spirits  there  shall  be  levied,  assessed,  collected,  and 
paid  a  tax  of  15  cents  on  each  proof  gallon  and  a  proportionate  tax  at 
a  like  rate  on  all  fractional  parts  of  such  proof  gallon  on  all  distilled 
spirits  or  wines  hereafter  rectified,  purified,  or  refined  in  such  manner, 
and  on  all  mixtures  hereafter  produced  in  such  manner,  that  the  person 
so  rectifying,  purifying,  refining,  or  mixing  the  same  is  a  rectifier  within 
the  meaning  of  section  thirty-two  hundred  and  forty-four,  Revised  Stat- 
utes, as  amended,  and  on  all  such  articles  in  the  possession  of  the  rectifier 
on  the  day  this  Act  is  passed :  Provided,  That  this  tax  shall  not  apply 
to  gin  produced  by  the  redistillation  of  a  pure  spirit  over  juniper  berries 
and  other  aromatics. 

When  the  process  of  rectification  is  completed  and  the  tax  prescribed 
by  this  section  has  been  paid,  it  shall  be  unlawful  for  the  rectifier  or 
other  dealer  to  reduce  in  proof  or  increase  in  volume  such  spirits  or  wine 
by  the  addition  of  water  or  other  substance ;  nothing  herein  contained 
shall,  however,  prevent  a  rectifier  from  using  again  in  the  process  of 
rectification  spirits  already  rectified  and  upon  which  the  tax  has  therefore 
been  paid. 

The  tax  imposed  by  this  section  shall  not  attach  to  cordials  or 
liqueurs  on  which  a  tax  is  imposed  and  paid  under  the  Act  entitled  "An 
Act  to  increase  the  revenue,  and  for  other  purposes,"  approved  Septem- 
ber eighth,  nineteen  hundred  and  sixteen,  nor  to  the  mixing  and  blending 
of  wines,  where  such  blending  is  for  the  sole  purpose  of  perfecting  such 
wines  according  to  commercial  standards,  nor  to  blends  made  exclusively 
or  two  or  more  pure  straight  whiskies  aged  in  wood  for  a  period  not 
less  than  four  years  and  without  the  addition  of  coloring  or  flavoring 
matter  or  any  other  substance  than  pure  water  and  if  not  reduced  below 
ninety  proof :  Provided,  That  such  blended  whiskies  shall  be  exempt 
from  tax  under  this  section  only  when  compounded  under  the  immediate 
supervision  of  a  revenue  officer  in  such  tanks  and  under  such  conditions 
and  supervision  as  the  Commissioner  of  Internal  Revenue,  with  the  ap- 
proval of  the  Secretary  of  the  Treasury,  may  prescribe.^ 

All  distilled  spirits  taxable  under  this  section  shall  be  subject  to  uni- 
form regulations  concerning  the  use  thereof  in  the  manufacture,  blend- 
ing, compounding,  mixing,  marking,  branding,  and  sale  of  whisky  and 
rectified  spirits,  and  no  discrimination  whatsoever  shall  be  made  by  rea- 

4See  Lapp's  Important  Federal   Laws,  pp.  351-365. 


16  Supplement  to  Important  Federal  Laws 

son  of  a  difference  in  the  character  of  the  material  from  which  same 
may  have  been  produced. 

The  business  of  a  rectifier  of  spirits  shall  be  carried  on,  and  the  tax 
on  rectified  spirits  shall  be  paid,  under  such  rules,  regulations,  and  bonds 
as  may  be  prescribed  by  the  Commissioner  of  Internal  Revenue,  with 
the  approval  of  the  Secretary  of  the  Treasury. 

Any  person  violating  any  of  the  provisions  of  this  section  shall  be 
deemed  to  be  guilty  of  a  misdemeanor  and,  upon  conviction,  shall  be 
fined  not  more  than  $1,000  or  imprisoned  not  more  than  two  years.  He 
shall,  in  addition,  be  liable  to  double  the  tax  evaded  together  with  the 
tax,  to  be  collected  by  assessment  or  on  any  bond  given. 

Sec.  305.  That  hereafter  collectors  of  internal  revenue  shall  not 
furnish  wholesale  liquor  dealer's  stamps  in  lieu  of  and  in  exchange  for 
stamps  for  rectified  spirits  unless  the  package  covered  by  stamp  for 
rectified  spirits  is  to  be  broken  into  smaller  packages. 

The  Commissioner  of  Internal  Revenue,  with  the  approval  of  the 
Secretary  of  the  Treasury,  is  authorized  to  discontinue  the  use  of  the 
following  stamps  whenever  in  his  judgment  the  interests  of  the  govern- 
ment will  be  subserved  thereby  : 

Distillery  warehouse,  special  bonded  warehouse,  special  bonded  re- 
warehouse,  general  bonded  warehouse,  general  bonded  retransfer,  trans- 
fer brandy,  export  tobacco,  export  cigars,  export  oleomargarine  and 
export  fermented  liquor  stamps. 

Sec.  306.  That  the  Commissioner  of  Internal  Revenue,  with  the 
approval  of  the  Secretary  of  the  Treasury,  is  hereby  authorized  to  re- 
quire at  distilleries,  breweries,  rectifying  houses,  and  wherever  else  in 
his  judgment  such  action  may  be  deemed  advisable,  the  installation  of 
meters,  tanks,  pipes,  or  any  other  apparatus  for  the  purpose  of  protecting 
the  revenue,  and  such  meters,  tanks,  and  pipes  and  all  necessary  labor 
incident  thereto  shall  be  at  the  expense  of  the  person,  corporation,  part- 
nership, or  association  on  whose  premises  the  installation  is  required. 
Any  such  person,  corporation,  partnership,  or  association  refusing  or 
neglecting  to  install  such  apparatus  when  so  required  by  the  commis- 
sioner shall  not  be  permitted  to  conduct  business  on  such  premises. 

Sec.  307.  That  on  and  after  the  passage  of  this  Act  there  shall  be 
levied  and  collected  on  all  beer,  lager  beer,  ale,  porter,  and  other  similar 
fermented  liquor,  containing  one-half  per  centum  or  more  of  alcohol, 
brewed  or  manufactured  and  sold,  or  stored  in  warehouse,  or  removed 
for  consumption  or  sale,  within  the  United  States,  by  whatever  name 
such  liquors  may  be  called,  in  addition  to  the  tax  now  imposed  by  law, 
a  tax  of  $1.50  for  every  barrel  containing  not  more  than  thirty-one 
gallons,  and  at  a  like  rate  for  any  other  quantity  or  for  the  fractional 
parts  of  a  barrel  authorized  and  defined  by  law. 

Sec.  308.  That  from  and  after  the  passage  of  this  Act  taxable 
fermented  liquors  may  be  conveyed  without  payment  of  tax  from  the 


The  War  Tax  Act  17 

brewery  premises  where  produced  to  a  contiguous  industrial  distillery 
of  either  class  established  under  the  Act  of  October  third,  nineteen  hun- 
dred and  thirteen,  to  be  used  as  distilling  material,  and  the  residue  from 
such  distillation,  containing  less  than  one-half  of  one  per  centum  of  alco- 
hol by  volume,  which  is  to  be  used  in  making  beverages,  may  be  manipu- 
lated by  cooling,  flavoring,  carbonating,  settling  and  filtering  on  the  dis- 
tillery premises  or  elsewhere. 

The  removal  of  the  taxable  fermented  liquor  from  the  brewery 
to  the  distillery  and  the  operation  of  the  distillery  and  removal  of  the 
residue  therefrom  shall  be  under  the  supervision  of  such  officer  or  officers 
as  the  Commissioner  of  Internal  Revenue  shall  deem  proper,  and  the 
Commissioner  of  Internal  Revenue,  with  the  approval  of  the  Secretary  of 
the  Treasury,  is  hereby  authorized  to  make  such  regulations  from  time 
to  time  as  may  be  necessary  to  give  force  and  eflject  to  this  section  and 
to  safeguard  the  revenue. 

Sec.  309.  That  upon  all  still  wines,  including  vermuth,  and  upon 
all  champagne  and  other  sparkling  wines,  liquors,  cordials,  artificial  or 
imitation  wines  or  compounds  sold  as  wine,  produced  in  or  imported  into 
the  United  States,  and  hereafter  removed  from  the  customhouse,  place 
of  manufacture,  or  from  bonded  premises  for  sale  or  consumption,  there 
shall  be  levied  and  collected,  in  addition  to  the  tax  now  imposed  by  law 
upon  such  articles,  a  tax  equal  to  such  tax,  to  be  levied,  collected,  and 
paid  under  the  provisions  of  existing  law. 

Sec.  310.  That  upon  all  articles  specified  in  section  three  hundred 
and  nine  upon  which  the  tax  now  imposed  by  law  has  been  paid  and 
which  are  on  the  day  this  Act  is  passed  held  in  excess  of  twenty-five  gal- 
lons in  the  aggregate  of  such  articles  and  intended  for  sale,  there  shall 
be  levied,  collected,  and  paid  a  tax  equal  to  the  tax  imposed  by  such 
section. 

Sec.  311.  That  upon  all  grape  brandy  or  wine  spirits  withdrawn  by 
a  producer  of  wines  from  any  fruit  distillery  or  special  bonded  ware- 
house under  subdivision  (c)  of  section  four  hundred  and  two  of  the  Act 
entitled  "An  Act  to  increase  the  revenue,  and  for  other  purposes,''  ap- 
proved September  eighth,  nineteen  hundred  and  sixteen,  there  shall  be 
levied,  assessed,  collected,  and  paid  in  addition  to  the  tax  therein  im- 
posed, a  tax  equal  to  double  such  tax,  to  be  assessed,  collected,  and  paid 
under  the  provisions  of  existing  law. 

Sec.  312.  That  upon  all  sweet  wines  held  for  sale  by  the  producer 
thereof  upon  the  day  this  Act  is  passed  there  shall  be  levied,  assessed, 
collected,  and  paid  an  additional  tax  equivalent  to  10  cents  per  proof 
gallon  upon  the  grape  brandy  or  wine  spirits  used  in  the  fortification  of 
such  wine,  and  an  additional  tax  of  20  cents  per  proof  gallon  shall  be 
levied,  assessed,  collected,  and  paid  upon  all  grape  brandy  or  wine  spirits 
withdrawn  by  a  producer  of  sweet  wines  for  the  purpose  of  fortifying 
such  wines  and  not  so  used  prior  to  the  passage  of  this  Act. 

(2) 


18  Supplement  to  Important  Federal  Laws 

Sec.  313.     That  there  shall  be  levied,  assessed,  collected,  and  paid — 

(a)  Upon  all  prepared  sirups  or  extracts  (intended  for  use  in  the 
manufacture  or  production  of  beverages,  commonly  known  as  soft  drinks, 
by  soda  fountains,  bottling  establishments,  and  other  similar  places)  sold 
by  the  manufacturer,  producer,  or  importer  thereof,  if  so  sold  for  not 
more  than  $1.30  per  gallon,  a  tax  of  5  cents  per  gallon;  if  so  sold  for 
more  than  $1.30  and  not  more  than  $2  per  gallon,  a  tax  of  8  cents  per 
gallon ;  if  so  sold  for  more  than  $2  and  not  more  than  $3  per  gallon,  a 
tax  of  10  cents  per  gallon;  if  so  sold  for  more  than  $3  and  not  more 
than  $4  per  gallon,  a  tax  of  15  cents  per  gallon;  and  if  so  sold  for  more 
than  $4  per  gallon,  a  tax  of  20  cents  per  gallon ;  and 

(b)  Upon  all  unfermented  grape  juice,  soft  drinks  or  artificial  min- 
eral waters  (not  carbonated),  and  fermented  liquors  containing  less  than 
one-half  per  centum  of  alcohol,  sold  by  the  manufacturer,  producer,  or 
importer  thereof,  in  bottles  or  other  closed  containers,  and  upon  all  ginger 
ale,  root  beer,  sarsaparilla,  pop,  and  other  carbonated  waters  or  beverages, 
manufactured  and  sold  by  the  manufacturer,  producer,  or  importer  of 
the  carbonic  acid  gas  used  in  carbonating  the  same,  a  tax  of  1  cent  per 
gallon ;  and 

(c)  Upon  all  natural  mineral  waters  or  table  waters,  sold  by  the 
producer,  bottler,  or  importer  thereof,  in  bottles  or  other  closed  con- 
tainers, at  over  10  cents  per  gallon,  a  tax  of  1  cent  per  gallon. 

Sec.  314.  That  each  such  manufacturer,  producer,  bottler,  or  im- 
porter shall  make  monthly  returns  under  oath  to  the  collector  of  internal 
revenue  for  the  district  in  which  is  located  the  principal  place  of  business, 
containing  such  information  necessary  for  the  assessment  of  the  tax, 
and  at  such  times  and  in  such  manner,  as  the  Commissioner  of  Internal 
Revenue,  with  the  approval  of  the  Secretary  of  the  Treasury,  may  by 
regulation  prescribe. 

Sec.  315.  That  upon  all  carbonic  acid  gas  in  drums  or  other  con- 
tainers (intended  for  use  in  the  manufacture  or  production  of  carbonated 
water  or  other  drinks)  sold  by  the  manufacturer,  producer,  or  importer 
thereof,  there  shall  be  levied,  assessed,  collected,  and  paid  a  tax  of  5 
cents  per  pound.  Such  tax  shall  be  paid  by  the  purchaser  to  the  vendor 
thereof  and  shall  be  collected,  returned,  and  paid  to  the  United  States  by 
such  vendor  in  the  same  manner  as  provided  in  section  five  hundred  and 
three. 

Title  IV. — War  Tax  on  Cigars,  Tobacco,  and  Manufactures 

Thereof.^ 
Sec.  400.     That  upon  cigars  and  cigarettes,  which  shall  be  manu- 
factured and  sold,  or  removed  for  consumption  or  sale,  there  shall  be 
levied  and  collected,  in  addition  to  the  taxes  now  imposed  by  existing 
law,  the  following  taxes,  to  be  paid  by  the  manufacturer  or  importer 

5For  Tax  Act  of  1916,  see  Lapp's  Important  Federal  Laws,  pp.  363-364. 


The  War  Tax  Act  19 

thereof:  (a)  on  cigars  of  all  descriptions  made  of  tobacco,  or  any  substi- 
tute therefor,  and  weighing  not  more  than  three  pounds  per  thousand,  25 
cents  per  thousand;  (b)  on  cigars  made  of  tobacco,  or  any  substitute 
therefor,  and  weighing  more  than  three  pounds  per  thousand,  if  manu- 
factured or  imported  to  retail  at  4  cents  or  more  each,  and  not  more  than 
7  cents  each,  $1  per  thousand;  (c)  if  manufactured  or  imported  to  retail 
at  more  than  7  cents  each  and  not  more  than  15  cents  each.  $3  per  thou- 
sand; (d)  if  manufactured  or  imported  to  retail  at  more  than  15  cents 
each  and  not  more  than  20  cents  each,  $5  per  thousand;  (e)  if  manu- 
factured or  imported  to  retail  at  more  than  20  cents  each,  7  per  thou- 
and :  Provided,  That  the  word  "retail"  as  used  in  this  section  shall  mean 
the  ordinary  retail  price  of  a  single  cigar,  and  that  the  Commissioner  of 
Internal  Revenue  may,  by  regulation,  require  the  manufacturer  or  im- 
porter to  affix  to  each  box  or  container  a  conspicuous  label  indicating  bv 
letter  the  clause  of  this  section  under  which  the  cigars  therein  contanied 
have  been  tax-paid,  which  must  correspond  with  the  tax-paid  stamp  on" 
said  box  or  container;  (  f )  on  cigarettes  made  of  tobacco,  or  any  substi- 
tute therefor,  made  in  or  imported  into  the  United  States,  and  weighing 
not  more  than  three  pounds  per  thousand,  80  cents  per  thousand ;  weigh- 
ing more  than  three  pounds  per  thousand,  $1.20  per  thousand. 

Every  manufacturer  of  cigarettes  (including  small  cigars  weighing 
not  more  than  three  pounds  per  thousand)  shall  put  up  all  the  cigarettes 
and  such  small  cigars  that  he  manufactures  or  has  manufactured  for 
him,  and  sells  or  removes  for  consumption  or  use,  in  packages  or  parcels 
containing  five,  eight,  ten.  twelve,  fifteen,  sixteen,  twenty,  twenty-four, 
forty,  fifty,  eighty  or  one  hundred  cigarettes  each,  and  shall  securelv 
affix  to  each  of  said  packages  or  parcels  a  suitable  stamp  denoting  the 
tax  thereon  and  shall  properly  cancel  the  same  prior  to  such  sale  or  re- 
moval for  consumption  or  use  under  such  regulations  as  the  Commis- 
sioner of  Internal  Revenue,  with  the  approval  of  the  Secretary  of  the 
Treasury,  shall  prescribe ;  and  all  cigarettes  imported  from  a  foreign 
country  shall  be  packed,  stamped,  and  the  stamps  canceled  in  a  like  man- 
ner, in  addition  to  the  import  stamp  indicating  inspection  of  the  custom- 
house before  they  are  withdrawn  therefrom. 

Sec.  401.  That  upon  all  tobacco  and  snufif  hereafter  manufactured 
and  sold,  or  removed  for  consumption  or  use,  there  shall  be  levied  and 
collected,  in  addition  to  the  tax  now  imposed  by  law  upon  such  articles, 
a  tax  of  5  cents  per  pound,  to  be  levied,  collected,  and  paid  under  the 
provisions  of  existing  law. 

In  addition  to  the  packages  provided  for  under  existing  law,  manu- 
factured tobacco  and  snufif  may  be  put  up  and  prepared  by  the  manu- 
facturer for  sale  or  consumption,  in  packages  of  the  following  descrip- 
tion :  Packages  containing  one-eighth,  three-eighths,  five-eighths,  seven- 
eighths,  one  and  one-eighths,  one  and  three-eighths,  one  and  five-eighths, 
one  and  seven-eighths,  and  five  ounces. 


20  Supplement  to  Important  Federal  Laws 

Sec.  402.  That  sections  four  hundred,  four  hundred  and  one,  and 
four  hundred  and  four,  shall  take  effect  thirty  days  after  the  passage  of 
this  act:  Provided,  That  after  the  passage  of  this  Act  and  before  the 
expiration  of  the  aforesaid  thirty  days,  cigarettes  and  manufactured 
tobacco  and  snufT  may  be  put  up  in  the  packages  now  provided  for  by  law 
or  in  the  packages  provided  for  in  sections  four  hundred  and  four  hun- 
dred and  one. 

Sec.  403.  That  there  shall  also  be  levied  and  collected  upon  all  man- 
ufactured tobacco  and  snuff  in  excess  of  one  hundred  pounds  or  upon 
cigars  or  cigarettes  in  excess  of  one  thousand  which  were  manufactured 
or  imported,  and  removed  from  factor}-  or  custom-house  prior  to  the 
passage  of  this  Act.  bearing  tax-paid  stamps  affixed  to  such  articles  for 
the  payment  of  the  taxes  thereon,  and  which  are,  on  the  day  after  this 
Act  is  passed,  held  and  intended  for  sale  by  any  person,  corporation, 
partnership,  or  association,  and  upon  all  manufactured  tobacco,  snuff, 
cigars,  or  cigarettes,  removed  from  factory  or  customs  house  after  the 
passage  of  this  Act  but  prior  to  the  time  when  the  tax  imposed  by  section 
four  hundred  or  section  four  hundred  and  one  upon  such  articles  takes 
effect,  an  additional  tax  equal  to  one-half  the  tax  imposed  by  such  sections 
upon  such  articles. 

Sec.  404.  That  there  shall  be  levied,  assessed,  and  collected  upon 
cigarette  paper  made  up  into  packages,  books,  sets,  or  tubes,  made  up  in  or 
imported  into  the  United  States  and  intended  for  use  by  the  smoker  in 
making  cigarettes  the  following  taxes:  On  each  package,  book,  or  set, 
containing  more  than  twenty-five  but  not  more  than  fifty  papers,  one-half 
of  1  cent;  containing  more  than  fifty  but  not  more  than  one  hundred 
papers,  1  cent ;  containing  more  than  one  hundred  papers,  1  cent  for  each 
hundred  papers  or  fractional  part  thereof:  and  upon  tubes,  2  cents  for 
each  one  hundred  tubes  or  fractional  part  thereof. 

Title  V. — War  Tax  ox  Facilities  Furnished  by  Public  Utilities 

AND  Insurance. 
Sec.  500.  That  from  and  after  the  first  day  of  November,  nineteen 
hundred  and  seventeen,  there  shall  be  levied,  assessed,  collected,  and  paid 
(a)  a  tax  equivalent  to  three  per  centum  of  the  amount  paid  for  the 
transportation  by  rail  or  water  or  by  any  form  of  mechanical  motor 
power  when  in  competition  with  carriers  by  rail  or  water  of  property  by 
freight  consigned  from  one  point  in  the  United  States  to  another ;  (b)  a 
tax  of  1  cent  for  each  20  cents,  or  fraction  thereof,  paid  to  any  person, 
corporation,  partnership,  or  association,  engaged  in  the  business  of  trans- 
porting parcels  or  packages  by  express  over  regular  routes  between  fixed 
terminals,  for  the  transportation  of  any  package,  parcel,  or  shipment  by 
express  from  one  point  in  the  United  States  to  another :  Provided,  That 
nothing  herein  contained  shall  be  construed  to  require  the  carrier  collect- 
ing such  tax  to  list  separately  in  any  bill  of  lading,  freight  receipt,  or  other 


The  War  Tax  Act  21 

similar  document,  the  amount  of  the  tax  herein  levied,  if  the  total  amount 
of  the  freight  and  tax  be  therein  stated;  (c)  a  tax  equivalent  to  eight 
per  centum  of  the  amount  paid  for  the  transportation  of  persons  by  rail 
or  water,  or  by  any  form  of  mechanical  motor  power  on  a  regular  estab- 
lished line  when  in  competition  with  carriers  by  rail  or  water,  from  one 
point  in  the  United  States  to  another  or  to  any  point  in  Canada  or  Mexico, 
where  the  ticket  therefor  is  sold  or  issued  in  the  United  States,  not  includ- 
ing the  amount  paid  for  commutation  or  season  tickets  for  trips  less  than 
thirty  miles,  or  for  transportation  the  fare  for  which  does  not  exceed 
35  cents,  and  a  tax  equivalent  to  ten  per  centum  of  the  amount  paid  for 
seats,  berths,  and  staterooms  in  parlor  cars,  sleeping  cars,  or  on  vessels. 
If  a  mileage  book  used  for  such  transportation  or  accommodation  has 
been  purchased  before  this  section  takes  effect,  or  if  cash  fare  be  paid, 
the  tax  imposed  by  this  section  shall  be  collected  from  the  person  pre- 
senting the  mileage  book,  or  paying  the  cash  fare,  by  the  conductor  or 
other  agent,  when  presented  for  such  transportation  or  accommodation, 
and  the  amount  so  collected  shall  be  paid  to  the  United  States  in  such 
manner  and  at  such  times  as  the  Commissioner  of  Internal  Revenue,  with 
the  approval  of  the  Secretary  of  the  Treasury,  may  prescribe ;  if  a  ticket 
(other  than  a  mileage  book)  is  bought  and  partially  used  before  this 
section  goes  into  effect  it  shall  not  be  taxed,  but  if  bought  but  not  so 
used  before  this  section  takes  eft"ect,  it  shall  not  be  valid  for  passage 
until  the  tax  has  been  paid  and  such  payment  evidenced  on  the  ticket  in 
such  manner  as  the  Commissioner  of  Internal  Revenue,  with  the  approval 
of  the  Secretary  of  the  Treasury,  may  by  regulation  prescribe;  (d)  a  tax 
equivalent  to  five  per  centum  of  the  amount  paid  for  the  transportation 
of  oil  by  pipe  line;  (e)  a  tax  of  5  cents  upon  each  telegraph,  telephone,  or 
radio,  dispatch,  message,  or  conversation,  which  originates  within  the 
United  States,  and  for  the  transmission  of  which  a  charge  of  15  cents  or 
more  is  imposed :  Provided,  That  only  one  payment  of  such  tax  shall  be 
required,  notwithstanding  the  lines  or  stations  of  one  or  more  persons, 
corporations,  partnerships,  or  associations  shall  be  used  for  the  trans- 
mission of  such  dispatch,  message,  or  conversation. 

Sec.  501.  That  the  taxes  imposed  by  section  five  hundred  shall  be 
paid  by  the  person,  corporation,  partnership,  or  association  paying  for 
the  services  or  facilities  rendered. 

In  case  such  carrier  does  not,  because  of  its  ownership  of  the  com- 
modity transported,  or  for  any  other  reason,  receive  the  amount  which 
as  a  carrier  it  would  otherwise  charge,  such  carrier  shall  pay  a  tax  equiv- 
alent to  the  tax  which  would  be  imposed  upon  the  transportation  of  such 
commodity  if  the  carrier  received  payment  for  such  transportation:  Pro- 
vided, That  in  case  of  a  carrier  which  on  May  first,  nineteen  hundred 
and  seventeen,  had  no  rates  or  tariffs  on  file  with  the  proper  Federal  or 
State  authority,  the  tax  shall  be  computed  on  the  basis  of  the  rates  or 
tariff's  of  other  carriers  for  like  services  as  ascertained  and  determined 


22  Supplement  to  Important  Federal  Laws 

by  the  Commissioner  of.  Internal  Revenue:  Provided  further,  That 
nothing  in  this  or  the  preceding  section  shall  be  construed  as  imposing  a 
tax  (a)  upon  the  transportation  of  any  commodity  which  is  necessary 
for  the  use  of  the  carrier  in  the  conduct  of  its  business  as  such  and  is 
intended  to  be  so  used  or  has  been  so  used ;  or  (b)  upon  the  transpor- 
tation of  company  material  transported  by  one  carrier,  which  constitutes 
a  part  of  a  railroad  system,  for  another  carrier  which  is  also  a  part  of 
the  same  system. 

Sec.  502.  That  no  tax  shall  be  imposed  under  section  five  hundred 
upon  any  payment  received  for  services  rendered  to  the  United  States, 
or  any  State,  Territory,  or  the  District  of  Columbia.  The  right  to  exemp- 
tion under  this  section  shall  be  evidenced  in  such  manner  as  the  Commis- 
sioner of  Internal  Revenue,  with  the  approval  of  the  Secretary  of  the 
Treasury,  may  by  regulation  prescribe. 

Sec.  503.  That  each  person,  corporation,  partnership,  or  association 
receiving  any  payments  referred  to  in  section  five  hundred  shall  collect 
the  amount  of  the  tax,  if  any,  imposed  by  such  section  from  the  person, 
corporation,  partnership,  or  association  making  such  payments,  and  shall 
make  monthly  returns  under  oath,  in  duplicate,  and  pay  the  taxes  so 
collected  and  the  taxes  imposed  upon  it  under  paragraph  two  of  section 
five  hundred  and  one  to  the  collector  or  internal  revenue  of  the  district 
in  which  the  principal  office  or  place  of  business  is  located.  Such  returns 
shall  contain  such  information,  and  be  made  in  such  manner,  as  the  Com- 
missioner of  Internal  Revenue,  with  the  approval  of  the  Secretary  of  the 
Treasury,  may  by  regulation  prescribe. 

Sec.  504.  That  from  and  after  the  first  day  of  November,  nineteen 
hundred  and  seventeen,  there  shall  be  levied,  assessed,  collected,  and  paid 
the  following  taxes  on  the  issuance  of  insurance  policies : 

(a)  Life  insurance:  A  tax  equivalent  to  8  cents  on  each  $100  or 
fractional  part  thereof  of  the  amount  for  which  any  life  is  insured  under 
any  policv  of  insurance,  or  other  instrument,  by  whatever  name  the  same 
is  called  :  Provided,  That  on  all  policies  for  life  insurance  only  by  which 
a  life  is  insured  not  in  excess  of  $500,  issued  on  the  industrial  or  weekly 
payment  plan  of  insurance,  the  tax  shall  be  forty  per  centum  of  the 
amount  of  the  first  weekly  premium :  Provided  further.  That  policies  of 
reinsurance  shall  be  exempt  from  the  tax  imposed  by  this  subdivision ; 

(b)  Marine,  inland,  and  fire  insurance:  A  tax  equivalent  to  1  cent 
on  each  dollar  or  fractional  part  thereof  of  the  premium  charged  under 
each  policy  of  insurance  or  other  instrument  by  whatever  name  the  same 
is  called  whereby  insurance  is  made  or  renewed  upon  property  of  any 
description  (including  rents  or  profits),  whether  against  peril  by  sea  or 
inland  waters,  or  by  fire  or  lightning,  or  other  peril :  Provided,  That 
policies  of  reinsurance  shall  be  exempt  from  the  tax  imposed  by  this 
subdivision ; 

(c)  Casualty  insurance :     A  tax  equivalent  to  1  cent  on  each  dollar 


The  War  Tax  Act  23 

or  fractional  part  thereof  of  the  premium  charged  under  each  policy  ot 
insurance  or  obligation  of  the  nature  of  indemnity  for  loss,  damage,  or 
liability  (except  bonds  taxable  under  subdivision  two  of  schedule  A  of 
Title  VIII)  issued  or  executed  or  renewed  by  any  person,  corporation, 
partnership,  or  association,  transacting  the  business  of  employer's  lia- 
bility, workmen's  compensation,  accident,  health,  tornado,  plate  glass, 
steam  boiler,  elevator,  burglary,  automatic  sprinkler,  automobile,  or  other 
branch  of  insurance  (except  life  insurance,  and  insurance  described  and 
taxed  in  the  preceding  subdivision)  :  Provided,  That  policies  of  rein- 
surance shall  be  exempt  from  the  tax  imposed  by  this  subdivision ; 

(d)  Policies  issued  by  any  person,  corporation,  partnership,  or  asso- 
ciation, whose  income  is  exempt  from  taxation  under  Title  I  of  the  Act 
entitled  "An  Act  to  increase  the  revenue,  and  for  other  purposes,"  ap- 
proved September  eighth,  nineteen  hundred  and  sixteen,  shall  be  exempt 
from  the  taxes  imposed  by  this  section. 

Sec.  505.  That  every  person,  corporation,  partnership,  or  associa- 
tion, issuing  policies  of  insurance  upon  the  issuance  of  which  a  tax  is 
imposed  by  section  five  hundred  and  four,  shall,  within  the  first  fifteen 
days  of  each  month,  make  a  return  under  oath,  in  duplicate,  and  pay 
such  tax  to  the  collector  of  internal  revenue  of  the  district  in  which  the 
principal  office  or  place  of  business  of  such  person,  corporation,  part- 
nership, or  association  is  located.  Such  returns  shall  contain  such  infor- 
mation and  be  made  in  such  manner  as  the  Commissioner  of  Internal 
Revenue,  with  the  approval  of  the  Secretary  of  the  Treasury,  may  by 
regulation  prescribe. 

Title  VI. — War  Tax  Excise  Taxes. 

Sec.  600.     That  there  shall  be  levied,  assessed,  collected,  and  paid — 

(a)  Upon  all  automobiles,  automobile  trucks,  automobile  wagons, 
and  motorcycles,  sold  by  the  manufacturer,  producer,  or  importer,  a  tax 
equivalent  to  three  per  centum  of  the  price  for  which  so  sold ;  and 

(b)  Upon  all  piano  players,  graphophones,  phonographs,  talking 
machines,  and  records  used  in  connection  with  any  musical  instrument, 
piano  player,  graphophone,  phonograph,  or  talking  machine,  sold  by  the 
manufacturer,  producer,  or  importer,  a  tax  equivalent  to  three  per  centum 
of  the  price  for  which  so  sold ;  and 

(c)  Upon  all  moving-picture  films  (which  have  not  been  exposed, 
sold  by  the  manufacturer  or  importer,  a  tax  equivalent  to  one-fourth  of 
1  cent  per  linear  foot ;  and 

(d)  Upon  all  positive  moving-picture  films  (containing  a  picture 
ready  for  projection)  sold  or  leased  by  the  manufacturer,  producer,  or 
importer,  a  tax  equivalent  to  one-half  of  1  cent  per  linear  foot;  and 

(e)  Upon  any  article  commonly  or  commercially  known  as  jewelry, 
whether  real  or  imitation,  sold  by  the  manufacturer,  producer,  or  im- 
porter thereof,  a  tax  equivalent  to  three  per  centum  of  the  price  for  which 
so  sold;  and 


24  Supplement  to  Important  Federal  Laws 

(f)  Upon  all  tennis  rackets,  golf  clubs,  baseball  bats,  lacrosse  sticks, 
balls  of  all  kinds,  including  baseballs,  foot  balls,  tennis,  golf,  lacrosse, 
billiard  and  pool  balls,  fishing  rods  and  reels,  billiard  and  pool  tables,  chess 
and  checker  boards  and  pieces,  dice,  games  and  parts  of  games,  except 
playing  cards  and  children's  toys  and  games,  sold  by  the  manufacturer, 
producer,  or  importer,  a  tax  equivalent  to  three  per  centum  of  the  price 
for  which  so  sold ;  and 

(g)  Upon  all  perfumes,  essences,  extracts,  toilet  waters,  cosmetics, 
petroleum  jellies,  hair  oils,  pomades,  hair  dressings,  hair  restoratives,  hair 
dyes,  tooth  and  mouth  washes,  dentifrices,  tooth  pastes,  aromatic  cachous. 
toilet  soaps  and  powders,  or  any  similar  substance,  article,  or  preparation 
by  whatsoever  name  known  or  distinguished,  upon  all  of  the  above  which 
are  used  or  applied  or  intended  to  be  used  or  applied  for  toilet  purposes, 
and  which  are  sold  by  the  manufacturer,  importer,  or  producer,  a  tax 
equivalent  to  two  per  centum  of  the  price  for  which  so  sold ;  and 

(h)  Upon  all  pills,  tablets,  powders,  tinctures,  troches  or  lozenges, 
sirups,  medicinal  cordials  or  bitters,  anodynes,  tonics,  plasters,  liniments, 
salves,  ointments,  pastes,  drops,  waters  (except  those  taxed  under  section 
three  hundred  and  thirteen  of  this  Act),  essences,  spirits,  oils,  and  all 
medicinal  preparations,  compounds,  or  compositions  whatsoever,  the  man- 
ufacturer or  producer  of  which  claims  to  have  any  private  formula, 
secret,  or  occult  art  for  making  or  preparing  the  same,  or  has  or  claims 
to  have  any  exclusive  right  or  title  to  the  making  or  preparing  the  same, 
or  which  are  prepared,  uttered,  vended,  or  exposed  for  sale  under  any 
letters  patent,  or  trade-mark,  or  which,  if  prepared  by  any  formula,  pub- 
lished or  unpublished,  are  held  out  or  recommended  to  the  public  by  the 
makers,  venders,  or  proprietors  thereof  as  proprietary  medicines  or 
medicinal  proprietary  articles  or  preparations,  or  as  remedies  or  specifics 
for  any  disease,  diseases,  or  affection  whatever  affecting  the  human  or 
animal  body,  and  which  are  sold  by  the  manufacturer,  producer,  or  im- 
porter, a  tax  equivalent  to  two  per  centum  of  the  price  for  which  so 
sold;  and 

(i)  Upon  all  chewing  gum  or  substitute  therefor  sold  by  the  manu- 
facturer, producer,  or  importer,  a  tax  equivalent  to  two  per  centum  of  the 
price  for  which  so  sold ;  and 

(j)  Upon  all  cameras  sold  by  the  manufacturer,  producer,  or  im- 
porter, a  tax  equivalent  to  three  per  centum  of  the  price  for  which  so  sold. 

Sec.  601.  That  each  manufacturer,  producer,  or  importer  of  any  of 
the  articles  enumerated  in  section  six  hundred  shall  make  monthly  returns 
under  oath  in  duplicate  and  pay  the  taxes  imposed  on  such  articles  by 
this  title  to  the  collector  of  internal  revenue  for  the  district  in  which  is 
located  the  principal  place  of  business.  Such  returns  shall  contain  such 
information  and  be  made  at  such  times  and  in  such  manner  as  the  Com- 
missioner of  Internal  Revenue,  with  the  approval  of  the  Secretary  of  the 
Treasury,  may  by  regulations  prescribe. 


The  War  Tax  Act  '  25 

Sec.  602.  That  upon  all  articles  enumerated  in  subdivisions  (a), 
(b),  (e),  (f),  (g),  (h),  (i),  or  (j)  of  section  six  hundred,  which  on 
the  day  this  Act  is  passed  are  held  and  intended  for  sale  by  any  person, 
corporation,  partnership,  or  association,  other  than  (1)  a  retailer  who  is 
not  also  a  wholesaler  or  (2)  the  manufacturer,  producer  or  importer 
thereof,  there  shall  be  levied,  assessed,  collected,  and  paid,  a  tax  equiv- 
alent to  one-half  the  tax  imposed  by  each  such  subdivision  upon  the  sale 
of  the  articles  therein  enumerated.  This  tax  shall  be  paid  by  the  person, 
corporation,  partnership,  or  association  so  holding  such  articles. 

The  taxes  imposed  by  this  section  shall  be  assessed,  collected,  and 
paid  in  the  same  manner  as  provided  in  section  ten  hundred  and  two  in 
the  case  of  additional  taxes  upon  articles  upon  which  the  tax  imposed  by 
existing  law  has  been  paid. 

Nothing  in  this  section  shall  be  construed  to  impose  a  tax  upon 
articles  sold  and  delivered  prior  to  May  ninth,  nineteen  hundred  and 
seventeen,  where  the  title  is  reserved  in  the  vendor  as  security  for  the 
payment  of  the  purchase  money. 

Sec.  603.  That  on  the  day  this  Act  takes  effect,  and  thereafter  on 
July  first  in  each  year,  and  also  at  the  time  of  the  original  purchase  of  a 
new  boat  by  a  user,  if  on  any  other  date  than  July  first,  there  shall  be 
levied,  assessed,  collected,  and  paid,  upon  the  use  of  yachts,  pleasure 
boats,  power  boats,  and  sailing  boats,  of  over  five  net  tons,  and  motor 
boats  with  fixed  engines,  not  used  exclusively  for  trade  or  national  de- 
fense, or  not  built  according  to  plans  and  specifications  approved  bv  the 
Navy  Department,  an  excise  tax  to  be  based  on  each  yacht  or  boat,  at 
rates  as  follows :  Yachts,  pleasure  boats,  power  boats,  motor  boats  with 
fixed  engines,  and  sailing  boats,  of  over  five  net  tons,  length  not  over  fifty 
feet.  50  cents  for  each  foot,  length  over  fifty  feet  and  not  over  one  hun- 
dred feet,  $1  for  each  foot,  length  over  one  hundred  feet,  $2  for  each 
foot,  motor  boats  of  not  over  five  net  tons  with  fixed  engines,  $5. 

In  determining  the  length  of  such  yachts,  pleasure  boats,  power 
boats,  motor  boats  with  fixed  engines,  and  sailing  boats,  the  measurement 
of  over-all  length  shall  govern. 

In  the  case  of  a  tax  imposed  at  the  time  of  the  original  purchase  of  a 
new  boat  on  any  other  date  than  July  first,  the  amount  to  be  paid  shall 
be  the  same  number  of  twelfths  of  the  amount  of  the  tax  as  the  number 
of  calendar  months,  including  the  month  of  sale,  remaining  prior  to  the 
following  July  first. 

Title  VII. — War  Tax  on  Admissions  and  Dues. 

Sec.  700.  That  from  and  after  the  first  day  of  November,  nineteen 
hvmdred  and  seventeen,  there  shall  be  levied,  assessed,  collected,  and  paid 
(a)  a  tax  of  1  cent  for  each  10  cents  or  fraction  thereof  of  the  amount 
paid  for  admission  to  any  place,  including  admission  by  season  ticket 
or  subscription,  to  be  paid  by  the  person  paying  for   such  admission : 


26  Supplement  to  Important  Federal  Laws 

Provided,  That  the  tax  on  admission  of  children  under  twelve  years  of 
age  where  an  admission  charge  for  such  children  is  made  shall  in  every 
case  be  1  cent;  and  (b)  in  the  case  of  persons  (except  bona  fide  em- 
ployees, municipal  officers  on  official  business,  and  children  under  twelve 
years  of  age)  admitted  free  to  any  place  at  a  time  when  and  under  cir- 
cumstances under  which  an  admission  charge  is  made  to  other  persons  of 
the  same  class,  a  tax  of  1  cent  for  each  10  cents  or  fraction  thereof  of  the 
price  so  charged  to  such  other  persons  for  the  same  or  similar  accommo- 
dations, to  be  paid  by  the  persons  so  admitted;  and  (c)  a  tax  of  1  cent 
for  each  10  cents  or  fraction  thereof  paid  for  admission  to  any  public 
performance  for  profit  at  any  cabaret  or  other  similar  entertainment  to 
which  the  charge  for  admission  is  wholly  or  in  part  included  in  the  price 
paid  for  refreshment,  service,  or  merchandise ;  the  amount  paid  for  such 
admission  to  be  computed  under  rules  prescribed  by  the  Commissioner  of 
Internal  Revenue,  with  the  approval  of  the  Secretary  of  the  Treasury, 
such  tax  to  be  paid  by  the  person  paying  for  such  refreshment,  service, 
or  merchandise.  In  the  case  of  persons  having  the  permanent  use  of 
boxes  or  seats  in  an  opera  house  or  any  place  of  amusement  or  a  lease  for 
the  use  of  such  box  or  seat  in  such  opera  house  or  place  of  amusement 
there  shall  be  levied,  assessed,  collected,  and  paid  a  tax  equivalent  to 
ten  per  centum  of  the  amount  for  which  a  similar  box  or  seat  is  sold 
for  performance  or  exhibition  at  which  the  box  or  seat  is  used  or  re- 
served by  or  for  the  lessee  or  holder.  These  taxes  shall  not  be  imposed 
in  the  case  of  a  place  the  maximum  charge  for  admission  to  which  is 
5  cents,  or  in  the  case  of  shows,  rides,  and  other  amusements  (the  maxi- 
mum charge  for  admission  to  which  is  10  cents),  within  outdoor  general 
amusement  parks,  or  in  the  case  of  admissions  to  such  parks. 

No  tax  shall  be  levied  under  this  title  in  respect  to  any  admissions 
all  the  proceeds  of  which  inure  exclusively  to  the  benefit  of  religious, 
educational,  or  charitable  institutions,  societies,  or  organizations,  or 
admissions  to  agricultural  fairs  none  of  the  profits  of  which  are  dis- 
tributed to  stockholders  or  members  of  the  association  conducting  the 
same. 

The  term  "admission"  as  used  in  this  title  includes  seats  and  tables, 
reserved  or  otherwise,  and  other  similar  accommodations,  and  the  charges 
made  therefor. 

Sec.  701.  That  from  and  after  the  first  day  of  November,  nineteen 
hundred  and  seventeen,  there  shall  be  levied,  assessed,  collected,  and  paid, 
a  tax  equivalent  to  ten  per  centum  of  any  amount  paid  as  dues  or  mem- 
bership fees  (including  initiation  fees),  to  any  social,  athletic,  or  sporting 
club  or  organization,  where  such  dues  or  fees  are  in  excess  of  $12  per 
year ;  such  taxes  to  be  paid  by  the  person  paying  such  dues  or  fees : 
Provided,  That  there  shall  be  exempted  from  the  provisions  of  this  sec- 
tion all  amounts  paid  as  dues  or  fees  to  a  fraternal  beneficiary  society, 
order,  association,  operating  under  the  lodge  system  or  for  the  exclusive 


The  War  Tax  Act  27 

benefit  of  the  members  of  a  fraternity  itself  operating  under  the  lodge 
system,  and  providing  for  the  payment  of  life,  sick,  accident,  or  other 
benefits  to  the  members  of  such  society,  order,  or  association  or  their 
dependents. 

Sec.  702.  That  every  person,  corporation,  partnership,  or  associa- 
tion (a)  receiving  any  payments  for  such  admission,  dues,  or  fees,  shall 
collect  the  amount  of  the  tax  imposed  by  section  seven  hundred  or  seven 
hundred  and  one  from  the  person  making  such  payments,  or  (b)  admit- 
ting any  person  free  to  any  place  for  admission  to  which  a  charge  is 
made  shall  collect  the  amount  of  the  tax  imposed  by  section  seven  hun- 
dred from  the  person  so  admitted,  and  (c)  in  either  case  shall  make 
returns  and  payments  of  the  amounts  so  collected,  at  the  same  time  and 
in  the  same  manner  as  provided  in  section  five  hundred  and  three  of 
this  Act. 

Title  VIIL — War  Stamp  Taxes. 

Sec.  800.  That  on  and  after  the  first  day  of  December,  nineteen 
hundred  and  seventeen,  there  shall  be  levied,  collected,  and  paid,  for  and 
in  respect  to  the  several  bonds,  debentures,  or  certificates  of  stock  and  of 
indebtedness,  and  other  documents,  instruments,  matters,  and  things  men- 
tioned and  described  in  Schedule  A  of  this  title,  or  for  or  in  respect 
of  the  vellum,  parchment,  or  paper  upon  which  such  instruments,  matters, 
or  things,  or  any  of  them,  are  written  or  printed,  by  any  person,  corpo- 
ration, partnership,  or  association  who  makes,  signs,  issues,  sells,  removes, 
consigns,  or  ships  the  same,  or  for  whose  use  or  benefit  the  same  are 
made,  signed,  issued,  sold,  removed,  consigned,  or  shipped,  the  several 
taxes  specified  in  such  schedule. 

Sec.  801.  That  there  shall  not  be  taxed  under  this  title  any  bond, 
note,  or  other  instrument  issued  by  the  United  States,  or  by  any  foreign 
Government,  or  by  any  State,  Territory,  or  the  District  of  Columbia,  or 
local  subdivision  thereof,  or  municipal  or  other  corporation  exercising 
the  taxing  power,  when  issued  in  the  exercise  of  a  strictly  governmental, 
taxing,  or  municipal  function ;  or  stocks  and  bonds  issued  by  co-operative 
building  and  loan  associations  which  are  organized  and  operated  exclu- 
sively for  the  benefit  of  their  members  and  make  loans  only  to  their  share- 
holders, or  by  mutual  ditch  or  irrigating  companies. 

Sec.  802.     That  whoever — 

(a)  Makes,  signs,  issues,  or  accepts,  or  causes  to  be  made,  signed, 
issued,  or  accepted,  any  instrument,  document,  or  paper  of  any  kind  or 
description  whatsoever  without  the  full  amount  of  tax  thereon  being 
duly  paid ; 

(b)  Consigns  or  ships,  or  causes  to  be  consigned  or  shipped,  by  par- 
cel post  any  parcel,  package,  or  article  without  the  full  amount  of  tax' 
being  duly  paid ; 

(c)  Manufactures  or  imports  and  sells,  or  offers  for  sale,  or  causes 


28  Supplement  to  Important  Federal  Laws 

to  be  manufactured  or  imported  and  sold,  or  offered  for  sale,  any  playing 
cards,  package,  or  other  article  without  the  full  amount  of  tax  being 
duly  paid ; 

(d)  Makes  use  of  an  adhesive  stamp  to  denote  any  tax  imposed  bv 
this  title  without  canceling  or  obliterating  such  stamp  as  prescribed  in 
section  eight  hundred  and  four ; 

Is  guilty  of  a  misdemeanor  and  upon  conviction  thereof  shall  pay 
a  fine  of  not  more  than  $100  for  each  offense. 

Sec.  803.     That  whoever — 

Fraudulently  cuts,  tears,  or  removes  from  any  vellum,  parchment, 
paper,  instrument,  writing,  package,  or  article,  upon  which  any  tax  is 
imposed  by  this  title,  any  adhesive  stamp  or  the  impression  of  any  stamp, 
die,  plate,  or  other  article  provided,  made,  or  used  in  pursuance  of  this 
title;  (b)  Fraudulently  uses,  joins,  fixes,  or  places  to,  with,  or  upon  any 
vellum,  parchment,  paper,  instrument,  writing,  package,  or  article,  upon 
which  any  tax  is  imposed  by  this  title,  (1)  any  adhesive  stamp,  or  the 
impression  of  any  stamp,  die,  plate,  or  other  article,  which  has  been  cut, 
torn,  or  removed  from  any  other  vellum,  parchment,  paper,  instrument, 
writing,  package,  or  article,  upon  which  any  tax  is  imposed  by  this  title 
or  (2)  any  adhesive  stamp  or  the  impression  of  any  stamp,  die,  plate,  or 
other  article  of  insufficient  value;  or  (3)  any  forged  or  counterfeit  stamp, 
or  the  impression  of  any  forged  or  counterfeited  stamp,  die,  plate,  or 
other  article ; 

(c)  Willfully  removes,  or  alters  the  cancellation,  or  defacing  marks 
of,  or  otherwise  prepares,  any  adhesive  stamp,  with  intent  to  use,  or  cause 
the  same  to  be  used,  after  it  has  been  already  used,  or  knowingly  or 
willfully  buys,  sells,  offers  for  sale,  or  gives  away,  any  such  washed  or 
restored  stamp  to  any  person  for  use,  or  knowingly  uses  the  same ; 

(d)  Knowingly  and  without  lawful  excuse  (the  burden  of  proof  of 
such  excuse  being  on  the  accused)  has  in  possession  any  washed,  restored, 
or  altered  stamp,  which  has  been  removed  from  any  vellum,  parchment, 
paper,  instrument,  writing,  package,  or  article ; 

Is  guilty  of  a  misdemeanor  and  upon  conviction  shall  be  punished 
by  a  fine  of  not  more  than  $1,000,  or  by  imprisonment  for  not  more  than 
five  years,  or  both,  in  the  discretion  of  the  court,  and  any  such  reused, 
canceled,  or  counterfeit  stamp  and  the  vellum,  parchment,  document, 
paper,  package,  or  article  upon  which  it  is  placed  or  impressed  shall  be 
forfeited  to  the  United  States. 

Sec.  804.  That  whenever  an  adhesive  stamp  is  used  for  denoting 
any  tax  imposed  by  this  title,  except  as  hereinafter  provided,  the  person, 
corporation,  partnership,  or  association,  using  or  affixing  the  same  shall 
write  or  stamp,  or  cause  to  be  written  or  stamped  thereupon  the  initials 
of  his  or  its  name  and  the  date  upon  which  the  same  is  attached  or  used, 
so  that  the  same  may  not  again  be  used :     Provided,  That  the  Commis- 


The  War  Tax  Act  29 

sioner  of   Internal   Revenue  may  prescribe  such  other  method   for  the 
cancellation  of  such  stamps  as  he  may  deem  expedient. 

Sec.  805.  (a)  That  the  Commissioner  of  Internal  Revenue  shall 
cause  to  be  prepared  and  distributed  for  the  payment  of  the  taxes  pre- 
scribed in  this  title  suitable  stamps  denoting  the  tax  on  the  document, 
articles,  or  thing  to  which  the  same  may  be  affixed,  and  shall  prescribe 
such  method  for  the  affixing  of  said  stamps  in  substitution  for  or  in 
addition  to  the  method  provided  in  this  title,  as  he  may  deem  expedient. 

(b)  The  Commissioner  of  Internal  Revenue,  with  the  approval  of 
the  Secretary  of  the  Treasury,  is  authorized  to  procure  any  of  the  stamps 
provided  for  in  this  title  by  contract  whenever  such  stamps  can  not  be 
speedily  prepared  by  the  Bureau  of  Engraving  and  Printing;  but  this 
authority  shall  expire  on  the  first  day  of  January,  nineteen  hundred  and 
eighteen,  except  as  to  imprinted  stamps  furnished  under  contract,  author- 
ized by  the  Commissioner  of  Internal  Revenue. 

(c)  All  internal-revenue  laws  relating  to  the  assessment  and  collec- 
tion of  taxes  are  hereby  extended  to  and  made  a  part  of  this  title,  so  far 
as  applicable,  for  the  purpose  of  collecting  stamp  taxes  omitted  through 
mistake  or  fraud  from  any  instrument,  document,  paper,  writing,  parcel, 
package,  or  article  named  herein. 

Sec.  806.  That  the  Commissioner  of  Internal  Revenue  shall  furnish 
to  the  Postmaster  General  without  prepayment  a  suitable  quantity  of 
adhesive  stamps  to  be  distributed  to  and  kept  on  sale  by  the  various  post- 
masters in  the  United  States.  The  Postmaster  General  may  require  each 
such  postmaster  to  give  additional  or  increased  bond  as  postmaster  for 
the  value  of  the  stamps  so  furnished,  and  each  such  postmaster  shall 
deposit  the  receipts  from  the  sale  of  such  stamps  to  the  credit  of  and 
render  accounts  to  the  Postmaster  General  at  such  times  and  in  such 
form  as  he  mav  by  regulations  prescribe.  The  Postmaster  General  shall 
at  least  once  monthly  transfer  all  collections  from  this  source  to  the 
Treasury  as  internal  revenue  collections. 

Sec.  807.  That  the  collectors  of  the  several  districts  shall  furnish 
without  prepayment  to  any  assistant  treasurer  or  designated  depositary 
of  the  United  'States  located  in  their  respective  collection  districts  a  suit- 
able quantity  of  adhesive  stamps  for  sale.  In  such  cases  the  collector  may 
require  a  bond,  with  sufficient  sureties,  to  an  amount  equal  to  the  value  of 
the  adhesive  stamps  so  furnished,  conditioned  for  the  faithful  return, 
whenever  so  required,  of  all  quantities  or  amounts  undisposed  of,  and 
for  the  payment  monthly  of  all  quantities  or  amounts  sold  or  not  remain- 
ing on  hand.  The  Secretary  of  the  Treasury  may  from  time  to  time  make 
such  regulations  as  he  may  find  necessary  to  insure  the  safe-keeping  or 
prevent  the  illegal  use  of  all  such  adhesive  stamps. 


30  Supplement  to  Important  Federal  Laws 

Schedule  A. — Stamp  Taxes. 

1.  Bonds  of  indebtedness:  Bonds,  debentures,  or  certificates  of  in- 
debtedness issued  on  and  after  the  first  day  of  December,  nineteen  hun- 
dred and  seventeen,  by  any  person,  corporation,  partnership,  or  associa- 
tion, on  each  $100  of  face  value  or  fraction  thereof,  5  cents :  Provided, 
That  every  renewal  of  the  foregoing  shall  be  taxed  as  a  new  issue:  Pro- 
vided further,  That  when  a  bond  conditioned  for  the  repayment  or  pay- 
ment of  money  is  given  in  a  penal  sum  greater  than  the  debt  secured,  the 
tax  shall  be  based  upon  the  amount  secured. 

2.  Bonds,  indemnity  and  surety :  Bonds  for  indemnifying  any  per- 
son, corporation,  partnership,  or  corporation  who  shall  have  become 
bound  or  engaged  as  surety,  and  all  bonds  for  the  due  execution  or  per- 
formance of  any  contract,  obligation,  or  requirement,  or  the  duties  of  any 
office  or  position,  and  to  account  for  money  received  by  virtue  thereof, 
and  all  other  bonds  of  any  description,  except  such  as  may  be  required 
in  legal  proceedings,  not  otherwise  provided  for  in  this  schedule,  50  cents  : 
Provided,  That  where  a  premium  is  charged  for  the  execution  of  such 
bond  the  tax  shall  be  paid  at  the  rate  of  one  per  centum  on  each  dollar  or 
fractional  part  thereof  of  the  premium  charged:  Provided  further.  That 
policies  of  reinsurance  shall  be  exempt  from  the  tax  imposed  by  this 
subdivision. 

3.  Capital  stock,  issue :  On  each  original  issue,  whether  on  organi- 
zation or  reorganization,  of  certificates  of  stock  by  any  association,  com- 
pany, or  corporation,  on  each  $100  of  face  value  or  fraction  thereof,  5 
cents:  Provided,  That  where  capital  stock  is  issued  without  face  value, 
the  tax  shall  be  5  cents  per  share,  unless  the  actual  value  is  in  excess  of 
$100  per  share,  in  which  case  the  tax  shall  be  5  cents  on  each  $100  of 
actual  value  or  fraction  thereof. 

The  stamps  representing  the  tax  imposed  by  this  subdivision  shall 
be  attached  to  the  stock  books  and  not  to  the  certificates  issued. 

4.  Capital  stock,  sales  or  transfers :  On  all  sales,  or  agreements 
to  sell,  or  memoranda  of  sales  or  deliveries  of,  or  transfers  of  legal 
title  to  shares  or  certificates  of  stock  in  any  association,  company,  or 
corporation,  whether  made  upon  or  shown  by  the  books  of  the  association, 
company,  or  corporation,  or  by  any  assignment  in  blank,  or  bv  any 
delivery,  or  by  any  paper  or  agreement  or  memorandum  or  other  evidence 
of  transfer  or  sale,  whether  entitling  the  holder  in  any  manner  to  the 
benefit  of  such  stock  or  not,  on  each  $100  of  face  value  or  fraction  there- 
of, 2  cents,  and  where  such  shares  of  stock  are  without  par  value,  the 
tax  shall  be  2  cents  on  the  transfer  or  sale  or  agreement  to  sell  on  each 
share,  unless  the  actual  value  thereof  is  in  excess  of  $100  per  share,  in 
which  case  the  tax  shall  be  2  cents  on  each  $100  of  actual  value  or  frac- 
tion thereof :  Provided,  That  it  is  not  intended  by  this  title  to  impose 
a  tax  upon  an  agreement  evidencing  a  deposit  of  stock  certificates  as  col- 


The  War  Tax  Act  31 

lateral  security  for  money  loaned  thereon,  which  stock  certificates  are 
not  actually  sold,  nor  upon  such  stock  certificates  so  deposited :  Provided 
further.  That  the  tax  shall  not  be  imposed  upon  deliveries  or  transfers 
to  a  broker  for  sale,  nor  upon  deliveries  or  transfers  by  a  broker  to  a  cus- 
tomer for  whom  and  upon  whose  order  he  has  purchased  same,  but  such 
deliveries  or  transfers  shall  be  accompanied  by  a  certificate  setting  forth 
the  facts :  Provided  further,  That  in  case  of  sale  where  the  evidence  of 
transfer  is  shown  only  by  the  books  of  the  company  the  stamp  shall  be 
placed  upon  such  books;  and  where  the  change  of  ownership  is  by  trans- 
fer of  the  certificate  the  stamp  shall  be  placed  upon  the  certificate ;  and 
in  cases  of  an  agreement  to  sell  or  where  the  transfer  is  by  delivery  of 
the  certificate  assigned  in  blank  there  shall  be  made  and  delivered  by  the 
seller  to  the  buyer  a  bill  or  memorandum  of  such  sale,  to  which  the 
stamp  shall  be  affixed ;  and  every  bill  or  memorandum  of  sale  or  agree- 
ment to  sell  before  mentioned  shall  show  the  date  thereof,  the  name  of 
the  seller,  the  amount  of  the  sale,  and  the  matter  or  thing  to  which  it 
refers.  Any  person  or  persons  liable  to  pay  the  tax  as  herein  provided, 
or  anyone  who  acts  in  the  matter  as  agent  or  broker  for  such  person  or 
persons  who  shall  make  any  such  sale,  or  who  shall  in  pursuance  of  any 
such  sale  deliver  any  stock  or  evidence  of  the  sale  of  any  stock  or 
bill  or  memorandum  thereof,  as  herein  required,  without  having  tne 
proper  stamps  affixed  thereto  with  intent  to  evade  the  foregoing  pro- 
visions shall  be  deemed  guilty  of  a  misdemeanor,  and  upon  conviction 
thereof  shall  pay  a  fine  of  not  exceeding  $1,000,  or  be  imprisoned  not 
more  than  six  months  or  both, .at  the  discretion  of  the  court. 

5.  Produce,  sales  of,  on  exchange :  Upon  each  sale,  agreement 
of  sale,  or  agreement  to  sell,  including  so-called  transferred  or  scratch 
sales,  any  products  or  merchandise  at  any  exchange,  or  board  of  trade, 
or  other  similar  place,  for  future  delivery,  for  each  $100  in  value  of  the 
merchandise  covered  by  said  sale  or  agreement  of  sale  or  agreement  to  sell. 
2  cents,  and  for  each  additional  $100  or  fractional  part  thereof  in  excess  of 
$100,  2  cents :  Provided,  That  on  every  sale  or  agreement  of  sale  or  agree- 
ment to  sell  as  aforesaid  there  shall  be  made  and  delivered  by  the  seller  to 
the  buyer  a  bill,  memorandum,  agreement,  or  other  evidence  of  such  sale, 
agreement  of  sale,  or  agreement  to  sell,  to  which  there  shall  be  affixed  a 
lawful  stamp  or  stamps  in  value  ecjual  to  the  amount  of  the  tax  on 
such  sale :  Provided  further,  That  sellers  of  commodities  described 
herein,  having  paid  the  tax  provided  by  this  subdivision,  may  transfer 
such  contracts  to  a  clearing  house  corporation  or  association,  and  such 
transfer  shall  not  be  deemed  to  be  a  sale,  or  agreement  of  sale,  or  an 
agreement  to  sell  within  the  provisions  of  this  Act,  provided  that  such 
transfer  shall  not  vest  any  beneficial  interest  in  such  clearing  house  as- 
sociation but  shall  be  made  for  the  sole  purpose  of  enabling  such  clearing 
house  association  to  adjust  and  balance  the  accounts  of  the  members 
of  said  clearing  house  association  on  their  several  contracts.     And  every 


32  Supplement  to  Important  Federal  Laws 

such  bill,  memorandum,  or  other  evidence  of  sale  or  agreement  to  sell 
shall  show  the  date  thereof,  the  name  of  the  seller,  the  amount  of  the 
sale,  and  the  matter  or  thing  to  which  it  refers  ;  and  any  person  or  persons 
liable  to  pay  the  tax  as  herein  provided,  or  anyone  who  acts  in  the  matter 
as  agent  or  broker  for  such  person  or  persons,  who  shall  make  any 
such  sale  or  agreement  of  sale,  or  agreement  to  sell,  or  who  shall,  in 
pursuance  of  any  such  sale,  agreement  of  sale,  or  agreement  to  sell, 
deliver  any  such  products  or  merchandise  without  a  bill,  memorandum,  or 
other  evidence  thereof  as  herein  required,  or  who  shall  deliver  such  bill, 
memorandum  or  other  evidence  of  sale,  or  agreement  to  sell,  without 
haying  the  proper  stamps  affixed  thereto,  with  intent  to  evade  the  fore- 
going provisions,  shall  be  deemed  guilty  of  a  misdemeanor,  and  upon 
conviction  thereof  shall  pay  a  fine  of  not  exceeding  $1,000,  or  be  im- 
prisoned not  more  than  six  months,  or  both,  at  the  discretion  of  the  court. 
That  no  bill,  memorandum,  agreement,  or  other  evidence  of  such 
sale,  or  agreement  of  sale,  or  agreement  to  sell,  in  case  of  cash  sales  of 
products  or  merchandise  for  immediate  or  prompt  delivery  which  in  good 
faith  are  actually  intended  to  be  delivered  shall  be  subject  to  this  tax. 

6.  Drafts  or  checks  payable  otherwise  than  at  sight  or  on  demand, 
promissory  notes,  except  bank  notes  issued  for  circulation,  and  for  each 
renewal  of  the  same,  for  a  sum  not  exceeding  $100,  2  cents;  and  for 
each  additional  $100  or  fractional  part  thereof,  2  cents. 

7.  Conveyance :  Deed,  instrument,  or  writing,  whereby  any  lands, 
tenements,  or  other  realty  sold  shall  be  granted,  assigned,  transferred, 
or  otherwise  conveyed  to,  or  vested  in,  the  purchaser  or  purchasers, 
or  any  other  person  or  persons,  by  his,  her,  or  their  direction,  when 
the  consideration  or  value  of  the  interest  or  property  conveyed,  exclusive 
of  the  value  of  any  lien  or  encumbrance  remaining  thereon  at  the  time  of 
sale,  exceeds  $100  and  does  not  exceed  $500,  50  cents;  and  for  each 
additional  $500  or  fractional  part  thereof,  50  cents:  Provided.  That 
nothing  contained  in  this  paragraph  shall  be  so  construed  as  to  impose 
a   tax   upon   any   instrument   or   writing  given   to   secure   a    debt. 

8.  Entry  of  any  goods,  wares,  or  merchandise  at  any  custom- 
house, either  for  consumption  or  warehousing,  not  exceeding  $100  in 
value,  25  cents  ;  exceeding  $100  and  not  exceeding  $500  in  value,  50  cents ; 
exceeding  $500  in  value,  $1. 

9.  Entry  for  the  withdrawal  of  any  goods  or  merchandise  from 
customs  bonded  warehouse,  50  cents. 

10.  Passage  ticket,  one  way  or  round  trip,  for  each  passenger,  sold  or 
issued  in  the  United  States  for  passage  by  any  vessel  to  a  port  or  place 
not  in  the  United  States,  Canada,  or  ]\Iexico,  if  costing  not  exceeding 
$30,  $1 ;  costing  more  than  $30  and  not  exceeding  $60,  $3 ;  costing 
more  than  $60,  $5:  Provided,  That  such  passage  tickets,  costing  $10 
or  less,  shall  be  exempt  from  taxation. 

11.  Proxy  for  voting  at  any  election  for  officers,  or  meeting  for 


The  War  Tax  Act  33 

the  transaction  of  business,  of  any  incorporated  company  or  association, 
except  religious,  educational,  charitable,  fraternal,  or  literary  societies, 
or  public  cemeteries,   10  cents. 

12.  Power  of  attorney  granting  authority  to  do  or  perform  some 
act  for  or  in  behalf  of  the  grantor,  which  authority  is  not  otherwise 
vested  in  the  grantee,  25  cents:  Provided,  That  no  stamps  shall  be 
required  upon  any  papers  necessary  to  be  used  for  the  collection  of  claims 
from  the  United  States  or  from  any  State  for  pensions,  back  pay,  bounty, 
or  for  property  lost  in  the  military  or  naval  service  or  upon  powers  of 
attorney  required  in  bankruptcy  cases. 

13.  Playing  cards:  Upon  every  pack  of  playing  cards  containing 
not  more  than  fifty-four  cards,  manufactured  or  imported,  and  sold, 
or  removed  for  consumption  or  sale,  after  the  passage  of  this  Act,  a 
tax  of  5  cents  per  pack  in  addition  to  the  tax  imposed  under  existing 

law. 

14.  Parcel-post  packages:  Upon  every  parcel  or  package  trans- 
ported from  one  point  in  the  United  States  to  another  by  parcel  post 
on  which  the  postage  amounts  to  25  cents  or  more,  a  tax  of  1  cent  for 
each  25  cents  or  fractional  part  thereof  charged  for  such  transportation, 
to  be  paid  by  the  consignor. 

No  such  parcel  or  package  shall  be  transported  until  a  stamp  or 
stamps  representing  the  tax  due  shall  have  been  affixed  thereto. 

Sec.  900.  That  in  addition  to  the  tax  imposed  by  section  two 
hundred  and  one  of  the  Act  entitled  "An  Act  to  increase  the  revenue, 
and  for  other  purposes,"  approved  September  eighth,  nineteen  hundred 
and  sixteen,  as  amended — 

(a)  A  tax  equal  to  the  following  percentages  of  its  value  is  hereby 
imposed  upon  the  transfer  of  each  net  estate  of  every  decedent  dying 
after  the  passage  of  this  Act,  the  transfer  of  which  is  taxable  under  such 
section  (the  value  of  such  net  estate  to  be  determined  as  provided  in 
Title  II  of  such  Act  of  September  eighth,   nineteen  hundred  and  sixteen)  : 

One-half  of  one  per  centum  of  the  amount  of  such  net  estate  not 
in  excess  of  $50,000 ; 

One  per  centum  of  the  amount  by  which  such  net  estate  exceeds 
$50,000  and  does  not  exceed  $150,000; 

One  and  one-half  per  centum  of  the  amount  by  which  such  net 
estate  exceeds  $150,000  and  does  not  exceed  $250,000; 

Two  per  centum  of  the  amount  by  which  such  net  estate  exceeds 
$250,000  and  does  not  exceed  $450,000 ; 

Two  and  one-half  per  centum  of  the  amount  by  which  such  net  estate 
exceeds  $450,000  and  does  not  exceed  $1,000,000; 

Three  per  centum  of  the  amount  by  which  such  net  estate  exceeds 
$1,000,000  and  does  not  exceed  $2,000,000; 

Three  and  one-half  per  centum  of  the  amount  by  which  such  net 
estate  exceeds  $2,000,000  and  does  not  exceed  $3,000,000; 

(3) 


34  Supplement  to  Important  Federal  Laws 

Four  per  centum  of  the  amount  by  which  such  net  estate  exceeds 
$3,000,000  and  does  not  exceed  $4,000,000 ; 

Four  and  one-half  per  centum  of  the  amount  by  which  such  net 
estate  exceeds  $4,000,000  and  does  not  exceed  $5,000,000 ; 

Five  per  centum  of  the  amount  by  which  such  net  estate  exceeds 
$5,000,000  and  does  not  exceed  $8,000,000; 

Seven  per  centum  of  the  amount  bv  which  such  net  estate  exceeds 
$8,000,000  and  does  not  exceed  $10,000,'000;  and 

Ten  per  centum  of  the  amount  by  which  such  net  estate  exceeds 
$10,000,000. 

Sec.  901.  That  the  tax  imposed  by  this  title  shall  not  apply  to  the 
transfer  of  the  net  estate  of  any  decedent  dying  while  serving  in  the 
military  or  naval  forces  of  the  United  States,  during  the  continuance  of 
the  war  in  which  the  United  States  is  now  engaged,  or  if  death  results 
from  injuries  received  or  disease  contracted  in  such  service  within  one 
year  after  the  termination  of  such  war.  For  the  purposes  of  this  section 
the  termination  of  the  war  shall  be  evidenced  by  the  proclamation  of  the 
President. 

Title  X. — Administrative  Provisions. 

Sec.  1000.  That  there  shall  be  levied,  collected,  and  paid  in  the 
United  States,  upon  articles  coming  into  the  United  States  from  the 
West  Indian  Islands  acquired  from  Denmark,  a  tax  equal  to  the  internal- 
revenue  tax  imposed  in  the  United  States  upon  like  articles  of  domestic 
manufacture;  such  articles  shipped  from  said  islands  to  the  United  States 
shall  be  exempt  from  the  payment  of  any  tax  imposed  by  the  internal- 
revenue  laws  of  said  islands :  Provided,  That  there  shall  be  levied, 
collected,  and  paid  in  said  islands  upon  articles  imported  from  the  United 
States,  a  tax  ecjual  to  the  internal  revenue  tax  imposed  in  said  islands 
upon  like  articles  there  manufactured;  and  such  article  going  into  said 
islands  from  the  United  States  shall  be  exempt  from  payment  of  any 
tax  imposed  by  the  internal-revenue  laws  of  the  United  States. 

Sec.  1001.  That  all  administrative,  special,  or  stamp  provisions  of 
law,  including  the  law  relating  to  the  assessment  of  taxes,  so  far  as 
applicable,  are  hereby  extended  to  and  made  a  part  of  this  Act,  and 
every  person,  corporation,  partnership,  or  association  liable  to  any  tax 
imposed  by  this  Act,  or  for  the  collection  thereof,  shall  keep  such 
records  and  render,  under  oath,  such  statements  and  returns,  and  shall 
comply  with  such  regulations  as  the  Commissioner  of  Internal  Revenue, 
with  the  approval  of  the  Secretary  of  the  Treasury,  may  from  time  to 
time  prescribe. 

Sec.  1002.  That  where  additional  taxes  are  imposed  by  this  Act 
upon  articles  or  commodities,  upon  which  the  tax  imposed  by  existing 
law  has  been  paid,  the  person,  corporation,  partnership,  or  association 
required  by  this  Act  to  pay  the  tax   shall,   within  thirty  days  after  its 


The  War  Tax  Act  35 

passage,  make  return  under  oath  in  such  form  and  under  such  regu- 
lations as  the  Commissioner  of  Internal  Revenue  with  the  approval 
of  the  Secretary  of  the  Treasury  shall  prescribe.  Payment  of  the  tax 
shown  to  be  due  may  be  extended  to  a  date  not  exceeding  seven  months 
from  the  passage  of  this  Act,  upon  the  filing  of  a  bond  for  payment 
in  such  form  and  amount  and  with  such  sureties  as  the  Commissioner 
of  Internal  Revenue,  with  the  approval  of  the  Secretary  of  the  Treasury, 
may  prescribe. 

Sec.  1003.  That  in  all  cases  where  the  method  of  collecting  the 
tax  imposed  by  this  Act  is  not  specifically  provided,  the  tax  shall  be 
collected  in  such  manner  as  the  Commissioner  of  Internal  Revenue 
with  the  approval  of  the  Secretary  of  the  Treasury  may  prescribe. 
All  administrative  and  penalty  provisions  of  Title  VIII  of  this  Act, 
in  so  far  as  applicable,  shall  apply  to  the  collection  of  any  tax  which 
the  Commissioner  of  Internal  Revenue  determines  or  prescribes  shall 
be  paid  by  stamp. 

Sec.  1004.  That  whoever  fails  to  make  any  return  required  by 
this  Act  or  the  regulations  made  under  authority  thereof  within  the 
time  prescribed  or  who  makes  any  false  or  fraudulent  return,  and 
whoever  evades  or  attempts  to  evade  any  tax  imposed  by  this  Act 
or  fails  to  collect  or  truly  to  account  for  and  pay  over  any  such  tax, 
shall  be  subject  to  a  penalty  of  not  more  than  $1,000,  or  to  imprison- 
ment for  not  more  than  one  year,  or  both,  at  the  discretion  oi  tne 
court,  and  in  addition  thereto  a  penalty  of  double  the  tax  evaded,  or 
not  collected,  or  accounted  for  and  paid  over,  to  be  assessed  and 
collected  in  the  same  manner  as  taxes  are  assessed  and  collected,  in  any 
case  in  which  the  punishment  is  not  otherwise  specifically  provided. 

Sec.  1005.  That  the  Commissioner  of  Internal  Revenue,  with  the 
approval  of  the  Secretary  of  the  Treasury,  is  hereby  authorized  to 
make  all  needful  rules  and  regulations  for.  the  reinforcement  of  the 
provisions  of  this  Act. 

Sec.  1006.  That  where  the  rate  of  tax  imposed  by  this  Act, 
payable  by  stamps,  is  an  increase  over  previously  existing  rates,  stamps 
on  hand  in  the  collector's  offices  and  in  the  Bureau  of  Internal  Revenue 
may  continue  to  be  used  until  the  supply  on  hand  is  exhausted,  but 
shall  be  sold  and  accounted  for  at  the  rates  provided  by  this  Act, 
and  assessment  shall  be  made  against  manufacturers  and  other  tax- 
payers having  such  stamps  on  hand  on  the  day  this  Act  takes  effect 
for  the  difference  between  the  amount  paid  for  such  stamps  and  the 
tax  due  at  the  rates  provided  by  this  Act. 

Sec.  1007.  That  (a)  if  any  person,  corporation,  partnership,  or 
association,  has  prior  to  May  ninth,  nineteen  hundred  and  seventeen, 
made  a  bona  fide  contract  with  a  dealer  for  the  sale,  after  the  tax 
takes  effect,  of  any  article  (or,  in  the  case  of  moving-picture  films, 
such  a  contract  with  a  dealer,  exchange,   or  exhibitor  for  the  sale  or 


36  Supplement  to  Important  Federal  Laws 

lease  thereof)  upon  which  a  tax  is  imposed  under  Title  III,  IV,  or  VI,  or 
under  subdivision  thirteen  of  Schedule  A  of  Title  VIII,  or  under  this 
section,  and  (b)  if  such  contract  does  not  permit  the  adding  of  the  whole 
of  such  tax  to  the  amount  to  be  paid  under  such  contract,  then  the 
vendee  or  lessee  shall,  in  lieu  of  the  vendor  or  lessor,  pay  so  much 
of  such  tax  as  is  not  so  permitted  to  be  added  to  the  contract  price. 

The  taxes  payable  by  the  vendee  or  lessee  under  this  section  shall 
be  paid  to  the  vendor  or  lessor  at  the  time  the  sale  or  lease  is  con- 
summated, and  collected,  returned,  and  paid  to  the  United  States  by 
such  vendor  or  lessor  in  the  same  manner  as  provided  in  section  five 
hundred  and  three. 

The  term  ''dealer"  as  used  in  this  section  includes  a  vendee  who 
purchases  any  article  with  intent  to  use  it  in  the  manufacture  or  pro- 
duction of  another  article  intended   for  sale. 

Sec.  1008.  That  in  the  payment  of  any  tax  under  this  Act  not 
payable  by  stamp  a  fractional  part  of  a  cent  shall  be  disregarded 
unless  it  amounts  to  one-half  cent  or  more,  in  which  case  it  shall  be 
increased  to  one  cent. 

Sec.  1009.  That  the  Secretary  of  the  Treasury,  under  rules  and 
regulations  prescribed  by  him,  shall  permit  taxpayers  liable  to  income 
and  excess  profits  taxes  to  make  payments  in  advance  in  installments 
or  in  whole  of  an  amount  not  in  excess  of  the  estimated  taxes  which 
will  be  due  from  them,  and  upon  determination  of  the  taxes  actually 
due  any  amount  paid  in  excess  shall  be  refunded  as  taxes  erroneously 
collected :  Provided,  That  when  payment  is  made  in  installments  at 
least  one-fourth  of  such  estimated  tax  shall  be  paid  before  the  ex- 
piration of  thirty  da}s  after  the  close  of  the  taxable  year,  at  least 
an  additional  one-fourth  within  two  months  after  the  close  of  the 
taxable  year,  at  least  an  additional  one-fourth  within  four  months  after 
the  close  of  the  taxable  year,  and  the  remainder  of  the  tax  due  on  or 
before  the  time  now  fixed  by  law  for  such  payment :  Provided  further. 
That  the  Secretary  of  the  Treasury,  under  rules  and  regulations  pre- 
scribed by  him,  may  allow  credit  against  svich  taxes  so  paid  in  advance 
of  an  amount  not  exceeding  three  per  centum  per  annum  calculated 
upon  the  amount  so  paid  from  the  date  of  such  payment  to  the  date 
now  fixed  by  law  for  such  payment ;  but  no  such  credit  shall  be  allowed 
on  payments  in  excess  of  taxes  determined  to  be  due,  nor  on  payments 
made  after  the  expiration  of  four  and  one-half  months  after  the  close 
of  the  taxable  year.  All  penalties  provided  by  existing  law  for  failure' 
to  pay  tax  when  due  are  hereby  made  applicable  to  any  failure  to  pay 
the  tax  at  the  time  or  times  required  in  this  section. 

Sec.  1010.  That  under  rules  and  regulations  prescribed  by  the 
Secretary  of  the  Treasury,  collectors  of  internal  revenue  may  receive 
at  par  and  accrued  interest,  certificates  of  indebtedness  issued  under 
section  six  of  the  Act  entitled  "An  Act  to  authorize  an  issue  of  bonds 


The  War  Tax  Act  V? 

to  meet  expenditures  for  the  national  security  and  defense,  and,  for  the 
purpose  of  assisting  in  the  prosecution  of  the  war,  to  extend  credit 
to  foreign  governments,  and  for  other  purposes,"  approved  April  twen- 
ty-fourth, nineteen  hundred  and  seventeen,  and  any  subsequent  Act  or 
Acts,  and  uncertified  checks  in  payment  of  income  and  excess  profits 
taxes,  during  such  time  and  under  such  regulations  as  the  Commissioner 
of  Internal  Revenue,  with  the  approval  of  the  Secretary  of  the  Treasury, 
shall  prescribe;  but  if  a  check  so  received  is  not  paid  by  the  bank  on 
which  it  is  drawn  the  person  by  whom  such  check  has  been  tendered 
shall  remain  liable  for  the  payment  of  the  tax  and  for  all  legal  penalties 
and  additions  the  same  as  if  such  check  had  not  been  tendered. 

Title  XI. — Postal  Rates. 

Sec.  1100.  That  the  rate  of  postage  on  all  mail  matter  of  the  first 
class,  except  postal  cards,  shall  thirty  days  after  the  passage  of  this 
Act  be,  in  addition  to  the  existing  rate,  1  cent  for  each  ounce  or  frac- 
tion thereof:  Provided,  That  the  rate  of  postage  on  drop  letters  of 
the  first  class  shall  be  2  cents  an  ounce  or  fraction  thereof.  Postal  cards, 
and  private  mailing  or  post  cards  when  complying  with  the  requirements 
of  existing  law,  shall  be  transmitted  through  the  mails  at  1  cent  each 
in  addition  to  the  existing  rate. 

That  letters  written  and  mailed  by  soldiers,  sailors,  and  marines 
assigned  to  duty  in  a  foreign  country  engaged  in  the  present  war  may 
be  mailed  free  of  postage,  subject  to  such  rules  and  regulations  as 
may  be  prescribed  by  the  Postmaster  General. 

Sec.  1101.  That  on  and  after  July  first,  nineteen  hundred  and 
eighteen,  the  rates  of  postage  on  publications  entered  as  second-class 
matter  (including  sample  copies  to  the  extent  of  ten  per  centum  of 
the  weight  of  copies  mailed  to  subscriber  during  die  calendar  year) 
when  sent  by  the  publisher  thereof  from  the  post  office,  or  when  sent 
by  a  news  agent  to  actual  subscribers  thereto,  or  to  other  news  agents 
for  the  purpose  of  sale : 

(a)  In  the  case  of  the  portion  of  such  publication  devoted  to  matter 
other  than  advertisements,  shall  be  as  follows:  (1)  on  and  after  July 
first,  nineteen  hundred  and  eighteen,  and  until  July  first,  nineteen  hundred 
and  nineteen.  1^4  cents  per  pound  or  fraction  thereof;  (2)  on  and  after 
July  first,  nineteen  hundred  and  nineteen,  VA  cents  per  pound  or  frac- 
tion thereof ; 

(b)  In  the  case  of  the  portion  of  such  publication  devoted  to 
advertisements  the  rates  per  pound  or  fraction  thereof  for  delivery  with- 
in the  several  zones  applicable  to  fourth-class  matter  shall  be  as  follows 
(but  where  the  space  devoted  to  advertisements  does  not  exceed  five 
per  centum  of  the  total  space,  the  rate  of  postage  shall  be  the  same  as 
if  the  whole  of  such  publication  was  devoted  to  matter  other  than 
advertisements):      (1)    on   and. after   July  first,   nineteen   hundred   and 


38  Supplement  to  Important  Federal  Laws 

eighteen,  and  until  July  first,  nineteen  hundred  and  nineteen,  for  the 
first  and  second  zones,  1^4  cents;  for  the  third  zone.  1^  cents;  for 
the  fourth  zone,  2  cents;  for  the  fifth  zone,  2]/^  cents;  for  the  sixth 
zone,  2^  cents ;  for  the  seventh  zone,  3  cents ;  for  the  eighth  zone,  Z)/\ 
cents;  (2)  on  and  after  July  first,  nineteen  hundred  and  nineteen,  and 
until  July  first,  nineteen  hundred  and  twenty,  for  the  first  and  second 
zones,  1^/2  cents;  for  the  third  zone,  2  cents;  for  the  fourth  zone,  3 
cents;  for  the  fifth  zone,  3^^  cents;  for  the  sixth  zone,  4  cents;  for  the 
seventh  zone,  5  cents;  for  the  eighth  zone,  5^  cents;  (3)  on  and  after 
July  first,  nineteen  hundred  and  twenty,  and  until  July  first,  nineteen 
hundred  and  twenty-one,  for  the  first  and  second  zones,  1%  cents;  for 
the  third  zone,  2^  cents;  for  the  fourth  zone,  4  cents;  for  the  fifth 
zone,  A}{\  cents ;  for  the  sixth  zone,  5^  cents ;  for  the  seventh  zone, 
7  cents ;  for  the  eighth  zone,  7^  cents ;  (4)  on  and  after  July  first, 
nineteen  hundred  and  twenty-one,  for  the  first  and  second  zones,  2 
cents ;  for  the  third  zones,  3  cents ;  for  the  fourth  zone,  5  cents ;  for 
the  fifth  zone,  6  cents ;  for  the  sixth  zone,  7  cents ;  for  the  seventh  zone, 
9  cents ;  for  the  eighth  zone,  10  cents ; 

(c)  With  the  first  mailing  of  each  issue  of  each  such  publication, 
the  publisher  shall  file  with  the  postmaster  a  copy  of  such  issue,  to- 
gether with  a  statement  containing  such  information  as  the  Postmaster 
General  may  prescribe  for  determining  the  postage  chargeable  thereon. 

Sec.  1102.  That  the  rate  of  postage  on  daily  newspapers,  when 
the  same  are  deposited  in  a  letter  carrier  office  for  delivery  by  its 
carriers,  shall  be  the  same  as  now  provided  by  law ;  and  nothing  in 
this  title  shall  aft'ect  existing  law  as  to  free  circulation  and  existing  rates 
on  second-class  mail  matter  within  the  county  of  publication :  Provided, 
That  the  Postmaster  General  may  hereafter  require  publishers  to  sepa- 
rate or  to  make  up  to  zones  in  such  a  manner  as  he  may  direct  all  mail 
matter  of  the  second-class  when  oft'ered   for  mailing. 

Sec.  1103.  That  in  the  case  of  newspapers  and  periodicals  en- 
titled to  be  entered  as  second-class  matter  and  maintained  by  and  in  the 
intere&t  of  religious,  educational,  scientific,  philanthropic,  agricultural, 
labor  or  fraternal  organizations  or  associations,  not  organized  for  profit 
and  none  of  the  net  income  of  which  inures  to  the  benefit  of  any  private 
stockholder  or  individual,  the  second-class  postage  rates  shall  be,  irre- 
spective of  the  zone  in  which  delivered  (except  when  the  same  are 
deposited  in  a  letter-carrier  office  for  delivery  by  its  carriers,  in  which 
case  the  rates  shall  be  the  same  as  now  provided  by  law),  \y%  cents 
a  pound  or  fraction  thereof  on  and  after  July  first,  nineteen  hundred 
and  eighteen,  and  until  July  first,  nineteen  hundred  and  nineteen,  and  on 
and  after  July  first,  nineteen  hundred  and  nineteen,  1^4  cents  a  pound  or 
fraction  thereof.  The  publishers  of  such  newspapers  or  periodicals  be- 
fore being  entitled  to  the  foregoing  rates  shall  furnish  to  the  Postmaster 
General,  at  such  times  and  under  such  conditions  as  he  may  prescribe, 


The  War  Tax  Act  39 

satisfactory  evidence  that  none  of  the  net  income  of  such  organizations 
inures  to  the  benefit  of  any  private  stockholder  or  individual. 

Sec.  1104.  That  where  the  total  weight  of  any  one  edition  or 
issue  of  any  publication  mailed  to  any  one  zone  does  not  exceed  one 
pound,  the  rate  of  postage  shall  be  1  cent. 

Sec.  1105.  The  zone  rates  provided  by  this  title  shall  relate  to 
the  entire  bulk  mailed  to  any  one  zone  and  not  to  individually  addressed 
packages. 

Sec.  1106.  That  where  a  newspaper  or  periodical  is  mailed  by 
other  than  the  publisher  or  his  agent  or  a  news  agent  or  dealer,  the  rate 
shall  be  the  same  as  now  provided  by  law. 

Sec.  1107.  That  the  Postmaster  General,  on  or  before  the  tenth 
day  of  each  month,  shall  pay  into  the  general  fund  of  the  Treasury  an 
amount  equal  to  the  difiference  between  the  estimated  amount  received 
during  the  preceding  month  for  the  transportation  of  first-class  matter 
through  the  mails  and  the  estimated  amount  which  would  have  been 
received  under  the  provisions  of  the  law  in  force  at  the  time  of  the 
passage  of  this  Act. 

Sec.  1108.  That  the  salaries  of  postmasters  at  offices  of  the  first, 
second,  and  third  classes  shall  not  be  increased  after  July  first,  nineteen 
hundred  and  seventeen,  during  the  existence  of  the  present  war.  The 
compensation  of  postmasters  at  offices  of  the  fourth  class  shall  continue 
to  be  computed  on  the  basis  of  the  present  rates  of  postage. 

Sec.  1109.  That  where  postmasters  at  offices  of  the  third  class  have 
been  since  May  first,  nineteen  hundred  and  seventeen,  or  hereafter  are 
granted  leave  without  pay  for  military  purposes,  the  Postmaster  General 
may  allow,  in  addition  to  the  maximum  amounts  which  may  now  be 
allowed  such  offices  for  clerk  hire,  in  accordance  with  law,  an  amount 
not  to  exceed  fifty  per  centum  of  the  salary  of  the  postmaster. 

Sec.  1110.  Tha't  section  five  of  the  Act  approved  March  third, 
nineteen  hundred  and  seventeen,  entitled  "An  Act  making  appfopriations 
for  the  Post  Office  Department  for  the  year  ending  June  thirtieth,  nine- 
teen hundred  and  eighteen,"  shall  not  be  construed  to-  apply  to  ethyl 
alcohol  for  governmental,  scientific,  medicinal,  mechanical,  manufac- 
turing, and  industrial  purposes,  and  the  Postmaster  General  shall  pre- 
scribe suitable  rules  and  regulations  to  carry  into  effect  this  section  in 
connection  with  the  Act  of  which  it  is  amendatory,  nor  shall  said  section 
be  held  to  prohibit  the  use  of  the  mails  by  regularly  ordained  ministers 
of  religion ;  or  by  officers  of  regularly  established  churches,  for  ordering 
wines  for  sacramental  uses,  or  by  manufacturers  and  dealers  for  quoting 
and  billing  such  wines  for  such  purposes  only.^ 

6See  Lapp's  Important  Federal  Laws,  pp.  657-658. 


40  Supplement  to  Important  Federal  Laws 

Title  XII. — Income  Tax  Amendments. 

Sec.  1200.  That  subdivision  (a)  of  section  two  of  such  Act  of 
September  eighth,  nineteen  hundred  and  sixteen,  is  hereby  amended  to 
read  as  follows : 

"(a)  That,  subject  only  to  such  exemptions  and  deductions  as  are 
hereinafter  allowed,  the  net  income  of  a  taxable  person  shall  include 
gains,  profits,  and  income,  derived  from  salaries,  wages,  or  compensation 
for  personal  service  of  whatever  kind  and  in  whatever  form  paid,  of 
from  professions,  vocations,  businesses,  trade,  commerce,  or  sales,  or 
dealings  in  property,  whether  real  or  personal,  growing  out  of  the  owner- 
ship or  use  of  or  interest  in  real  or  personal  property,  also  from  interest, 
rent,  dividends,  securities,  or  the  transaction  of  any  business  carried 
on  for  gain  or  profit,  or  gains  or  profits  and  income  derived  from  any 
source  whatever.''' 

Section  four  of  such  Act  of  September  eighth,  nineteen  hundred 
and  sixteen,  is  hereby  amended  to  read  as  follows: 

"Sec.  4.  The  following  income  shall  be  exempt  from  the  provisions 
of  this  title. 

"The  proceeds  of  life  insurance  policies  paid  to  individual  bene- 
ficiaries upon  the  death  of  the  insured;  the  amount  received  by  the 
insured,  as  a  return  of  premium  or  premiums  paid  by  him  under  life  in- 
surance, endowment,  or  annuity  contracts,  either  during  the  term  or  at 
the  maturity  of  the  term  mentioned  in  the  contract  or  upon 
surrender  of  the  contract;  the  value  of  property  acquired  by 
gift,  bequest,  devise,  or  descent  (but  the  income  from  such 
property  shall  be  included  as  income)  ;  interest  upon  the  obligations 
of  a  state  of  any  political  subdivision  thereof  or  upon  the  obligations  of 
the  United  States  (but,  in  the  case  of  obligations  of  the  United  States 
issued  after  September  first,  nineteen  hundred  and  seventeen,  only  if 
and  to  thfe  extent  provided  in  the  act  authorizing  the  issue  thereof)  or 
its  possessions  or  securities  issued  under  the  provisions  of  the  Federal 
Farm  Loan  Act  of  July  seventeenth,  nineteen  hundred  and  sixteen ; 
the  compensation  of  the  present  President  of  the  United  States  during 
the  term  for  which  he  has  been  elected  and  the  judges  of  the  supreme 
and  inferior  courts  of  the  United  States  now  in  office,  and  the  compen- 
sation of  all  officers  and  employees  of  a  State,  or  any  political  subdivision 
thereof,  except  when  such  compensation  is  paid  by  the  United  States 
Government." 

Sec.  120L  (1)  That  paragraphs  second  and  third  of  subdivision 
(a)  of  section  five  of  such  Act  of  September  eighth,  nineteen  hundred 
and  sixteen,  are  hereby  amended  to  read  as  follows : 

"Second.  All  interest  paid  within  the  year  on  his  indebtedness 
except  on  indebtedness  incurred  for  the  purchase  of  obligations  or  se- 
'''Same  p.  318. 


The  War  Tax  Act  41 

curities  the  interest  upon  which  is  exempt  from  taxation  as  income  under 
this  title ; 

"Third.  Taxes  paid  within  the  year  imposed  by  the  authority  of 
the  United  States  (except  income  and  excess  profits  taxes)  or  of  its 
Territories,  or  possessions,  or  any  foreign  country,  or  by  the  authority 
of  any  State,  county,  school  district,  or  municipality,  or  other  taxing 
subdivision  of  any  State,  not  including  those  assessed  against  local 
benefits."* 

(2)  Section  five  of  such  Act  of  September  eighth,  nineteen  hundred 
and  sixteen,  is  hereby  amended  by  adding  at  the  end  of  subdivision 
(a)   a  further  paragraph  numbered  nine,  to  read  as  follows: 

"Ninth.  Contributions  or  gifts  actually  made  within  the  year  to 
corpora'tions  or  associations  organized  and  operated  exclusively  for 
religious,  charitable,  scientific,  or  educational  purposes,  or  to  societies 
for  the  prevention  of  cruelty  to  children  or  animals,  no  part  of  the  net 
income  of  which  inures  to  the  benefit  of  any  private  stockholder  or  indi- 
vidual, to  an  amount  not  in  excess  of  fifteen  per  centum  of  the  taxpayer's 
taxable  net  income  as  computed  without  the  benefit  of  this  paragraph. 
Such  contributions  or  gifts  shall  be  allowable  as  deductions  only  if 
verified  under  rules  and  regulations  prescribed  by  the  Commissioner  of 
Internal  Revenue,  with  the  approval  of  the  Secretary  of  'the  Treasury."'' 

Sec.  1202.  That  (1)  paragraphs  second  and  third  of  subdivision 
(a)  of  section  six  of  such  Act  of  September  eighth,  nineteen  hundred 
and  sixteen,  are  hereby  amended  to  read  as  follows : 

"Second.  The  proportion  of  all  interest  paid  within  the  year  by 
such  person  on  his  indebtedness  (except  on  indebtedness  incurred  for 
the  purchase  of  obligations  or  securities  the  interest  upon  which  is  ex- 
empt from  taxation  as  income  under  this  title)  which  the  gross  amount 
of  his  income  for  the  year  derived  from  sources  within  the  United  States 
bears  to  the  gross  amount  of  his  income  for  the  year  derived  from  all 
sources  within  and  without  the  United  States,  but  this  deduction  shall 
be  allowed  only  "if  such  person  includes  in  the  return  required  by  section 
eight  all  the  information  necessary  for  its  calculation ; 

"Third.  Taxes  paid  within  the  year  imposed  by  the  authority  of 
the  United  States  (except  income  and  excess  profits  taxes),  or  of  its 
Territories,  or  possessions,  or  by  the  authority  of  any  State,  county, 
school  district,  or  municipality,  or  other  taxing  subdivision  of  any  State, 
paid  within  the  United  States,  not  including  those  assessed  against  local 
benefits."!*^ 

(2)  Section  six  of  such  Act  of  September  eighth,  nineteen  hun- 
dred and  sixteen,  is  also  further  amended  by  adding  a  new  subdivision 
to  read  as  follows : 

sSame  pp.  319-320. 

9Same  p.  320. 

losee  Lapp's  Important  Federal  Laws,  pp.  321-322. 


42  Supplement  to  Important  Federal  Laws 

"(c)  A  nonresident  alien  individual  shall  receive  the  benefit  of 
the  deductions  and  credits  provided  for  in  this  section  only  by  filing 
or  causing  to  be  filed  with  the  collector  of  internal  revenue  a  true 
and  accurate  return  of  his  total  income,  received  from  all  sources,  cor- 
porate or  otherwise,  in  the  United  States,  in  the  manner  prescribed  by 
this  title ;  and  in  case  of  his  failure  to  file  such  return  the  collector  shall 
collect  the  tax  on  such  income,  and  all  property  belonging  to  such  non- 
resident alien  individual  shall  be  liable  to  distraint  for  the  tax.''^^ 

Sec.  1203.  (1)  That  section  seven  of  such  Act  of  September 
eighth,  nineteen  hundred  and  sixteen,  is  hereby  amended  to  read  as  fol- 
lows : 

"Sec.  7.  That  for  the  purpose  of  the  normal  tax  only,  there  shall 
be  allowed  as  an  exemption  in  the  nature  of  a  deduction  from  the 
amount  of  the  net  income  of  €ach  citizen  or  resident  of  the  United  States, 
ascertained  as  provided  herein,  the  sum  of  $3,000,  plus  $1,000  additional 
if  the  person  making  the  return  be  a  head  of  a  family  or  a  married 
man  with  a  wife  living  with  him,  or  plus  the  sum  of  $1,000  additional 
if  the  person  making  the  return  be  a  married  woman  with  a  husband 
living  with  her;  but  in  no  event  shall  this  additional  exemption  of  $1,000 
be  deducted  by  both  a  husband  and  a  wife:  Provided,  That  only  one 
deduction  of  $4,000  shall  be  made  from  the  aggregate  income  of  both 
husband  and  wife  when  living  together:  Provided  further,  That  if 
the  person  making  the  return  is  the  head  of  a  family  there  shall  be  an 
additional  exemption  of  $200  for  each  child  dependent  upon  such  person, 
if  under  eighteen  years  of  age,  or  if  incapable  of  self-support  because 
mentally  or  physically  defective,  but  this  provision  shall  operate  only 
in  the  case  of  one  parent  in  the  same  family :  Provided  further.  That 
guardians  or  trustees  shall  be  allowed  to  make  this  personal  exemption  as 
to  income  derived  from  the  property  of  which  such  guardian  or  trustee 
has  charge  in  favor  of  each  ward  or  cestui  que  trust :  Provided  further, 
That  in  no  event  shall  a  ward  or  cestui  que  trust  be  allowed  a  greater 
personal  exemption  than  as  provided  in  this  section  from  the  amount  of 
net  income  received  from  all  sources.  There  shall  also  be  allowed  an 
exemption  from  the  amount  of  the  net  income  of  estates  of  deceased 
citizens  or  residents  of  the  United  States  during  the  period  of  adminis- 
tration or  settlement,  and  of  trust  or  other  estates  of  citizens  or  residents 
of  the  United  States  the  income  of  which  is  not  distributed  annually  or 
regularly  under  the  provisions  of  subdivision  (b)  of  section  two,'  the 
sum  of  $3,000,  including  such  deductions  as  are  allowed  under  section 
five."i2 

(2)  Subdivision  (b)  of  section  seven  of  such  Act  of  September 
eighth,   nineteen   hundred    and    sixteen,    is   hereby   repealed. ^^ 

iiSame  pp.  321-322. 
i^Same  pp.  322-323. 
issame  p.  323. 


The  War  Tax  Act  43 

Sec.  1204.  (Ij  That  subdivisions  (c)  and  (e)  of  section  eight 
of  such  Act  of  September  eighth,  nineteen  hundred  and  sixteen,  are 
hereby  amended  to  read  as  follows : 

"(c)  Guardians,  trustees,  executors,  administrators,  receivers,  con- 
servators, and  all  persons,  corporations,  or  associations,  acting  in  any- 
fiduciary  capacity,  shall  make  and  render  a  return  of  the  income  of 
the  person,  trust,  or  estate  for  whom  or  which  they  act,  and  be  subject 
to  all  the  provisions  of  this  title  which  apply  to  individuals.  Such  fiduciary 
shall  make  oath  that  he  has  sufficient  knowledge  of  the  afifairs  of  such 
person,  trust,  or  estate  to  enable  him  to  make  such  return  and  that  the 
same  is,  to  the  best  of  his  knowledge  and  belief,  true  and  correct,  and 
be  subject  to  all  the  provisions  of  this  title  w^hich  apply  to  individuals : 
Provided,  That  a  return  made  by  one  of  two  or  more  joint  fiduciaries 
filed  in  the  district  where  such  fiduciary  resides,  under  such  regulations 
as  the  Secretary  of  the  Treasury  may  prescribe,  shall  be  a  sufficient 
compliance  with  the  requirements  of  this  paragraph:  Provided  further, 
That  no  return  of  income  not  exceeding  $3,000  shall  be  required  except 
as  in  this  title  otherwise  provided. 

"(e)  Persons  carrying  on  business  in  partnership  shall  be  liable 
for  income  tax  only  in  their  individual  capacity,  and  the  share  of  the 
profits  of  the  partnership  to  which  any  taxable  partner  would  be  en- 
titled if  the  same  were  divided,  whether  divided  or  otherwise,  shall  be 
returned  for  taxation  and  the  tax  paid  under  the  provisions  of  this 
title :  Provided,  That  from  the  net  distributive  interests  on  which  the  indi- 
vidual members  shall  be  liable  for  tax,  normal  and  additional,  there  shall 
be  excluded  their  proportionate  shares  received  from  interest  on  the  obli- 
gations of  a  state  or  any  political  or  taxing  subdivision  thereof,  and  upon 
obligations  of  the  United  States  (if  and  to  the  extent  that  it  is  provided 
in  the  act  authorizing  the  issue  of  such  obligations  of  the  United  States 
that  they  are  exem[)t  from  taxation)  and  its  possessions,  and  that  for 
the  purpose  of  computing  the  normal  tax  there  shall  be  allowed  a  credit, 
as  provided  by  section  five,  subdivision  (b),  for  their  proportionate 
share  of  the  profits  derived  from  dividends.  Such  partnership,  when 
requested  by  the  Commissioner  of  Internal  Revenue  or  any  district 
collector,  shall  render  a  correct  return  of  the  earnings,  profits,  and  income 
of  the  partnership,  except  income  exempt  under  section  four  of  this 
Act,  setting  forth  the  item  of  the  gross  income  and  the  deductions  and 
credits  allowed  by  this  title,  and  the  names  and  addresses  of  the  indi- 
viduals who  would  be  entitled  to  the  net  earnings,  profits,  and  income, 
if  distributed.  A  partnership  shall  have  the  same  privilege  of  fixing 
and  making  returns  upon  the  basis  of  its  own  fiscal  year  as  is  accorded 
to  corporations  under  this  title.  If  a  fiscal  year  ends  during  nineteen 
hundred  and  sixteen  or  a  subsequent  calendar  year  for  which  there  is 
a  rate  of  tax  dift'erent  from  the  rate  for  the  preceding  calendar  year, 
then    (1)    the  rate  for  such  preceding  calendar  year  shall  apply  to  an 


44  Supplement  to  Important  Federal  Laws 

amount  of  each  partner's  share  of  such  partnership  profits  equal  to  the 
proportion  which  the  part  of  such  fiscal  year  falling  within  such  calendar 
year  bears  to  the  full  fiscal  year,  and  (2)  the  rate  for  the  calendar 
year  during  which  such  fiscal  year  ends  shall  apply  to  the  remainder.^-* 

(2)  Subdivision  (d)  of  section  eight  of  such  Act  of  September 
eighth,   nineteen   hundred  and   sixteen,   is   hereby  repealed. ^•'' 

Sec.  1205.  (1)  That  subdivisions  (b).  (c),  (f),  and  (g)  of 
section  nine  of  such  Act  of  September  eighth,  nineteen  hundred  and 
sixteen,  are  hereby  amended  to  read  as  follows : 

"(b)  All  persons,  corporations,  partnerships,  associations,  and  in- 
surance companies,  in  whatever  capacity  acting,  including  lessees  or 
mortgagors  of  real  or  personal  property,  trustees  acting  in  any  trust 
capacity,  executors,  administrators,  receivers,  conservators,  employers, 
and  all  officers  and  employees  of  the  United  States,  having  the  control, 
receipt,  custody,  disposal,  or  payment  of  interest,  rent,  salaries,  wages, 
premiums,  annuities,  compensation,  remuneration,  emoluments,  or  other 
fixed  or  determinable  annual  or  periodical  gains,  profits,  and  income  of 
any  nonresident  alien  individual,  other  than  income  derived  from  divi- 
dends on  capital  stock,  or  from  the  net  earnings  of  a  corporation,  joint- 
stock  company  or  association,  or  insurance  company,  which  is  taxable 
upon  its  net  income  as  provided  in  this  title,  are  hereby  authorized  and 
required  to  deduct  and  withhold  from  such  annual  or  periodical  gains, 
profits,  and  income  such  sum  as  will  be  sufficient  to  pay  the  normal  tax 
imposed  thereon  by  this  title,  and  shall  make  return  thereof  on  or  before 
March  first  of  each  year  and,  on  or  before  the  time  fixed  by  law  for  the 
payment  of  the  tax,  shall  pay  the  amount  withheld  to  the  officer  of  the 
United  States  Government  authorized  to  receive  the  same ;  and  they  are 
each  hereby  made  personally  liable  for  such  tax,  and  they  are  hereby  in- 
demnified against  every  person,  corporation,  partnership,  association,  or 
insurance  company,  or  demand  whatsoever  for  all  payments  which  they 
shall  make  in  pursuance  and  by  virtue  of  this  title. 

"(c)  The  amount  of  the  normal  tax  hereinbefore  imposed  shall 
also  be  deducted  and  withheld  from  fixed  or  determinable  annual  or 
periodical  gains,  profits,  and  income  derived  from  interest  upon  bonds 
and  mortgages,  or  deeds  of  trust  or  other  similar  obligations  of  cor- 
porations, joint-stock  companies,  associations,  and  insurance  companies 
(if  such  bonds,  mortgages,  or  other  obligations  contain  a  contract  or  pro- 
vision by  which  the  obligor  agrees  to  pay  any  portion  of  the  tax  im- 
posed by  this  title  upon  the  obligee  or  to  reimburse  the  obligee  for  any 
portion  of  the  tax  or  to  pay  interest  without  deduction  for  any  tax  which 
the  obligor  may  be  required  or  permitted  to  pay  thereon  or  to  retain 
therefrom  under  any  law  of  the  United  States),  whether  payable  an- 
nually or  at  shorter  or  longer  periods  and  whether  such  interest  is  pay- 

i^See  Lapp's  Important  Federal  Laws,  pp.  324-325. 
15 Same  p.  324. 


The  War  Tax  Act  45 

able  to  a  nonresident  alien  individual  or  to  an  individual  citizen  or  resi- 
dent of  the  United  States,  subject  to  the  provisions  of  the  foregomg 
subdivision  (b)  of  this  section  requiring  the  tax  to  be  withheld  at  the 
source  and  deducted  from  annual  income  and  returned  and  paid  to  the 
government,  unless  the  person  entitled  to  receive  such  interest  shall  file 
with  the  withholding  agent,  on  or  before  February  first,  a  signed  notice 
in  writing  claiming  the  benefit  of  an  exemption  under  section  seven  of 

this  title. 

"(f)  All  persons,  corporations,  partnerships,  or  associations,  under- 
taking as  a  matter  of  business  or  for  profit  the  collection  of  foreign  pay- 
ments of  interest  or  dividends  by  means  of  coupons,  checks,  or  bills  of 
exchange  shall  obtain  a  license  from  the  Commissioner  of  Internal  Reve- 
nue, and  shall  be  subject  to  such  regulations  enabling  the  Government 
to  obtain  the  information  required  under  this  title,  as  the  Commissioner 
of  Internal  Revenue,  with  the  approval  of  the  Secretary  of  the  Treasury, 
shall  prescribe;  and  whoever  knowingly  undertakes  to  collect  such  pay- 
ments as  aforesaid  without  having  obtained  a  license  therefor,  or  with- 
out complying  with  such  regulations,  shall  be  deemed  guilty  of  a  mis- 
demeanor and  for  each  oft'ense  be  fined  in  a  sum  not  exceeding  $5,000, 
or  imprisoned  for  a  term  not  exceeding  one  year,  or  both,  in  the  discre- 
tion of  the  court. 

"(g)  The  tax  herein  imposed  upon  gains,  profits,  and  incomes  nor 
falling  under  the  foregoing  and  not  returned  and  paid  by  virtue  of  the 
foregoing  or  as  otherwise  provided  by  law  shall  be  assessed  by  personal 
return  under  rules  and  regulations  to  be  prescribed  by  the  Commissioner 
of  Internal  Revenue  and  approved  by  the  Secretary  of  the  Treasury. 
The  intent  and  purpose  of  this  title  is  that  all  gains,  profits,  and  income 
of  a  taxable  class,  as  defined  by  this  title,  shall  be  charged  and  assessed 
with  the  corresponding  tax,  normal  and  additional,  prescribed  by  this 
title,  and  said  tax  shall  be  paid  by  the  owner  of  such  income,  or  the 
proper  representative  having  the  receipt,  custody,  control,  or  disposal 
of  the  same.  For  the  purpose  of  this  title  ownership  or  liability  shall  be 
determined  as  of  the  year  for  which  a  return  is  required  to  be  rendered. 

"The  provisions  of  this  section,  except  subdivision  (c),  relating  to 
the  deduction  and  payment  of  the  tax  at  the  source  of  income  shall  only 
apply  to  the  normal  tax  hereinbefore  imposed  upon  nonresident  alien 
individuals. "1*' 

(2)  Subdivisions  (d)  and  (e)  of  section  nine  of  such  Act  of  Sep- 
tember eighth,  nineteen  hundred  and  sixteen,  are  hereby  repealed.^" 

Sec.  1206.  (1)  That  the  first  paragraph  of  section  ten  of  such  Act 
of  September  eighth,  nineteen  hundred  and  sixteen,  is  hereby  amended 
to  read  as  follows : 

"Sec.   10.   (a)   That  there   shall  be  levied,  assessed,  collected,  and 

sesame  pp.  325-328. 
I'-Same  p.  327. 


46  Supplement  to  Important  Federal  Laws 

paid  annually  upon  the  total  net  income  received  in  the  preceding  calen- 
dar year  from  all  sources  by  every  corporation,  joint-stock  company  or 
association,  or  insurance  company,  organized  in  the  United  States,  no 
matter  how  created  or  organized,  but  not  including  partnerships,  a  tax 
of  two  per  centum  upon  such  income;  and  a  like  tax  shall  be  levied, 
assessed,  collected,  and  paid  annually  upon  the  total  net  income  received 
in  the  preceding  calendar  year  from  all  sources  within  the  United  States 
by  every  corporation,  joint-stock  company  or  association,  or  insurance 
company,  organized,  authorized,  or  existing  under  the  laws  of  any  for- 
eign country,  including  interest  on  bonds,  notes,  or  othei*  interest-bearing 
obligations  of  residents,  corporate  or  otherwise,  and  including  the  in- 
come derived  from  dividends  on  capital  stock  or  from  net  earnings  of 
resident  corporations,  joint-stock  companies  or  associations,  or  insurance 
companies,  whose  net  income  is  taxable  under  this  title.^^ 

(2)  Section  ten  of  such  Act  of  September  eighth,  nineteen  hun- 
dred and  sixteen,  is  hereby  further  amended  by  adding  a  new  subdivi- 
sion as  follows : 

"(b)  In  addition  to  the  income  tax  imposed  by  subdivision  (a)  of 
this  section  there  shall  be  levied,  assessed,  collected,  and  paid  annually 
an  additional  tax  of  ten  per  centum  upon  the  amount,  remaining  undis- 
tributed six  months  after  the  end  of  each  calendar  or  fiscal  year,  of  the 
total  net  income  of  every  corporation,  joint-stock  company  or  association, 
or  insurance  company,  received  during  the  year,  as  determined  for  the 
purposes  of  the  tax  imposed  by  such  subdivision  (a),  but  not  including 
the  amount  of  any  income  taxes  paid  by  it  within  the  year  imposed  by 
the  authority  of  the  United  States. 

"The  tax  imposed  by  this  subdivision  shall  not  apply  to  that  portion 
of  such  undistributed  net  income  which  is  actually  invested  and  employed 
in  the  business  or  is  retained  for  employment  in  the  reasonable  require- 
ments of  the  business  or  is  invested  in  obligations  of  the  United  States 
issued  after  September  first,  nineteen  hundred  and  seventeen:  Pro- 
vided, That  if  the  Secretary  of  the  Treasury  ascertains  and  finds  that 
any  portion  of  such  amount  so  retained  at  any  time  for  employment  in 
the  business  is  not  so  employed  or  is  not  reasonably  required  in  the  busi- 
ness a  tax  of  fifteen  per  centum  shall  be  levied,  assessed,  collected  and 
paid  thereon. 

"The  foregoing  tax  rates  shall  apply  to  the  undistributed  net  in- 
come received  by  every  taxable  corporation,  joint-stock  company  or 
association,  or  insurance  company  in  the  calendar  year  nineteen  hundred 
and  seventeen  and  in  each  year  thereafter,  except  that  if  it  has  fixed  its 
own  fiscal  year  under  the  provisions  of  existing  law,  the  foregoing  rates 
shall  apply  to  the  proportion  of  the  taxable  undistributed  net  .income 
returned  for  the  fiscal  year  ending  prior  to  December  thirty-first,  nine- 
teen hundred  and  seventeen,  which  the  period  between  January  first, 
i^See  Lapp's  Important  Federal  Laws,  pp.  328-329. 


The  War  Tax  Act  47 

nineteen  hundred  and  seventeen,  and  the  end  of  such  fiscal  year  bears 
to  the  whole  of  such  fiscal  year."^^ 

Sec.  1207.  (1)  That  paragraphs  third  and  fourth  of  subdivision 
(a)  of  section  twelve  of  such  Act  of  September  eighth,  nineteen  hundred 
and  sixteen,  are  hereby  amended  to  read  as  follows : 

"Third.  The  amount  of  interest  paid  within  the  year  on  its  indebt- 
edness (except  on  indebtedness  incurred  for  the  purchase  of  obligations 
or  securities  the  interest  upon  which  is  exempt  from  taxation  as  income 
under  this  title)  to  an  amount  of  such  indebtedness  not  in  excess  of  the 
sum  of  (a)  the  entire  amount  of  the  paid-up  capital  stock  outstanding 
at  the  close  of  the  year,  or,  if  no  capital  stock,  the  entire  amount  of 
capital  employed  in  the  business  at  the  close  of  the  year,  and  (b)  one- 
half  of  its  interest-bearing  indebtedness  then  outstanding:  Provided, 
That  for  the  purpose  of  this  title  preferred  capital  stock  shall  not  be 
considered  interest-bearing  indebtedness,  and  interest  or  dividends  paid 
upon  this  stock  shall  not  be  deductible  from  gross  income :  Provided 
further,  That  in  cases  wherein  shares  of  capital  stock  are  issued  without 
par  or  nominal  value,  the  amount  of  paid-up  capital  stock,  within  the 
meaning  of  this  section,  as  represented  by  such  shares,  will  be  the  amount 
of  cash,  or  its  equivalent,  paid  or  transferred  to  the  corporation  as  a 
consideration  for  such  shares :  Provided  further.  That  in  the  case  of 
indebtedness  wholly  secured  by  property  collateral,  tangible  or  intangible, 
the  subject  of  sale  or  hypothecation  in  the  ordinary  business  of  such 
corporation,  joint-stock  company  or  association  as  a  dealer  only  in  the 
property  constituting  such  collateral,  or  in  loaning  the  funds  thereby 
procured,  the  total  interest  paid  by  such  corporation,  company,  or  asso- 
ciation within  the  year  on  any  such  indebtedness  may  be  deducted  as  a 
part  of  its  expenses  of  doing  business,  but  interest  on  such  indebtedness 
shall  only  be  deductible  on  an  amount  of  such  indebtedness  not  in  excess 
of  the  actual  value  of  such  property  collateral:  Provided  further.  That 
in  the  case  of  bonds  or  other  indebtedness,  which  have  been  issued  with 
a  guaranty  that  the  interest  payable  thereon  shall  be  free  from  taxation, 
no  deduction  for  the  payment  of  the  tax  herein  imposed,  or  any  other 
tax  paid  pursuant  to  such  guaranty,  shall  be  allowed ;  and  in  the  case  of 
a  bank,  banking  association,  loan  or  trust  company,  interest  paid  within 
the  year  on  deposits  or  on  moneys  received  for  investment  and  secured 
by  interest-bearing  certificates  of  indebtedness  issued  by  such  bank,  bank- 
ing association,  loan  or  trust  company  shall  be  deducted ; 

"Fourth.  Taxes  paid  within  the  year  imposed  by  the  authority  of 
the  United  States  (except  income  and  excess  profits  taxes),  or  of  its 
Territories,  or  possessions,  or  any  foreign  country,  or  by  the  authoritv 
of  any  State,  county,  school  district,  or  municipality,  or  other  taxing 
subdivision  of  any  State,  not  including  those  assessed  against  local 
benefits."2o 

isSame  pp.  326-329. 
20Same  pp.  332-334. 


48  Supplement  to  Important  Federal  Laws 

(2)  Paragraphs  third  and  fourth  of  subdivision  (b)  of  section 
twelve  of  such  Act  of  September  eighth,  nineteen  hundred  and  sixteen, 
are  hereby  amended  to  read  as  follows : 

"Third.  The  amount  of  interest  paid  within  the  year  on  its  indebt- 
edness (except  on  indebtedness  incurred  for  the  purchase  of  obligations 
or  securities  the  interest  upon  which  is  exempt  from  taxation  as  income 
under  this  title (  to  an  amount  of  such  indebtedness  not  in  excess  of  the 
proportion  of  the  sum  of  (a)  the  entire  amount  of  the  paid-up  capital 
stock  outstanding  at  the  close  of  the  year,  or,  if  no  capital  stock,  the 
entire  amount  of  the  capital  employed  in  the  business  at  the  close  of  the 
year,  and  (b)  one-half  of  its  interest-bearing  indebtedness  then  outstand- 
ing, which  the  gross  amount  of  its  income  for  the  year  from  business 
transacted  and  capital  invested  within  the  United  States  bears  to  the 
gross  amount  of  its  income  derived  from  all  sources  within  and  without 
the  United  States :  Provided,  That  in  the  case  of  bonds  or  other  indebt- 
edness which  have  been  issued  with  a  guaranty  that  the  interest  payable 
thereon  shall  be  free  from  taxation,  no  deduction  for  the  payment  of  the 
tax  herein  imposed  or  any  other  tax  paid  pursuant  to  such  guaranty 
shall  be  allowed ;  and  in  case  of  a  bank,  banking  association,  loan  or 
trust  company,  or  branch  thereof,  interest  paid  within  the  year  on  de- 
posits by  or  on  moneys  received  for  investment  from  either  citizens  or 
residents  of  the  United  States  and  secured  by  interest-bearing  certifi- 
cates of  indebtedness  issued  by  such  bank,  banking  association,  loan  or 
trust  company,  or  branch  thereof ; 

"Fourth.  Taxes  paid  within  the  year  imposed  by  the  authority  of 
the  United  States  (except  income  and  excess  profits  taxes),  or  of  its 
Territories,  or  possessions,  or  by  the  authority  of  any  State,  county, 
school  district,  or  municipality,  or  other  taxing  subdivision  of  any  State, 
paid  within  the  United  States,  not  including  those  assessed  against  local 
benefits."2i 

Sec.  1208.  That  subdivision  (e)  of  section  thirteen  of  such  Act 
of  September  eighth,  nineteen  hundred  and  sixteen,  is  hereby  amended 
to  read  as  follows : 

"(e)  All  the  provisions  of  this  title  relating  to  the  tax  authorized 
and  required  to  be  deducted  and  withheld  and  paid  to  the  officer  of  the 
United  States  Government  authorized  to  receive  the  same  from  the 
income  of  nonresident  alien  individuals  from  sources  within  the  United 
States  shall  be  made  applicable  to  the  tax  imposed  by  subdivision  (a)  of 
section  ten  upon  incomes  derived  from  interest  upon  bonds  and  mort- 
gages or  deeds  of  trust  or  similar  obligations  of  domestic  or  other  resi- 
dent corporations,  joint-stock  companies  or  associations,  and  insurance 
companies  by  nonresident  alien  firms,  copartnerships,  companies,  cor- 
porations,   joint-stock    companies    or    associations,    and    insurance    com- 

2iSee  Lapp's  Important  Federal  Laws,  pp.  333-334. 


The  War  Tax  Act  49 

panics,  not  engaged  in  business  or  trade  within  the  United  States  and 
not  having  any  office  or  place  of  business  therein."-- 

Sec.  1209.  That  section  eighteen  of  such  Act  of  September  eighth, 
nineteen  hundred  and  sixteen,  is  hereby  amended  to  read  as  follows : 

"Sec.  18.  That  any  person,  corporation,  partnership,  association, 
or  insurance  company,  liable  to  pay  the  tax,  to  make  a  return  or  to 
supply  information  required  under  this  title,  who  refuses  or  neglects 
to  pay  such  tax,  to  make  such  return  or  to  supply  such  information  at 
the  time  or  times  herein  specified  in  each  year,  shall  be  liable,  except 
as  otherwise  specially  provided  in  this  title,  to  a  penalty  of  not  less  than 
$20  nor  more  than  $1,000.  Any  individual  or  any  officer  of  any  corpo- 
ration, partnership,  association,  or  insurance  company,  required  by  law 
to  make,  render,  sign,  or  verify  any  return  or  to  supply  any  information, 
who  makes  any  false  or  fraudulent  return  or  statement  with  intent  to 
defeat  or  evade  the  assessment  required  by  this  title  to  be  made,  shall 
be  guilty  of  a  misdemeanor,  and  shall  be  fined  not  exceeding  $2,000  or 
be  imprisoned  not  exceeding  one  year,  or  both,  in  the  discretion  of  the 
court,  with  the  costs  of  prosecution :  Provided,  That  where  any  tax 
heretofore  due  and  payable  has  been  duly  paid  by  the  taxpayer,  it  shall 
not  be  re-collected  from  any  withholding  agent  required  to  retain  it  at 
its  source,  nor  shall  any  penalty  be  imposed  or  collected  in  such  cases 
from  the  taxpayer,  or  such  withholding  agent  whose  duty  it  was  to  retain 
it,  for  failure  to  return  or  pay  the  same,  unless  such  failure  was  fraudu- 
lent and  for  the  purpose  of  evading  payment. "^3 

Sec.  1210.  That  section  twenty-six  of  such  Act  of  September 
eighth,  nineteen  hundred  and  sixteen,  as  amended  by  the  Act  entitled 
"An  Act  to  provide  increased  revenue  to  defray  the  expenses  of  the 
increased  appropriations  for  the  Army  and  Navy  and  the  extensions  of 
fortifications,  and  for  other  purposes,"  approved  March  third,  nineteen 
hundred  and  seventeen,  is  hereby  amended  to  read  as  follows : 

"Sec.  26.  Every  corporation,  joint-stock  company  or  association, 
or  insurance  company  subject  to  the  tax  herein  imposed,  when  required 
by  the  Commissioner  of  Internal  Revenue,  shall  render  a  correct  return, 
duly  verified  under  oath,  of  its  payments  of  dividends,  whether  made 
in  cash  or  its  equivalent  or  in  stock,  including  the  names  and  addresses 
of  stockholders  and  the  number  of  shares  owned  by  each,  and  the  tax 
years  and  the  applicable  amounts  in  which  such  dividends  were  earned, 
in  such  form  and  manner  as  may  be  prescribed  by  the  Commissioner  of 
Internal  Revenue,  with  the  approval  of  the  Secretary  of  the  Treasury."-'* 

Sec.  1211.  That  Title  I  of  such  Act  of  September  eighth,  nineteen 
hundred  and  sixteen,  is  hereby  amended  by  adding  to  Part  III  six  new 
sections,  as  follows : 

"Sec.  27.     That  every  person,  corporation,  partnership,  or  associa- 

22Same  p.  336. 
23Same  p.  341. 
24Same  p.  875. 

(4) 


50  Supplement  to  Important  Federal  Laws 

tion,  doing  business  as  a  broker  on  any  exchange  or  board  of  trade  or 
other  similar  place  of  business  shall,  when  required  by  the  Commis- 
sioner of  Internal  Revenue,  render  a  correct  return  duly  verified  under 
oath,  under  such  rules  and  regulations  as  the  Commissioner  of  Internal 
Revenue,  with  the  approval  of  the  Secretary  of  the  Treasury,  may  pre- 
scribe, showing  the  names  of  customers  for  whom  such  person,  corpo- 
ration, partnership,  or  association  has  transacted  any  business,  with 
such  details  as  to  the  profits,  losses,  or  other  information  which  the 
commissioner  may  require,  as  to  each  of  such  customers,  as  will  enable 
the  Commissioner  of  Internal  Revenue  to  determine  whether  all  income 
tax  due  on  profits  or  gains  of  such  customers  has  been  paid. 

"Sec.  28.  That  all  persons,  corporations,  partnerships,  associations, 
and  insurance  companies,  in  whatever  capacity  acting,  including  lessees 
or  mortgagors  of  real  or  personal  property,  trustees  acting  in  any  trust 
capacity,  executors,  administrators,  receivers,  conservators,  and  em- 
ployers, making  payment  to  another  person,  corporation,  partnership, 
association,  or  insurance  company,  of  interest,  rent,  salaries,  wages, 
premiums,  annuities,  compensation,  remuneration,  emoluments,  or  other 
fixed  or  determinable  gains,  profits,  and  income  (other  than  payments 
described  in  sections  twenty-six  and  twenty-seven),  of  $800  or  more  in 
any  taxable  year,  or,  in  the  case  of  such  payments  made  by  the  United 
States,  the  officers  or  employees  of  the  United  States  having  information 
as  to  such  payments  and  required  to  make  returns  in  regard  thereto  by 
the  regulations  hereinafter  provided  for,  are  hereby  authorized  and  re- 
quired to  render  a  true  and  accurate  return  to  the  Commissioner  of 
Internal  Revenue,  under  such  rules  and  regulations  and  in  such  form 
and  manner  as  may  be  prescribed  by  him,  with  the  approval  of  the 
Secretary  of  the  Treasury,  setting  forth  the  amount  of  such  gains,  profits, 
and  income,  and  the  name  and  address  of  the  recipient  of  such  payment : 
Provided,  That  such  returns  shall  be  required,  regardless  of  amounts, 
in  the  case  of  payments  of  interest  upon  bonds  and  mortgages  or  deeds 
of  trust  or  other  similar  obligations  of  corporations,  joint-stock  com- 
panies, associations  and  insurance  companies,  and  in  the  case  of  collec- 
tions of  items  (not  payable  in  the  United  States)  of  interest  upon  the 
bonds  of  foreign  countries  and  interest  from  the  bonds  and  dividends 
from  the  stock  of  foreign  corporations  by  persons,  corporations,  partner- 
ships, or  associations,  undertaking  as  a  matter  of  business  or  for  profit 
the  collection  of  foreign  payments  of  such  interest  or  dividends  by  means 
of  coupons,  checks,  or  bills  of  exchange. 

"When  necessary  to  make  efifective  the  provisions  of  this  section 
the  name  and  address  of  the  recipient  of  income  shall  be  furnished  upon 
demand  of  the  person,  corporation,  partnership,  association,  or  insurance 
company  paying  the  income. 

"The  provisions  of  this  section  shall  apply  to  the  calendar  year  nine- 
teen hundred  and  seventeen  and  each  calendar  year  thereafter,  but  shall 
not  apply  to  the  payment  of  interest  on  obligations  of  the  United  States. 


The  War  Tax  Act  51 

"Sec.  29.  Ihal  in  assessing  income  tax  the  net  income  embraced 
in  the  return  shall  also  be  credited  with  the  amount  of  any  excess  profits 
tax  imposed  by  Act  of  Congress  and  assessed  for  the  same  calendar  or 
fiscal  year  upon  the  taxpayer  and,  in  the  case  of  a  member  of  a  partner- 
ship, with  his  proportionate  share  of  such  excess  profits  tax  imposed 
upon  the  partnership. 

"Sec.  30.  That  nothing  in  section  II  of  the  Act  approved  October 
third,  nineteen  hundred  and  thirteen,  entitled  'An  Act  to  reduce  tariff 
duties  and  to  provide  revenue  for  the  Government,  and  for  other  pur- 
poses,' or  in  this  title,  shall  be  construed  as  taxing  the  income  of  foreign 
governments  received  from  investments  in  the  United  States  in  stocks, 
bonds,  or  other  domestic  securities,  owned  by  such  foreign  governments, 
or  from  interest  on  deposits  in  the  banks  in  the  United  States  of  moneys 
belonging  to  foreign  governments.-"' 

"Sec.  31.  (a)'  That  the  term  'dividends'  as  used  in  this  title  shall 
be  held  to  mean  any  distribution  made  or  ordered  to  be  made  by  a  cor- 
poration, joint-stock  company,  association,  or  insurance  company,  out 
of  its  earnings  or  profits  accrued  since  March  first,  nineteen  hundred 
and  thirteen,  and  payable  to  its  shareholders,  whether  in  cash  or  in  stock 
of  the  corporation,  joint-stock  company,  association,  or  insurance  com- 
pany, which  stock  dividend  shall  be  considered  income,  to  the  amount  of 
the  earnings  or  profits  so  distributed. 

"(b)  Any  distribution  made  to  the  shareholders  or  members  of  a 
corporation,  joint-stock  company,  or  association,  or  insurance  company, 
in  the  year  nineteen  hundred  and  seventeen,  or  subsequent  tax  years, 
shall  be  deemed  to  have  been  made  from  the  most  recently  accumulated 
undivided  profits  or  surplus,  and  shall  constitute  a  part  of  the  annual  in- 
come of  the  distributee  for  the  year  in  which  received,  and  shall  be  taxed 
to  the  distributee  at  the  rates  prescribed  by  law  for  the  years  in  which 
such  profits  or  surplus  w^ere  accumulated  by  the  corj^oration,  joint-stock 
company,  association,  or  insurance  company,  but  nothing  herein  shall  be 
construed  as  taxing  any  earnings  or  profits  accrued  jn'ior  to  March  first, 
nineteen  hundred  and  thirteen,  but  such  earnings  or  profits  may  be  dis- 
tributed in  stock  dividends  or  otherwise,  exempt  from  the  tax  after  the 
distribution  of  earnings  and  profits  accrued  since  IMarch  first,  nineteen 
hundred  and  thirteen,  has  been  made.  This  subdivision  shall  not  apply 
to  any  distribution  made  prior  to  August  sixth,  nineteen  hundred  and 
seventeen,  out  of  earnings  or  profits  accrued  prior  to  March  first,  nine- 
teen hundred  and  thirteen. 

"Sec.  32.  That  premiums  paid  on  life  insurance  policies  covering 
the  lives  of  officers,  employees,  or  those  -financially  interested  in  any 
trade  or  business  conducted  by  an  individual,  partnership,  corporation, 

2GFor  Tariff  Act,  see  Lapp's  Important  Federal  Laws,  pp.   365-464. 


52  Supplement  to  Important  Federal  Laws 

joint-stock  company  or  association,  or  insurance  company,  shall  not  be 
deducted  in  computing  the  net  income  of  such  individual,  corporation, 
Joint-stock  company  or  association,  or  insurance  company,  or  in  com- 
puting the  profits  of  such  partnership  for  the  purposes  of  subdivision 
(e)  of  section  nine." 

Sec.  1212.  That  any  amount  heretofore  withheld  by  any  with- 
holding agent  as  required  by  Title  I  of  such  Act  of  September  eighth, 
nineteen  hundred  and  sixteen,  on  account  of  the  tax  imposed  upon  the 
income  of  any  individual,  a  citizen  or  resident  of  the  United  States,  for 
the  calendar  year  nineteen  hundred  and  seventeen,  except  in  the  cases 
covered  by  subdivision  (c)  of  section  nine  of  such  Act,  as  amended  by 
this  Act,  shall  be  released  and  paid  over  to  such  individual,  and  the  en- 
tire tax  upon  the  income  of  such  individual  for  such  year  shall  be 
assessed  and  collected  in  the  manner  prescribed  by  such  Act  as  amended 
by  this  Act. 

Title  XIII. — General  Provisions. 

Sec.  1300.  That  if  any  clause,  sentence,  paragraph,  or  part  of  this 
Act  shall  for  any  reason  be  adjudged  by  any  court  of  competent  jurisdic- 
tion to  be  invalid,  such  judgment  shall  not  affect,  impair,  or  invalidate  the 
remainder  of  said  Act,  but  shall  be  confined  in  its  operation  to  the  clause, 
sentence,  paragraph,  or  part  thereof  directly  involved  in  the  controversy 
in  which  such  judgment  shall  have  been  rendered. 

Sec.  1301.  That  Title  I  of  the  Act  entitled,  "An  Act  to  provide 
increased  revenue  to  defray  the  expenses  of  the  increased  appropria- 
tions for  the  Ami}-  and  Navy  and  the  extension  of  fortifications,  and 
for  other  purposes,"  approved  jNIarch  third,  nineteen  hundred  and  sev- 
enteen, be,  and  the  same  is  hereby,  repealed. 

Sec.  1302.  That  unless  otherwise  herein  specially  provided,  this  Act 
shall  take  effect  on  the  day  following  its  passage. 


FOOD  CONTROL  ACT. 

Approved  August  10,  1917. 

An  Act  to  provide  further  for  the  national  security  and  defense  by  encourag- 
ing the  production,  conserving  the  supply,  and  controlling  th%  distribu- 
tion of  food  products  and  fuel. 

Purposes. 

Sec.  1.  That  by  reason  of  the  existence  of  a  state  of  war,  it  is  es- 
sential to  the  national  sectirit}-  and  defense,  for  the  successful  prosecution 
of  the  war,  and  for  the  support  and  maintenance  of  the  Army  and  Navy, 
to  assure  an  adequate  supply  and  equitable  distribution,  and  to  facilitate 
the  movement,  of  foods,  feeds,  fuel  including  ftiel  oil  and  natural  gas, 
and  fertilizer  and  fertilizer  ingredients,  tools,  utensils,  implements,  ma- 
chinery, and  equipment  required  for  the  actual  production  of  foods,  feeds, 
and  fuel,  hereafter  in  this  Act  called  necessaries ;  to  prevent,  locally  or 
generally,  scarcity,  monopolization,  hoarding,  injurious  speculation,  ma- 
nipulations, and  private  controls,  affecting  such  supply,  distribution  and 
movement ;  and  to  establish  and  maintain  governmental  control  of  such 
necessaries  during  the  war.  For  such  purposes  the  instrumentalities, 
means,  methods,  powers,  authorities,  duties,  obligations,  and  prohibi- 
tions hereinafter  set  forth  are  created,  established,  conferred  and  pre- 
scribed. The  President  is  authorized  to  make  such  regulations  and  to 
issue  such  orders  as  are  essential  effectively  to  carry  out  the  provisions 
of  this  Act. 
Cooperation  With  Voluntary  Agencies. 

Sec.  2.  That  in  carrying  out  the  purposes  of  this  Act  the  President 
is  authorized  to  enter  into  any  voluntary  arrangements  or  agreements, 
to  create  and  use  any  agency  or  agencies,  to  accept  the  services  of  any 
person  without  compensation,  to  cooperate  with  any  agency  or  person, 
to  utilize  any  department  or  agency  of  the  Government,  and  to  coordi- 
nate their  activities  so  as  to  avoid  any  preventable  loss  or  duplication  of 
effort  or  funds. 

Government  Contracts — Interest  in  by  Agents  and  Employees. 

Sec.  3.  That  no  person  acting  either  as  a  voluntary  or  paid  agent 
or  employee  of  the  United  States  in  any  capacity,  incltiding  an  advisory 
capacity,  shall  solicit,  induce,  or  attempt  to  induce  any  person  or 
officer  authorized  to  execute  or  to  direct  the  exectition  of  contracts  on 
behalf  of  the  United  States  to  make  any  contract  or  give  any  order  for 
the  furnishing  to  the  United  States  of  work,  labor,  or  services,  or  of 
materials,  supplies,  or  other  property  of  any  kind  or  character,  if  such 
agent  or  employee  has  any  pecuniary  interest  in  such  contract  or  order, 
or  if  he  or  any  firm  of  which  he  is  a  member,  or  corporation,  joint- 
stock  company,  or  association  of  which  he  is  an  officer  or  stockholder, 
or  in  the  pecuniary  profits  of  which  he  is  directlv  or  indirectlv  inter- 

53 


54  Supplement  to  Important  Federal  Laws 

ested,  shall  be  a  party  thereto.  Nor  shall  any  agent  or  employee  make, 
or  permit  any  committee  or  other  body  of  which  he  is  a  member  to  make, 
or  participate  in  making,  any  recommendation  concerning  such  contract 
or  order  to  any  council,  board,  or  commission  of  the  United  States,  or 
any  member  or  subordinate  thereof,  without  making  to  the  best  of  his 
knowledge  and  belief  a  full  and  complete  disclosure  in  writing  to  such 
council,  board,  commission,  or  subordinate  of  any  and  every  pecuniary 
interest  which  he  may  have  in  such  contract  or  order  and  of  his  interest  in 
any  firm,  corporation,  company,  or  association  being  a  party  thereto.  Nor 
shall  he  participate  in  the  awarding  of  such  contract  or  giving  such 
order.  Any  willful  violation  of  any  of  the  provisions  of  this  section  shall 
be  punishable  by  a  tine  of  not  more  than  $10,000,  or  by  imprisonment  of 
not  more  than  five  years,  or  both :  Provided,  That  the  provisions  of  this 
section  shall  not  change,  alter  or  repeal  section  forty-one  of  chapter  three 
hundred  and  twenty-one.  Thirty-fifth  Statutes  at  Large. 

Monopoly,  Waste,  Limitation  or  Deterioration  of  Necessaries. 

Sec.  4.  That  it  is  herein-  made  unlawful  for  any  person  willfully  to 
destroy  any  necessaries  for  the  purpose  of  enhancing  the  price  or  re- 
stricting the  supply  thereof  ;  knowingly  to  commit  waste  or  willfully  to 
permit  preventable  deterioration  of  any  necessaries  in  or  in  connection 
with  their  production,  manufacture,  or  distribution  ;  to  hoard,  as  defined 
in  section  six  of  this  Act,  any  necessaries  ;  to  monopolize  or  attempt  to 
monopolize,  either  locally  or  generally,  any  necessaries ;  to  engage  in  any 
discriminatory  and  unfair,  or  any  deceptive  or  wasteful  practice  or  de- 
vice, or  to  make  any  unjust  or  unreasonable  rate  or  charge,  in  handling 
or  dealing  in  or  with  any  necessaries ;  to  conspire,  combine,  agree,  or 
arrange  with  any  other  person,  (a)  to  Hmit  the  facilities  for  transporting, 
l^roducing,  harvesting,  manufacturing,  supplying,  storing,  or  dealing  in 
any  necessaries;  (b)  to  restrict  the  supply  of  any  necessaries;  (c)  to 
restrict  distribution  of  any  necessaries;  (d)  to  prevent,  limit,  or  lessen 
the  manufacture  or  production  of  any  necessaries  in  order  to  enhance 
the  price  thereof,  or  (e)  to  exact  excessive  prices  for  any  necessaries; 
or  to  aid  or  abet  the  doing  of  any  act  made  unlawful  bv  this  section. 

Licensing  by  President — Fixing  Charges,  Rates,  etc. 

Sec.  5.  That,  from  time  to  time,  whenever  the  President  shall  find 
it  essential  to  license  the  importation,  manufacture,  storage,  mining,  or 
distribution  of  any  necessaries,  in  order  to  carry  into  effect  any  of  the 
purposes  of  this  Act,  and  shall  publicly  so  announce,  no  person  shall, 
after  a  date  fixed  in  the  announcement,  engage  in  or  carry  on  any  such 
business  specified  in  the  annovmcement  of  importation,  manufacture, 
storage,  mining,  or  distribution  of  any  necessaries  as  set  forth  in  such 
announcement,  unless  he  shall  secure  and  hold  a  license  issued  pur'^uant 
to  this  section.  The  President  is  authorized  to  issue  such  licenses  and 
to  prescribe  regulations  for  the  issuance  of  licenses  and  requirements  for 
systems  of  accounts   and  auditing  of  accounts  to  be  kept   by  liceu'^ees. 


Food  Control  Act  55 

submission  of  reports  by  them,  with  or  without  oath  or  affirmation,  and 
the  entry  and  inspection  by  the  President's  duly  authorized  agents  of 
the  places  of  business  of  licensees.  Whenever  the  President  shall  find 
that  any  storage  charge,  commission,  profit,  or  practice  of  any  licensee 
is  unjust,  or  unreasonable,  or  discriminatory  and  unfair,  or  wasteful, 
and  shall  order  such  licensee,  within  a  reasonable  time  fixed  in  the  order, 
to  discontinue  the  same,  unless  such  order,  which  shall  recite  the  facts 
found,  is  revoked  or  suspended,  such  licensee  shall,  within  the  time  pre- 
scribed in  the  order,  discontinue  such  unjust,  unreasonable,  discrimina- 
tory and  unfair  storage  charge,  commission,  profit,  or  practice.  The 
President  may,  in  lieu  of  any  such  unjust,  unreasonable,  discriminatory, 
and  unfair  storage  charge,  commission,  profit,  or  practice,  find 
what  is  a  just,  reasonable,  nondiscriminatory  and  fair  storage  charge, 
commission,  profit,  or  practice,  and  in  any  proceeding  brought  in  any 
court  such  order  of  the  President  shall  be  prima  facie  evidence.  Any 
person  who,  without  a  license  issued  ptirsuant  to  this  section,  or  whose 
license  shall  have  been  revoked,  knowingly  engages  in  or  carries  on  any 
business  for  which  a  license  is  required  under  this  section,  or  willfully 
fails  or  refuses  to  discontinue  any  unjust,  unreasonable,  discriminatory 
and  unfair  storage  charge,  commission,  profit,  or  practice,  in  accordance 
with  the  requirement  of  an  order  issued  under  this  section,  or  any  reg- 
ulation prescribed  under  this  section,  shall,  upon  conviction  thereof,  be 
punished  by  a  fine  not  exceeding  $5,000,  or  by  imprisonment  for  not 
more  than  two  years,  or  both :  Provided,  That  this  section  shall  not  apply 
to  any  farmer,  gardener,  cooperative  association  of  farmers  or  gardeners, 
including  live-stock  farmers,  or  other  persons  with  respect  to  the  prod- 
ucts of  any  farm,  garden,  or  other  land  owned,  leased,  or  cultivated  by 
him,  nor  to  any  retailer  with  respect  to  the  retail  business  actually  con- 
ducted by  him,  nor  to  any  common  carrier,  nor  shall  anything  in  this 
section  be  construed  to  authorize  the  fixing  or  imposition  of  a  duty  or 
tax  upon  any  article  imported  into  or  exported  from  the  United  States 
or  any  State,  Territory,  or  the  District  of  Columbia:.  Provided  further. 
That  for  the  purposes  of  this  Act  a  retailer  shall  be  deemed  to  be  a 
person,  copartnership,  firm,  corporation,  or  association  not  engaging  in 
the  wholesale  business  whose  gross  sales  do  not  exceed  $100,000  per 
annum. 

Hoarding — Meaning  of;  Penalty. 

Sec.  6.  That  any  person  who  willfully  hoards  any  necessaries  shall 
upon  conviction  thereof  be  fined  not  exceding  $5,000  or  be  imprisoned 
for  not  more  than  two  years,  or  both.  Necessaries  shall  be  deemed  to 
be  hoarded  within  the  meaning  of  this  Act  when  either  (a)  held,  con- 
tracted for,  or  arranged  for  by  any  person  in  a  quantity  in  excess  of  his 
reasonable  requirements  for  use  or  consumption  by  himself  and  de- 
pendents for  a  reasonable  time;  (b)  held,  contracted  for,  or  arranged 
for   by   any   manufacturer,    wholesaler,   retailer,   or   other   dealer   in   a 


56  Supplement  to  Important  Federal  Laws 

quantity  in  excess  of  the  reasonable  requirements  of  his  business  for 
use  or  sale  by  him  for  a  reasonable  time,  or  reasonably  required  to  fur- 
nish necessaries  produced  in  surplus  quantities  seasonally  throughout 
the  period  of  scant  or  no  production;  or  (c)  withheld,  whether  by  pos- 
session or  under  any  contract  or  arrangement,  from  the  market  by  any 
person  for  the  purpose  of  unreasonably  increasing  or  diminishing  the 
price :  Provided,  That  this  section  shall  not  include  or  relate  to  trans- 
actions on  any  exchange,  board  of  trade,  or  similar  institution  or  place 
of  business  as  described  in  section  thirteen  of  this  Act  that  may  be  per- 
mitted by  the  President  under  the  authority  conferred  upon  him  by  said 
section  thirteen :  Provided,  however,  That  any  accumulating  or  with- 
holding by  any  farmer  or  gardener,  cooperative  association  of  farmers 
or  gardeners,  including  live-stock  farmers,  or  any  other  person,  of  the 
products  of  any  farm,  garden,  or  other  land  owned,  leased,  or  cultivated 
by  him  shall  not  be  deemed  to  be  hoarding  within  the  meaning  of  this 
Act. 

Hoarded  Products — Condemnation  of. 

Sec.  7.  That  whenever  any  necessaries  shall  be  hoarded  as  defined 
in  section  six  they  shall  be  liable  to  be  proceeded  against  in  any  district 
court  of  the  United  States  within  the  district  where  the  same  are  found 
and  seized  by  a  process  of  libel  for  condemnation,  and  if  such  necessaries 
shall  be  adjudged  to  be  hoarded  they  shall  be  disposed  of  by  sale  in 
such  manner  as  to  provide  the  most  equitable  distribution  thereof  as 
the  court  may  direct,  and  the  proceeds  thereof,  less  the  legal  costs  and 
charges,  shall  be  paid  to  the  party  entitled  thereto.  The  proceedings  of 
such  libel  cases  shall  conform  as  near  as  may  be  to  the  proceedings  in 
admiralty,  except  that  either  party  may  demand  trial  by  jury  of  any 
issue  of  fact  joined  in  any  such  case,  and  all  such  proceedings  shall  be 
at  the  suit  of  and  in  the  name  of  the  United  States.  It  shall  be  the  duty 
of  the  United  States  attorney  for  the  proper  district  to  institute  and 
prosecute  any  such  action  upon  presentation  to  him  of  satisfactory  evi- 
dence to  sustain  the  same. 

Destruction  of  Necessaries — Penalty. 

Sec.  8.  That  any  person  who  willfully  destroys  any  necessaries  for 
the  purpose  of  enhancing  the  price  or  restricting  the  supply  thereof 
shall,  upon  conviction  thereof,  be  fined  not  exceeding  $5,000  or  impris- 
oned for  not  more  than  two  years,  or  both. 

Limiting  and  Restricting  Supplies — Penalty. 

Sec.  9.  That  any  person  who  conspires,  combines,  agrees,  or  ar- 
ranges with  any  other  person  (a)  to  limit  the  facilities  for  transporting, 
producing,  manufacturing,  supplying,  storing,  or  dealing  in  anv  neces- 
saries; (b)  to  restrict  the  supply  of  any  necessaries;  (c)  to  restrict  the 
distribution  of  any  necessaries;  (d)  to  prevent,  limit,  or  lessen  the  manu- 
facture or  production  of  any  necessaries  in  order  to  enhance  the  price 
thereof  shall,  upon  conviction  thereof,  be  fined  not  exceeding  $10,000 
or  be  imprisoned  for  not  more  than  two  years,  or  both. 


Food  Control  Act  57 

Requisition  for  Army  and  Navy — Payment. 

Sec.  10.  That  the  President  is  authorized,  from  time  to  time,  to 
requisition  foods,  feeds,  fuels,  and  other  suppHes  necessary  to  the  sup- 
port of  the  Army  or  the  maintenance  of  the  Navy,  or  any  other  pubhc 
use  connected  with  the  common  defense,  and  to  requisition,  or  other- 
wise provide,  storage  f acihties  for  such  supplies ;  and  he  shall  ascertain 
and  pay  a  just  compensation  therefor.  If  the  compensation  so  deter- 
mined be  not  satisfactory  to  the  person  entitled  to  receive  the  same,  such 
person  shall  be  paid  seventy-five  per  centum  of  the  amount  so  deter- 
mined by  the  President,  and  shall  be  entitled  to  sue  the  United  States 
to  recover  such  further  sum  as,  added  to  said  seventy-five  per  centum 
will  make  up  such  amount  as  will  be  just  compensation  for  such  neces- 
saries or  storage  space,  and  jurisdiction  is  hereby  conferred  on  the 
United  States  District  Courts  to  hear  and  determine  all  such  contro- 
versies :  Provided,  That  nothing  in  this  section,  or  in  the  section  that 
follows,  shall  be  construed  to  require  any  natural  person  to  furnish  to 
the  Government  any  necessaries  held  by  him  and  reasonably  required  for 
consumption  or  use  by  himself  and  dependents,  nor  shall  any  person, 
firm,  corporation,  or  association  be  required  to  furnish  to  the  Govern- 
ment any  seed  necessary  for  the  seeding  of  land  owned,  leased,  or  culti- 
vated by  them. 
Purchase  and  Sale  of  Necessaries. 

Sec.  11.  That  the  President  is  authorized  from  time  to  time  to 
purchase,  to  store,  to  provide  storage  facilities  for,  and  to  sell  for  cash 
at  reasonable  prices,  wheat,  flour,  meal,  beans,  and  potatoes :  Provided, 
That  if  any  minimum  price  shall  have  been  theretofore  fixed,  pursuant 
to  the  provisions  of  section  fourteen  of  this  Act,  then  the  price  paid  for 
any  such  articles  so  purchased  shall  not  be  less  than  such  minimum  price. 
Any  moneys  received  by  the  United  States  from*  or  in  connection  with 
the  disposal  by  the  United  States  of  necessaries  under  this  section  may, 
in  the  discretion  of  the  President,  be  used  as  a  revolving  fund  for  fur- 
ther carrying  out  the  purposes  of  this  section.  Any  balance  of  such 
moneys  not  used  as  part  of  such  revolving  fund  shall  be  covered  into 
the  Treasury  as  miscellaneous  receipts. 

Requisition  of  Manufacturing  and  Other  Establishments. 

Sec.  12.  That  whenever  the  President  shall  find  it  necessary  to 
secure  an  adequate  supply  of  necessaries  for  the  support  of  the  Army 
or  the  maintenance  of  the  Navy,  or  for  any  other  public  use  connected 
with  the  common  defense,  he  is  authorized  to  requisition  and  take  over, 
for  use  or  operation  by  the  Government,  any  factory,  packing  house,  oil 
pipe  line,  mine,  or  other  plant,  or  any  part  thereof,  in  or  through  which 
any  necessaries  are  or  may  be  manufactured,  produced,  prepared,  or 
mined,  and  to  operate  the  same.  Whenever  the  President  shall  deter- 
mine that  the  further  use  or  operation  by  the  Government  of  any  such 
factory,  mine,  or  plant,  or  part  thereof,  is  not  essential  for  the  national 


58  Supplement  to  Important  Federal  Laws 

security  or  defense,  the  same  shall  be  restored  to  the  person  entitled  to' 
the  possession  thereof.  The  United  States  shall  make  just  compensation, 
to  be  determined  by  the  President,  for  the  taking  over,  use,  occupation, 
and  operation  by  the  Government  of  any  such  factory,  mine,  or  plant, 
or  part  thereof.  If  the  compensation  so  determined  be  unsatisfactory 
to  the  person  entitled  to  receive  the  same,  such  person  shall  be  paid 
seventy-five  per  centum  of  the  amount  so  determined  by  the  President,  and 
shall  be  entitled  to  sue  the  United  States  to  recover  such  further  sum  as, 
added  to  said  seventy-five  per  centum,  will  make  up  such  amount  as 
will  be  just  compensation,  in  the  manner  provided  by  section  twenty- 
four,  paragraph  twenty,  and  section  one  hundred  and  forty-five  of  the 
Judicial  Code.  The  President  is  authorized  to  prescribe  such  regulations 
as  he  may  deem  essential  for  carrying  out  the  purposes  of  this  section, 
including  the  operation  of  any  such  factory,  mine,  or  plant,  or  part 
thereof,  the  purchase,  sale,  or  other  disposition  of  articles  used,  manu- 
factured, produced,  prepared,  or  mined  therein,  and  the  employment, 
control,  and  compensation  of  employees.  Any  moneys  received  by  the 
United  States  from  or  in  connection  with  the  use  or  operation  of  anv 
such  factory,  mine,  or  plant,  or  part  thereof,  may,  in  the  discretion  of 
the  President,  be  used  as  a  revolving  fund  for  the  purpose  of  the  con- 
tinued use  or  operation  of  any  such  factory,  mine,  or  plant,  or  part 
thereof,  and  the  accounts  of  each  such  factory,  mine,  or  plant,  or  part 
thereof,  shall  be  kept  separate  and  distinct.  Any  balance  of  such  moneys 
not  used  as  part  of  such  revolving  fund  shall  be  paid  into  the  Treasury 
as  miscellaneous  receipts. 

Boards  of  Trade,  Grain  Exchanges,  etc. — Regulation  of. 

Sec.  13.  That  whenever  the  President  finds  it  essential  in  order  to 
prevent  undue  enhancement,  depression,  or  fluctuation  of  prices  of,  or  in 
order  to  prevent  injurious  speculation  in,  or  in  order  to  prevent  unjust 
market  manipulation  or  unfair  and  misleading  market  quotations  of  the 
prices  of  necessaries,  hereafter  in  this  section  called  evil  practices,  he  is 
authorized  to  prescribe  such  regulations  governing,  or  may  either  wholly 
or  partly  prohibit,  operations,  practices,  and  transactions  at,  on,  in,  or 
under  the  rules  of  any  exchange,  board  of  trade,  or  similar  institution 
or  place  of  business  as  he  may  find  essential  in  order  to  prevent,  correct, 
or  remove  such  evil  practices.  Such  regulations  may  require  all  persons 
coming  within  their  provisions  to  keep  such  records  and  statements  of 
account,  and  may  require  such  persons  to  make  such  returns,  verified 
under  oath  or  otherwise,  as  will  fully  and  correctly  disclose  all  trans- 
actions at,  in,  or  on,  or  under  the  rules  of  any  such  exchange,  board  of 
trade,  or  similar  institution  or  place  of  business,  including  the  making, 
execution,  settlement,  and  fulfillment  thereof.  He  may  also  require  all 
persons  acting  in  the  capacity  of  a  clearing  house,  clearing  association, 
or  similar  institution,  for  the  purpose  of  clearing,  settling,  or  adjusting 
transactions  at,  in,  or  on,  or  under  the  rules  of  any  such  exchange,  board 


Food  Control  Act  -  59 


of  trade,  or  similar  institution  or  place  of  business,  to  keep  such  records 
and  to  make  such  returns  as  will  fully  and  correctly  disclose  all  facts 
in  their  possession  relating  to  such  transactions,  and  he  may  appoint 
agents  to  conduct  the  investigations  necessary  to  enforce  the  provisions 
of  this  section  and  all  rules  and  regulations  made  by  him  in  pursuance 
thereof,  and  may  fix  and  pay  the  compensation  of  such  agents.  Any 
person  who  willfully  violates  any  regulation  made  pursuant  to  this  sec- 
tion, or  who  knowingly  engages  in  any  operation,  practice,  or  transac- 
tion prohibited  pursuant  to  this  section,  or  who  willfully  aids  or  abets 
any  such  violation  or  any  such  prohibited  operation,  practice,  or  trans- 
action, shall,  upon  conviction  thereof,  be  punished  by  a  fine  not  exceed- 
ing $10,000  or  by  imprisonment  for  not  more  than  four  years,  or  both. 

Minimum  Prices — President's  Power  to  Guarantee. 

Sec.  14.  That  whenever  the  President  shall  find  that  an  emergency 
exists  requiring  stimulation  of  the  production  of  wheat  and  that  it  is 
essential  that  the  producers  of  wheat,  produced  within  the  United  States, 
shall  have  the  benefits  of  the  guaranty  provided  for  in  this  section,  he 
is  authorized,  from  time  to  time,  seasonably  and  as  far  in  advance  of 
seeding  time  as  practicable,  to  determine  and  fix  and  to  give  public  notice 
of  what,  under  specified  conditions,  is  a  reasonable  guaranteed  price  for 
wheat,  in  order  to  assure  such  producer  a  reasonable  profit.  The  Presi- 
dent shall  thereupon  fix  such  guaranteed  price  for  each  of  the  official 
grain  standards  for  wheat  as  established  under  the  United  States  grain 
standards  Act,  approved  August  eleventh,  nineteen  hundred  and  sixteen. 
The  President  shall  from  time  to  time  establish  and  promulgate  such 
regulations  as  he  shall  deem  wise  in  connection  with  such  guaranteed 
prices,  and  in  particular  governing  conditions  of  delivery  and  payment, 
and  dififerences  in  price  for  the  several  standard  grades  in  the  principal 
primary  markets  of  the  United  States,  adopting  number  one  northern 
spring  or  its  equivalent  at  the  principal  interior  primary  markets  as  the 
basis.  Thereupon,  the  Government  of  the  United  States  hereby  guaran- 
tees every  producer  of  wheat  produced  within  the  United  States,  that 
upon  compliance  by  him  with  the  regulations  prescribed  he  shall  receive 
for  any  wheat  produced  in  reliance  upon  this  guarantee  within 
the  period,  not  exceeding  eighteen  months,  prescribed  in  the  notice  a  price 
not  less  than  the  guaranteed  price  therefor  as  fixed  pursuant  to  this  sec- 
tion. In  such  regulations  the  President  shall  prescribe  the  terms  and 
conditions  upon  which  any  such  producer  shall  be  entitled  to  the  benefits 
of  such  guaranty.  The  gviaranteed  prices  for  the  several  standard 
grades  of  wheat  for  the  crop  of  nineteen  hundred  and  eighteen,  shall  be 
based  upon  number  one  northern  spring  or  its  equivalent  at  not  less  than 
$2  per  bushel  at  the  principal  interior  primary  markets.  This  guaranty 
shall  not  be  dependent  upon  the  action  of  the  President  under  the  first 
part  of  this  section,  but  is  hereby  made  absolute  and  shall  be  binding 
until   May  first  nineteen  hundred  and  nineteen.     When  the   President 


60  Supplement  to  Important  Federal  Laws 

finds  that  the  importation  into  the  United  States  of  any  wheat  produced 
outside  of  the  United  States  materially  enhances  or  is  likely  materially  to 
enhance  the  liabilities  of  the  United  States  under  guaranties  of  prices 
therefor  made  pursuant  to  this  section,  and  ascertains  what  rate  of  duty, 
added  to  the  then  existing  rate  of  duty  on  wheat  and  to  the  value  of  wheat 
at  the  time  of  importation,  would  be  sufficient  to  bring  the  price  thereof  at 
which  imported  up  to  the  price  fixed  therefor  pursuant  to  the  foregoing 
provisions  of  this  section,  he  shall  proclaim  such  facts,  and  thereafter 
there  shall  be  levied,  collected,  and  paid  upon  wheat  when  imported  in 
addition  to  the  then  existing  rate  of  duty,  the  rate  of  duty  so  ascertained ; 
but  in  no  case  shall  any  such  rate  of  duty  be  fixed  at  an  amount  which 
will  effect  a  reduction  of  the  rate  of  duty  upon  wheat  under  any  then 
existing  tarift'  law  of  the  United  States.  For  the  purpose  of  making 
any  guaranteed  price  effective  under  this  section,  or  whenever  he  deems 
it  essential  in  order  to  protect  the  Government  of  the  United  States 
against  material  enhancement  of  its  liabilities  arising  out  of  any  guaranty 
under  this  section,  the  President  is  authorized  alhtj,  ui  his  discretion,  to 
purchase  any  wheat  for  which  a  guaranteed  price  shall  be  fixed  under 
this  section,  and  to  hold,  transport,  or  store  it,  or  to  sell,  dispose  of,  and 
deliver  the  same  to  any  citizen  of  the  United  States  or  to  any  Govern- 
ment engaged  in  war  with  any  country  with  which  the  Government  of 
the  United  States  is  or  may  be  at  war  or  to  use  the  same  as  supplies 
for  any  department  or  agency  of  the  Government  of  the  United  States. 
Any  moneys  received  by  the  United  States  from  or  in  connection  with 
the  sale  or  disposal  of  wheat  under  this  section  may,  in  the  discretion 
of  the  President,  be  used  as  a  revolving  fund  for  further  carrying  out 
the  purposes  of  this  section.  Any  balance  of  such  moneys  not  used  as 
part  of  such  revolving  fund  shall  be  covered  into  the  Treasury  as  mis- 
cellaneous receipts. 

Distilled  Spirits — Prohibition  of  Use  of  Foodstuffs  For. 

Sec.  15.  That  from  and  after  thirty  days  from  the  date  of  tne 
approval  of  this  Act  no  foods,  fruits,  food  materials,  or  feeds  shall  be 
used  in  the  production  of  distilled  spirits  for  beverage  purposes :  Pro- 
vided, That  under  such  rules,  regulations,  and  bonds  as  the  President 
may  prescribe,  such  materials  may  be  used  in  the  production  of  distilled 
spirits  exclusively  for  other  than  beverage  purposes,  or  for  the  fortifi- 
cation of  pure  sweet  wines  as  defined  by  the  Act  entitled  "An  Act  to 
increase  the  revenue,  and  for  other  purposes,"  approved  September 
eighth,  nineteen  hundred  and  sixteen.  Nor  shall  there  be  imported  into 
the  United  States  any  distilled  spirits.  Whenever  the  President  shall  find 
that  limitation,  regulation,  or  prohibition  of  the  use  of  foods,  fruits, 
food  materials,  or  feeds  in  the  production  of  malt  or  vinous  liquors  for 
beverage  purposes,  or  that  reduction  of  the  alcoholic  content  of  any  such 
malt  or  vinous  liquor,  is  essential,  in  order  to  assure  an  adequate  and 
continuous  supply  of  food,  or  that  the  national  security  and  defense  will 


Food  Control  Act  61 

be  subserved  thereby,  he  is  authorized,  from  time  to  time,  to  prescribe 
and  give  pubhc  notice  of  the  extent  of  the  Umitation,  regulation,  prohi- 
bition, or  reduction  so  necessitated.  Whenever  such  notice  shall  have 
been  given  and  shall  remain  unrevoked  no  person  shall,  after  a  reason- 
able time  prescribed  in  such  notice,  use  any  foods,  fruits,  food  materials, 
or  feeds  in  the  production  of  malt  or  vinous  liquors,  or  import  any  such 
liquors  except  under  license  issued  by  the  President  and  in  compliance 
with  rules  and  regulations  determined  by  him  governing  the  production 
and  importation  of  such  liquors  and  the  alcoholic  content  thereof.  Any 
person  who  willfully' violates  the  provisions  of  this  section,  or  who  shall 
use  any  foods,  fruits,  food  materials,  or  feeds  in  the  production  of  malt 
or  vinous  liquors,  or  who  shall  import  any  such  liquors,  without  first 
obtaining  a  license  so  to  do  when  a  license  is  required  under  this  section, 
or  who  shall  violate  any  rule  or  regulation  made  under  this  section,  shall 
Ije  punished  by  a  fine  not  exceeding  $5,000,  or  by  imprisonment  for  not 
more  than  two  years,  or  both :  Provided  further,  That  nothing  in  this 
section  shall  be  construed  to  authorize  the  licensing  of  the  manufacture 
of  vinous  or  malt  liquors  in  any  State,  Territory,  or  the  District  of  Co- 
lumbia, or  any  civil  subdivision  thereof,  w^here  the  manufacture  of  such 
vinous  or  malt  liquor  is  prohibited. 

Distilled  Spirits  May  Be  Commandeered. 

Sec.  16.  That  the  President  is  authorized  and  directed  to  com- 
mandeer any  or  all  distilled  spirits  in  bond  or  in  stock  at  the  date  of 
the  approval  of  this  Act  for  redistillation,  in  so  far  as  such  redistillation 
may  be  necessary  to  meet  the  requirements  of  the  Government  in  the 
manufacture  of  munitions  and  other  military  and  hospital  supplies,  or 
in  so  far  as  such  redistillation  would  dispense  with  the  necessity  of  utiliz- 
ing products  and  materials  suitable  for  foods  and  feeds  in  the  future 
manufacture  of  distilled  spirits  for  the  purposes  herein  enumerated.  The 
President  shall  determine  and  pay  a  just  compensation  for  the  distilled 
spirits  so  commandeered  ;  and  if  the  compensation  so  determined  be  not 
satisfactory  to  the  person  entitled  to  receive  the  same,  such  person  shall 
be  paid  seventy-five  per  centum  of  the  amount  so  determined  by  the 
President  and  shall  be  entitled  to  sue  the  United  States  to  recover  such 
further  sum  as  added  to  said  seventy-five  per  centum,  will  make  up  such 
amount  as  will  be  just  compensation  for  such  spirits,  in  the  manner 
provided  by  section  twenty-four,  paragraph  twenty,  and  section  one  hun- 
dred and  forty-five  of  the  Judicial  Code. 

Penalty  for  Interference. 

Sec.  17.  That  every  person  who  willfully  assaults,  resists,  impedes, 
or  interferes  with  any  officer,  employee,  or  agent  of  the  United  States 
in  the  execution  of  any  duty  authorized  to  be  performed  by  or  pursuant 
to  this  Act  shall  upon  conviction  thereof  be  fined  not  exceeding  $1,000 
or  be  imprisoned  for  not  more  than  one  year,  or  both. 


62  Supplement  to  Important  Federal  Laws 

Appropriation — Expenses. 

Sec.  18.  That  the  sum  of  $2,500,000  is  hereby  appropriated,  out  of 
any  moneys  in  the  Treasury,  not  otherwise  appropriated,  to  be  available 
until  June  thirtieth,  nineteen  hundred  and  eighteen,  for  the  payment  of 
such  rent,  the  expense,  inchiding  postage,  of  such  printing  and  publica- 
tions, the  purchase  of  such  material  and  equipment,  and  the  employment 
of  such  persons  and  means,  in  the  city  of  Washington  and  elsewhere, 
as  the  President  may  deem  essential. 
Appropriation — General. 

Sec.  19.  That  for  the  purposes  of  this  Act  the  sum  of  $150,000,000 
is  hereby  appropriated,  out  of  any  moneys  in  the  Treasury  not  other- 
wise appropriated,  to  be  available  during  the  time  this  Act  is  in  effect : 
Provided,  That  no  part  of  this  appropriation  shall  be  expended  for  the 
purposes  described  in  the  preceding  section :  l^rovided  further.  That 
itemized  statements  covering  all  purchases  and  disbursements  under 
this  and  the  preceding  section  shall  be  filed  with  the  Secretary  of  the 
Senate  and  the  Clerk  of  the  House  of  Representatives  on  or  before  the 
twenty-fifth  day  of  each  month  after  the  taking  effect  of  this  Act,  cov- 
ering the  business  of  the  preceding  month,  an(l  said  statements  shall  be 
subject  to  public  inspection. 

Employment  Not  to  Exempt  From  Military  Duty. 

Sec.  20.  That  the  employment  of  any  person  under  the  provisions 
of  this  Act  shall  not  exempt  any  such  person  from  military  service 
under  the  provisions  of  the  selective  draft  law  approved  May  eighteenth, 
nineteen  hundred  and  seventeen. 

Report  by  the  Presidenr. 

Sec.  21.  The  Tresident  shall  cause  a  detailed  report  to  be  made 
to  the  Congress  on  the  first  day  of  January  each  year  of  all  proceedings 
had  under  this  Act  during  the  year  preceding.  Such  report  shall,  in  ad- 
dition to  other  matters,  contain  an  account  of  all  persons  appointed  or 
employed,  the  salary  or  compensation  paid  or  allowed  each,  the  aggre- 
gate amount  of  the  different  kinds  of  property  purchased  or  requisi- 
tioned, the  use  and  disposition  made  of  such  property,  and  a  statement 
of  all  receipts,  payments,  and  expenditures,  together  with  a  statement 
showing  the  general  character,  and  estimated  value  of  all  property  then 
on  hand,  and  the  aggregate  amount  and  character  of  all  claims  against 
the  United  States  growing  out  of  this  Act. 
Invalidation  of  Part  Not  to  Affect  Whole. 

Sec.  22.  That  if  any  clause,  sentence,  paragraph,  or  part  of  this 
Act  shall  for  any  reason  be  adjudged  by  any  court  of  competent  juris- 
diction to  be  invalid,  such  judgment  shall  not  affect,  impair,  or  invalidate 
the  remainder  thereof,  but  shall  be  confined  in  its  operation  to  the  clause, 
sentence,  paragraph,  or  ])art  thereof,  directly  involved  in  the  controversy 
in  which  such  judgment  shall  have  been  rendered. 


Food  Control  Act  63 

Definitions. 

Sec.  23.  That  words  used  in  this  Act  shall  be  construed  to  import 
the  plural  or  singular  as  the  case  demands.  The  word  "person"  wher- 
ever used  in  this  Act,  shairinclude  individuals,  partnerships,  associations, 
and  corporations.  When  construing  and  enforcing  the  provisions  of  this 
Act,  the  act,  omission  or  failure  of  any  official,  agent,  or  other  person 
acting  for  or  employed  by  any  partnership,  association,  or  corporation 
within  the  scope  of  his  employment  or  office  shall,  in  every  case,  also  be 
deemed  the  act,  omission,  or  failure  of  such  partnership,  association,  or 
corporation  as  well  as  that  of  the  person. 

Termination  at  End  of  War. 

Sec.  24.  That  the  provisions  of  this  Act  shall  cease  to  be  in  efifect 
when  the  existing  state  of  war  between  the  United  States  and  Germany 
shall  have  terminated,  and  the  fact  and  date  of  such  termination  shall  be 
ascertained  and  proclaimed  by  the  President ;  but  the  termination  of  this 
"Act  shall  not  afifect  any  act  done,  or  any  right  or  obligation  accruing  or 
accrued,  or  anv  suit  or  proceeding  had  or  commenced  in  any  civil  case 
before  the  said  termination  pursuant  to  this  Act ;  but  all  rights  and  lia- 
bilities under  this  Act  arising  before  its  termination  shall  continue  and 
may  be  enforced  in  the  same  manner  as  if  the  Act  had  not  terminated. 
Any  offense  committed  and  all  penalties,  forfeitures,  or  liabilities  incurred 
prior  to  such  termination  may  be  prosecuted  or  punished  in  the  same 
manner  and  with  the  same  effect  as  if  this  Act  had  not  been  terminated. 

Coal  and  Coke — President's  Power  to  Fix  Prices. 

Sec.  25.  That  the  President  of  the  United  States  shall  be,  and  he 
is  hereby  authorized  and  empowered,  whenever  and  wherever  in  his 
judgment  necessary  for  the  efficient  prosecution  of  the  war,  to  fix  the 
price  of  coal  and  coke,  wherever  and  whenever  sold,  either  by  producer 
or  dealer,  to  establish  rules  for  the  regulation  of  and  to  regulate  the 
method  of  production,  sale,  shipment,  distribution,  apportionment,  or 
storage  thereof  among  dealers  and  consumers,  domestic  or  foreign ;  said 
authority  and  power  may  be  exercised  by  him  in  each  case  through  the 
agency  of  the  Federal  Trade  Commission  during  the  war  or  for  such  pan 
of  said  time  as  in  his  judgment  may  be  necessary. 

That  if,  in  the  opinion  of  the  President,  any  such  producer  or  dealer 
fails  or  neglects  to  conform  to  such  prices  or  regulations,  or  to  conduct 
his  business  efficiently  under  the  regulations  and  control  of  the  Presi- 
dent as  aforesaid,  or  conducts  it  in  a  manner  prejudicial  to  the  public 
interest,  then  the  President  is  hereby  authorized  and  empowered  in 
every  such  case  to  requisition  and  take  over  the  plant,  business,  and  all 
appurtenances  thereof  belonging  to  such  producer  or  dealer  as  a  going 
concern,  and  to  operate  or  cause  the  same  to  be  operated  in  such  manner 
and  through  such  agency  as  he  may  direct  during  the  period  of  the  war 
or  for  such  part  of  said  time  as  in  his  judgment  may  be  necessary. 

That  any  producer  or   dealer  whose  plant,  business,  and  appurte- 


64  Supplement  to  Important  Federal  Laws 

nances  shall  have  been  requisitioned  or  taken  over  by  the  President  shall 
be  paid  a  just  compensation  for  the  use  thereof  during  the  period  that 
the  same  may  be  requisitioned  or  taken  over  as  aforesaid,  which  com- 
pensation the  President  shall  fix  or  cause  to  be  fixed  by  the  Federal 
Trade  Commission. 

That  if  the  prices  so  fixed,  or  if,  in  the  case  of  the  taking  over  or 
requisitioning  of  the  mines  or  business  of  any  such  producer  or  dealer 
the  compensation  therefor  as  determined  by  the  provisions  of  this  Act 
be  not  satisfactory  to  the  person  or  persons  entitled  to  receive  the  same, 
such  person  shall  be  paid  seventy-five  per  centum  of  the  amount  so  de- 
termined, and  shall  be  entitled  to  sue  the  United  States  to  recover  such 
further  sum  as,  added  to  said  seventy-five  per  centum,  will  make  up  such 
amount  as  will  be  just  compensation  in  the  manner  provided  by  section 
twenty-four,  paragraph  twenty,  and  section  one  hundred  and  forty-five 
of  the  Judicial  Code. 

While  operating  or  causing  to  be  operated  any  such  plants  or  busi- 
ness, the  President  is  authorized  to  prescribe  such  regulations  as  he  may 
deem  essential  for  the  employment,  control,  and  compensation  of  the 
employees  necessary  to  conduct  the  same. 

Commandeering  of  Coal  Product. 

Or  if  the  President  of  the  United  States  shall  be  of  the  opinion 
that  he  can  thereby  better  provide  for  the  common  defense,  and  when- 
ever, in  his  judgment,  it  shall  be  necessary  for  the  efficient  prosecution 
of  the  war,  then  he  is  hereby  authorized  and  empowered  to  require  any 
or  all  producers  of  coal  and  coke,  either  in  any  special  area  or  in  any 
special  coal  fields,  or  in  the  entire  United  States,  to  sell  their  products 
only  to  the  United  States  through  an  agency  to  be  designated  by  the  Presi- 
dent, such  agency  to  regulate  the  resale  of  such  coal  and  coke,  and  the 
prices  thereof,  and  to  establish  rules  for  the  regulation  of  and  to  regulate 
the  methods  of  production,  shipment,  distribution,  apportionment,  or  stor- 
age thereof  among  dealers  and  consumers,  domestic  or  foreign,  and  to 
make  payment  of  the  purchase  price  thereof  to  the  producer  thereof,  or 
to  the  person  or  persons  legally  entitled  to  said  payment. 

That  within  fifteen  days  after  notice  from  the  agency  so  designated 
to  any  producer  of  coal  and  coke  that  his,  or  its,  output  is  to  be  so 
purchased  by  the  United  States  as  hereinbefore  described,  such  pro- 
ducer shall  cease  shipments  of  said  product  upon  his  own  account  and 
shall  transmit  to  such  agency  all  orders  received  and  unfilled  or  partially 
unfilled,  showing  the  exact  extent  to  which  shipments  have  been  made 
thereon,  and  thereafter  all  shipments  shall  be  made  only  on 
authority  of  the  agency,  designated  by  the  President,  and  thereafter 
no  such  producer  shall  sell  any  of  said  products  except  to  the  United 
States  through  such  agency,  and  the  said  agency  alone  is  hereby  author- 
ized and  empowered  to  purchase  during  the  continuance  of  the  require- 
ment the  output  of  such  producers. 


Food  Control  Act  65 

That  the  prices  to  be  paid  for  such  products  so  purchased  shall  be 
based  upon  a  fair  and  just  profit  over  and  above  the  cost  of  production, 
including  proper  maintenance  and  depletion  charges,  the  reasonableness 
of  such  profits  and  cost  of  production  to  be  determined  by  the  Federal 
Trade  Commission,  and  if  the  prices  fixed  by  the  said  commission  of  any 
such  product  purchased  by  the  United  States  as  hereinbefore  described 
be  unsatisfactory  to  the  person  or  persons  entitled  to  the  same,  such 
person  or  persons  shall  be  paid  seventy-five  per  centum  of  the  amount 
so  determined,  and  shall  be  entitled  to  sue  the  United  States  to  recover 
such  further  sum  as,  added  to  said  seventy-five  per  centum,  will  make 
up  such  amount  as  vv^ill  be  just  compensation  in  the  manner  provided 
by  section  twenty-four,  paragraph  twenty,  and  section  one  hundred  and 
forty-five  of  the  Judicial  Code. 

All  such  products  so  sold  to  the  United  States  shall  be  sold  by  the 
United  States  at  such  uniform  prices,  quality  considered,  as  may  be  prac- 
ticable and  as  may  be  determined  by  said  agency  to  be  just  and  fair. 

Any  moneys  received  by  the  United  States  for  the  sale  of  any 
such  coal  and  coke  may,  in  the  discretion  of  the  President,  be  used  as  a 
revolving  fund  for  further  carrying  out  the  purposes  of  this  section. 
Any  moneys  not  so  used  shall  be  covered  into  the  Treasury  as  miscel- 
laneous receipts. 

Investigation  by  the  Trade  Commission. 

That  when  directed  by  the  President,  the  Federal  Trade  Commis- 
sion is  hereby  required  to  proceed  to  make  full  inquiry,  giving  such 
notice  as  it  may  deem  practicable,  into  the  cost  of  producing  under  rea- 
sonably efficient  management  at  the  various  places  of  production  the 
following  commodities,  to  wit,  coal  and  coke. 

The  books,  correspondence,  records,  and  papers  in  any  way  referring 
to  transactions  of  any  kind  relating  to  the  mining,  production,  sale,  or 
distribution  of  all  mine  operators  or  other  persons  whose  coal  and  coke 
have  or  may  become  subject  to  this  section,  and  the  books,  correspond- 
ence, records,  and  papers  of  any  person  applying  for  the  purchase  of  coal 
and  coke  from  the  United  States  shall  at  all  times  be  subject  to  inspec- 
tion by  the  said  agency,  and  such  person  or  persons  shall  promptly  fur- 
nish said  agency  any  data  or  information  relating  to  the  business  of 
such  person  or  persons  which  said  agency  may  call  for,  and  said  agency 
is  hereby  authorized  to  procure  the  information  in  reference  to  the  busi- 
ness of  such  coal-mine  operators  and  producers  of  coke  and  customers 
therefor  in  the  manner  provided  for  in  sections  six  and  nine  of  the  Act 
of  Congress  approved  September  twenty-sixth,  nineteen  hundred  and 
fourteen,  entitled  "An  Act  to  create  a  Federal  Trade  Commission,  to 
define  its  powers  and  duties,  and  for  other  purposes,"  and  said  agency 
is  hereby  authorized  and  empowered  to  exercise  all  the  powers  granted 
to  the  Federal  Trade  Commission  by  said  Act  for  the  carrying  out  of  the 
purposes  of  this  section. 

(5) 


66  Supplement  to  Important  Federal  Laws 

Having  completed  its  inquiry  respecting  any  commodity  in  any  lo- 
cality, it  shall,  if  the  President  has  decided  to  fix  the  prices  at  which 
any  such  commodity  shall  be  sold  by  producers  and  dealers  generally, 
fix  and  publish  maximum  prices  for  both  producers  of  and  dealers  in 
any  such  commodity,  which  maximum  prices  shall  be  observed  by  all 
producers  and  dealers  until  further  action  thereon  is  taken  by  the  com- 
mission. 

In  fixing  maximum  prices  for  producers  the  commission  shall  allow 
the  cost  of  production,  including  the  expense  of  operation,  maintenance, 
depreciation,  and  depletion,  and  shall  add  thereto  a  just  and  reasonable 
profit. 

In  fixing  such  prices  for  dealers,  the  commission  shall  allow  the 
cost  to  the  dealer  and  shall  add  thereto  a  just  and  reasonable  sum  for 
his  profit  in  the  transaction. 

The  maximum  prices  so  fixed  and  published  shall  not  be  construed 
as  invalidating  an}^  contract  in  which  prices  are  fixed,  made  in  good 
faith,  prior  to  the  establishment  and  publication  of  maximum  prices  by 
the  commission. 

Whoever  shall,  with  knowledge  that  the  prices  of  any  such  com- 
modity have  been  fixed  as  herein  provided,  ask,  demand,  or  receive  a 
higher  price,  or  whoever  shall,  with  knowledge  that  the  regulations  have 
been  prescribed  as  herein  provided,  violate  or  refuse  to  conform  to  any 
of  the  same,  shall,  upon  conviction,  be  punished  by  fine  of  not  more  than 
$5,000,  or  by  imprisonment  for  not  more  than  two  years,  or  both.  Each 
independent  transaction  shall  constitute  a  separate  oft'ense. 

Nothing  in  this  section  shall  be  construed  as  restricting  or  modify- 
ing in  any  manner  the  right  the  Government  of  the  United  States  may 
have  in  its  own  behalf  or  in  behalf  of  any  other  Government  at  war  with 
Germany  to  purchase,  requisition,  or  take  over  any  such  commodities 
for  the  equipment,  maintenance,  or  support  of  armed  forces  at  any  price 
or  upon  any  terms  that  may  be  agreed  upon  or  otherwise  lawfully  de- 
termined. 

Hoarding  or  Monopoly  by  Persons  Engaged  in  Commerce — Penalty. 

Sec.  26.  That  any  person  carrying  on  or  employed  in  commerce 
among  the  several  States,  or  with  foreign  nations,  or  with  or  in  the 
Territories  or  other  possessions  of  the  United  States  in  any  article  suit- 
able for  human  food,  fuel,  or  other  necessaries  of  life,  who,  either  in 
his  individual  capacity  or  as  an  officer,  agent,  or  employee  of  a  corpo- 
ration or  member  of  a  partnership  carrying  on  or  employed  in  such  trade, 
shall  store,  acquire,  or  hold,  or  who  shall  destroy  or  make  away  with 
any  such  article  for  the  purpose  of  limiting  the  supply  thereof  to  the 
public  or  affecting  the  market  price  thereof  in  such  commerce,  whether 
temporarily  or  otherwise,  shall  be  deemed  guilty  of  a  felony  and,  upon 
conviction  thereof,  shall  be  punished  by  a  fine  of  not  more  than  $5,000 
or  by  imprisonment  for  not  more  than  two  years,  or  JDOth :     Provided, 


Food  Control  Act  67 

That  any  storing  or  holding  by  any  farmer,  gardener,  or  other  person 
of  the  products  of  any  farm,  garden,  or  other  land  cultivated  by  him 
shall  not  be  deemed  to  be  a  storing  or  holding  within  the  meaning  of 
this  Act :  Provided  further.  That  farmers  and  fruit  growers,  cooperative 
and  other  exchanges,  or  societies  of  a  similar  character  shall  not  be 
included  within  the  provisions  of  this  section :  Provided  further.  That 
this  section  shall  not  be  construed  to  prohibit  the  holding  or  accumula- 
ting of  any  such  article  by  any  such  person  in  a  quantity  not  in  excess  of 
the  reasonable  requirements  of  his  business  for  a  reasonable  time  or  in 
a  quantity  reasonably  required  to  furnish  said  articles  produced  in  sur- 
plus quantities  seasonally  throughout  the  period  of  scant  or  no  produc- 
tion. Nothing  contained  in  this  section  shall  be  construed  to  repeal  the 
Act  entitled  "An  Act  to  protect  trade  and  commerce  against  unlawful 
restraints  and  monopolies,"  approved  July  second,  eighteen  hundred  and 
ninety,  commonly  known  as  the  Sherman  Antitrust  Act. 

Nitrate  of  Soda — Procurement  for  Agriculture — Appropriation. 

Sec.  27.  That  the  President  is  authorized  to  procure,  or  aid  in 
procuring,  such  stocks  of  nitrate  of  soda  as  he  may  determine  to  be 
necessary,  and  find  available,  for  increasing  agricultural  production  dur- 
ing the  calendar  years  nineteen  hundred  and  seventeen  and  eighteen,  and 
to  dispose  of  the  same  for  cash  at  cost,  including  all  expenses  connected 
therewith.  For  carrying  out  the  purposes  of  this  section,  there  is  hereby 
appropriated,  out  of  any  moneys  in  the  Treasury  not  otherwise  appro- 
priated, available  immediately  and  until  expended,  the  sum  of  $10,000,- 
000,  or  so  much  thereof  as  may  be  necessary,  and  the  President  is  author- 
ized to  make  such  regulations,  and  to  use  such  means  and  agencies  of 
the  Government,  as,  in  his  discretion,  he  may  deem  best.  The  proceeds 
arising  from  the  disposition  of  the  nitrate  of  soda  shall  go  into  the 
Treasury  as  miscellaneous  receipts. 


FOOD  SURVEY  LAW. 

Approved  August  10,  1917. 
An  Act   to  provide  further   for   the   untional    security   :iiid  defense   by   stimulat- 
ing agriculture  and  facilitating  the  distribution  of  agricultural   products. 

Purpose. 

Section  1.  That,  for  the  purpose  of  more  effectually  providing  for 
the  national  security  and  defense  and  carrying  on  the  war  with  Germany 
by  gathering  authoritative  information  concerning  the  food  supply,  by  in- 
creasing production,  by  preventing  waste  of  the  food  supply,  by  regulating 
the  distribution  thereof,  and  by  such  other  means  and  methods  as  are  here- 
inafter provided,  the  powers,  authorities,  duties,  obligations  and  prohi- 
bitions hereinafter  set  forth  are  conferred  and  prescribed. 

Secretary  of  Agriculture — Duty  and  Power. 

Sec.  2.  That  the  Secretary  of  Agriculture,  with  the  approval  of 
the  President,  is  authorized  to  investigate  and  ascertain  the  demand  for, 
the  supply,  consumption,  costs  and  prices  of,  and  the  basic  facts  relating 
to  the  ownership,  production,  transportation,  manufacture,  storage  and 
distribution  of,  foods,  food  materials,  feeds,  seeds,  fertilizers,  agricul- 
tural implements  and  machinery,  and  any  article  required  in  connection 
with  the  production,  distribution,  or  utilization  of  food.  It  shall  be 
the  duty  of  any  person,  when  requested  by  the  Secretary  of  Agriculture, 
or  any  agent  acting  under  his  instructions,  to  answer  correctly,  to  the 
best  of  his  knowledge,  under  oath  or  otherwise,  all  questions  touching 
his  knowledge  of  any  matter  authorized  to  be  investigated  under  this 
section,  or  to  produce  all  books,  letters,  papers,  or  documents  in  his 
possession,  or  under  his  control,  relating  to  such  matter.  Any  person 
who  shall,  within  a  reasonable  time  to  be  prescribed  by  the  Secretary 
of  Agriculture,  not  exceeding  thirty  days  from  the  date  of  the  receipt 
of  the  request,  willfully  fail  or  refuse  to  answer  such  questions  or  to 
produce  such  books,  letters,  papers,  or  documents,  or  who  shall  willfully 
give  any  answer  that  is  false  or  misleading,  shall  be  guilty  of  a  misde- 
meanor, and  upon  conviction  thereof,  shall  be  punished  bv  a  fine  not 
exceeding  $1,000  or  In-  imprisonment  not  exceeding  one  year,  or  both. 

Seeds — Supply  and  Sale  of  in  Certain  Cases. 

Sec.  3.  That  whenever  the  Secretary  of  Agriculture  shall  find  that 
there  is  or  may  be  a  special  need  in  any  restricted  area  for  seeds  suitable 
for  the  production  of  foo'd  or  feed  crops,  he  is  authorized  to  purchase, 
or  contract  with  persons  to  grow  such  seeds,  to  store  them,  and  to  fur- 
nish them  to  farmers  for  cash,  at  cost,  including  the  expense  of  packing 
and  transportation. 

Cooperation  With  State  and  Local  Officials. 

Sec.  4.  That  the  Secretary  of  Agriculture  is  authorized  to  co- 
operate with  such   State  and  local  officials,   and  with   such  public   and 

68 


Food  Survey  Law  69 

private  agencies,  or  persons,  as  he  finds  necessary,  and  to  make  such 
rules  and  regulations  as  are  necessary  etlectively  to  carry  out  the  preced- 
ing sections  of  this  xA.ct. 

Assistant  Secretaries  of  Agriculture. 

Sec.  5.  That  the  President,  by  and  with  the  advice  and  consent 
of  the  Senate,  may  appoint  two  additional  Assistant  Secretaries  of 
Agriculture,  who  shall  perform  such  duties  as  may  be  required  by  law 
or  prescribed  by  the  Secretary  of  Agriculture,  and  who  shall  each  be 
paid  a  salary  of  $5,000  per  annum. 

Cooperation  by  Departments  of  Federal  Government. 

Sec.  6.  That  the  President  is  authorized  to  direct  any  agency  or 
organization  of  the  Government  to  cooperate  with  the  Secretary  of 
Agriculture  in  carrying  out  the  purposes  of  this  Act  and  to  coordinate 
their  activities  so  as  to  avoid  any  preventable  loss  or  duplication  of 
work. 

Definitions. 

Sec.  7.  That  words  used  in  this  Act  shall  be  construed  to  import 
the  plural  or  the  singular  as  the  case  demands,  and  the  word  "persons," 
wherever  used  in  this  Act,  shall  include  individuals,  partnerships,  asso- 
ciations, and  corporations. 

Appropriations. 

Sec.  8.  That  for  the  purposes  of  this  Act,  the  following  sums  are 
hereby  appropriated,  out  of  any  moneys  in  the  Treasury  not  otherwise 
appropriated,  available  immediately  and  until  June  thirtieth,  nineteen 
hundred  and  eighteen :  For  the  prevention,  control,  and  eradication  of 
the  diseases  and  pests  of  live  stock  ;  the  enlargement  of  live  stock  pro- 
duction;  and  the  conservation  and  utilization  of  meat,  poultry,  dairy, 
and  other  animal  products,  $885,000. 

For  procuring,  storing  and  furnishing  seeds,  as  authorized  by  sec- 
tion three  of  this  Act,  $2,500,000,  and  this  fund  may  be  used  as  a 
revolving   fund   until   June  thirtieth,   nineteen   hundred   and   eighteen. 

For  the  prevention,  control,  and  eradication  of  insects  and  plant 
diseases  injurious  to  agriculture,  and-  the  conservation  and  utilization 
of  plant  products,  $441,000. 

For  increasing  food  production  and  eliminating  waste  and  promot- 
ing conservation  of  food  by  educational  and  demonstrational  methods, 
through  county,  district,  and  urban  agents  and  others,  $4,348,400. 

For  gathering  authoritative  information  in  connection  with  the 
demand  for,  and  the  production,  supply,  distribution,  and  utilization 
of  food,  and  otherwise  carrying  out  the  purpose  of  section  two  of  this 
Act ;  extending  and  enlarging  the  market  news  service ;  and  preventing 
waste  of  food  in  storage,  in  transit,  or  held  for  sale ;  advise  concerning 
the  market  movement  or  distribution  of  perishable  products ;  for  enabling 
the  Secretary  of  Agriculture  to  investigate  and  certify  to  shippers  the 


70  Supplement  to  Important  Federal  Laws 

condition  as  to  soundness  of  fruits,  vegetables  and  other  food  products, 
when  received  at  such  important  central  markets  as  the  Secretary  of 
Agriculture  may  from  time  to  time  designate  and  under  such  rules  and 
regulations  as  he  may  prescribe :  Provided,  That  certificates  issued  by 
the  authorized  agents  of  the  department  shall  be  received  in  all  courts 
as  prima  facie  evidence  of  the  truth  of  the  statements  therein  contained ; 
and  otherwise  carrying  out  the  purposes  of  this  Act,  $2,522,000:  Pro- 
vided further,  That  the  Secretary  of  Agriculture  shall,  so  far  as  practi- 
cable, engage  the  services  of  women  for  the  work  herein  provided  for. 

For  miscellaneous  items,  including  the  salaries  of  Assistant  Secre- 
taries appointed  under  this  Act;  special  work  in  crop  estimating;  aiding 
agencies  in  the  various  States  in  supplying  farm  labor;  enlarging  the 
informational  work  of  the  Department  of  Agriculture;  and  printing  and 
distributing  emergency  leaflets,  posters  and  other  publications  requiring 
quick  issue  or  large  editions,  $650,000. 

Provided,  That  the  employment  of  any  person  under  the  provisions 
of  this  Act  shall  not  exempt  any  such  person  from  military  service 
under  the  provisions  of  the  selective  draft  law  approved  May  eight- 
eenth, nineteen  hundred  and  seventeen. 

It  shall  be  the  duty  of  the  Secretary  of  Agriculture  to  submit  to 
Congress  at  its  regular  session  in  December  of  each  year  a  detailed 
report  of  the  expenditure  of  all  moneys  herein  appropriated. 

Importation  of  Tick-Infested  Cattle  Permitted. 

Sec.  9.  That  the  Act  of  August  thirtieth,  eighteen  hundred  and 
ninety,  entitled  "An  Act  providing  for  an  inspection  of  meats  for 
exportation,  prohibiting  the  importation  of  adulterated  articles  of  food 
or  drink,  and  authorizing  the  President  to  make  proclamation  in  certain 
cases,  and  for  other  purposes"  (Twenty-sixth  Statutes  at  Large,  page 
four  hundred  and  fourteen),  is  hereby  amended  so  as  to  authorize  the 
Secretary  of  Agriculture,  within  his  discretion  and  under  such  joint 
regulations  as  may  be  prescribed  by  the  Secretary  of  Agriculture  and  the 
Secretary  of  the  Treasury,  to  permit  the  admission  for  immediate  slaugh- 
ter at  ports  of  entry  of  tick-infested  cattle  which  are  otherwise  free 
from  disease  and  which  have  not  been  exposed  to  the  infection  of  any 
other  disease  within  sixty  days  next  before  their  exportation  from 
Mexico,  South  and  Central  America,  the  islands  of  the  Gulf  of  Mexico 
and  the  Caribbean  Sea  into  those  parts  of  the  United  States  below  the 
southern  cattle  quarantine  line  at  such  ports  of  entry  as  may  be  desig- 
nated by  said  joint  regulations  and  also  subject  to  the  provisions  of 
sections  seven,  eight,  nine,  and  ten  of  said  Act  of  August  thirtieth, 
eighteen  hundred  and  ninety:  Provided,  That  the  importation  of  tick- 
infested  cattle  from  any  country  referred  to  in  this  section  in  which 
foot-and-mouth  disease  exists,  which  existence  shall  be  determined  by 
the  Secretary  of  Agriculture,  is  prohibited:  Provided  further,  That 
all  cattle  imported  under  the  provisions  of  this  section  shall  be  slaugh- 


Food  Survey  Law  71 

tered  in  accordance  with  the  provisions  of  the  Act  of  June  thirtieth, 
nineteen  hundred  and  six  (Thirty-fourth  Statutes  at  Large,  page  six 
hundred  and  seventy-four),  commonly  called  the  meat  inspection  amend- 
ment and  the  rules  and  regulations  promulgated  thereunder  by  the  Secre- 
tary of  Agriculture,  and  that  their  hides  shall  be  disposed  of  under 
rules  and  regulations  to  be  prescribed  by  the  Secretary  of  Agriculture. 

Homestead  Law  Amended. 

Sec.  10.  That  section  six  of  the  Act  of  Congress  approved  June 
seventeenth,  nineteen  hundred  and  ten,  "An  Act  to  provide  for  an 
enlarged  homestead,"  be  and  the  same  is  hereby,  amended  to  read  as 
follows : 

"Sec.  6.  That  whenever  the  Secretary  of  the  Interior  shall  find 
any  tracts  of  land  in  the  State  of  Idaho,  subject  to  entry  under  this 
Act,  do  not  have  upon  them  such  a  sufficient  supply  of  water  suitable 
for  domestic  purposes  as  would  make  continuous  residence  upon  the 
lands  possible  he  may,  in  his  discretion,  designate  such  tracts  of  land, 
not  to  exceed  in  the  aggregate  one  million  acres,  and  thereafter  they 
shall  be  subject  to  entry  under  this  Act  without  the  necessity  of  resi- 
dence upon  the  land  entered:  Provided,  That  the  entryman  shall  in 
good  faith  cultivate  not  less  than  one-sixteenth  of  the  entire  area  of 
the  entry  which  is  susceptible  of  cultivation  during  the  first  year  of 
the  entry,  not  less  than  one-eighth  during  the  second  year,  and  not 
less  than  one-fourth  during  the  third  year  of  the  entry  and  until  final 
proof :  Provided  further,  That  after  six  months  from  the  date  of  entry 
and  until  final  proof  the  entrymen  shall  be  a  resident  of  the  State  of 
Idaho." 

Reclamation  Act — Suspension  of  Residence  Requirements. 

Sec.  U.  That  the  Secretary  of  the  Interior  is  hereby  authorized, 
in  his  discretion,  to  suspend  during  the  continuance  of  this  Act  that 
provision  of  the  Act  known  as  the  "Reclamation  Act"  requiring  resi- 
dence upon  lands  in  private  ownership  or  within  the  neighborhood  for 
securing  water  for  the  irrigation  of  the  same,  and  he  is  authorizea  to 
permit  the  use  of  available  water  thereon  upon  such  terms  and  conditions 
as  he  may  deem  proper. 

Termination  at  End  of  War. 

Sec.  12.  That  the  provisions  of  this  Act  shall  cease  to  be  in  efifect 
when  the  national  emergency  resulting  from  the  existing  state  of  war 
shall  have  passed,  the  date  of  which  shall  be  ascertained  and  proclaimed 
by  the  President ;  but  the  date  when  this  Act  shall  cease  to  be  in  effect 
shall  not  be  later  than  the  beginning  of  the  next  fiscal  year  after  the 
termination,  as  ascertained  by  the  President,  of  the  present  war  between 
the  United  States  and  Germanv. 


THE  ESPIONAGE  ACT. 

Approved  June  15,  1917. 
An  Act  to  punish  acts  of  interference  with  the  foreign  relations,  the  neutrality, 
and  the  foreign  commerce  of  the  United  States,  to  punish  espionage,  and 
•  better  to  enforce  criminal  laws  of  the  United  States,  and  for  other  purposes. 

Title  I. 
Espionage. 

Section  1.     That  (a)  whoever,  for  the  purpose  of  obtaniing  infor- 
mation respecting  the  national  defense  with  intent  or  reason  to  beheve 
that  the  information  to  be  obtained  is  to  be  used  to  the  injury  of  the 
United  States,  or  to  the  advantage  of  any   foreign  nation,  goes  upon, 
enters,  flies  over,  or  otherwise  obtains  information  concerning  any  vessel, 
aircraft,  work  of  defense,  navy  yard,  naval  station,  submarine  base,  coal- 
ing   station,    fort,    battery,    torpedo    station,    dockyard,    canal,    railroad, 
arsenal,   camp,   factory,   mine,   telegraph,    telephone,    wireless,   or   signal 
station,  building,  office,  or  other  place  connected  with  the  national  defense, 
owned  or  constructed,  or  in  progress  of  construction  by  the  United  States 
or  under  the  control  of  the  United  States,  or  of  any  of  its  officers  or 
agents,  or  within  the  exclusive  jurisdiction  of  the  United  States,  or  any 
place  in  which  any  vessel,  aircraft,  arms,  munitions,  or  other  materials 
or  instruments  for  use  in  time  of  war  are  being  made,  prepared,  repaired, 
or  stored,  under  any  contract  or  agreement  with  the  United  States,  or 
with  any  person  on  behalf  of  the  United  States,  or  otherwise  on  behalf 
of  the  United   States,   or  any  prohibited  place   within  the   meaning  of 
section  six  of  this  title;  or  (b)  whoever  for  the  purpose  aforesaid,  and 
with  like  intent  or  reason  to  believe,  copies,  takes,   makes,  or  obtains, 
or  attempts,  or  induces  or  aids  another  to  copy,  take,  make,  or  obtain, 
any  sketch,   photograph,   photographic  negative,   blue   print,  plan,   map, 
model,  instrument,  appliance,  document,  writing,  or  note  of  anything  con- 
nected with  the  national  defense;  or  (c)  whoever,  for  the  purpose  afore- 
said, receives  or  obtains  or  agrees  or  attempts  or  induces  or  aids  another 
to  receive  or  obtain  from  any  person,  or  from  any  source  whatever,  any 
document,  writing,  code  book,   signal  book,  sketch,  photograph,  photo- 
graphic negative,  blue  print,  plan,  map,  model,  instrument,  appliance,  or 
note,  of  anything  connected  with  the  national  defense,  knowing  or  having 
reason  to  believe,  at  the  time  he  receives  or  obtains,  or  agrees  or  attempts 
or  induces  or  aids  another  to  receive  or  obtain  it,  that  it  has  been  or  will 
be  obtained,  taken,  made  or  disposed  of  by  any  person  contrary  to  the 
provisions  of  this  title;  or   (d)  whoever,  lawfully  or  unlawfully  having 
possession  of,  access  to,  control  over,  or  being  intrusted  with  any  docu- 
ment, writing,  code  book,  signal  book,  sketch,  photograph,  photographic 
negative,  blue  print,  plan,  map,  model,   instrument,   appliance,   or  note 
relating  to  the  national  defense,  willfullv  communicates  or  transmits  or 

72 


The  Espionage  Act  71> 

attempts  to  communicate  or  transmit  the  same  to  any  person  not  entitled 
to  receive  it,  or  willfully  retains  the  same  and  fails  to  deliver  it  on  de- 
mand to  the  officer  or  employee  of  the  United  States  entitled  to  receive 
it;  or  (e)  whoever,  being  intrusted  with  or  having  lawful  possession  or 
control  of  any  document,  writing,  code  book,  signal  book,  sketch,  photo- 
graph, photographic  negative,  blue  print,  plan,  map,  model,  note,  or  infor- 
mation, relating  to  the  national  defense,  through  gross  negligence  permits 
the  same  to  be  removed  from  its  proper  place  of  custody  or  delivered  to 
anyone  in  violation  of  his  trust,  or  to  be  lost,  stolen,  abstracted,  or  de- 
stroyed, shall  be  punished  by  a  fine  of  not  more  than  $10,0(X),  or  by 
imprisonment  for  not  more  than  two  y^rs,  or  both. 

Transmitting  Information. 

Sec.  2.  (a)  Whoever,  with  intent  or  reason  to  believe  that  it  is 
to  be  used  to  the  injury  of  the  United  States  or  to  the  advantage  of  a 
foreign  nation,  communicates,  delivers,  or  transmits,  or  attempts  to,  or 
aids  or  induces  another  to,  communicate,  deliver,  or  transmit,  to  any 
foreign  government,  or  to  any  faction  or  party  or  military  or  naval  force 
within  a  foreign  country,  whether  recognized  or  unrecognized  by  the 
United  States,  or  to  any  representative,  officer,  agent,  employee,  subject, 
or  citizen  thereof,  either  directly  or  indirectly,  any  document,  writing, 
code  book,  signal  book,  sketch,  photograph,  photographic  negative,  blue 
print,  plan,  map,  model,  note,  instrument,  appliance,  or  information  re- 
lating to  the  national  defense,  shall  be  punished  by  imprisonment  for  not 
more  than  twenty  years :  Provided,  That  whoever  shall  violate  the 
provisions  of  subsection  (a)  of  this  section  in  time  of  war  shall  be  pun- 
ished by  death  or  by  imprisonment  for  not  more  than  thirty  years ;  and 
(b)  whoever,  in  time  of  war,  with  intent  that  the  same  shall  be  com- 
municated to  the  enemy,  shall  collect,  record,  publish,  or  communicate, 
or  attempt  to  elicit  any  information  with  respect  to  the  movement,  num- 
bers, description,  condition,  or  disposition  of  any  of  the  armed  forces, 
ships,  aircraft,  or  war  materials  of  the  United  States,  or  with  respect 
to  the  plans  or  conduct,  or  supposed  plans  or  conduct  of  any  naval  or 
military  operations,  or  with  respect  to  any  works  or  measures  under- 
taken for  or  connected  with,  or  intended  for  the  fortification  or  defense 
of  any  place,  or  any  other  information  relating  to  the  public  defense, 
which  might  be  useful  to  the  enemy,  shall  be  punished  by  death  or  by 
imprisonment  for  not  more  than  thirty  years. 

False   Reports ;   Insubordination ;   Obstructing   Recruiting. 

Sec.  3.  Whoever,  when  the  United  States  is  at  war,  shall  willfully 
make  or  convey  false  reports  or  false  statements  with  intent  to  interfere 
with  the  operation  or  success  of  the  military  or  naval  forces  of  the 
United  States  or  to  promote  the  success  of  its  enemies  and  whoever, 
when  the  United  States  is  at  war,  shall  willfully  cause  or  attempt  to  cause 
insubordination,  disloyalty,  mutiny,  or  refusal  of  duty,  in  the  military 


74  Supplement  to  Important  Federal  Laws 

or  naval  forces  of  the  United  States,  or  shall  willfully  obstruct  the  re- 
cruiting or  enlistment  service  of  the  United  States,  to  the  injury  of  the 
service  or  of  the  United  States,  shall  be  punished  by  a  fine  of  not  more 
than  $10,000  or  imprisonment  for  not  more  than  twenty  years,  or  both. 

Conspiracy. 

Sec.  4.  If  two  or  more  persons  conspire  to  violate  the  provisions 
of  sections  two  or  three  of  this  title,  and  one  or  more  of  such  persons 
does  any  act  to  effect  the  object  of  the  conspiracy,  each  of  the  parties 
to  such  conspiracy  shall  be  punished  as  in  said  sections  provided  in  the 
case  of  the  doing  of  the  act  the  accomplishment  of  which  is  the  object  of 
such  conspiracy.  Except  as  above  provided,  conspiracies  to  commit 
offenses  under  this  title  shall  be  punished  as  provided  by  section  thirty- 
seven  of  the  Act  to  codify,  revise,  and  amend  the  penal  laws  of  the 
United  States  approved  March  fourth,  nineteen  hundred  and  nine. 

Harboring  Offender. 

Sec.  5.  Whoever  harbors  or  conceals  any  person  who  he  knows, 
or  has  reasonable  grounds  to  believe  or  suspect,  has  committed,  or  is 
about  to  commit,  an  offense  under  this  title  shall  be  punished  by  a  fine 
of  not  more  than  $10,000  or  by  imprisonment  for  not  more  than  two 
years,  or  both. 

President's  Power  to  Designate  Places  Protected  from  Espionage. 

Sec.  6.  The  President  in  time  of  war  or  in  case  of  national  emer- 
gency may  by  proclamation  designate  any  place  other  than  those  set  forth 
iu  subsection  (a)  of  section  one  hereof,  in  which  anything  for  the  use 
of  the  Army  or  Navy  is  being  prepared  or  constructed  or  stored  as  a 
prohibited  place  for  the  purposes  of  this  title:  Provided,  That  he  shall 
determine  that  information  with  respect  thereto  would  be  prejudicial  to 
the  national  defense. 

Courts  Martial — Power  Not  Limited. 

Sec.  7.  Nothing  contained  in  this  title  shall  be  deemed  to  limit 
the  jurisdiction  of  the  general  courts-martial,  military  commissions,  or 
naval  courts-martial  under  sections  thirteen  hundred  and  forty-two, 
thirteen  hundred  and  forty-three,  and  sixteen  hundred  and  twenty-four 
of  the  Revised  Statutes  as  amended. 

Territorial  Application. 

Sec.  8.  The  provisions  of  this  title  shall  extend  to  all  Territories, 
possessions,  and  places  subject  to  the  jurisdiction  of  the  United  States 
whether  or  not  contiguous  thereto,  and  off"enses  under  this  title  when 
committed  upon  the  high  seas  or  elsewhere  within  the  admiralty  and 
maritime  jurisdiction  of  the  United  States  and  outside  the  territorial 
limits  thereof  shall  be  punishable  hereunder. 


The  Espionage  Act  75 

Repeal. 

Sec.  9.  The  Act  entitled  "An  Act  to  prevent  the  disclosure  of 
national  defense  secrets,"  approved  March  third,  nineteen  hundred  and 
eleven,  is  hereby  repealed. 

Title  II. 

Vessels  in  Ports  of  the  United  States. 

Section  1.  Whenever  the  President  by  proclamation  or  executive 
order  declares  a  national  emergency  to  exist  by  reason  of  actual  or 
threatened  war,  insurrection,  or  invasion,  or  disturbance  or  threatened 
disturbance  of  the  international  relations  of  the  United  States,  the 
Secretary  of  the  Treasury  may  make,  subject  to  the  approval  of  the 
President,  rules  and  regulations  governing  the  anchorage  and  movement 
of  any  vessel,  foreign  or  domestic,  in  the  territorial  waters  of  the  United 
States,  may  inspect  such  vessel  at  any  time,  place  guards  thereon,  and,  if 
necessary  in  his  opinion  in  order  to  secure  such  vessels  from  damage 
or  injury,  or  to  prevent  damage  or  injury  to  any  harbor  or  waters  of 
the  United  States,  or  to  secure  the  observance  of  the  rights  and  obliga- 
tions of  the  United  States,  may  take,  by  and  with  the  consent  of  the 
President,  for  such  purposes,  full  possession  and  control  of  such  vessel 
and  remove  therefrom  the  officers  and  crew  thereof  and  all  other  per- 
sons not  specially  authorized  by  him  to  go  or  remain  on  board  thereof. 

Within  the  territory  and  waters  of  the  Canal  Zone  the  Governor  of 
the  Panama  Canal,  with  the  approval  of  the  President,  shall  exercise  all 
the  powers  conferred  by  this  section  on  the  Secretary  of  the  Treasury. 

Penalties. 

Sec.  2.  If  any  owner,  agent,  master,  officer,  or  person  in  charge, 
or  any  member  of  the  crew  of  any  such  vessel  fails  to  comply  with  any 
regulation  or  rule  issued  or  order  given  by  the  Secretary  of  the  Treasury 
or  the  Governor  of  the  Panama  Canal  under  the  provisions  of  this  title, 
or  obstructs  or  interferes  with  the  exercise  of  any  power  conferred  by  this 
title,  the  vessel,  together  with  her  tackle,  apparel,  furniture,  and  equip- 
ment, shall  be  subject  to  seizure  and  forfeiture  to  the  United  States  in 
the  same  manner  as  merchandise  is  forfeited  for  violation  of  the  customs 
revenue  laws ;  and  the  person  guilty  of  such  failure,  obstruction,  or  inter- 
ference shall  be  fined  not  more  than  $10,000,  or  imprisoned  not  more 
than  two  years,  or  both. 

Same. 

Sec.  3.  It  shall  be  unlawful  for  the  owner  or  master  or  any  other 
person  in  charge  or  command  of  any  private  vessel,  foreign  or  domestic, 
or  for  any  member  of  the  crew  or  other  person,  within  the  territorial 
waters  of  the  United  States,  willfully  to  cause  or  permit  the  destruction 
or  injury  of  such  vessel  or  knowingly  to  permit  said  vessel  to  be  used 
as  a  place  of  resort  for  any  person  conspiring  with  another  or  preparing 


76  Supplement  to  Important  Federal  Laws 

to  commit  any  offense  against  the  United  States,  or  in  violation  of  the 
treaties  of  the  United  States  or  of  the  obligations  of  the  United  States 
mider  the  law  of  nations,  or  to  defraud  the  United  States,  or  knowingly 
to  permit  such  vessels  to  be  used  in  violation  of  the  rights  and  obliga- 
tions of  the  United  States  under  the  law  of  nations ;  and  in  case  such 
vessel  shall  be  so  used,  with  the  knowledge  of  the  owner  or  master  or 
other  person  in  charge  or  command  thereof,  the  vessel,  together  Vv'ith  her 
tackle,  apparel,  furniture,  and  equipment,  shall  be  subject  to  seizure  and 
forfeiture  to  the  United  States  in  the  same  manner  as  merchandise  is 
forfeited  for  violation  of  the  customs  revenue  laws ;  and  whoever  violates 
this  section  shall  be  fined  not  more  than  $10,000  or  imprisoned  not  more 
than  two  years,  or  both. 

Powers  of  the  President. 

Sec.  4.  The  President  may  employ  such  part  of  the  land  or  naval 
forces  of  the  United  States  as  he  may  deem  necessary  to  carry  out  the 
purpose  of  this  title. 

Title  III. 

Injuring  Vessels  Engaged  in  Foreign  Commerce. 

Section  1.  Whoever  shall  set  fire  to  any  vessel  of  foreign  registry, 
or  any  vessel  of  American  registry  entitled  to  engage  in  commerce  with 
foreign  nations,  or  to  any  vessel  of  the  United  States  as  defined  in  sec- 
tion three  hundred  and  ten  of  the  Act  of  March  fourth,  nineteen  hun- 
dred and  nine,  entitled  "An  Act  to  codify,  revise,  and  amend  the  penal 
laws  of  the  United  States,"  or  to  the  cargo  of  the  same,  or  shall  tamper 
with  the  mdtive  power  or  instrumentalities  of  navigation  of  such  vessel, 
or  shall  place  bombs  or  explosives  in  or  upon  such  vessel,  or  shall  do  any 
other  act  to  or  upon  such  vessel  while  within  the  jurisdiction  of  the 
United  States,  or,  if  such  vessel  is  of  American  registry,  while  she  is  on 
the  high  sea.  with  intent  to  injure  or  endanger  the  safety  of  the  vessel  or 
of  her  cargo,  or  of  persons  on  board,  whether  the  injury  or  danger  is  so 
intended  to  take  place  within  the  jurisdiction  of  the  United  States,  or  after 
the  vessel  shall  have  departed  therefrom  ;  or  whoever  shall  attempt  or  con- 
spire to  do  any  such  acts  with  such  intent,  shall  be  fined  not  more  than 
$10,000  or  imprisoned  not  more  than  twenty  years,  or  both. 

Title  IV. 

Interference  With  Foreign  Commerce  by  Violent  Means. 

Section  1.  Whoever,  with  intent  to  prevent,  interfere  with,  or 
obstruct  or  attempt  to  prevent,  interfere  with,  or  obstruct  the  exportation 
to  foreign  countries  of  articles  from  the  United  States  shall  injure  or  de- 
stroy, by  fire  or  explosives,  such  articles  or  the  places  where  they  may 
be  while  in  such  foreign  commerce,  shall  be  fined  not  more  than  $10,000, 
or  imprisoned  not  more  than  ten  years,  or  both. 


The  Espionage  Act  77 

Title  V. 
Refusing  Clearance  of  Vessels. 

Section  1.  During  a  war  in  which  the  United  States  is  a  neutral 
nation,  the  President,  or  any  person  thereunto  authorized  by  him,  may 
withhold  clearance  from  or  to  any  vessel,  domestic  or  foreign,  which  is 
required  by  law  to  secure  clearance  before  departing  from  port  or  from 
the  jurisdiction  of  the  United  States,  or,  by  service  of  formal  notice  upon 
the  owner,  master,  or  person  in  command  or  having  charge  of  any 
domestic  vessel  not  required  by  law  to  secure  clearances  before  so  depart- 
ing, to  forbid  its  departure  from  port  or  from  the  jurisdiction  of  the 
United  States,  wdienever  there  is  reasonable  cause  to  believe  that  any 
such  vessel,  domestic  or  foreign,  whether  requiring  clearance  or  not,  is 
about  to  carry  fuel,  arms,  ammunition,  men,  supplies,  dispatches,  or  in- 
formation to  any  warship,  tender,  or  supply  ship  of  a  foreign  belligerent 
nation  in  violation  of  the  laws,  treaties,  or  obligations  of  the  United 
States  under  the  law  of  nations ;  and  it  shall  thereupon  be  unlawful  for 
such  vessel  to  depart. 

Detaining  Vessels  of  Warlike  Purposes. 

Sec.  2.  During  a  war  in  which  the  United  States  is  a  neutral  nation, 
the  President,  or  any  person  thereunto  authorized  by  him,  may  detain 
any  armed  vessel  owned  wholly  or  in  part  by  American  citizens',  or  any 
vessel,  domestic  or  foreign  (other  than  one  which  has  entered  the  port's 
of  the  United  States  as  a  public  vessel),  which  is  manifestly  built  for 
warlike  purposes  or  has  been  converted  or  adapted  from  a  private  ves- 
sel to  one  suitable  for  warlike  use,  until  the  owner  or  master,  or  person 
having  charge  of  such  vessel,  shall  furnish  proof  satisfactory  to  the 
President,  or  to  the  person  duly  authorized  by  him,  that  the  vessel  will 
not  be  employed  by  the  said  owners,  or  master,  or  person  having  charge 
thereof,  to  cruise  against  or  commit  or  attempt  to  commit  hostilities  upon 
the  subjects,  citizens,  or  property  of  any  foreign  prince  or  state,  or  of 
any  colony,  district,  or  people  wath  which  the  United  States  is  at  peace, 
and  that  the  said  vessel  will  not  be  sold  or  delivered  to  any  belligerent 
nation,  or  to  an  agent,  ofificer,  or  citizen  of  such  nation,  by  them  or  any 
of  them,  within  the  jurisdiction  of  the  United  States,  or,  having  left  that 
jurisdiction,  upon  the  high  seas. 

Neutrality — Building  Vessels  for  Belligerents. 

Sec.  3.  During  a  war  in  which  the  United  States  is  a  neutral  na- 
tion, it  shall  be  unlawful  to  send  out  of  the  jurisdiction  of  the  United 
States  any  vessel  built,  armed,  or  equipped  as  a  vessel  of  war,  or  con- 
verted from  a  private  vessel  into  a  vessel  of  war,  with  any  intent  or 
under  any  agreement  or  contract,  written  or  oral,  that  such  vessel  shall 
be  delivered  to  a  belligerent  nation,  or  to  an  agent,  officer,  or  citizen  of 
such  nation,  or  with  reasonable  cause  to  believe  that  the  said  vessel  shall 
or  will  be  employed  in  the  service  of  any  such  belligerent  nation  after  its 
departure  from  the  jurisdiction  of  the  United  States. 


78  Supplement  to  Important  Federal  Laws 

Neutrality — Statement  by  Owner  of  Cargo. 

Sec.  4.  During  a  war  in  which  the  United  States  is  a  neutral  na- 
tion, in  addition  to  the  facts  required  by  sections  forty-one  hundred 
and  ninety-seven,  forty-one  hundred  and  ninety-eight,  and  forty-two  hun- 
dred of  the  Revised  Statutes  to  be  set  out  in  the  masters'  and  shippers' 
manifests  before  clearance  will  be  issued  to  vessels  bound  to  foreign 
ports,  each  of  which  sections  of  the  Revised  Statutes  is  hereby  declared 
to  be  and  is  continued  in  full  force  and  effect,  every  master  or  person 
having  charge  or  command  of  any  vessel,  domestic  or  foreign,  whether 
requiring  clearance  or  not,  before  departure  of  such  vessel  from  port 
shall  deliver  to  the  collector  of  customs  for  the  district  wherein  such 
vessel  is  then  located  a  statement  duly  verified  by  oath,  that  the  cargo 
or  any  part  of  the  cargo  is  or  is  not  to  be  delivered  to  other  vessels  in 
port  or  to  be  transshipped  on  the  high  seas  and,  if  it  is  to  be  so  delivered 
or  transshipped,  stating  the  kind  and  quantities  and  the  value  of  the  total 
quantity  of  each  kind  of  article  so  to  be  delivered  or  transshipped,  and 
the  name  of  the  person,  corporation,  vessel,  or  government,  to  whom 
the  delivery  or  transshipment  is  to  be  made ;  and  the  owners,  shippers, 
or  consignors  of  the  cargo  of  such  vessel  shall  in  the  same  manner  and 
under  the  same  conditions  deliver  to  the  collector  like  statements  under 
oath  as  to  the  cargo  or  the  parts  thereof  laden  or  shipped  by  them 
respectively. 

Refusing  Clearance. 

Sec.  5.  Whenever  it  appears  that  the  vessel  is  not  entitled  to  clear- 
ance or  whenever  there  is  reasonable  cause  to  believe  that  the  additional 
statements  under  oath  required  in  the  foregoing  section  are  false,  the 
collector  of  customs  for  the  district  in  which  the  vessel  is  located  may, 
subject  to  review  by  the  Secretary  of  Commerce,  refuse  clearance  to  any 
vessel,  domestic  or  foreign,  and  by  formal  notice  served  upon  the  owners, 
master,  or  person  or  persons  in  command  or  charge  of  any  domestic 
vessel  for  which  clearance  is  not  required  by  law,  forbid  the  departure 
of  the  vessel  from  the  port  or  from  the  jurisdiction  of  the  United  States; 
and  it  shall  thereupon  be  unlawful  for  the  vessel  to  depart. 

Penalty. 

Sec.  6.  Whoever,  in  violation  of  any  of  the  provisions  of  this  title, 
shall  take,  or  attempt  or  conspire  to  take,  or  authorize  the  taking  of  any 
such  vessel,  out  of  port  or  from  the  jurisdiction  of  the  United  States, 
shall  be  fined  not  more  than  $10,000  or  imprisoned  not  more  than  five 
years,  or  both ;  and,  in  addition,  such  vessel,  her  tackle,  apparel,  furniture, 
equipment,  and  her  cargo  shall  be  forfeited  to  the  United  States. 

Interned  Person's  Penalty  for  Escaping. 

Sec.  7.  Whoever,  being  a  person  belonging  to  the  armed  land  or 
naval  forces  of  a  belligerent  nation  or  belligerent  faction  of  any  nation 
and  being  interned  in  the  United  States,  in  accordance  with  the  law  of 


The  Espionage  Act  79 

nations,  shall  leave  or  attempt  to  leave  said  jurisdiction,  or  shall  leave 
or  attempt  to  leave  the  limits  of  interment  in  which  freedom  of  move- 
ment has  been  allowed,  without  permission  from  the  proper  official  of 
the  United  States  in  charge,  or  shall  willfully  overstay  a  leave  of  absence 
granted  by  such  official,  shall  be  subject  to  arrest  by  any  marshal  or 
deputy  marshal  of  the  United  States,  or  by  the  military  or  naval  author- 
ities thereof,  and  shall  be  returned  to  the  place  of  internment  and  there 
confined  and  safely  kept  for  such  period  of  time  as  the  official  of  the 
United  States  in  charge  shall  direct ;  and  whoever,  within  the  jurisdiction 
of  the  United  States  and  subject  thereto,  shall  aid  or  entice  any  interned 
person  to  escape  or  attempt  to  escape  from  the  jurisdiction  of  the  United 
States,  or  from  the  limits  of  internment  prescribed,  shall  be  fined  not 
more  than  $1,000  or  imprisoned  not  more  than  one  year,  or  both. 

Violating  Neutrality — Penalty. 

Sec.  8.  Section  thirteen  of  the  Act  entitled  "An  Act  to  codify, 
revise,  and  amend  the  penal  laws  of  the  United  States,"  approved  March 
fourth,  nineteen  hundred  and  nine,  is  hereby  amended  so  as  to  read  as 
follows : 

"Sec.  13.  Whoever,  within  the  territory  or  jurisdiction  of  the 
United  States  or  of  any  of  its  possessions,  knowingly  begins  or  sets  on 
foot  or  provides  or  prepares  a  means  for  or  furnishes  the  money  for, 
or  who  takes  part  in,  any  military  or  naval  expedition  or  enterprise  to 
be  carried  on  from  thence  against  the  territory  or  dominion  of  any 
foreign  prince  or  state,  or  of  any  colony,  district,  or  people  with  whom 
the  United  States  is  at  peace,  shall  be  fined  not  more  than  $3,000  or 
imprisoned  not  more  than  three  years,  or  both." 

Use  of  Land  and  Naval  Forces. 

Sec.  9.  That  the  President  may  employ  such  part  of  the  land  or 
naval  forces  of  the  United  States  as  he  may  deem  necessary  to  carry 
out  the  purposes  of  this  title. 

Same. 

Sec.  10.  Section  fifteen  of  the  Act  entitled  "An  Act  to  codify, 
revise,  and  amend  the  penal  laws  of  the  United  States,"  approved  March 
fourth,  nineteen  hundred  and  nine,  is  hereby  amended  so  as  to  read  as 
follows : 

"Sec.  15.  It  shall  be  lawful  for  the  President  to  employ  such  part 
of  the  land  or  naval  forces  of  the  United  States,  or  of  the  militia  thereof, 
as  he  may  deem  necessary  to  compel  any  foreign  vessel  to  depart  from 
the  United  States  or  any  of  its  possessions  in  all  cases  in  which,  by  the 
law  of  nations  or  the  treaties  of  the  United  States,  it  ought  not  to  remain, 
and  to  detain  or  prevent  any  foreign  vessel  from  so  departing  in  all  cases 
in  which,  by  the  law  of  nations  or  the  treaties  of  the  United  States,  it  is 
not  entitled  to  depart." 


80  Supplement  to  Important  Federal  Laws 

Repeal. 

Sec.  11.  The  joint  resolution  approved  ^larch  fourth,  nineteen 
hundred  and  fifteen,  "To  empower  the  President  to  better  enforce  and 
maintain  the  neutrality  of  the  United  States,"  and  any  Act  or  parts  of 
Acts  in  conflict  with  the  provisions  of  this  title  are  hereby  repealed. 

Title  VI. 
Seizure  of  Arms  and  Other  Articles  Intended  for  Export. 

Section  1.  Whenever  an  attempt  is  made  to  export  or  ship  from 
or  take  out  of  the  United  States,  any  arms  or  munitions  of  war,  or  other 
articles,  in  violation  of  law,  or  whenever  there  shall  be  known  or  prob- 
able cause  to  believe  that  any  such  arms  or  munitions  of  war,  or  other 
articles,  are  being  or  are  intended  to  be  exported,  or  shipped  from,  or 
taken  out  of  the  United  States,  in  violation  of  law,  the  several  collectors, 
naval  officers,  surveyors,  inspectors  of  customs,  and  marshals,  and  deputy 
marshals  of  the  United  States,  and  every  other  person  duly  authorized 
for  the  purpose  by  the  President,  may  seize  and  detain  any  articles  or 
munitions  of  war  about  to  be  exported  or  shipped  from  or  taken 
out  of  the  United  States,  in  violation  of  law,  and  the  vessels  or  vehicles 
containing  the  same,  and  retain  possession  thereof  until  released  or  dis- 
posed of  as  hereinafter  directed.  If  upon  due  inquiry  as  hereinafter 
provided,  the  property  seized  shall  appear  to  have  been  about  to  be  so 
unlawfully  exported,  shipped  from,  or  taken  out  of  the  United  States,  the 
same  shall  be  forfeited  to  the  United  States. 
Jurisdiction  of  the  District  Court. 

Sec.  2.  It  shall  be  the  duty  of  the  person  making  any  seizure  under 
this  title  to  apply,  with  due  diligence,  to  the  judge  of  the  district  court 
of  the  United  States,  or  to  the  judge  of  the  United  States  district  court  of 
the  Canal  Zone,  or  to  the  judge  of  a  court  of  first  instance  in  the  Philip- 
pine Islands,  having  jurisdiction  over  the  place  within  which  the  seizure  is 
made,  for  a  warrant  to  justify  the  further  detention  of  the  property  so 
seized,  which  warrant  shall  be  granted  only  on  oath  or  affirmation  show- 
ing that  there  is  known  or  probable  cause  to  believe  that  the  property 
seized  is  being  or  is  intended  to  be  exported  or  shipped  from  or  taken  out 
of  the  United  States  in  violation  of  law;  and  if  the  judge  refuses  to  issue 
the  warrant,  or  application  therefor  is  not  made  by  the  person  making 
the  seizure  within  a  reasonable  time,  not  exceeding  ten  days  after  the 
seizure,  the  property  shall  forthwith  be  restored  to  the  owner  or  person 
from  whom  seized.  If  the  judge  is  satisfied  that  the  seizure  was  justified 
under  the  provisions  of  this  title  and  issues  his  warrant  accordingly,  then 
the  property  shall  be  detained  by  the  person  seizing  it  until  the  President, 
who  is  hereby  expressly  authorized  so  to  do,  orders  it  to  be  restored 
to  the  owner  or  claimant,  or  until  it  is  discharged  in  due  course  of  law 
on  petition  of  the  claimant,  or  on  trial  of  condemnation  proceedings,  as 
hereinafter  provided. 


The  Espionage  Act  81 

Petition  for  Restoration. 

Sec.  3.  The  owner  or  claimant  of  any  property  seized  under  this 
title  may,  at  any  time  before  condemnation  proceedings  have  been  insti- 
tuted, as  hereinafter  provided,  file  his  petition  for  its  restoration  in  the 
district  court  of  the  United  States,  or  the  district  court  of  the  Canal  Zone, 
or  the  court  of  first  instance  in  the  Philippine  Islands,  having  jurisdiction 
over  the  place  in  which  the  seizure  was  made,  whereupon  the  court  shall 
advance  the  cause  for  hearing  and  determination  with  all  possible  dis- 
patch, and,  after  causing  notice  to  be  given  to  the  United  States  attorney 
for  the  district  and  to  the  person  making  the  seizure,  shall  proceed  to 
hear  and  decide  whether  the  property  seized  shall  be  restored  to  the  peti- 
tioner or  forfeited  to  the  United  States. 

Libel  Proceedings. 

Sec.  4.  Whenever  the  person  making  any  seizure  under  this  title 
applies  for  and  obtains  a  warrant  for  the  detention  of  the  property,  and 
(a)  upon  the  hearing  and  determination  of  the  petition  of  the  owner  or 
claimant  restoration  is  denied,  or  (b)  the  owner  or  claimant  fails  to  file 
a  petition  for  restoration  within  thirty  days  after  the  seizure,  the  United 
States  attorney  for  the  district  where  in  it  was  seized,  upon  direction 
of  the  Attorney  General,  shall  institute  libel  proceedings  in  the  United 
States  district  court  or  the  district  court  of  the  Canal  Zone  or  the  court 
of  first  instance  of  the  Philippine  Islands  having  jurisdiction  over  the 
place  wherein  the  seizure  was  made,  against  the  property  for  condemna- 
tion; and  if,  after  trial  and  hearing  of  the  issues  involved,  the  property 
is  condemned,  it  shall  be  disposed  of  by  sale,  and  the  proceeds  thereof, 
less  the  legal  costs  and  charges,  paid  into  the  Treasury. 

Procedure  to  Conform  to  Procedure  in  Admiralty. 

Sec.  5.  The  proceedings  in  such  summary  trials  upon  the  petition  of 
the  owner  or  claimant  of  the  property  seized,  as  well  as  in  the  libel  cases 
herein  provided  for,  shall  conform,  as  near  as  may  be,  to  the  proceedings 
in  admiralty,  except  that  either  party  rnay  demand  trial  by  jury  of  any 
issue  of  fact  joined  in  such  libel  cases,  and  all  such  proceedings  shall  be 
at  the  suit  of  and  in  the  name  of  the  United  States ;  Provided,  That  upon 
the  payment  of  the  costs  and  legal  expenses  of  both  the  summary  trials 
and  the  libel  proceedings  herein  provided  for,,  and  the  execution  and 
delivery  of  a  good  and  sufficient  bond  in  an  amount  double  the  value  of 
the  property  seized,  conditioned  that  it  will  not  be  exported  or  used  or 
employed  contrary  to  the  provisions  of  this  title,  the  court,  in  its  discre- 
tion, may  direct  that  it  be  delivered  to  the  owners  thereof  or  to  the 
claimants  thereof. 

Act  Not  to  Interfere  with  Lawful  Trade. 

Sec.  6.     Except  in  those  cases  in  which  the  exportation  of  arms  and 
,  munitions  of  war  or  other  articles  is  forbidden  by  proclamation  or  other- 
wise bv  the  President,  as  provided  in  section  one  of  this  title,  nothing 

(6) 


82  Supplement  to  Important  Federal  Laws 

herein  contained  shall  be  construed  to  extend  to,  or  interfere  with  any 
trade  in  such  commodities,  conducted  with  any  foreign  port  or  place 
wheresoever,  or  with  any  other  trade  which  might  have  been  lawfully 
carried  on  before  the  passage  of  this  title,  under  the  law  of  nations,  or 
under  the  treaties  or  conventions  entered  into  by  the  United  States,  or 
under  the  laws  thereof. 

Release. 

Sec.  7.  Upon  the  payment  of  the  costs  and  legal  expense  incurred 
in  any  such  summary  trial  for  possession  or  libel  proceedings,  the  Presi- 
dent is  hereby  authorized,  in  his  discretion,  to  order  the  release  and 
restoration  to  the  owners  or  claimant,  as  the  case  may  be,  of  any  prop- 
erty seized  or  condemned  under  the  provisions  of  this  title. 

Powers  of  the  President. 

Sec.  8.  The  President  may  employ  such  part  of  the  land  or  naval 
forces  of  the  United  States  as  he  may  deem  necessary  to  carry  out  the 
purposes  of  this  title. 

Title  VII. 

Certain  Exports  in  Time  of  War  Unlawful. 

Section  1.  Whenever  during  the  present  war  the  President  shall 
find  that  the  public  safety  shall  so  require,  and  shall  make  proclamation 
thereof,  it  shall  be  unlawful  to  export  from  or  ship  from  or  take  out  of 
the  United  States  to  any  country  named  in  such  proclamation  anv  article 
or  articles  mentioned  in  such  proclamation,  except  at  such  time  or  times, 
and  under  such  regulations  and  orders,  and  subject  to  such  limitations 
and  exceptions  as  the  President  shall  prescribe,  until  otherwise  ordered 
by  the  President  or  by  Congress :  Provided,  however.  That  no  prefer- 
ence shall  be  given  to  the  ports  of  one  State  over  those  of  another. 

Penalties. 

Sec.  2.  Any  person  who  shall  export,  ship,  or  take  out,  or  deliver 
or  attempt  to  deliver  for  export,  shipment,  or  taking  out,  any  article  in 
violation  of  this  title,  or  of  any  regulation  or  order  made  hereunder, 
shall  be  fined  not  more  than  $10,000,  or,  if  a  natural  person,  imprisoned 
for  not  more  than  two  years,  or  both  ;  and  any  article  so  delivered  or 
exported,  shipped,  or  taken  out,  or  so  attempted  to  be  delivered  or  ex- 
ported, shipped,  or  taken  out,  shall  be  seized  and  forfeited  to  the  United 
States ;  and  any  officer,  director,  or  agent  of  a  corporation  who  partici- 
pates in  any  such  violation  shall  be  liable  to  like  fine  or  imprisonment,  or 
both. 

Refusing  Clearance. 

Sec.  3.  Whenever  there  is  reasonable  cause  to  believe  that  any 
vessel,  domestic  or  foreign,  is  about  to  carry  out  of  the  United  States 
any  article  or  articles  in  violation   of  the  provisions  of  this  title,  the 


The  Espionage  Act  83 

collector  of  customs  for  the  district  in  which  such  vessel  is  located  is 
hereby  authorized  and  empowered,  subject  to  review  by  the  Secretary  of 
Commerce,  to  refuse  clearance  to  any  such  vessel,  domestic  or  foreign, 
for  which  clearance  is  required  by  law,  and  by  formal  notice  served  upon 
the  owners,  master,  or  person  or  persons  in  command  or  charge  of  any 
domestic  vessel  for  which  clearance  is  not  required  by  law,  to  forbid  the 
departure  of  such  vessel  from  the  port,  and  it  shall  thereupon  be  unlaw- 
ful for  such  vessel  to  depart.  Whoever,  in  violation  of  any  of  the  pro- 
visions of  this  section  shall  take,  or  attempt  to  take,  or  authorize  the 
taking  of  any  such  vessel,  out  of  port  or  from  the  jurisdiction  of  the 
United  States,  shall  be  fined  not  more  than  $10,000  or  imprisoned  not 
more  than  two  years,  or  both ;  and,  in  addition,  such  vessel,  her  tackle, 
apparel,  furniture,  equipment  and  her  forbidden  cargo  shall  be  for- 
feited to  the  United  States. 

Title  VIII. 

Disturbance  of  Foreign  Relations. 

Section  1.  Whoever,  in  relation  to  any  dispute  or  controversy 
between  a  foreign  government  and  the  United  States,  shall  willfully  and 
knowingly  make  any  untrue  statement,  either  orally  or  in  writing,  under 
oath  before  any  person  authorized  and  empowered  to  administer  oaths, 
which  the  afifiant  has  knowledge  or  reason  to  believe  will,  or  may  be  used 
to  influence  the  measures  or  conduct  of  any  foreign  government,  or  of 
any  officer  or  agent  of  any  foreign  government,  to  the  injury  of  the 
United  States,  or  with  a  view  or  intent  to  influence  any  measure  of  or 
action  by  the  Government  of  the  United  States,  or  any  branch  thereof, 
to  the  injury  of  the  United  States,  shall  be  fined  not  more  than  $5,000 
or  imprisoned  not  more  than  five  years,  or  both. 

Pretending  to  be  Foreign  Representative — Penalty. 

Sec.  2.  Whoever  within  the  jurisdiction  of  the  United  States  shall 
falsely  assume  or  pretend  to  be  a  diplomatic  or  consular,  or  other  official 
of  a  foreign  government  duly  accredited  as  such  to  the  Government  of 
the  United  States  with  intent  to  defraud  such  foreign  government  or  any 
person,  and  shall  take  upon  himself  to  act  as  such,  or  in  such  pretended 
character  shall  demand  or  obtain,  or  attempt  to  obtain  from  any  person 
or  from  said  foreign  government,  or  from  any  officer  thereof,  any  money, 
paper,  document,  or  other  thing  of  value,  shall  be  fined  not  more  than 
$5,000,  or  imprisoned  not  more  than  five  years,  or  both. 

Penalties. 

Sec.  3.  Whoever,  other  than  a  diplomatic  or  consular  officer  or 
attache,  shall  act  in  the  United  States  as  an  agent  of  a  foreign  govern- 
ment without  prior  notification  to  the  Secretary  of  State  shall  be  fined 
not  more  than  $5,000,  or  imprisoned  not  more  than  five  years,  or  both. 


84  Supplement  to  Important  Federal  Laws 

Foreign  Government — Definition. 

Sec.  4.  The  words  "foreign  government,"  as  used  in  tliis  Act  and 
in  sections  one  hundred  and  fifty-six,  one  hundred  and  fifty-seven,  one 
liundred  and  sixty-one,  one  hundred  and  seventy,  one  hundred  and  sev- 
enty-one, one  hundred  and  seventy-two,  one  hundred  and  seventy-three, 
and  two  hundred  and  twenty  of  the  Act  of  Alarch  fourth,  nineteen  hun- 
dred and  nine,  entitled  "An  Act  to  codify,  revise,  and  amend  the  penal 
laws  of  the  United  States,"  shall  be  deemed  to  include  any  Government, 
faction,  or  body  of  insurgents  within  a  country  with  which  the  United 
States  is  at  peace,  which  Government,  faction,  or  body  of  insurgents  may 
or  may  not  have  been  recognized  by  the  United  States  as  a  Government. 

Conspiracy  to  Violate  Act. 

Sec.  5.  If  two  or  more  persons  within  the  jurisdiction  of  the  United 
States  conspire  to  injure  or  destroy  specific  property  situated  within  a 
foreign  country  and  belonging  to  a  foreign  Government  or  to  any  polit- 
ical subdivision  thereof  with  which  the  United  States  is  at  peace,  or  any 
railroad,  canal,  bridge,  or  other  public  utility  so  situated,  and  if  one  or 
more  of  such  persons  commits  an  act  within  the  jurisdiction  of  the 
United  States  to  eft'ect  the  object  of  the  conspiracy,  each  of  the  parties 
to  the  conspiracy  shall  be  fined  not  more  than  $5,000,  or  imprisoned  not 
more  than  three  years,  or  both.  Any  indictment  or  information  under 
this  section  shall  describe  the  specific  propert\-  which  it  was  the  object 
of  the  conspiracy  to  injure  or  destroy. 

Title  IX. 
Passports. 

Section  1.  Before  a  passport  is  issued  to  any  person  by  or  under 
authority  of  the  United  States  such  person  shall  subscribe  to  and  submit 
a  written  application  duly  verified  by  his  oath  before  a  person  authorized 
and  empowered  to  administer  oaths,  which  said  application  shall  contain 
a  true  recital  of  each  and  every  matter  of  fact  which  may  be  required 
by  law  or  by  any  rules  authorized  by  law  to  be  stated  as  a  prerequisite 
to  the  issuance  of  any  such  passport.  Clerks  of  United  States  courts, 
agents  of  the  Department  of  State,  or  other  Federal  officials  authorized, 
or  who  may  be  authorized,  to  take  passport  applications  and  administer 
oaths  thereon,  shall  collect,  for  all  services  in  connection  therewith,  a  fee 
of  $1,  and  no  more,  in  lieu  of  all  fees  prescribed  by  any  statute  of  the 
United  States,  whether  the  application  is  executed  singly,  in  duplicate, 
or  in  triplicate. 

False  Application  for  Passport — Penalty. 

Sec.  2.  Whoever  shall  willfully  and  knowingly  make  any  false 
statement  in  an  application  for  passport  with  intent  to  induce  or  secure 
the  issuance  of  a  passport  under  the  authority  of  the  United  States. 
either  for  his  own  use  or  the  use  of  another,  contrary  to  the  laws  regu- 


The  Espionage  Act  85 

lating  the  issuance  of  passports  or  the  rules  prescribed  pursuant  to  such 
laws,  or  whoever  shall  willfully  and  knowingly  use  or  attempt  to  use,  or 
furnish  to  another  for  use,  any  passport  the  issue  of  which  was  secured 
in  any  way  by  reason  of  any  false  statement,  shall  be  fined  not  more 
than  $2,000  or  imprisoned  not  more  than  five  years  or  both. 

False  Use  of  Passport. 

Sec.  3.  Whoever  shall  willfully  and  knowingly  use,  or  attempt  to 
use,  any  passport  issued  or  designed  for  the  use  of  another  than  himself, 
or  whoever  shall  willfully  and  knowingly  use  or  attempt  to  use  any  pass- 
port in  violation  of  the  conditions  or  restrictions  therein  contained,  or  of 
the  rules  prescribed  pursuant  to  the  laws  regulating  the  issuance  of  pass- 
ports, which  said  rules  shall  be  printed  on  the  passport ;  or  whoever  shall 
willfully  and  knowingly  furnish,  dispose  of,  or  deliver  a  passport  to  any 
person,  for  use  by  another  than  the  person  for  whose  use  it  was  originally 
issued  and  designed,  shall  be  fined  not  more  than  $2,000  or  imprisoned 
not  more  than  five  years,  or  both. 

Counterfeiting  Passport. 

Sec.  4.  Whoever  shall  falsely  make,  forge,  counterfeit,  mutilate,  or 
alter,  or  cause  or  procure  to  be  falsely  made,  forged,  counterfeited,  muti- 
lated, or  altered  any  passport  or  instrument  purporting  to  be  a  passport, 
with  intent  to  use  the  same,  or  with  intent  that  the  same  may  be  used 
by  another;  or  whoever  shall  willfully  or  knowingly  use,  or  attempt  to 
use,  or  furnish  to  another  for  use  any  such  false,  forged,  counterfeited, 
mutilated,  or  altered  passport  or  instrument  purporting  to  be  a  passport, 
or  any  passport  validly  issued  which  has  become  void  by  the  occurrence 
of  any  condition  therein  prescribed  invalidating  the  same,  shall  be  fined 
not  more  than  $2,000  or  imprisoned  not  more  than  five  years,  or  both. 

Title  X.  ' 

Government  Seal — Falsely  Affixing. 

Section  1.  Whoever  shall  fraudulently  or  wrongfully  affix  or  im- 
press the  seal  of  any  executive  department,  or  of  any  bureau,  commis- 
sion, or  office  of  the  United  States,  to  or  upon  any  certificate,  instrument, 
commission,  document,  or  paper  of  any  description  ;  or  whoever,  with 
knowledge  of  its  fraudulent  character,  shall  wnth  wrongful  or  fraudulent 
intent  use,  buy,  procure,  sell,  or  transfer  to  another  any  such  certificate, 
instrument,  commission,  document,  or  paper,  to  which  or  upon  which 
said  seal  has  been  so  fraudulently  affixed  or  impressed,  shall  be  fined  not 
more  than  $5,000  or  imprisoned  not  more  than  five  years,  or  both. 

Counterfeiting  Government  Seal. 

Sec.  2.  Whoever  shall  falsely  make,  forge,  counterfeit,  mutilate,  or 
alter,  or  cause  or  procure  to  be  made,  forged,  counterfeited,  mutilated,  or 
altered,  or  shall  willingly  assist  in  falsely  making,  forging,  counterfeiting. 


86  Supplement  to  Important  Federal  Laws 

mutilating,  or  altering,  the  seal  of  any  executive  department,  or  any  bu- 
reau, commission,  or  office  of  the  United  States,  or  whoever  shall  know- 
ingly use,  affix,  or  impress  any  such  fraudulently  made,  forged,  counter- 
feited, mutilated,  or  altered  seal  to  or  upon  any  certificate,  instrument, 
commission,  document,  or  paper,  of  any  description,  or  whoever  with 
wrongful  or  fraudulent  intent  shall  have  possession  of  any  such  falsely 
made,  forged,  counterfeited,  mutilated,  or  altered  seal,  knowing  the  same 
to  have  been  so  falsely  made,  forged,  counterfeited,  mutilated,  or  altered, 
shall  be  fined  not  more  than  $5,0CX)  or  imprisoned  not  more  than  ten 
years,  or  both. 

Counterfeiting  or  Altering  Pass. 

Sec.  3.  Whoever  shall  falsely  make,  forge,  counterfeit,  alter,  or 
tamper  with  any  naval,  military,  or  official  pass  or  permit,  issued  by  or 
under  the  authority  of  the  United  States,  or  with  wrongful  or  fraudulent 
intent  shall  use  or  have  in  his  possession  any  such  pass  or  permit,  or 
shall  personate  or  falsely  represent  himself  to  be  or  not  to  be  a  person 
to  whom  such  pass  or  permit  has  been  duly  issued,  or  shall  willfully 
allow  any  other  person  to  have  or  use  any  such  pass  or  permit,  issued 
for  his  use  alone,  shall  be  fined  not  more  than  $2,000  or  imprisoned  not 
more  than  five  years,  or  both. 

Title  XL 
Search  Warrants. 

Section  L  A  search  warrant  authorized  by  this  title  may  be  issued 
by  a  judge  of  a  United  States  district  court,  or  by  a  judge  of  a  State  or 
Territorial  court  of  record,  or  by  a  United  States  commissioner  for  the 
district  wherein  the  property  sought  is  located. 

Grounds  for  Search. 

Sec.  2.  A  search  warrant  may  be  issued  under  this  title  upon  either 
of  the  following  grounds  : 

i.  When  the  property  was  stolen  or  embezzled  in  violation  of  a  law 
of  the  United  States ;  in  which  case  it  may  be  taken  on  the  warrant  from 
any  house  or  other  place  in  which  it  is  concealed,  or  from  the  possession 
of  the  person  by  whom  it  was  stolen  or  embezzled,  or  from  any  person 
in  whose  possession  it  may  be. 

2.  When  the  property  was  used  as  the  means  of  committing  a 
felony;  in  which  case  it  may  be  taken  on  the  warrant  from  any  house 
or  other  place  in  which  it  is  concealed,  or  from  the  possession  of  the 
person  by  whom  it  was  used  in  the  commission  of  the  offense,  or  from 
any  person  in  whose  possession  it  may  be. 

3.  When  the  property,  or  any  paper,  is  possessed,  controlled,  or 
used  in  violation  of  section  twenty-two  of  this  title ;  in  which  case  it 
may  be  taken  on  the  warrant  from  the  person  violating  said  section,  or 
from  any  person  in  whose  possession  it  may  be,  or  from  any  house  or 
.other  place  in  which  it  is  concealed. 


The  Espionage  Act  87 

Probable  Cause — Affidavit. 

Sec.  3.  A  search  warrant  can  not  be  issued  but  upon  probable 
cause,  supported  by  affidavit,  naming  or  describing  the  person  and  par- 
ticularly describing  the  property  and  the  place  to  be  searched. 

Judge  or  Commissioner  to  Require  Affidavits. 

Sec.  4.  The  judge  or  commissioner  must,  before  issuing  the  war- 
rant, examine  on  oath  the  complainant  and  any  witness  he  may  pro- 
duce, and  require  their  affidavits  or  take  their  depositions  in  writing  and 
cause  them  to  be  subscribed  by  the  parties  making  them. 

Affidavits  to  Set  Out  Grounds. 

Sec.  5.  The  affidavits  or  depositions  must  set  forth  the  facts  tend- 
ing to  establish  the  grounds  of  the  application  or  probable  cause  for 
believing  that  they  exist. 

Issuance  of  Warrant. 

Sec.  6.  If  the  judge  or  commissioner  is  thereupon  satisfied  of  the 
existence  of  the  grounds  of  the  application  or  that  there  is  probable 
cause  to  believe  their  existence,  he  must  issue  a  search  warrant,  signed 
by  him  with  his  name  of  office,  to  a  civil  officer  of  the  United  States  duly 
authorized  to  enforce  or  assist  in  enforcing  any  law  thereof,  or  to  a 
person  so  duly  authorized  by  the  President  of  the  United  States,  stating 
the  particular  grounds  or  probable  cause  for  its  issue  and  the  names  of 
the  persons  whose  affidavits  have  been  taken  in  support  thereof,  and  com- 
manding him  forthwith  to  search  the  person  or  place  named,  for  the 
property  specified,  and  to  bring  it  before  the  judge  or  commissioner. 

Officers  Who  May  Serve. 

Sec.  7.  A  search  warrant  may  in  all  cases  be  served  by  any  of  the 
officers  mentioned  in  its  direction,  but  by  no  other  person,  except  in  aid 
of  the  officer  on  his  requiring  it,  he  being  present  and  acting  in  its  execu- 
tion. 

Breaking  Into  Places  to  Be  Searched. 

Sec.  8.  The  officer  may  break  open  any  outer  or  inner  door  or 
window  of  a  house,  or  any  part  of  a  house,  or  anything  therein,  to 
execute  the  warrant,  if,  after  notice  of  his  authority  and  purpose,  he  is 
refused  admittance. 

Same. 

Sec.  9.  He  may  break  open  any  outer  or  inner  door  or  window  of 
a  house  for  the  purpose  of  liberating  a  person  w'ho,  having  entered  to 
aid  him  in  the  execution  of  the  warrant,  is  detained  therein,  or  when 
necessary  for  his  own  liberation. 

Time  of  Search. 

Sec.  10.  The  judge  or  commissioner  must  insert  a  direction  in  the 
warrant  that  it  be  served  in  the  daytime,  unless  the  affidavits  are  positive 


88  Supplement  to  Important  Federal  Laws 

that  the  property  is  on  the  person  or  in  the  place  to  be  searched,  in  which 
case  he  may  insert  a  direction  that  it  be  served  at  any  time  of  the  day 
or  night. 

Warrant  Void  After  Ten  Days. 

Sec.  11.  A  search  warrant  must  be  executed  and  returned  to  the 
judge  or  commissioner  who  issued  it  within  ten  days  after  its  date ;  after 
the  expiration  "of  this  time  the  warrant,  unless  executed,  is  void. 

Copy  to  Person  from  Whom  Property  is  Taken. 

Sec.  12.  When  the  officer  takes  property  under  the  warrant,  he 
must  give  a  copy  of  the  warrant  together  with  a  receipt  for  the  property 
taken  (specifying  it  in  detail  to  the  person  from  whom  it  was 
taken  by  him,  or  in  whose  possession  it  was  found ;  or,  in  the  absence 
of  any  person,  he  must  leave  it  in  the  place  where  he  found  the  property. 
Officer  To  Return  Warrant  to  Judge. 

Sec.  13.  The  officer  must  forthwith  return  the  warrant  to  the  judge 
or  commissioner  and  deliver  to  him  a  written  inventory  of  the  property 
taken,  made  publicly  or  in  the  presence  of  the  person  from  whose  pos- 
session it  was  taken,  and  of  the  applicant  for  the  warrant,  if  they  are 
present,  verified  by  the  affidavit  of  the  officer  at  the  foot  of  the  inventory 
and  taken  before  the  judge  or  commissioner  at  the  time,  to  the  following 
effect:  "I,  R.  S.,  the  officer  by  whom  this  warrant  was  executed,  do 
swear  that  the  above  inventory  contains  a  true  and  detailed  account  of  all 
the  property  taken  by  me  on  the  warrant." 

Copy  to  be  Returned  by  Judge  if  Requested. 

Sec.  14.  The  judge  or  commissioner  must  thereupon,  if  required, 
deliver  a  copy  of  the  inventory  to  the  person  from  whose  possession  the 
property  was  taken  and  to  the  applicant  for  the  warrant. 

Controverted  Cases. 

Sec.  15.  If  the  grounds  on  which  the  warrant  was  issued  be  con- 
troverted, the  judge  or  commissioner  must  proceed  to  take  testimony  in 
relation  thereto,  and  the  testimony  of  each  witness  must  be  reduced  to 
writing  and  subscribed  by  each  witness. 

Restoration  of  Property  if  No  Probable  Cause. 

Sec.  16.  If  it  appears  that  the  property  or  paper  taken  is  not  the 
same  as  that  described  in  the  warrant  or  that  there  is  no  probable  cause 
for  believing  the  existence  of  the  grounds  on  which  the  warrant  was 
issued,  the  judge  or  commissioner  must  cause  it  to  be  restored  to  the 
person  from  whom  it  was  taken;  but  if  it  appears  that  the  property  or 
paper  taken  is  the  same  as  that  described  in  the  warrant  and  that  there 
is  probable  cause  for  believing  the  existence  of  the  grounds  on  which  the 
warrant  was  issued,  then  the  judge  or  commissioner  shall  order  the  same 
retained  in  the  custody  of  the  person  seizing  it  or  to  be  otherwise  dis- 
posed of  according  to  law. 


The  Espionage  Act  89 

Filing  Papers  in  Proper  Court. 

Sec.  17.  The  judge  or  commissioner  must  annex  the  affidavits, 
search  warrant,  return,  inventory,  and  evidence,  and  if  he  has  not  power 
to  inquire  into  the  offense  in  respect  to  which  the  warrant  was  issued 
he  must  at  once  file  the  same,  together  with  a  copy  of  the  record  of  his 
proceedings,  with  the  clerk  of  the  court  having  power  to  so  inquire. 

Penalties. 

Sec.  18.  Whoever  shall  knowingly  and  willfully  obstruct,  resist, 
or  oppose  any  such  officer  or  person  in  serving  or  attempting  to  serve  or 
execute  any  such  search  warrant,  or  shall  assault,  beat,  or  wound  any 
such  officer  or  person,  knowing  him  to  be  an  officer  or  person  so  author- 
ized, shall  be  fined  not  more  than  $1,000  or  imprisoned  not  more  than 
two  years. 

Application  of  Criminal  Code. 

Sec.  19.  Sections  one  hundred  and  twenty-five  and  one  hundred 
and  twenty-six  of  the  Criminal  Code  of  the  United  States  shall  apply 
to  and  embrace  all  persons  making  oath  or  affirmation  or  procuring  the 
same  under  the  provisions  of  this  title,  and  such  persons  shall  be  sub- 
ject to  all  the  pains  and  penalties  of  said  sections. 

Penalties — Persons. 

Sec.  20.  A  person  who  maliciously  and  without  probable  cause  pro- 
cures a  search  warrant  to  be  issued  and  executed  shall  be  fined  not  more 
than  $1,000  or  imprisoned  not  more  than  one  year. 

Penalties — Officers. 

Sec.  21.  An  officer  who  in  executing  a  search  warrant  willfully 
exceeds  his  authority,  or  exercises  it  with  unnecessary  severity,  shall  be 
fined  not  more  than  $1,000  or  imprisoned  not  more  than  one  year. 

Penalties — Unlawfully  Possessing  Property. 

Sec.  22.  Whoever,  in  aid  of  any  foreign  Government,  shall  know- 
ingly and  willfully  have  possession  of  or  control  over  any  property  or 
papers  designed  or  intended  for  use  or  which  is  used  as  the  means  of 
violating  any  penal  statute,  or  any  of  the  rights  or  obligations  of  the 
United  States  under  any  treaty  or  the  law  of  nations,  shall  be  fined  not 
more  than  $1,000  or  imprisoned  not  more  than  two  years,  or  both. 

Not  to  Affect  Other  Laws. 

Sec.  23.  Nothing  contained  in  this  title  shall  be  held  to  repeal  or 
impair  any  existing  provisions  of  law  regulating  search  and  the  issue  of 
search  warrants. 

Title  XII. 

Use  of  Mails. 

Section  1.  Every  letter,  writing,  circular,  postal  card,  picture,  print, 
engraving,  photograph,  newspaper,  pamphlet,  book  or  other  publication, 
matter  or  thing,  of  any  kind,  in  violation  of  any  of  the  provisions  of  this 


90  Supplement  to  Important  Federal  Laws 

Act  is  hereby  declared  to  be  nonmailable  matter  and  shall  not  be  con- 
veyed in  the  mails  or  delivered  from  any  post  office  or  by  any  letter  car- 
rier: Provided,  That  nothing  in  this  Act  shall  be  so  construed  as  to 
authorize  any  person  other  than  an  employee  of  the  Dead  Letter  Office, 
duly  authorized  thereto,  or  other  person  upon  a  search  warrant  auth- 
orized by  law,  to  open  any  letter  not  addressed  to  himself. 

Same. 

Seg.  2.  Every  letter,  writing,  circular,  postal  card,  picture,  print, 
engraving,  photograph,  newspaper,  pamphlet,  book,  or  other  publication, 
matter  or  thing,  of  any  kind,  containing  any  matter  advocating  or  urging 
treason,  insurrection,  or  forcible  resistance  to  any  law  of  the  United 
States,  is  herebv  declared  to  be  nonmailable. 

Same. 

Sec.  3.  Whoever  shall  use  or  attempt  to  use  the  mails  or  Postal 
Service  of  the  United  States  for  the  transmission  of  any  matter  declared 
by  this  title  to  be  nonmailable,  shall  be  fined  not  more  than  $5,000  or 
imprisoned  not  more  than  five  years,  or  both.  Any  person  violating  any 
provision  of  this  title  may  be  tried  and  punished  either  in  the  district 
in  which  the  unlawful  matter  or  publication  was  mailed,  or  to  which 
it  was  carried  by  mail  for  delivery  according  to  the  direction  thereon, 
or  in  which  jt  was  caused  to  be  delivered  by  rnail  to  the  person  to  whom 
it  was  addressed. 

Title  XIIL 
general  provisions. 
Definition — United  States. 

Segtion  L  The  term  "United  States"  as  used  in  this  Act  includes 
the  Canal  Zone  and  all  territory  and  waters,  continental  or  insular,  sub- 
ject to  the  jurisdiction  of  the  United  States. 

Courts — Jurisdiction. 

Sec.  2.  The  several  courts  of  first  instance  in  the  Philippine  Islands 
and  the  district  court  of  the  Canal  Zone  shall  have  jurisdiction  of 
oflr'enses  under  this  xA.ct  committed  within  their  respective  districts,  and 
concurrent  jurisdiction  with  the  district  courts  of  the  United  States  of 
offenses  under  this  Act  committed  upon  the  high  seas,  and  of  conspira- 
cies to  commit  such  offenses,  as  defined  by  section  thirty-seven  of  the 
Act  entitled  "An  Act  to  codify,  revise,  and  amend  the  penal  laws  of  the 
United  States,"  approved  March  fourth,  nineteen  hundred  and  nine,  and 
the  provisions  of  said  section,  for  the  purpose  of  this  Act,  are  hereby 
extended  to  the  Philippine  Islands,  and  to  the  Canal  Zone.  In  such 
cases  the  district  attorneys  of  the  Philippine  Islands  and  of  the  Canal 
Zone  shall  have  the  powers  and  perform  the  duties  provided  in  this  Act 
for  United  States  attorneys. 


The  Espionage  Act  91 

Prosecution  of  Prior  Offenses. 

Sec.  3.  Offenses  committed  and  penalties,  forfeitures,  or  liabilities 
incurred  prior  to  the  taking  effect  hereof  under  any  law  embraced  in 
or  changed,  modified,  or  repealed  by  any  chapter  of  this  Act  may  be 
prosecuted  and  punished,  and  suits  and  proceedings  for  causes  arising  or 
acts  done  or  committed  prior  to  the  taking  effect  hereof  may  be  com- 
menced and  prosecuted,  in  the  same  manner  and  with  the  same  effect  as 
if  this  Act  had  not  been  passed. 

Saving  Clause. 

Sec.  4.  If  any  clause,  sentence,  paragraph,  or  part  of  this  Act  shall 
for  any  reason  be  adjudged  by  any  court  of  competent  jurisdiction  to  be 
invalid,  such  judgment  shall  not  affect,  impair,  or  invalidate  the  remainder 
thereof  but  shall  be  confined  in  its  operation  to  the  clause,  sentence,  para- 
graph, or  part  thereof  directly  involved  in  the  controversy  in  which  such 
judgment  shall  have  been  rendered. 


WAR  RISK  INSURANCE. 

Ameuduieiits  of  June  12,  1917. 
All  Act  to  iimeud  aa  Act  entitled   "An  Act  to  authorize  the  establishment  of  a 
Bureau    of   War    Risk    Insurance    in   the   Treasury    Department,"    approved 
September  second,  nineteen  hundred   and  fourteen,  ami  for  other  purposes. 

Bureau  Created. 

That  the  first  section  of  the  Act  entitled  "An  Act  to  authorize  the 
establishment  of  a  Bureau  of  War  Risk  Insurance  in  the  Treasury  De- 
partment," approved  September  second,  nineteen  hundred  and  fourteen, 
is  hereby  amended  to  read  as  follows : 

"That  there  is  established  in  the  Treasury  Department  a  bureau  to 
be  known  as  the  Bureau  of  War  Risk  Insurance,  the  director  of  which 
shall  be  entitled  to  a  salary  at  the  rate  of  $5,000  per  annum." 

Insurance  of  Vessels  and  Cargo. 

Sec.  2.  That  section  two  of  such  Act  is  hereby  amended  to  read 
as  follows : 

"Sec.  2.  That  the  said  Bureau  of  War  Risk  Insurance,  subject  to 
the  general  direction  of  the  Secretary  of  the  Treasury,  shall,  as  soon 
as  practicable,  make  provisions  for  the  insurance  by  the  United  States 
of  American  vessels,  their  freight  and  passage  moneys,  cargoes  shipped 
or  to  be  shipped  therein,  and  personal  effects  of  the  masters,  officers,  and 
crews  thereof  against  loss  or  damage  by  the  risks  of  war,  whenever  it 
shall  appear  to  the  Secretary  that  American  vessels,  shippers  or  import- 
ers in  American  vessels,  or  the  masters,  officers,  or  crews  of  such  ves- 
sels, are  unable  in  any  trade  to  secure  adequate  war-risk  insurance  on 
reasonable  terms. 

"The  Bureau  of  War  Risk  Insurance,  subject  to  the  general  direc- 
tion of  the  Secretary  of  the  Treasury,  shall^  as  soon  as  practicable,  make 
provisions  for  the  insurance  by  the  United  States,  as  further  provided  in 
section  three  a,  of  masters,  officers,  and  crews  of  American  merchant 
vessels  against  loss  of  life  or  personal  injury  by  the  risks  of  war,  and 
for  compensation  during  detention  following  capture  by  enemies  of  the 
United  States  whenever  it  shall  appear  to  the  Secretary  that  in  any 
trade  the  need  for  such  insurance  exists." 

Reinsurance  of  Friendly  Vessels. 

Sec.  3.  That  there  is  hereby  added  to  such  Act  a  new  section,  to 
be  known  as  section  two  a,  to  read  as  follows : 

"Sec.  2a.  That  the  Bureau  of  War  Risk  Insurance,  with  the  ap- 
proval of  the  Secretary  of  the  Treasury,  is  hereby  authorizeJ  to  make 
provisions  for  the  reinsurance  by  the  United  States  of  vessels  of  foreign 
friendly  flags  or  their  cargoes,  or  both,  when  such  vessels  or  their  car- 
goes are  insured  by  the  Government  of  any  country  which  is  at  war 
with  an  enemy  of  the  United  States ;  and,  further,  to  reinsure  with  the 

92 


War  Risk  Insurance  93 

Governments  of  any  countries  which  are  at  war  with  an  enemy  of  the 
United  States  American  vessels  and  their  cargoes." 

Forms  of  War  Risk  Policies. 

Sec.  4.  That  section  three  of  such  Act  is  hereby  amended  to  read 
as  follows : 

"Sec.  3.  That  the  Bureau  of  War  Risk  Insurance,  with  the  ap- 
proval of  the  Secretary  of  the  Treasury,  is  hereby  authorized  to  adopt 
and  publish  forms  of  war-risk  policies  and  to  fix  reasonable  rates  of 
premium  for  the  policies  which  it  is  authorized  to  issue  under  this  Act, 
which  rates  shall  be  subject  to  such  change  to  each  port  and  for  each 
class  as  the  Secretary  shall  find  may  be  required  by  the  circumstances. 
All  proceeds  of  the  aforesaid  premium  and  from  salvage  which  have 
been  or  are  hereafter  received  shall  be  covered  into  the  Treasury  of  the 
United  States  to  the  credit  of  the  Bureau  of  War  Risk  Insurance,  and 
in  addition  to  all  other  appropriations  made  under  this  Act  are  hereby 
permanently  appropriated  for  the  purpose  of  paying  losses  and  return 
premiums  accruing  under  this  Act." 

Insurance  of  Officers  and  Crews. 

Sec.  5.  That  there  is  hereby  added  to  such  Act  a  new  section,  to 
be  known  as  section  three  a,  to  read  as  follows : 

'"Sec.  3a.  That  whenever  it  shall  appear  to  the  Secretary  of  the 
Treasury  that  the  efl:'ecting  of  such  insurance  is  desirable  in  the  national 
interest  in  the  case  of  vessels  engaged  in  any  trade,  the  owner  of  every 
American  merchant  vessel  engaged  in  such  trade  shall  insure  the  master, 
officers,  and  crew  of  such  vessel  against  loss  of  life  or  personal  injury 
from  war  risks  as  well  as  for  compensation  during  detention  by  an 
enemy  of  the  United  States  following  capture. 

"Such  insurance  shall  be  effected  either  with  the  Bureau  of  War 
Risk  Insurance  or  in  insurance  companies,  and  on  terms  satisfactory  to 
the  Secretary  of  the  Treasury. 

"Such  insurance  shall  provide,  and  the  Bureau  of  War  Risk  Insur- 
ance is  authorized  to  write  policies  so  providing — 

"(a)  In  case  of  death,  permanent  disability  which  prevents  the 
person  injured  from  performing  any  and  every  kind  of  duty  pertaining 
to  his  occupation,  or  the  loss  of  both  hands,  both  arms,  both  feet,  both 
legs,  or  both  eyes,  or  any  two  thereof,  for  the  payment  of  an  amount 
equivalent  to  one  year's  earnings,  or  to  twelve  times  the  monthly  earnings 
of  the  insured,  as  fixed  in  the  articles  for  the  voyage  (hereinafter  re- 
ferred to  as  the  principal  sum),  but  in  no  case  shall  such  amount  be  more 
than  $5,000  or  less  than  $1,500; 

"(b)  In  case  of  any  of  the  following  losses,  for  the  payment  of  the 
percentage  of  the  principal  sum  indicated  in  the  following  tables : 

"One  hand,  fifty  per  centum  ; 

"One  arm,  sixty-five  per  centum ; 


94  Supplement  to  Important  Federal  Laws 

"One  foot,  fifty  per  centum; 

"One  leg,  sixty-five  per  centum; 
•     "One  eye,  forty-five  per  centum; 

"Total  destruction  of  hearing,  fifty  per  centum ; 

"That  the  Bureau  of  War  Risk  Insurance  may  include  in  its  policy 
undertakings  to  pay  specified  percentages  of  the  principal  sum  for  other 
losses  or  disabilities ;  and 

"(c)  In  case  of  detention  by  an  enemy  of  the  United  States,  follow- 
ing capture,  for  the  payment  during  the  continuance  of  such  detention 
of  compensation  at  the  same  rate  as  the  earnings  of  the  insured  imme- 
diately preceding  such  detention,  to  be  determined  in  substantially  the 
same  manner  as  provided  in  subdivision  (a)  of  this  section. 

"The  aggregate  payments  under  this  section  in  respect  to  any  one 
person  shall  not  exceed  the  amount  of  the  principal  sum. 

"Payments  provided  for  in  this  section  shall  be  made  only  to  the 
master,  officer,  or  member  of  the  crew  concerned,  except  that  a  payment 
for  loss  of  life  shall  be  made  to  the  estate  of  the  insured  for  distribution 
to  his  family  free  from  liability  of  debt,  and  payment  on  account  of 
detention  by  an  enemy  following  capture  shall  be  made  to  dependents 
of  the  person  detained,  if  designated  by  him. 

"No  claim  under  this  section  shall  be  valid  unless  made  by  the 
master,  officer,  or  member  of  the  crew  concerned,  or  his  estate,  or  a  per- 
son designated  under  this  section,  within  two  years  after  the  date  on 
which  the  President  suspends  the  operations  of  this  Act  in  so  far  as  it 
authorizes  insurance  by  the  United  States." 

Same — Compulsory. 

Sec.  6.  That  there  is  hereby  added  to  such  Act  a  new  section  to  be 
known  as  section  three  b,  to  read  as  follows : 

"Sec.  3b.  That  in  the  event  of  failure  of  the  owner  of  any  vessel 
to  effect  insurance  of  the  master,  officers,  and  crew  of  such  vessel  prior  to 
sailing,  in  accordance  with  section  three  a  of  this  Act,  the  Secretary  of 
the  Treasury  is  hereby  authorized  to  eft"ect  such  insurance  with  the 
Bureau  of  War  Risk  Insurance  at  the  expense  of  the  owner  of  such 
vessel,  and  the  latter  shall  be  liable  for  such  expense  and,  in  addition, 
to  a  penalty  of  not  exceeding  $1,000.  The  amount  of  such  premium, 
with  interest  and  of  the  penalty  and  of  all  costs,  shall  be  a  lien  on  the 
vessel." 

Advisory  Board. 

Sec.  7.  That  section  five  of  such  Act  is  hereby  amended  to  read  as 
follows : 

"Sec.  5.  That  the  Secretary  of  the  Treasury  is  authorized  to  estab- 
lish an  advisory  board,  to  consist  of  three  members  skilled  in  the  prac- 
tices of  war-risk  insurance,  for  the  purpose  of  assisting  the  Bureau  of 
War  Risk  Insurance  in  fixing  rates  of  premium  and  in  adjustment  of 
claims  for  losses,  and  generally  in  carrying  out  the  purposes  of  this  Act; 


War  Risk  Insurance  95 

the  compensation  of  the  members  of  said  board  to  be  determined  by  the 
Secretary  of  the  Treasury,  but  not  to  exceed  $20  a  day  each,  while 
actually  employed.  He  is  likewise  authorized  to  appoint  two  persons 
skilled  in  the  practices  of  accident  insurance  for  the  purpose  of  assisting- 
the  Bureau  of  War  Risk  Insurance  in  the  adjustment  of  claims  for 
death,  personal  injury,  or  detention ;  the  compensation  of  the  persons  so 
appointed  to  be  determined  by  the  Secretary  of  the  Treasury,  but  not 
to  exceed  $20  a  day  each,  while  actually  employed.  In  the  event  of 
disagreement  as  to  the  claim  for  losses,  or  amount  thereof,  between  the 
said  bureau  and  the  parties  to  such  contract  of  insurance,  an  action  on 
the  claim  may  be  brought  against  the  United  States  in  the  district  court 
of  the  United  States,  sitting  in  admiralty,  in  the  district  in  which  the 
claimant  or  his  agent  may  reside." 

Attorney's  Fees  Not  Allowed. 

Sec.  8.  That  there  is  hereby  added  to  such  Act"  a  new  section  to  be 
known  as  section  five  a,  to  read  as  follows : 

"Sec.  5a.  No  claim  agent  or  attorney  shall  be  entitled  to  receive 
any  compensation  whatever  for  services  in  the  collection  of  claims  against 
the  Bureau  of  War  Risk  Insurance  for  death,  personal  injury,  or  deten- 
tion, except  when  proceedings  are  taken  in  accordance  with  section  five 
in  a  district  court  of  the  United  States,  in  which  case  the  judge  shall, 
as  a  part  of  his  determination  and  order,  settle  and  determine  the  amount 
of  compensation  not  to  exceed  ten  per  centum  of  amount  recovered,  ta 
be  paid  by  the  claimant  on  behalf  of  whom  such  proceedings  are  insti- 
tuted to  his  legal  adviser  or  advisers,  and  it  shall  be  unlawful  for  any 
lawyer  or  other  person  acting  in  that  behalf  to  ask  for,  contract  for,  or 
receive  any  larger  sum  than  the  amount  so  fixed." 

Appropriations. 

Sec.  9.     That  section  seven  of  such  Act  is  hereby  amended  to  read 

"Sec.  7.  That  for  the  purpose  of  paying  losses  and  return  pre- 
miums accruing  under  the  provisions  of  this  Act  there  is  hereby  appro- 
priated out  of  any  money  in  the  Treasury  of  the  United  States  not  other- 
wise appropriated,  the  sum  of  $50,000,000." 

Sec.  10.  That  section  eight  of  such  Act  is  hereby  amended  to  read 
as  follows : 

"Sec.  8.  That  there  is  hereby  appropriated,  for  the  purpose  of 
defraying  the  expenses  of  the  establishment  and  maintenance  of  the 
Bureau  of  War  Risk  Insurance,  including  the  payment  of  salaries  herein 
authorized  and  other  personal  services,  and  for  the  purchase  of  necessary 
books  of  reference,  periodicals,  etc.,  that  may  be  paid  for  in  advance 
out  of  any  money  in  the  Treasury  of  the  United  States  not  otherwise 
appropriated,  the  sum  of  $250,000." 

Suspension  of  Act. 

"Sec.  11.  That  section  nine  of  such  Act  is  hereby  amended  to  read 
as  follows: 


96  Supplement  to  Important  Federal  Laws 

"Sec.  9.  '  That  the  President  is  authorized  whenever  in  his  judg- 
ment the  necessity  of  further  war  insurance  by  the  United  States  shall 
have  ceased  to  exist  to  suspend  the  operation  of  the  Act,  in  so  far  as  it 
authorizes  insurance  by  the  United  States  against  loss  or  damage  by 
risks  of  war,  which  suspension  shall  be  made,  in  any  event,  within  four 
years  after  the  passage  of  this  Act,  but  shall  not  affect  any  insurance  out- 
standing at  the  time  or  any  claims  pending  adjustment.  For  the  pur- 
pose of  the  final  adjustment  of  any  such  outstanding  insurance  or  claims, 
the  Bureau  of  War  Risk  Insurance  may,  in  the  discretion  of  the  Presi- 
dent, be  continued  in  existence  a  further  period  not  exceeding  three 
years." 

Repeal. 

Sec.  12.  That  the  Act  entitled  "An  Act  to  amend  an  Act  entitled 
'An  Act  to  authorize  the  establishment  of  a  Bureau  of  War  Risk  Insur- 
ance of  the  Treasury  Department,'  approved  September  second,  nine- 
teen hundred  and  fourteen,"  approved  August  eleventh,  nineteen  hun- 
dred and  sixteen,  and  the  Act  entitled  "An  Act  to  amend  an  Act  entitled 
'An  Act  to  authorize  the  establishment  of  a  Bureau  of  War  Risk  Insur- 
ance in  the  Treasury  Department,'  approved  September  second,  nineteen 
hundred  and  fourteen,"  approved  March  third,  nineteen  hundred  and 
seventeen,  are  hereby  repealed. 


i 


SOLDIERS'  AND  SAILORS'  INSURANCE  ACT. 

Act   of   October   (i,    lillT. 
An  Act  to  :iinend  .-in  Act  entitled  "An  Act  to  antliorize  the  establishment  of  a 
Bureau    of    War    l{isk    Insurance   in    tbe   Treasury    Department,"    approved 
September  second,  nineteen  hundred  and  fourteen,  and  for  other  purposes.i 

That  the  first  section  of  the  Act  entitled  "An  Act  to  authorize  the 
estabhshment  of  a  Bureau  of  War  Risk  Insurance  in  the  Treasury  De- 
partment," approved  September  second,  nineteen  hundred  and  fourteen, 
as  amended,  is  hereby  amended  to  read  as  follows : 

"Article  I. 
Organization  of  the  Bureau. 

"Section  1.  That  there  is  established  in  the  Treasury  Department 
a  bureau  to  be  known  as  the  Bureau  of  War  Risk  Insurance,  the  di- 
rector of  which  shall  receive  a  salary  at  the  rate  of  $5,000  per  annum. 

"That  there  be  in  such  bureau  a  Division  of  Marine  and  Seamen's 
Insurance  and  a  Division  of  Military  and  Naval  Insurance  in  charge 
of  a  commissionor  of  Marine  and  Seamen's  Insurance  and  a  commis- 
sioner of  Military  and  Naval  Insurance,  respectively,  each  of  whom 
shall  receive  a  salary  of  $4,000  per  annum." 

Sec.  2.  That  such  Act  of  September  second,  nineteen  hundred  and 
fourteen,  as  amended,  is  hereby  amended  by  adding  new  sections,  as 
follows : 

"Sec.  12.  That  sections  two  to  seven,  inclusive,  and  section  nine, 
shall  be  construed  to  refer  only  to  the  Division  of  Marine  and  Seamen's 
Insurance. 

Duties  of  Director. 

"Sec.  13.  That  the  director,  subject  to  the  general  direction  of  the 
Secretary  of  the  Treasury,  shall  administer,  execute,  and  enforce  the 
provisions  of  this  Act,  and  for  that  purpose  have  full  power  and 
authority  to  make  rules  and  regulations,  not  inconsistent  with  the  pro- 
visions of  this  Act,  necessary  or  appropriate  to  carry  out  its  purposes, 
and  shall  decide  all  questions  arising  under  the  xA.ct,  except  as  other- 
wise provided  in  sections  five  and  four  hundred  and  five.  Where- 
ever  under  any  provision  or  provisions  of  the  Act  regulations  are 
directed  or  authorized  to  be  made,  such  regulations,  unless  the  con- 
text otherwise  requires,  shall  or  may  be  made  by  the  director,  subject 
to  the  general  direction  of  the  Secretary  of  the  Treasury.  The  direc- 
tor shall  adopt  reasonable  and  proper  rules  to  govern  the  procedure 
of  the  divisions,  to  regulate  the  matter  of  compensation,  if  any,  but 
in  no  case  to  exceed  ten  per  centum,  to  be  paid  to  claim  agents  and 

iFor  original  Act  of  1914  as  amended  see  Lapp's  Important  Federal  Laws  pp. 

620-622. 

97 

(7) 


98        '  Supplement  to  Important  Federal  Laws 

attorneys   for  services  in  connection  with  any  of  tlie  matters  provided  . 

for  in  articles  two,  three,  and  four,  and  to  regulate  and  provide  for         f 
the  nature  and  extent  of  the  proofs  and  evidence  and  the  method  of  ' 

taking  and  furnishing  the  same  in  order  to  establish  the  right  to  bene- 
fits of  allowance,  allotment,  compensation,  or  insurance  provided  for 
in  this  x\ct,  the  forms  of  application  of  those  claiming  to  be  entitled 
to  such  benefits,  the  method  of  making  investigations  and  medical  ex- 
aminations, and  the  manner  and  form  of  adjudications  and  awards. 

Deputies  and  Assistants. 

"Sec.  14.  That  the  bureau  and  its  divisions  shall  have  such  depu- 
ties, assistants,  actuaries,  clerks,  and  other  employees  as  may  be  from 
time  to  time  provided  by  Congress.  The  bureau  shall,  by  arrange- 
ment with  the  Secretary  of  War  and  the  Secretary  of  the  Navy,  re- 
spectively, make  use  of  the  services  of  surgeons  in  the  Army  and  Navy. 
The  Secretary  of  the  Treasury  is  authorized  to  establish  an  advisory 
board  consisting  of  three  members  skilled  in  the  practice  of  insurance 
against  death  or  disability  for  the  purpose  of  assisting  the  Division  of  Mil- 
itary and  Naval  Insurance  in  fixing  premium  rates  and  in  the  adjustment 
of  claims  for  losses  under  the  contracts  of  insurance  provided  for  in 
article  four  and  in  adjusting  claims  for  compensation  under  article  three ; 
compensation  for  the  persons  so  appointed  to  be  determined  by  the  Secre- 
tary of  the  Treasury,  but  not  to  exceed  $20  a  day  each  while  actually 
employed. 

Powers  of  Director  and  Assistants. 

"Sec.  15.  That  for  the  purposes  of  this  Act,  the  director,  com- 
missioners, and  deputy  commissioners,  shall  have  power  to  issue  sub- 
poenas for  and  compel  the  attendance  of  witnesses  within  a  radius 
of  one  hundred  miles,  to  require  the  production  of  books,  papers,  doc- 
uments, and  other  evidence,  to  administer  oaths  and  to  examine  wit- 
nesses upon  any  matter  within  the  jurisdiction  of  the  bureau.  The 
director  may  obtain  such  information  and  such  reports  from  officials 
and  employees  of  the  departments  of  the  Government  of  the  United 
States  and  of  the  States  as  may  be  agreed  upon  by  the  heads  of  the 
respective  departments.  In  case  of  disobedience  to  a  subpoena,  the 
bureau  may  invoke  the  aid  of  any  district  court  of  the  United  States 
in  requiring  the  attendance  and  testimony  of  witnesses  and  the  production 
of  documentary  evidence,  and  such  court,  within  the  jurisdiction  of  which 
the  inquiry  is  carried  on,  may,  in  case  of  contumacy  or  refusal  to  obey  a 
subpoena  issued  to  any  officer,  agent,  or  employee  of  any  corporation  or 
other  person,  issue  an  order  requiring  such  corporation  or  other  person 
to  appear  before  the  bureau,  or  to  give  evidence  touching  the  matter  in 
question  :  and  any  failure  to  obey  such  order  of  the  court  may  be  punished 
by  such  court  as  a  contempt  thereof.  Any  person  so  required  to  attend 
as  a  witness  shall  be  allowed  and  paid  the  same  fees  and  mileage  as 
are  paid  witnesses  in  the  district  courts  of  the  United  States. 


Soldiers'  and  Sailors'  Insurance  Act  99 

"Sec.  16.  That  the  director  shall  submit  annually  to  the  Secretary 
of  the  Treasury  estimates  of  the  appropriations  necessary  for  the  work 
of  the  bureau. 

Appropriations. 

''Sec.  17.  That  for  the  purpose  of  carrying  out  the  provisions  of 
this  Act  there  is  hereby  appropriated,  out  of  any  moneys  in  the  Treasury 
not  otherwise  appropriated,  the  sum  of  $100,000,  for  the  payment  of 
all  expenses  incident  to  the  work  authorized  under  this  Act,  including 
salaries  of  the  director  and  commissioners  and  of  such  deputies,  as- 
sistants, accountants,  experts,  clerks,  and  other  employees  in  the  District 
of  Columbia  or  elsewhere,  as  the  Secretary  of  the  Treasury  may  deem 
necessary,  traveling  expenses,  rent  and  equipment  of  offices,  typewriters 
and  exchange  of  same,  purchase  of  law^  books  and  books  of  reference, 
printing  and  binding  to  be  done  at  the  Government  Printing  Office,  and 
all  other  necessary  expenses.  With  the  exception  of  the  director,  the 
commissioners,  and  such  special  experts  as  the  Secretary  of  the  Treasury 
may  from  time  to  time  find  necessary  for  the  conduct  of  the  work  of  the 
bureau,  all  employees  of  the  bureau  shall  be  appointed  from  lists  of 
eligibles  to  be  supplied  by  the  Civil  Service  Commission  and  in  accordance 
with  the  civil-service  law.  Such  fees,  allowances,  and  salaries  shall 
be  the  same  as  paid  for  similar  services  in  other  departments  of  the 
Government. 

"Sec.  18.  That  there  is  hereby  appropriated  from  any  money  in 
the  Treasury  not  otherwise  appropriated,  the  sum  of  $141,000,000, 
to  be  known  as  the  military  and  naval  family  allowance  appropriation, 
for  the  payment  of  the  family  allowances  provided  by  Article  II.  Pay- 
ments out' of  this  appropriation  shall  be  made  upon  and  in  accordance 
with  awards  by  the  Commissioner  of  the  Division  of  Military  and  Naval 
Insurance. 

"Sec.  19.  That  there  is  hereby  appropriated,  from  any  money  in 
the  Treasury  not  otherwise  appropriated,  the  sum  of  $12,150,000,  to 
be  known  as  the  military  and  naval  compensation  appropriation,  for 
the  payment  of  the  compensation,  funeral  expenses,  services,  and  sup- 
plies provided  by  Article  III.  Payments  out  of  this  appropriation  shall 
be  made  upon  and  in  accordance  with  awards  by  the  director. 

"Sec.  20.  That  there  is  hereby  appropriated,  from  any  money  in 
the  Treasury  not  otherwise  appropriated,  the  sum  of  $23,000,000,  to 
be  known  as  the  military  and  naval  insurance  appropriation.  All  prem- 
iums that  may  be  collected  for  the  insurance  provided  by  the  provisions 
of  Article  IV  shall  be  deposited  and  covered  into  the  Treasury  to  the 
credit  of  this  appropriation. 

"Such  sum,  including  all  premium  payments,  is  hereby  made  avail- 
able for  the  payment  of  the  liabilities  of  the  United  States  incurred  under 
contracts  of  insurance  made  under  the  provisions  of  Article  IV.  Pay- 
ments from  this  appropriation  shall  be  made  upon  and  in  accordance  with 
aw^ards  by  the  director. 


100  Supplement  to  Important  Federal  Laws 

"Sec.  21.  That  there  shall  be  set  aside  as  a  separate  fund  in  the 
Treasury,  to  he  known  as  the  military  and  naval  pay  deposit  fund,  all 
sums  held  out  of  pay  as  provided  by  section  two  hundred  and  three  of 
this  Act.  Such  fund,  including  all  additions,  is  hereby  made  available 
for  the  payment  of  the  sums  so  held  and  deposited,  with  interest,  as 
provided  in  section  two  hundred  and  three,  and  the  amount  necessary 
to  pay  interest  is  hereby  appropriated. 

Proof  of  Marriage. 

"Sec.  22.  That  for  the  purpose  of  this  amendatory  Act  the  mar- 
riage of  the  claimant  to  the  person  on  account  of  whom  the  claim  is 
made  shall  be  shown — 

"(1)   By  a  duly  verified  copy  of  a  public  or  church  record ;  or 

"(2)  By  the  affidavit  of  the  clerg}^man  or  magistrate  who  officiated; 
or 

"(3)  By  the  testimony  of  two  or  more  eyewitnesses  to  the  cere- 
mony ;  or 

"(4)  By  a  duly  verified  copy  of  the  church  record  of  baptism  of 
the  children ;  or 

"(5)  By  the  testimony  of  two  or  more  witnesses  who  knew  that 
the  parties  lived  together  as  husband  and  wife,  and  were  recognized 
as  such,  and  who  shall  state  how  long,  within  their  knowledge,  such  re- 
lation continued :  Provided,  That  marriages,  except  such  as  are  men- 
tioned in  section  forty-seven  hundred  and  five  of  the  Revised  Statutes, 
shall  be  proven  in  compensation  or  insurance  cases  to  be  legal  marriages 
according  to  the  law  of  the  place  where  the  parties  resided  at  the  time 
of  marriage  or  at  the  time  when  the  right  to  compensation  or  insurance 
accrued ;  and  the  open  and  notorious  illicit  cohabitation  of  a  widow  who 
is  a  claimant  shall  operate  to  terminate  her  right  to  compensation  or 
insurance  from  the  commencement  of  such  cohabitation :  Provided  fur- 
ther. That  for  the  purpose  of  the  administration  of  Article  II  of  this  Act 
marriage  shall  be  conclusively  presumed,  in  the  absence  of  proof,  that 
there  is  a  legal  spouse  living,  if  the  man  and  woman  have  lived  together 
in  the  openly  acknowledged  relation  of  husband  and  wife  during  the 
two  years  immediately  preceding  the  date  of  the  declaration  of  war,  or 
the  date  of  enlistment  or  of  entrance  into  or  employment  in  active  service 
in  the  military  or  naval  forces  of  the  United  States  if  subsequent  to  such 
declaration." 

Definitions, 

In  Articles  II,  III,  and  IV  of  this  Act  unless  the  context  otherwise 
requires — 

"  ( 1 )     The  term  'child'  includes — 

"(a)     A  legitimate  child. 

"(b)  A  child  legally  adopted  more  than  six  months  before  the 
enactment  of  this  amendatorv  act  or  before  enlistment  or  entrance  into  or 


Soldiers'  and  Sailors'  Insurance  Act  _  101 

employment  in  active  service  in  the  military  or  naval  forces  of  the  United 
States,  whichever  of  these  dates  is  the  later. 

"(c)     A  stepchild,  if  a  member  of  the  man's  household. 

"(d)  An  illegitimate  child,  but,  as  to  the  father,  only,  if  acknowl- 
edged by  instrument  in  writing  signed  by  him,  or  if  he  has  been  judi- 
cially ordered  or  decreed  to  contribute  to  such  child's  support,  and  if 
such  child,  born  after  December  thirty-first,  nineteen  hundred  and  seven- 
teen, shall  have  been  born  in  the  United  States,  or  in  its  insular  posses- 
sions. 

"(2)      The  term  'grandchild'  means  a  child  as  above  defined  of  a 

child  as  above  defined. 

"(3)  Except  as  used  in  section  four  hundred  and  one  and  in  section 
four  hundred  and  two  the  terms  'child'  and  'grandchild'  are  limited  to 
unmarried  persons  either  (a)  under  eighteen  years  of  age,  or  (b)  of 
any  age,  if  insane,  idiotic,  or  otherwise  permanently  helpless. 

"(4)  The  term  'parent'  includes  a  father,  mother,  grandfather, 
grandmother,  stepfather,  and  stepmother,  either  of  the  person  in  the 
service  or  of  the  spouse. 

"(5)  The  terms  'brother'  and  'sister'  includes  brothers  and  sisters 
of  the  half  blood  as  well  as  those  of  the  whole  blood,  stepbrothers  and 
stepsisters,  and  brothers  and  sisters  through  adoption. 

"(6)  The  term  'commissioned  officer'  includes  a  warrant  officer, 
but  includes  only  an  officer  in  active  service  in  the  military  or  naval 
forces  of  the  United  States. 

"(7)  The  terms  'man'  and  'enlisted  man'  mean  a  person,  whether 
male  or  female,  and  whether  enlisted,  enrolled  or  drafted  into  active 
service  in  the  military  or  naval  forces  of  the  United  States,  and  in- 
clude noncommissioned  and  petty  officers,  and  members  of  training  camps 
authorized  by  law. 

"(8)  The  term  'enlistment'  includes  voluntary  enlistment,  draft, 
and  enrollment  in  active  service  in  the  military  or  naval  forces  of  the 

United  States.  _    .  r  A/r•1• 

"(9)     The  term  'commissioner'  means  the  Commissioner  of  Military 

and  Naval  Insurance. 

"(10)   The  term  'injury'  includes  disease. 

"(11)  The  term  'pay'  means  the  pay  for  service  in  the  United 
States  according  to  grade  and  length  of  service,  excluding  all  allow- 
ances. 

"(12)  The  term  'military  or  naval  forces'  means  the  Army,  the 
Navy,  the  Alarine  Corps,  the  Coast  Guard,  the  Naval  Reserves,  the 
National  Naval  Volunteers,  and  any  other  branch  of  the  United  States 
service  while  serving  pursuant  to  law  with  the  Army  or  the  Navy. 

Payments  to  Guardian. 

"Sec.  23.  That  when,  by  the  terms  of  this  amendatory  Act,  any 
payment  is  to  be  made  to  a  minor,  other  than  a  person  in  the  military 


102  Supplement  to  Important  Federal  Laws 

or  naval  forces  of  the  United  States,  or  to  a  person  mentally  incompetent, 
such  payment  shall  be  made  to  the  person  who  is  constituted  guardian 
or  curator  by  the  laws  of  the  State  or  residence  of  claimant,  or  is  other- 
wise legally  vested  with  responsibility  or  care  of  the  claimant. 

Records  and  Information  of  Insurance, 

"Sec.  24.  That  the  Bureau  of  War  Risk  Insurance,  so  far  as  prac- 
ticable, shall  upon  request  furnish  information  to  and  act  for  persons  in 
the  military  or  naval  service,  with  respect  to  any  contracts  of  insurance 
whether  with  the  Government  or  otherwise,  as  may  be  prescribed  by  reg- 
ulations. Said  bureau  may  upon  request  procure  from  and  keep  a  record 
of  the  amount  and  kind  of  insurance  held  by  every  commissioned  and 
appointive  officer  and  of  every  enlisted  man  in  the  military  or  naval 
service  of  the  United  States,  including  the  name  and  principal  place  of 
business  of  the  company,  society,  or  organization  in  which  such  insurance 
is  held,  the  date  of  the  policy,  amount  of  premium,  name  of  relationship 
of  the  beneficiary,  and  such  other  data  as  may  be  deemed  of  service  in 
protecting  the  interests  of  the  insured  and  beneficiaries. 

Perjury — Penalty  For. 

"Sec.  25.  That  whoever  in  any  claim  for  family  allowance,  com- 
pensation, or  insurance,  or  in  any  document  required  by  this  Act  or  by 
regulation  made  under  this  Act,  makes  any  statement  of  a  material  fact 
knowing  it  to  be  false,  shall  be  guilty  of  perjury  and  shall  be  punished 
by  a  fine  of  not  more  than  $5,000,  or  by  imprisonment  for  not  more  than 
two  years,  or  both. 

Fraudulently  Accepting  Allowance. 

"Sec.  26.  That  if  any  person  entitled  to  payment  of  family  allow- 
ance or  compensation  under  this  Act,  whose  right  to  such  payment  under 
this  Act  ceases  upon  the  happening  of  any  contingency,  thereafter  fraud- 
ulently accepts  any  such  payment,  he  shall  be  punished  by  a  fine  of  not 
more  than  $2,000,  or  by  imprisonment  for  not  more  than  one  vear,  or 
both." 

Article  II. 
allotments  and  family  allowances. 
Application  Of. 

Sec.  200.  That  the  provisions  of  this  article  shall  apply  to  all 
enlisted  men  in  the  military  or  naval  forces  of  the  United  States. 

Sec.  201.  That  allotment  of  pay  shall,  subject  to  the  conditions, 
limitations,  and  exceptions  hereinafter  specified,  be  compulsory  as  to 
wife,  a  former  wife  divorced  who  has  not  remarried  and  to  whom  ali- 
mony has  been  decreed,  and  a  child,  and  voluntary  as  to  any  other  person ; 
but  on  the  written  consent  of  the  wife  or  former  wife  divorced,  sup- 
ported by  evidence  satisfactory  to  the  bureau  of  her  ability  to  support 
herself  and  the  children  in  her  custody,  the  allotment  for  her  and   for 


Soldiers'  and  Sailors'  Insurance  Act  103 

such  children  may  be  waived ;  and  on  the  enlisted  man's  application  or 
otherwise  for  good  cause  shown,  exemption  from  the  allotment  may  be 
granted  upon  such  conditions  as  may  be  prescribed  by  regulations. 

The  monthly  compulsory  allotment  shall  be  in  an  amount  equal  to 
the  family  allowance  hereinafter  specified  except  that  it  shall  not  be 
more  than  one-half  the  pay,  or  less  than  $15;  but  for  a  wife  living  sep- 
arate and  apart  under  court  order  or  written  agreement  or  for  a  former 
wife  divorced,  it  shall  not  exceed  the  amount  specified  in  the  court  order, 
decree,  or  written  agreement  to  be  paid  to  her.  For  an  illegitimate  child, 
to  whose  support  the  father  has  been  judicially  ordered  or  decreed  to 
contribute,  it  shall  not  exceed  the  amount  fixed  in  the  order  or  decree. 

If  there  be  an  allotment  for  a  wife  or  child,  a  former  wife  divorced 
and  who  has  not  remarried  shall  be  entitled  to  a  compulsory  allotment 
only  out  of  the  difference,  if  any,  between  the  allotment  for  the  wife  or 
child  or  both  and  one-half  of  the  pay. 

Allotment  of  Monthly  Pay. 

Sec.  202.  That  the  enlisted  man  may  allot  any  proportion  or  pro- 
portions or  any  fixed  amount  or  amounts  of  his  monthly  pay  or  of  the 
proportion  thereof  remaining  after  the  compulsory  allotment,  for  such 
purposes  and  for  the  benefit  of  such  person  or  persons  as  he  may  direct, 
subject,  however,  to  such  conditions  and  limitations  as  may  be  prescribed 
under  regulations  to  be  made  by  the  Secretary  of  War  and  the  Secretary 
of  the  Navy,  respectively. 

Same. 

Sec.  203.  '  That  in  case  one-half  of  an  enlisted  man's  monthly  pay  is 
not  allotted,  regulations  to  be  made  by  the  Secretary  of  War  and  the  Sec- 
retary of  the  Navy,  respectively,  may  require,  under  such  circumstances 
and  conditions  as  may  be  prescribed  in  such  regulations,  that  any  propor- 
tion of  such  one-half  pay  as  is  not  allotted  shall  be  deposited  to  his  credit, 
to  be  had  during  such  period  of  his  service  as  may  be  prescribed.  Such 
deposits  shall  bear  interest  at  the  rate  of  four  per  centum  per  annum,  with 
semiannual  rests  and,  when  payable,  shall  be  paid  principal  and  interest 
to  the  enlisted  man,  if  living,  otherwise  to  any  beneficiary  or  beneficiaries 
he  may  have  designated,  or  if  there  be  no  such  beneficiary,  then  to  the 
person  or  persons  who  would  under  the  laws  of  the  State  of  his  resi- 
dence be  entitled  to  his  personal  property  in  case  of  intestacy. 

Allowance — Amount  and  Distribution. 

Sec.  204.  That  a  family  allowance  of  not  exceeding  $50  per  month 
shall  be  granted  and  paid  by  the  United  States  upon  written  application 
to  the  bureau  by  such  enlisted  man  or  by  or  on  behalf  of  any  prospective 
beneficiary,  in  accordance  with  and  subject  to  the  conditions,  limitations, 
and  exceptions  hereinafter  specified. 

The  family  allowance  shall  be  paid  from  the  time  of  enlistment  to 
death  in  or  one  month  after  discharge  from  the  service,  but  not  for  more 


104  Supplement  to  Important  Federal  Laws 

than  one  month  after  the  termination  of  the  present  war  emergency. 
No  family  allowance  shall  be  made  for  any  period  preceding  November 
first,  nineteen  hundred  and  seventeen.  The  payment  shall  be  subject  to 
such  regulations  as  may  be  prescribed  relative  to  cases  of  desertion  and 
imprisonment  and  of  missing  men. 

Subject  to  the  conditions,  limitations,  and  exceptions  hereinabove 
and  hereinafter  specified,  the  family  allowance  payable  per  month  shall 
be  as  follows : 

■     Class  A.     In  the  case  of  a  man.  to  his  wife  (including  a  former  wife 
divorced)  and  to  his  child  or  children: 

(a)  If  there  be  a  wife  but  no  child,  $15. 

(b)  If  there  be  a  wife  and  one  child,  $25. 

(c)  If  there  be  a  wife  and  two  children,  $32.50,  with  $5  per  month 
additional  for  each  additional  child. 

(d)  If  there  be  no  wife,  but  one  child,  $5. 

(e)  If  there  be  no  wife,  but  two  children,  $12.50. 

(f)  If  there  be  no  wife,  but  three  children,  $20. 

(g)  If  there  be  no  wife,  but  four  children,  $30.  with  $5  per  month 
additional  for  each  additional  child. 

Class  B.  In  the  case  of  a  man  or  woman,  to  a  grandchild,  a  parent, 
brother  or  sister : 

(a)  If  there  be  one  parent,  $10. 

(b)  If  there  be  two  parents,  $20. 

(c)  For  each  grandchild,  brother,  sister,  and  additional  parent,  $5. 
In  the  case  of  a  woman,  to  a  child  or  children : 

(d)  If  there  be  one  child,  $5. 

(e)  If  there  be  two  children,  $12.50. 

(f )  If  there  be  three  children,  $20. 

(g)  If  there  be  four  children,  $30,  with  $5  per  month  additional  for 
each  additional  child. 

Same. 

Sec.  205.  That  family  allowances  for  members  of  Class  A  shall  be 
paid  only  if  and  while  a  compulsory  allotment  is  made  to  a  member  or 
members  of  such  class.  The  monthly  family  allowance  to  a  former  wife 
divorced  shall  be  payable  only  out  of  the  difference,  if  any,  between  the 
monthly  family  allowance  to  the  other  members  of  Class  A  and  the  sum 
of  $50,  and  only  then  if  alimony  shall  have  been  decreed  to  her.  For  a 
wife  living  separate  and  apart  under  court  order  or  written  agreement 
or  to  a  former  wife  divorced  the  monthly  allowance,  together  with  the 
allotment,  if  any,  shall  not  exceed  the  amount  specified  in  the  court  order, 
decree,  or  written  agreement  to  be  paid  to  her.  For  an  illegitimate  child, 
to  whose  support  the  father  has  been  judicially  ordered  or  decreed  to 
contribute,  it  shall  not  exceed  the  amount  fixed  in  the  order  or  decree. 


Soldiers'  and  Sailors'  Insurance  Act  105 

Same. 

Sec.  206.  That  family  allowances  to  members  of  Class  B  shall  be 
granted  only  if  and  while  the  member  is  dependent  in  whole  or  in  part 
on  the  enlisted  man,  and  then  only  if  and  while  the  enlisted  man  makes 
a  monthly  allotment  of  his  pay  for  such  member  or  members  equal  to 
the  amount  of  the  monthly  family  allowance  as  hereinabove  specified, 
except  that — 

(a)  The  maximum  monthly  allotment  so  required  to  be  made  to 
members  of  Class  B  shall  be  one-half  of  his  pay. 

(b)  If  he  is  making  no  allotment  to  a  member  of  Class  A,  the  mini- 
mum monthly  allotment  so  designated  to  be  made  to  members  of  Class  B 
shall  be  $15  per  month. 

(c)  If  he  is  making  the  compulsory  allotment  to  a  member  of  Class 
A,  the  minimum  monthly  allotment  so  designated  to  be  made  to  members 
of  Class  B  shall  be  one-seventh  of  his  pay,  but  not  less  than  $5  per  month. 

On  the  enlisted  man's  application,  or  otherwise  for  good  cause 
shown,  exemption  from  this  additional  allotment  under  Class  B  as  a 
condition  to  the  allowance  may  be  granted,  upon  such  conditions  as  may 
be  prescribed  by  regulations. 

Limitations. 

Sec.  207.  That  the  amount  of  the  family  allowance  to  members  of 
Class  B  shall  be  subject  to  each  of  the  following  limitations : 

(a)  If  an  allowance  is  paid  to  one  or  more  beneficiaries  of  Class  A, 
the  total  allowance  to  be  paid  to  the  beneficiaries  of  Class  B  shall  not 
exceed  the  difference  between  the  allowance  paid  to  the  beneficiaries 
of  Class  A  and  the  sum  of  $50. 

(b)  The  total  monthly  allowance  to  beneficiaries  of  Class  B  added 
to  the  enlisted  man's  monthly  allotment  to  them  shall  not  exceed  the 
average  sum  habitually  contributed  by  him  to  their  support  monthly  dur- 
ing the  period  of  dependency  but  not  exceeding  a  year  immediately  pre- 
ceding his  enlistment  or  the  enactment  of  this  amendatory  Act. 

Apportionment  Between  Classes  A  and  B. 

Sec.  208.  That  as  between  the  members  of  Class  A  and  as  between 
the  members  of  Class  B,  the  amount  of  the  allotment  and  family  allow- 
ance shall  be  apportioned  as  may  be  prescribed  by  regulations. 

Payment  of  Allotment  to  Beneficiaries  from  Monthly  Pay. 

Sec.  209.  The  War  and  Navy  Departments,  respectively,  shall  pay 
over  to  the  Treasury  Department  monthly  the  entire  amount  of  such 
allotments  for  distribution  to  the  beneficiaries,  and  the  allotments  and 
family  allowances  shall  be  paid  by  the  bureau  to  or  for  the  beneficiaries. 
Investigation  of  Allowances. 

Sec.  210.  That  upon  receipt  of  any  application  for  family  allow- 
ance the  commissioner  shall  make  all  proper  investigations  and  shall 
make  an  award,  on  the  basis  of  which  award  the  amount  of  the  allot- 


106  Supplement  to  Important  Federal  Laws 

ments  to  be  made  by  the  man  shall  be  certified  to  the  War  Department 
or  Navy  Department,  as  may  be  proper.  Whenever  the  commissioner 
shall  have  reason  to  believe  that  an  allowance  has  been  improperly  made 
or  that  the  conditions  have  changed,  he  shall  investigate  or  reinvestigate 
and  may  modify  the  award.  The  amount  of  each  monthly  allotment  and 
allowance  shall  be  determined  according  to  the  conditions  then  existing. 

Article  III. 

compensation  for  death  or  disability. 

Payment  to  be  Made. 

Sec.  300.  That  for  death  or  disability  resulting  from  personal  in- 
jury suffered  or  disease  contracted  in  the  line  of  duty,  by  any  com- 
missioned officer  or  enlisted  man  or  by  any  member  of  the  Army  Nurse 
Corps  (female)  or  of  the  Navy  Nurse  Corps  (female)  when  employed 
in  the  active  service  under  the  War  Department  or  Navy  Department, 
the  United  States  shall  pay  compensation  as  hereinafter  provided ;  but  no 
compensation  shall  be  paid  if  the  injury  or  disease  has  been  caused  by 
his  own  willful  misconduct. 

Amount  of  Compensation  for  Death. 

Sec.  301.     That  if  death  results  from  injury — 

If  the  deceased  leaves  a  widow  or  child,  or  if  he  leaves  a  widowed 
mother  dependent  upon  him  for  support,  the  monthly  compensation  shall 
be  the  following  amounts  : 

(a)   For  a  widow  alone,  $25. 

(h)   For  a  widow  and  one  child,  $35. 

(c)  For  a  w'idow  and  two  children,  $47.50,  with  $5  for  each  addi- 
tic^nal  child  up  to  two. 

(d)  If  there  be  no  widow,  then  for  one  child,  $20. 

(e)  For  two  children,  $30. 

(f)  For  three  children,  $40,  with  $5  for  each  additional  child  up  to 
two. 

(g)  For  a  widowed  mother,  $20.  The  amount  payable  under  this 
subdivision  shall  not  be  greater  than  a  sum  which,  when  added  to  the 
total  amount  payable  to  the  widow  and  children,  does  not  exceed  $75. 
This  compensation  shall  be  payable  for  the  death  of  but  one  child,  and 
no  compensation  for  the  death  of  a  child  shall  be  payable  if  such  widowed 
mother  is  in  receipt  of  compensation  under  the  provisions  of  this  article 
for  the  death  of  her  husband.  Such  compensation  shall  be  payable 
whether  her  widowhood  arises  before  or  after  the  death  of  the  person 
and  whenever  her  condition  is  such  that  if  the  person  were  living  the 
widowed  mother  would  have  been  dependent  upon  him  for  support. 

If  the  death  occur  before  discharge  or  resignation  from  service,  the 
United  States  shall  pay  for  burial  expenses  and  the  return  of  body  to  his 
home  a  sum  not  to  exceed  $100,  as  may  be  fixed  by  regulations. 


Soldiers'  and  Sailors'  Insurance  Act  107 

The  payment  of  compensation  to  a  widow  or  widowed  mother  shall 
continue  until  her  death  or  remarriage. 

The  payment  of  compensation  to  or  for  a  child  shall  continue  until 
such  child  reaches  the  age  of  eighteen  years  or  marries,  or  if  such  child 
be  incapable,  because  of  insanity,  idiocy,  or  being  otherwise  permanently 
helpless,  then  during  such  incapacity. 

Whenever  the  compensation  payable  to  or  for  the  benefit  of  any 
person  under  the  provisions  of  this  section  is  terminated  by  the  happen- 
ing of  the  contingency  upon  which  it  is  limited,  the  compensation  there- 
after for  the  remaining  beneficiary  or  beneficiaries,  if  any,  shall  be  the 
amount  which  would  have  been  payable  to  them  if  they  had  been  the  sole 
original  beneficiaries. 

As  between  the  widow  and  the  children  not  in  her  custody,  and  as 
between  children,  the  amount  of  the  compensation  shall  be  apportioned 
as  may  be  prescribed  by  regulations.  The  word  "widow"  as  used  in  this 
section  shall  not  include  one  who  shall  have  married  the  deceased  later 
than  ten  years  after  the  time  of  injury. 

Amount  of  Compensation  for  Disability. 

Sec.  302.     That  if  disability  results  from  the  injury — 

(1)  If  and  while  the  disability  is  total,  the  monthly  compensation 
shall  be  the  following  amounts  : 

(a)  If  he  has  neither  wife  nor  child  living,  $30. 

(b)  If  he  has  a  wife  but  no  child  living,  $45. 

(c)  If  he  has  a  wife  and  one  child  living,  $55. 

(d)  If  he  has  a  wife  and  two  children  living,  $65. 

(e)  If  he  has  a  wife  and  three  or  more  children  living,  $75. 

(f)  If  he  has  no  wife  but  one  child  living,  $40,  with  $10  for  each 
additional  child  up  to  two. 

(g)  If  he  has  a  widowed  mother  dependent  on  him  for  support, 
then,  in  addition  to  the  above  amounts,  $10. 

To  an  injured  person  who  is  totally  disabled  and  in  addition  so 
helpless  as  to  be  in  constant  need  of  a  nurse  or  attendant,  such  addi- 
tional sum  shall  be  paid,  but  not  exceeding  $20  per  month,  as  the  director 
may  deem  reasonable:  Provided,  however.  That  for  the  loss  of  both 
feet  or  both  hands  or  both  eyes,  or  for  becoming  totally  blind  or  help- 
less and  permanently  bedridden  from  causes  occurring  in  the  line  of 
duty  in  the  service  of  the  United  States,  the  rate  of  compensation  shall 
be  $100  per  month :  Provided  further.  That  no  allowance  shall  be  made 
for  nurse  or  attendant. 

(2)  If  and  while  the  disability  is  partial,  the  monthly  compensation 
shall  be  a  percentage  of  the  compensation  that  would  be  payable  for  his 
total  disability,  equal  to  the  degree  of  the  reduction  in  earning  capacity 
resulting  from  the  disability,  but  no  compensation  shall  be  payable  for 
a  reduction  in  earning  capacity  rated  at  less  than  ten  per  centum. 

A  schedule  of  ratings  of  reductions  in  earning  capacity  from  specific 


108  Supplement  to  Important  F'ederal  Laws 

injuries  or  combinations  of  injuries  of  a  permanent  nature  shall  be 
adopted  and  applied  by  the  bureau.  Ratings  may  be  as  high  as  one 
hundred  per  centum.  The  ratings  shall  be  based,  as  far  as  practicable, 
upon  the  average  impairments  of  earning  capacity  resulting  from  such 
injuries  in  civil  occupations  and  not  upon  the  impairment  in  earning 
capacity  in  each  individual  case,  so  that  there  shall  be  no  reduction  in 
the  rate  of  compensation  for  individual  success  in  overcoming  the  handi- 
cap of  a  permanent  injury.  The  bureau  shall  from  time  to  time  readjust 
this  schedule  of  ratings  in  accordance  with  actual  experience. 

(3)  In  addition  to  the  compensation  above  provided,  the  injured 
person  shall  be  furnished  by  the  United  States  such  reasonable  govern- 
mental medical,  surgical,  and  hospital  services  and  with  such  supplies, 
including  artificial  limbs,  trusses,  and  similar  appliances,  as  the  director 
may  determine  to  be  useful  and  reasonably  necessary :  Provided,  That 
nothing  in  this  Act  shall  be  construed  to  afitect  the  necessary  military 
control  over  any  member  of  the  military  or  naval  establishments  before 
he  shall  have  been  discharged  from  the  military  or  naval  service. 

(4)  The  amount  of  each  monthly  payment  shall  be  determined 
according  to  the  family  conditions  then  existing. 

Examination  of  Claimant. 

Sec.  303.  That  every  person  applying  for  or  in  receipt  of  compen- 
sation for  disability  under  the  provisions  of  this  article  shall,  as  fre- 
quently and  at  such  times  and  places  as  may  be  reasonably  required, 
submit  himself  to  examination  by  a  medical  officer  of  the  United  States 
or  by  a  duly  qualified  physician  designated  or  approved  by  the  director. 
He  may  have  a  duly  qualified  physician  designated  and  paid  by  him 
present  to  participate  in  such  examination.  For  all  examinations  he 
shall,  in  the  discretion  of  the  director,  be  paid  his  reasonable  traveling 
and  other  expenses  and  also  loss  of  wages  incurred  in  order  to  submit 
to  such  examination.  If  he  refuses  to  submit  himself  for,  or  in  any 
way  obstructs,  any  examination,  his  right  to  claim  compensation  under 
this  article  shall  be  suspended  until  such  refusal  or  obstruction  ceases. 
No  compensation  shall  be  payable  while  such  refusal  or  obstruction 
continues,  and  no  compensation  shall  be  payable  for  the  intervening 
period. 

Every  person  in  receipt  of  compensation  for  disability  shall  submit 
to  any  reasonable  medical  or  surgical  treatment  furnished  by  the  bureau 
whenever  requested  by  the  bureau;  and  the  consequences  of  unreasonable 
refusal  to  submit  to  any  such  treatment  shall  not  be  deemed  to  result 
from  the  injury  compensated  for. 

Reeducation  or  Rehabilitation. 

Sec.  304.  That  in  cases  of  dismemberment,  of  injuries  to  sight  or 
hearing,  and  of  other  injuries  commonly  causing  permanent  disability, 
the  injured  person  shall  follow  such  course  or  courses  of  rehabilitation, 


Soldiers'  and  Sailors'  Insurance  Act  109 

reeducation,  and  vocational  training  as  the  United  States  may  provide 
or  procure  to  be  provided.  Should  such  course  prevent  the  injured 
person  from  following  a  substantially  gainful  occupation  while  taking 
same,  a  form  of  enlistment  may  be  required  which  shall  bring  the  in- 
jured person  into  the  military  or  naval  service.  Such  enlistment  shall 
entitle  the  person  to  full  pay  as  during  the  last  month  of  his  active  ' 
service,  and  his  family  to  family  allowances  and  allotment  as  hereinbe- 
fore provided,  in  lieu  of  all  other  compensation  for  the  time  being. 

In  case  of  his  willful  failure  properly  to  follow  such  course  or  .so  to 
enlist,  payment  of  compensation  shall  be  suspended  until  such  willful 
failure  ceases  and  no  compensation  shall  be  payable  for  the  intervening 
period. 

Review  of  Award. 

Sec.  305.  That  upon  its  own  motion  or  upon  application  the  bureau 
may  at  any  time  review  an  award,  and,  in  accordance  with  the  facts 
found  upon  such  review,  may  end,  diminish,  or  increase  the  compensa- 
tion previously  awarded,  or,  if  compensation  has  been  refused  or  dis- 
continued, may  award  compensation. 

Time  Limit  for  Compensation. 

Sec.  306.  That  no  compensation  shall  be  payable  for  death  pr 
disability  which  does  not  occur  prior  to  or  within  one  year  after  dis- 
charge or  resignation  from  the  service,  except  that  where,  after  a  med- 
ical examination  made  pursuant  to  regulations,  at  the  time  of  discharge 
or  resignation  from  the  service,  or  within  such  reasonable  time  there- 
after, not  exceeding  one  year,  as  may  be  allowed  by  regulations,  a  cer- 
tificate has  been  obtained 'from  the  director  to  the  effect  that  the  injured 
person  at  'the  time  of  his  discharge  or  resignation  was  suffering  from 
injury  likely  to  result  in  death  or  disability,  compensation  shall  be  pay- 
able for  death  or  disability,  whenever  occurring,  proximately  resulting 
from  such  injury. 

Record  of  Death  Required. 

Sec.  307.  That  compensation  shall  not  be  payable  for  death  in  the 
course  of  the  service  until  the  death  be  officially  recorded  in  the  depart- 
ment under  which  he  may  be  serving.  No  compensation  shall  be  payable 
for  a  period  during  which  the  man  has  been  reported  "missing''  and  a 
family  allowance  has  been  paid  for  him  under  the  provisions  of 
Article  II. 

Death  Penalty  and  Dishonorable  Discharge. 

Sec.  308.  That  no  compensation  shall  be  payable  for  death  inflicted 
as  a  lawful  punishment  for  a  crime  or  military  offense  except  when  in- 
flicted by  the  enemy.  A  dismissal  or  dishonorable  or  bad  conduct  dis- 
charge from  the  service  shall  bar  and  terminate  all  right  to  any  compensa- 
tion under  the  provisions  of  this  article. 


110  Supplement  to  Important  Federal  Laws 

Sec.  309.  That  no  compensation  shall  be  payable  unless  a  claim 
therefor  be  filed,  in  case  of  disability,  within  five  years  after  discharge 
or  resignation  from  the  service,  or,  in  case  of  death  during  the  service, 
within  five  years  after  such  death  is  officially  recorded  in  the  department 
under  which  he  may  be  serving:  Provided,  however.  That  where  com- 
pensation is  payable  for  death  or  disability  occurring  after  discharge  or 
resignation  from  the  service,  claim  must  be  made  within  five  vears  after 
such  death  or  the  beginning  of  such  disability. 

The  time  herein  provided  may  be  extended  by  the  director  not  tcv 
exceed  one  year  for  good  cause  shown.  If  at  the  time  that  any  right 
accrues  to  any  person  under  the  provisions  of  this  article,  such  person 
is  a  minor,  or  is  of  unsound  mind  or  physically  unable  to  make  a  claim, 
the  time  herein  provided  shall  not  begin  to  run  until  such  disability 
ceases. 

Back  Claims. 

Sec.  310.  That  no  compensation  shall  be  payable  for  anv  period 
more  than  two  years  prior  to  the  date  of  claim  therefor,  nor  shall  in- 
creased compensation  be  awarded  to  revert  back  more  than  one  year 
prior  to  the  date  of  claim  therefor. 

Compensation  Not  Assignable. 

.Sec.  311.  That  compensation  under  this  article  shall  not  be  assign- 
able, and  shall  be  exempt  from  attachment  and  execution  and  from  all 
taxation. 

Service   or   Retirement   Pay  Bars   Compensation. 

Sec.  312.  That  compensation  under  this  article  shall  not  be  paid 
while  the  person  is  in  receipt  of  service  or  retirement  pay.  The  laws 
providing  for  gratuities  or  payments  in  the  event  of  death  in  the  service 
and  existing  pension  laws  shall  not  be  applicable  after  the  enactment 
of  this  amendment  to  persons  now  in  or  hereafter  entering  the  military 
or  naval  service,  or  to  their  widows,  children,  or  their  dependents,  ex- 
cept in  so  far  as  rights  under  any  such  law  shall  have  heretofore  accrued. 

Compensation  because  of  disability  or  death  of  members  of  the 
Army  Nurse  Corps  (female)  or  of  the  Navy  Nurse  Corps  (female)  shall 
be  in  lieu  of  any  compensation  for  such  disability  or  death  under  the 
Act  entitled  "An  Act  to  provide  compensation  for  employees  of  the 
United  States  suft'ering  injuries  while  in  the  performance  of  their  duties, 
and  for  other  purposes,"  approved  September  seventh,  nineteen  hundred 
and  sixteen. 

Liability  of  Third  Parties. 

Sec.  313.  That  if  an  injury  or  death  for  which  compensation  is 
payable  under  this  amendatory  Act  is  caused  under  circumstances  cre- 
ating a  legal  liability  upon  some  person  other  than  the  United  States  or 
the  enemy  to  pay  damages  therefor,  the  director,  as  a  condition  to  pay- 
ment of  compensation  by  the  United  States,  shall  require  the  beneficiary- 


Soldiers'  and  Sailors'  Insurance  Act  111 

to  assign  to  the  United  States  any  right  of  action  he  may  have  to  enforce 
such  Hability  of  such  other  person  or  any  right  which  he  may  have  to 
share  in  any  money  or  other  property  received  in  satisfaction  of  such 
liabihty  of  such  other  person.  The  cause  of  action  so  assigned  to  the 
United  States  may  be  prosecuted  or  compromised  by  the  director  and 
any  money  reahzed  thereon  shall  be  placed  to  the  credit  of  the  compen- 
sation fund. 

Widows'   Pension,   Previous  Wars. 

Sec.  314.  That  from  and  after  the  passage  of  this  Act  the  rate  of 
pension  for  a  v^idow  of  an  officer  or  enlisted  man  of  the  Army,  Navy, 
or  Marine  Corps  of  the  United  States  who  served  in  the  Civil  War,  the 
War  with  Spain,  or  the  Philippine  Insurrection,  now  on  the  pension  roll 
or  hereafter  to  be  placed  on  the  pension  roll,  and  entitled  to  receive  a  less 
rate  than  hereinafter  provided,  shall  be  $25  per  month;  and  nothing 
herein  shall  be  construed  to  affect  the  additional  allowance  provided  by 
existing  pension  laws  on  account  of  a  helpless  child  or  child  under  six- 
teen years  of  age :  Provided,  however,  That  this  Act  shall  not  be  so 
construed  as  to  reduce  any  pension  under  any  Act,  public  or  private : 
And  provided  further.  That  the  provisions  of  this  section  shall  be  admin- 
istered, executed,  and  enforced  by  the  Commissioner  of  Pensions. 

Article  IV. 

INSURANCE. 

Insurance  by  United  States. 

Sec.  400.  That  in  order  to  give  to  every  commissioned  of^cer  and 
enlisted  man  and  to  every  member  of  the  Army  Nurse  Corps  (female) 
and  of  the  Navy  Nurse  Corps  (female)  when  employed  in  active  service 
under  the  War  Department  or  Navy  Department  greater  protection  for 
themselves  and  their  dependents  than  is  provided  in  Article  III,  the 
United  States,  upon  application  to  the  bureau  and  without  medical  exam- 
ination, shall  grant  insurance  against  the  death  or  total  permanent  disa- 
bility of  any  such  person  in  any  multiple  of  $500,  and  not  less  than  $1,000 
or  njore  than  $10,000,  upon  the  payment  of  the  premiums  as  hereinafter 
provided. 

Application  and  Amount. 

Sec.  401.  That  such  insurance  must  be  applied  for  within  one 
hundred  and  twenty  days  after  enlistment  or  after  entrance  _  into  or 
employment  in  the  active  service  and  before  discharge  or  resignation, 
except  that  those  persons  who  are  in  the  active  war  service  at  the  time 
of  the  publication  of  the  terms  and  conditions  of  such  contract  of  insur- 
ance may  apply  at  any  time  within  one  hundred  and  twenty  days  there- 
after and  while  in  such  service.  Any  person  in  the  active  service  on  or 
after  the  sixth  day  of  April,  nineteen  hundred  and  sexenteen,  who.  while 
in  such  service  and  before  the  expiration  of  one  hundred  and  twenty 


112  Supplement  to  Important  Federal  Laws 

days  from  and  after  such  publication,  becomes  or  has  become  totally  and 
permanently  disabled  or  dies,  or  has  died,  without  having  applied  for 
insurance,  shall  be  deemed  to  have  applied  for  and  to  have  been  granted 
insurance,  payable  to  such  person  during  his  life  in  monthly  installments 
of  $25  each.  If  he  shall  die  either  before  he  shall  have  received  any 
of  such  monthly  installments  or  before  he  shall  have  received  two  hun- 
dred and  forty  of  such  monthly  installments,  then  $25  per  month  shall 
be  paid  to  his  wife  from  the  time  of  his  death  and  during  her  widow- 
hood, or  to  his  child,  or  widowed  mother  if  and  while  they  survive  him: 
Provided,  however,  That  not  more  than  two  hundred  and  forty  of  such 
monthly  installments,  including  those  received  by  such  person  during 
his  total  and  permanent  disability,  shall  be  so  paid ;  and  in  that  event 
the  amount  of  the  monthly  installments  shall  be  apportioned  between 
them  as  may  be  provided  by  regulations. 

Terms  and  Conditions  of  Contract  of  Insurance. 

Sec.  402.  That  the  director,  subject  to  the  general  direction  of  the 
Secretary  of  the  Treasury,  shall  promptly  determine  upon  and  publish 
the  full  and  exact  terms  and  conditions  of  such  contract  of  insurance. 
The  insurance  shall  not  be  assignable,  and  shall  not  be  subject  to  the 
claims  of  creditors  of  the  insured  or  of  the  beneficiary.  It  shall  be  pay- 
able only  to  a  spouse,  child,  grandchild,  parent,  brother  or  sister,  and 
also  during  total  and  permanent  disability  to  the  injured  person,  or  to 
any  or  all  of  them.  The  insurance  shall  be  payable  in  two  hundred  and 
forty  equal  monthly  installments.  Provisions  for  maturity  at  certain 
ages,  for  continuous  installments  during  the  life  of  the  insured  or  bene- 
ficiaries, or  both,  for  cash,  loan,  paid-up  and  extended  Values,  dividends 
from  gains  and  savings,  and  such  other  provisions  for  the  protection  and 
advantage  of  and  for  alternative  benefits  to  the  insured  and  the  bene- 
ficiaries as  may  be  found  to  be  reasonable  and  practicable,  may  be  pro- 
vided for  in  the  contract  of  insurance,  or  from  time  to  time  by  regula- 
tions. All  calculations  shall  be  based  upon  the  American  Experience 
Table  of  Mortality  and  interest  at  three  and  one-half  per  centum  per 
annum,  except  that  no  deduction  shall  be  made  for  continuous  install- 
ments during  the  life  of  the  insured  in  case  his  total  and  permanent  dis- 
ability continues  more  than  two  hundred  and  forty  months.  Subject  to 
regulations,  the  insured  shall  at  all  times  have  the  right  to  change  the 
beneficiary  or  beneficiaries  of  such  insurance  without  the  consent  of 
such  beneficiary  or  beneficiaries,  but  only  within  the  classes  herein  pro- 
vided. If  no  beneficiary  within  the  permitted  class  be  designated  by  the 
insured,  either  in  his  lifetime  or  by  his  last  will  and  testament,  or  if 
the  designated  beneficiary  does  not  survive  the  insured,  the  insurance 
shall  be  payable  to  such  person  or  persons,  within  the  permitted  class 
of  beneficiaries  as  would  under  the  laws  of  the  State  of  the  residence 
of  the  insured,  be  entitled  to  his  personal  property  in  case  of  intestacy. 


Soldiers'  and  Satlors'  Insurance  Act  113 

If  no  such  person  survive  the  insured,  then  there  shall  be  paid  to  the 
estate  of  the  insured  an  amount  equal  to  the  reserve  value,  if  any,  of 
the  insurance  at  the  time  of  his  death,  calculated  on  the  basis  of  the 
American  Experience  Table  of  Mortality  and  three  and  one-half  per 
centum  interest  in  full  of  all  obligations  under  the  contract  of  insurance. 

Excess  Hazard — Cost  Of. 

Sec.  403.  That  the  United  States  shall  bear  the  expenses  of  ad- 
ministration and  the  excess  mortality  and  disability  cost  resulting  from 
the  hazards  of  war.  The  premium  rates  shall  be  the  net  rates  based  upon 
the  American  Experience  Table  of  Mortality  and  interest  at  three  and 
one-half  per  centum  per  annum. 

Conversion  of  Insurajice  After  the  War. 

Sec.  404.  That  during  the  period  of  war  and  thereafter  until  con- 
verted the  insurance  shall  be  term  insurance  for  successive  terms  of  one 
year  each.  Xot  later  than  five  years  after  the  date  of  the  termination 
of  the  war  as  declared  by  proclamation  of  the  President  of  the  United 
States,  the  term  insurance  shall  be  converted,  without  medical  examina- 
tion, into  such  form  or  forms  of  insurance  as  may  be  prescribed  by 
regulations  and  as  the  insured  may  request.  Regulations  shall  provide 
for  the  right  to  convert  into  ordinary  life,  twenty  payment  life,  endow- 
ment maturing  at  age  sixty-two  and  into  other  usual  forms  of  insurance 
and  shall  prescribe  the  time  and  method  of  payment  of  the  premiums 
thereon,  but  payments  of  premiums  in  advance  shall  not  be  required  for 
periods  of  more  than  one  month  each  and  may  be  deducted  from  the 
pay  or  deposit  of  the  insured  or  be  otherwise  made  at  his  election. 

Disagreement — Suit  in  District  Court. 

Sec.  405.  That  in  the  event  of  disagreement  as  to  a  claim  under 
the  contract  of  insurance  between  the  bureau  and  any  beneficiary  or 
beneficiaries  thereunder,  an  action  on  the  claim  may  be  brought  against 
the  United  States  in  the  district  court  of  the  United  States  in  and  for 
the  district  in  which  such  beneficiaries  or  any  one  of  them  resides.  The 
court,  as  part  of  its  judgment,  shall  determine  and  allow  such  reasonable 
attorney's  fees,  not  to  exceed  ten  per  centum  of  the  amount  recovered, 
to  be  paid  by  the  claimant  on  behalf  of  whom  such  proceedings  are  in- 
stituted to  his  attorney ;  and  it  shall  be  unlawful  fo^r  the  attorney  or  for 
any  other  person  acting  as  claim  agent  or  otherwise  to  ask  for,  contract 
for,  or  receive  any  other  compensation  because  of  such  action.  No  other 
compensation  or  fee  shall  be  charged  or  received  by  any  person  except 
such  as  may  be  authorized  by  the  commissioner  in  regulations  to  be  pro- 
mulgated by  him.  Any  person  violating  the  provisions  of  this  section 
shall  be  deemed  guilty  of  a  misdemeanor,  and  upon  conviction  thereof 
shall,  for  each  and  every  such  offense,  be  fined  not  exceeding  $500,  or  be 
imprisoned  at  hard  labor  not  exceeding  two  years,  or  both,  in  the  discre- 
tion of  the  court. 

(8) 


TRADING  WITH  THE  ENEMY  ACT. 

Act  of  October  6,  1917. 
That  this  Act  shall  be  known  as  the  "Trading  with  the  enemy  Act." 

Definitions. 

Sec.  2.  That  the  word  "enemy,"  as  used  herein  .shall  be  deemed  to 
mean,  for  the  purposes  of  such  trading  and  of  this  Act — 

(a)  Any  individual,  partnership,  or  other  body  of  individuals,  of 
any  nationality,  resident  within  the  territory  (including  that  occupied  by 
the  military  and  naval  forces)  of  any  nation  with  which  the  United 
States  is  at  war.  or  resident  outside  the  United  States  and  doing  busi- 
ness within  such  territory,  and  any  corporation  incorporated  within  such 
territory  of  any  nation  with  which  the  United  States  is  at  war  or  incor- 
porated within  any  country  other  than  the  United  States  and  doing  busi- 
ness within  such  territory. 

(b)  The  government  of  any  nation  with  which  the  United  States  is 
at  war,  or  any  political  or  municipal  subdivision  thereof,  or  any  officer, 
official,  agent,  or  agency  thereof. 

(c)  Such  other  individuals,  or  body  or  class  of  individuals,  as  may 
be  natives,  citizens,  or  subjects  of  any  nation  with  which  the  United 
States  is  at  war,  other  than  citizens  of  the  United  States,  wherever  resi- 
dent or  wherever  doing  business,  as  the  President,  if  he  shall  find  the 
safety  of  the  United  States  or  the  successful  prosecution  of  the  war  shall 
so  require,  may,  by  proclamation,  include  within  the  term  "enemy." 

The  words  "ally  of  enemy,"  as  used  herein,  shall  be  deemed  to 
mean — 

(a)  Any  individual,  partnership,  or  other  body  of  individuals,  of 
any  nationality,  resident  within  the  territory  (including  that  occupied  by 
the  military  and  naval  forces)  of  any  nation  which  is  an  ally  of  a  nation 
with  which  the  United  States  is  at  war,  or  resident  outside  of  the  United 
States  and  doing  business  within  such  territory,  and  any  corporation 
incorporated  within  such  territory  of  such  ally  nation,  or  incorporated 
within  any  country  other  than  the  United  States  and  doing  business 
within  such  territory. 

(b)  The  government  of  any  nation  which  is  an  ally  of  a  nation  with 
which  the  United  States  is  at  war,  or  any  political  or  municipal  subdivi- 
sion of  such  ally  nation,  or  any  officer,  official,  agent,  or  agency  thereof. 

(c)  Such  other  individuals,  or  body  or  class  of  individuals,  as  may 
be  natives,  citizens,  or  subjects  of  any  nation  which  is  an  ally  of  a  nation 
with  which  the  United  States  is  at  war,  other  than  citizens  of  the  United 
States,  wherever  resident  or  wherever  doing  business,  as  the  President, 
if  he  shall  find  the  safety  of  the  United  States  or  the  successful  prosecu- 
tion of  the  war  shall  so  require,  may,  by  proclamation,  include  within  the 
term  "ally  of  enemy." 

114 


Trading  With  the  Enemy  Act  115 

The  word  "person,"  as  used  herein,  shall  be  deemed  to  mean  an 
individual,  partnership,  association,  company,  or  other  unincorporated 
body  of  individuals,  or  corporation  or  body  politic. 

The  words  "United  States,"  as  used  herein,  shall  be  deemed  to  mean 
all  land  and  water,  continental  or  insular,  in  any  way  within  the  juris- 
diction of  the  United  States  or  occupied  by  the  military  or  naval  forces 
thereof. 

The  words  "the  beginning  of  the  war,"  as  used  herein,  shall  be 
deemed  to  mean  midnight  ending  the  day  on  which  Congress  has  declared 
or  shall  declare  war  or  the  existence  of  a  state  of  war. 

The  words  "end  of  the  war,"  as  used  herein,  shall  be  deemed  to 
mean  the  date  of  proclamation  of  exchange  of  ratifications  of  the  treaty 
of  peace,  unless  the  President  shall,  by  proclamation,  declare  a  prior  date, 
in  which  case  the  date  so  proclaimed  shall  be  deemed  to  be  the  "end  of 
the  war"  within  the  meaning  of  this  Act. 

The  words  "bank  or  banks,"  as  used  herein,  shall  be  deemed  to 
mean  and  include  national  banks,  State  banks,  trust  companies,  or  other 
banks  or  banking  associations  doing  business  under  the  laws  of  the 
United  States,  or  of  any  State  of  the  United  States. 

The  words  "to  trade,"  as  used  herein,  shall  be  deemed  to  mean — 

(a)  Pay,  satisfy,  compromise,  or  give  security  for  the  payment  or 
satisfaction  of  any  debt  or  obligation. 

(b)  Draw,  accept,  pay,  present  for  acceptance  or  payment,  or  in- 
dorse any  negotiable  instrument  or  chose  in  action. 

(c)  Enter  into,  carry  on,  complete,  or  perform  any  contract,  agree- 
ment, or  obligation. 

(d)  Buy  or  sell,  loan  or  extend  credit,  trade  in,  deal  with,  exchange, 
transmit,  transfer,  assign,  or  otherwise  dispose  of,  or  receive  any  form 
of  property. 

(e)  To  have  any  form  of  business  or  commercial  communication  or 
intercourse  with. 

Prohibitions. 

Sec.  3.     That  it  shall  be  unlawful — 

(a)  For  any  person  in  the  United  States,  except  with  the  license  of 
the  President,  granted  to  such  person,  or  to  the  enemy,  or  ally  of  enemy, 
as  provided  in  this  Act,  to  trade,  or  attempt  to  trade,  either  directly  or 
indirectly  with,  to,  or  from,  or  for,  or  on  account  of,  or  on  behalf  of,  or  for 
the  benefit  of  any  other  person  with  knowledge  or  reasonable  cause  to  be- 
lieve that  such  other  person  is  an  enemy  or  ally  of  enemy,  or  is  con- 
ducting or  taking  part  in  such  trade,  directly  or  indirectly  for,  or  on 
account  of,  or  on  behalf  of,  or  for  the  benefit  of,  an  enemy  or  ally  of 
enemy. 

(b)  For  any  person,  except  with  the  license  of  the  President,  to 
transport  or  attempt  to  transport  into  or  from  the  United  States,  or  for 


116  Supplement  to  Important  Federal  Laws 

any  owner,  master,  or  other  person  in  charge  of  a  vessel  of  American 
registry  to  transport  or  attempt  to  transport  from  any  place  to  any  other 
place,  any  subject  or  citizen  of  an  enemy  or  ally  of  enemy  nation,  with 
knowledge  or  reasonable  cause  to  believe  that  the  person  transported  or 
attempted  to  be  transported  is  such  subject  or  citizen. 

(c)  For  any  person  (other  than  a  person  in  the  service  of  the 
United  States  Government  or  of  the  Government  of  any  nation,  except 
that  of  an  enemy  or  ally  of  enemy  nation,  and  other  than  such  persons 
or  classes  of  persons  as  may  be  exempted  hereunder  by  the  President  or 
by  such  person  as  he  may  direct)  to  send,  or  take  out  of,  or  bring  into, 
or  to  attempt  to  send,  or  take  out  of,  or  bring  into  the  United  States, 
any  letter  or  other  writing  or  tangible  form  of  communication,  except  in 
the  regular  course  of  the  mail ;  and  it  shall  be  unlawful  for  any  person  to 
send,  take,  or  transmit,  or  attempt  to  send,  take,  or  transmit  out  of  the 
United  States,  any  letter  or  other  writing,  book,  map,  plan,  or  other  paper, 
picture,  or  any  telegram,  cablegram,  or  wireless  message,  or  other  form 
of  communication  intended  for  or  to  be  delivered,  directly  or  indirectly, 
to  an  enemy  or  ally  of  enemy:  Provided,  however.  That  any  person  may 
send,  take,  or  transmit  out  of  the  United  States  anything  herein  forbidden 
if  he  shall  first  submit  the  same  to  the  President,  or  to  such  officer  as 
the  President  may  direct,  and  shall  obtain  the  license  or  consent  of  the 
President,  under  such  rules  and  regulations,  and  with  such  exemptions, 
as  shall  be  prescribed  by  the  President. 

(d)  Whenever,  during  the  present  war,  the  President  shall  deem 
that  the  public  safety  demands  it,  he  may  cause  to  be  censored  under  such 
rules  and  regulations  as  he  may  from  time  to  time  establish,  communica- 
tions by  mail,  cable,  radio,  or  other  means  of  transmission  passing  be- 
tween the  United  States  and  any  foreign  country  he  may  from  time  to 
time  specify,  or  which  may  be  carried  by  any  vessel  or  other  means  of 
transportation  touching  at  any  port,  place,  or  territory  of  the  United 
States  and  bound  to  or  from  any  foreign  country. 

Any  person  who  willfully  evades  or  attempts  to  evade  the  submis- 
sion of  any  such  communication  to  such  censorship  or  willfully  uses  or 
attempts  to  use  any  code  or  other  device  for  the  purpose  of  concealing 
from  such  censorship  the  intended  meaning  of  such  communication  shall 
be  punished  as  provided  in  section  sixteen  of  this  Act. 

Enemy  Companies  Doing  Business  in  United  States — License. 

Sec.  4.  (a)  Every  enemy  or  ally  of  enemy  insurance  or  reinsurance 
company,  and  every  enemy  or  ally  of  enemy,  doing  business  within  the 
United  States  through  an  agency  or  branch  office,  or  otherwise,  may, 
within  thirty  days  after  the  passage  of  this  Act,  apply  to  the  President 
for  a  license  to  continue  to  do  business ;  and,  within  thirty  days  after 
such  application,  the  President  may  enter  an  order  either  granting  or 
refusing  to  grant  such  license.    The  license,  if  granted,  may  be  temporary 


Trading  With  the  Enemy  Act  117 

or  otherwise,  and  for  such  period  of  time,  and  may  contain  such  pro- 
visions and  conditions  regulating  the  business,  agencies,  managers  and 
trustees  and  the  control  and  disposition  of  the  funds  of  the  company, 
or  of  such  enemy  or  ally  of  enemy,  as  the  President  shall  deem  necessary 
for  the  safety  of  the  United  States ;  and  any  license  granted  hereunder 
may  be  revoked  or  regranted  or  renewed  in  such  manner  and  at  such 
times  as  the  President  shall  determine :  Provided,  however.  That  reason- 
able notice  of  his  intent  to  refuse  to  grant  a  license  or  to  revoke  a  license 
granted  to  any  reinsurance  company  shall  be  given  by  him  to  all  insur- 
ance companies  incorporated  within  the  United  States  and  known  to 
the  President  to  be  doing  business  with  such  reinsurance  company :  Pro- 
vided further,  That  no  insurance  company,  organized  within  the  United 
States,  shall  be  obligated  to  continue  any  existing  contract,  entered  intO' 
prior  to  the  beginning  of  the  war,  with  any  enemy  or  ally  of  enemy  insur- 
ance or  reinsurance  company,  but  any  such  company  may  abrogate  and 
cancel  any  such  contract  by  serving  thirty  days'  notice  in  writing  upon 
the  President  of  its  election  to  abrogate  such  contract. 

For  a  period  of  thirty  days  after  the  passage  of  this  Act  and  further 
pending  the  entry  of  such  order  by  the  President,  after  application  made 
by  any  enemy  or  ally  of  enemy  insurance  or  reinsurance  company,  within 
such  thirty  days  as  above  provided,  the  provisions  of  the  President's 
proclamation  of  April  sixth,  nineteen  hundred  and  seventeen,  relative  to 
agencies  in  the  United  States  of  certain  insurance  companies,  as  modi- 
fied by  the  provisions  of  the  President's  proclamation  of  July  thirteenth, 
nineteen  hundred  and  seventeen,  relative  to  marine  and  war-risk  insur- 
ance, shall  remain  in  full  force  and  efifect  so  far  as  it  applies  to  such 
German  insurance  companies,  and  the  conditions  of  said  proclamation 
of  April  sixth,  nineteen  hundred  and  seventeen,  as  modified  by  said 
proclamation  of  July  thirteenth,  nineteen  hundred  and  seventeen,  shall 
also  during  said  period  of  thirty  days  after  the  passage  of  this  Act,  and 
pending  the  order  of  the  President  as  herein  provided,  apply  to  any 
enemy  or  ally  of  enemy  insurance  or  reinsurance  company,  anything  in 
this  Act  to  the  contrary  notwithstanding.  It  shall  be  unlawful  for  any 
enemy  or  ally  of  enemy  insurance  or  reinsurance  company,  to  whom 
license  is  granted,  to  transmit  out  of  the  United  States  any  funds  belong- 
ing to  or  held  for  the  benefit  of  such  company  or  to  use  any  such  funds 
as  the  basis  for  the  establishment  directly  or  indirectly  of  any  credit 
within  or  outside  of  the  United  States  to,  or  for  the  benefit  of,  or  on 
behalf  of,  or  on  account  of,  an  enemy  or  ally  of  enemy. 

For  a  period  of  thirty  days  aftey  the  passage  of  this  Act,  and  fur- 
ther pending  the  entry  of  such  order  by  the  President,  after  application 
made  within  such  thirty  days  by  an  enemy  or  ally  of  enemy,  other  than 
an  insurance  or  reinsurance  company  as  above  provided,  it  shall  be  law- 
ful for  such  enemy  or  ally  of  enemy  to  continue  to  do  business  in  this 
country  and  for  any  person  to  trade  with,  to,  from,  for,  on  account  of, 


.  118  Supplement  to  Important  Federal  Laws 

on  behalf  of,  or  for  the  benefit  of  such  enemy  or  ally  of  enemy,  anything 
in  this  Act  to  the  contrary  notwithstanding:  Provided,  however.  That 
the  provisions  of  sections  three  and  sixteen  hereof  shall  apply  to  any  act 
or  attempted  act  of  transmission  or  transfer  of  money  or  other  property 
out  of  the  United  States  and  to  the  use  or  attempted  use  of  such  money 
or  property  as  the  basis  for  the  establishment  of  any  credit  within  or 
outside  of  the  United  States  to,  or  for  the  benefit  of,  or  on  behalf  of,  or 
on  account  of,  an  enemy  or  ally  of  enemy. 

If  no  license  is  applied  for  within  thirty  days  after  the  passage  of 
this  Act,  or  if  a  license  shall  be  refused  to  any  enemy  or  ally  of  enemy, 
whether  insurance  or  reinsurance  company,  or  other  person,  making 
-application,  or  if  any  license  granted  shall  be  revoked  by  the  President, 
the  provisions  of  sections  three  and  sixteen  hereof  shall  forthwith  apply 
to  all  trade  or  to  any  attempt  to  trade  with,  to,  from,  for,  by,  on  account 
of,  or  on  behalf  of,  or  for  the  benefit  of  such  company  or  other  person: 
Provided,  however.  That  after  such  refusal  or  revocation,  anything  in 
this  Act  to  the  contrary  notwithstanding,  it  shall  be  lawful  for  a  policy- 
holder or  for  an  insurance  company,  not  an  enemy  or  ally  of  enemy, 
holding  insurance  or  having  effected  reinsurance  in  or  with  such  enemy 
or  ally  of  enemy  insurance  or  reinsurance  company,  to  receive  payment 
of,  and  for  such  enemy  or  ally  of  enemy  insurance  or  reinsurance  com- 
pany to  pay  any  premium,  return  premium,  claim,  money,  security,  or 
other  property  due  or  which  may  become  due  on  or  in  respect  to  such 
insurance  or  reinsurance  in  force  at  the  date  of  such  refusal  or  revocation 
of  license;  and  nothing  in  this  Act  shall  vitiate  or  nullify  then  existing 
policies  or  contracts  of  insurance  or  reinsurance,  or  the  conditions  there- 
of; and  any  such  policy-holder  or  insurance  company,  not  an  enemv  or 
ally  of  enemy,  having  any  claim  to  or  upon  money  or  other  property  of 
the  enemy  or  ally  of  enemy  insurance  or  reinsurance  company  in  the 
custody  or  control  of  the  alien  property  custodian,  hereinafter  provided 
for,  or  of  the  Treasurer  of  the  United  States,  may  make  application 
for  the  payment  thereof  and  may  institute  suit  as  provided  in  section 
nine  hereof. 

(b)  That,  during  the  present  war,  no  enemy,  or  ally  of  enemy,  and 
no  partnership  of  which  he  is  a  member  or  was  a  member  at  the  begin- 
ning of  the  war,  shall  for  any  purpose  assume  or  use  any  name  other 
than  that  by  which  such  enemy  or  partnership  was  ordinarily  known  at 
the  beginning  of  the  war,  except  under  license  from  the  President. 

Whenever,  during  the  present  vv^ar,  in  the  opinion  of  the  President 
the  public  safety  or  public  interest  requires  the  President  may  prohibit 
any  or  all  foreign  insurance  companies  from  doing  business  in  the  United 
States,  or  the  President  may  license  such  company  or  companies  to  do 
business  upon  such  terms  as  he  may  deem  proper. 


Trading  With  the  Enemy  Act  119 

Suspension  of  Provisions  Applicable  to  an  Ally  of  Enemy. 

Sec.  5.  (a)  That  the  President,  if  he  shall  find  it  compatible  with 
the  safety  of  the  United  States  and  with  the  successful  prosecution  of 
the  war,  may,  by  proclamation,  suspend  the  provisions  of  this  Act  so  far 
as  they  apply  to  an  ally  of  enemy,  and  he  may  revoke  or  renew  such 
suspension  from  time  to  time;  and  the  President  may  grant  Hcenses, 
special  or  general,  temporary  or  otherwise,  and  for  such  period  of  time 
and  containing  such  provisions  and  conditions  as  he  shall  prescribe,  to 
any  person  or  class  of  persons  to  do  business  as  provided  in  subsection 
(a)  of  section  four  hereof,  and  to  perform  any  act  made  unlawful  with- 
out such  license  in  section  three  hereof,  and  to  file  and  prosecute  applica- 
tions under  subsection  (b)  of  section  ten  hereof;  and  he  may  revoke  or 
renew  such  licenses  from  time  to  time,  if  he  shall  be  of  opinion  that  such 
grant  or  revocation  or  renewal  shall  be  compatible  with  the  safety  of  the 
United  States  and  with  the  successful  prosecution  of  the  war;  and  he  may 
make  such  rules  and  regulations,  not  inconsistent  with  law,  as  may  be 
necessary  and  proper  to  carry  out  the  provisions  of  this  Act;  and  the 
President  may  exercise  any  power  or  authority  conferred  by  this  Act 
through  such  officer  or  officers  as  he  shall  direct. 

If  the  President  shall  have  reasonable  cause  to  believe  that  any  act 
is  about  to  be  performed  in  violation  of  section  three  hereof  he  shall 
have  authority  to  order  the  postponement  of  the  performance  of  such 
act  for  a  period  not  exceeding  ninety  days,  pending  investigation  of  the 
facts  by  him. 

(b)  That  the  President  may  investigate,  regulate,  or  prohibit,  under 
such  rules  and  regulations  as  he  may  prescribe,  by  means  of  licenses  or 
otherwise,  any  transactions  in  foreign  exchange,  export  or  ear-markings 
of  gold  or  silver  coin  or  bullion  or  currency,  transfers  of  credit  in  any 
form  (other  than  credits  relating  solely  to  transactions  to  be  executed 
wholly  within  the  United  States),  and  transfers  of  evidences  of  indebt- 
edness or  of  the  ownership  of  property  between  the  United  States  and 
any  foreign  country,  whether  enemy,  ally  of  enemy  or  otherwise,  or 
between  residents  of  one  or  more  foreign  countries,  by  any  person  within 
the  United  States ;  and  he  may  require  any  such  person  engaged  in  any 
such  transaction  to  furnish,  under  oath,  complete  information  relative 
thereto,  including  the  production  of  any  books  of  account,  contracts, 
letters  or  other  papers,  in  connection  therewith  in  the  custody  or  control 
of  such  person,  either  before  or  after  such  transaction  is  completed. 

Alien  Property  Custodian. 

Sec.  6.  That  the  President  is  authorized  to  appoint,  prescribe  the 
duties  of.  and  fix  the  salary  (not  to  exceed  $5,000  per  annum)  of  an 
official  to  be  known  as  the  Alien  Property  Custodian,  who  shall  be  em- 
powered to  receive  all  money  and  property  in  the  United  States  due  or 
belonging  to  an  enemy,  or  ally  of  enemy,  which  may  be  paid,  conveyed, 
transferred,  assigned,  or  delivered  to  said  custodian  under  the  provisions 


120  Supplement  to  Important  Federal  Laws 

of  this  act ;  and  to  hold,  administer,  and  account  for  the  same  under  the 
general  direction  of  the  President  and  as  provided  in  this  Act.  The  Alien 
Property  Custodian  shall  give  such  bond  or  bonds,  and  in  such  form  and 
amount,  and  with  such  security  as  the  President  shall  prescribe.  The 
President  may  further  employ  in  the  District  of  Columbia  and  elsewhere 
and  fix  the  compensation  of  such  clerks,  attorneys,  investigators,  account- 
ants, and  other  employees  as  he  may  find  necessary  for  the  due  adminis- 
tration of  the  provisions  of  this  Act :  Provided,  That  such  clerks,  inves- 
tigators, accountants  and  other  employees  shall  be  appointed  from  lists 
of  eligibles  to  be  supplied  by  the  Civil  Service  Commission  and  in  accord- 
ance with  the  civil  service  law :  Provided  further.  That  the  President 
shall  cause  a  detailed  report  to  be  made  to  Congress  on  the  first  day 
of  January  of  each  year  of  all  proceedings  had  under  this  Act  during  the 
year  preceding.  Such  report  shall  contain  a  list  of  all  persons  appointed 
or  employed,  with  the  salary  or  compensation  paid  to  each,  and  a  state- 
ment of  the  different  kinds  of  property  taken  into  custody  and  the  disposi- 
tion made  thereof. 

Disclosure  of  Stockholders,  Directors,  and  Officers  of  Corporations. 
Sec.  7.  (a)  That  every  corporation  incorporated  within  the  United 
States,  and  every  unincorporated  association,  or  company,  or  trusteee,  or 
trustees  within  the  United  States,  issuing  shares  or  certificates  represent- 
ing beneficial  interests,  shall,  under  such  rules  and  regulations  as  the 
President  may  prescribe  and,  within  sixty  days  after  the  passage  of  this 
Act,  and  at  such  other  times  thereafter  as  the  President  may  require, 
transmit  to  the  Alien  Property  Custodian  a  full  list,  duly  sworn  to,  of 
every  officer,  director,  or  stock  holder  known  to  be,  or  whom  the  repre- 
sentative of  such  corporation,  association,  company,  or  trustee  has  reason- 
able cause  to  believe  to  be  an  enemy  or  ally  of  enemy  resident  within 
the  territory,  or  a  subject  or  citizen  residing  outside  of  the  United  States, 
of  any  nation  with  which  the  United  States  is  at  war,  or  resident  within 
the  territory,  or  a  subject  or  citizen  residing  outside  of  the  United  States, 
of  any  ally  or  any  nation  with  which  the  United  States  is  at  war,  to- 
gether with  the  amount  of  stock  or  shares  owned  by  each  such  officer, 
director,  or  stockholder,  or  in  which  he  has  any  interest. 

The  President  may  also  require  a  similar  list  to  be  transmitted  of 
all  stock  or  shares  owned  on  February  third,  nineteen  hundred  and  sev- 
teen,  by  any  person  now  defined  as  an  enemy  or  ally  of  enemy,  or  in 
which  any  such  person  had  any  interest ;  and  he  may  also  require  a  list 
to  be  transmitted  of  all  cases  in  which  said  corporation,  association,  com- 
pany, or  trustee  has  reasonable  cause  to  believe  that  the  stock  or  shares 
on  February  third,  nineteen  hundred  and  seventeen,  were  owned  or  are 
owned  by  such  enemy  or  ally  of  enemy,  though  standing  on  the  books  in 
the  name  of  another:  Provided,  however,  That  the  name  of  any  such 
officer,  director,  or   stockholder   shall  be   stricken  permanently   or  tern- 


Trading  With  the  Enemy  Act  121 

porarily  from  such  list  by  the  ahen  property  custodian  when  he  shall 
be  satisfied  that  he  is  not  such  enemy  or  ally  of  enemy. 

Any  person  in  the  United  States  who  holds  or  has  or  shall  hold  or 
have  custody  or  control  of  any  property  beneficial  or  otherwise,  alone  or 
jointly  with  others,  of,  for,  or  on  behalf  of  an  enemy  or  ally  of  enemy, 
or  of  any  person  whom  he  may  have  reasonable  cause  to  believe  to  be  an 
enemy  or  ally  of  enemy  and  any  person  in  the  United  States  who  is  or 
shall  be  indebted  in  any  way  to  an  enemy  or  ally  of  enemy,  or  to  any 
person  whom  he  may  have  reasonable  cause  to  believe  to  be  an  enemy 
or  ally  of  enemy,  shall,  with  such  exceptions  and  under  such  rules  and 
regulations  as  the  President  shall  prescribe,  and  within  thirty  days  after 
the  passage  of  this  Act,  or  within  thirty  days  after  such  property  shall 
come  within  his  custody  or  control,  or  after  such  debt  shall  become  due, 
report  the  fact  to  the  Alien  Property  Custodian  by  written  statement 
under  oath,  containing  such  particulars  as  said  custodian  shall  require. 
The  President  may  also  require  a  similar  report  of  all  property  so  held, 
of,  for,  or  on  behalf  of,  and  of  all  debts  so  owed  to,  any  person  now 
defined  as  an  enemy  or  ally  of  enemy,  on  February  third,  nineteen  hun- 
dred and  seventeen:  Provided,  That  the  name  of  any  person  shall  be 
stricken  from  the  said  report  by  the  alien  property  custodian,  either 
temporarily  or  permanently,  when  he  shall  be  satisfied  that  such  person 
is  not  an  enemy  or  ally  of  enemy. 

The  President  may  extend  the  time  for  filing  the  lists  or  reports 
required  by  this  section  for  an  additional  period  not  exceeding  ninety  days. 

Exceptions. 

(b)  Nothing  in  this  Act  contained  shall  render  valid  or  legal,  or 
be  construed  to  recognize  as  valid  or  legal,  any  act  or  transaction  con- 
stituting trade  with,  to,  from,  for  or  on  account  of,  or  on  behalf  or  for  the 
benefit  of  an  enemy  performed  or  engaged  in  since  the  beginning  of  the 
war  and  prior  to  the  passage  of  this  Act,  or  any  such  act  or  transaction 
hereafter  performed  or  engaged  in  except  as  authorized  hereunder,  which 
would  otherwise  have  been  or  be  void,  illegal,  or  invalid  at  law.  No  con- 
veyance, transfer,  delivery,  payment,  or  loan  of  money  or  other  property, 
in  violation  of  section  three  hereof,  made  after  the  passage  of  this  Act.  and 
not  under  license  as  herein  provided  shall  confer  or  create  any  right  or 
remedy  in  respect  thereof  ;  and  no  person  shall  by  virtue  of  any  assignment, 
indorsement,  or  delivery  to  him  of  any  debt,  bill,  note,  or  other  obligation  or 
chose  in  action  by,  from,  or  on  behalf  of,  or  on  account  or  for  the  benefit 
of  an  enemy  or  ally  of  enemy  have  any  right  or  remedy  against  the  debtor, 
obligor,  or  other  person  liable  to  pay,  fulfill,  or  perform  the  same  unless 
said  assignment,  indorsement,  or  delivery  was  made  prior  to  the  beginning 
of  the  war  or  shall  be  made  under  license  as  herein  provided,  or  unless, 
if  made  after  the  beginning  of  the  war  and  prior  to  the  date  of  passage 
of  the  Act,  the  person  to  whom  the  same  was  made  shall  prove  lack 


122  Supplement  to  Important  Federal  Laws 

of  knowledge  and  of  reasonable  cause  to  believe  on  his  part  that  the 
same  was  made  by,  from  or  on  behalf  of,  or  on  account  of,  or  for  the 
benefit  of  an  enemy  or  ally  of  enemy;  and  any  person  who  knowingly 
pays,  discharges,  or  satisfies  any  such  debt,  note,  bill,  or  other  obligation 
or  chose  in  action  shall,  on  conviction  thereof,  be  deemed  to  violate  section 
three  hereof :  Provided,  That  nothing  in  this  Act  contained  shall  pre- 
vent the  carrying  out,  completion,  or  performance  of  any  contract,  agree- 
ment, or  obligation  originally  made  with  or  entered  into  by  an  enemy  or 
ally  of  enemy  where,  prior  to  the  beginning  of  the  war  and  not  in  contem- 
plation thereof,  the  interest  of  such  enemy  or  ally  of  enemy  devolved  by 
assignment  or  otherwise  upon  a  person  not  an  enemy  or  ally  of  enemy, 
and  no  enemy  or  ally  of  enemy  will  be  benefited  by  such  carrying  out, 
completion,  or  performance  otherwise  than  by  release  from  obligation 
thereunder. 

Nothing  in  this  Act  shall  be  deemed  to  prevent  payment  of  money 
belonging  or  owing  to  an  enemy  or  ally  of  enemy  to  a  person  within  the 
United  States,  not  an  enemy  or  ally  of  enemy,  for  the  benefit  ot  such 
person  or  of  any  other  person  within  the  United  States,  not  an  enemy 
or  ally  of  enemy,  if  the  funds  so  paid  shall  have  been  received  prior  to 
the  beginning  of  the  war  and  such  payments  arise  out  of  transactions 
entered  into  prior  to  the  beginning  of  the  war,  and  not  in  contemplation 
thereof :  Provided,  That  such  payment  shall  not  be  made  without  the 
license  of  the  President,  general  or  special,  as  provided  in  this  Act. 

Nothing  in  this  Act  shall  be  deemed  to  authorize  the  prosecution 
of  any  suit  or  action  at  law  or  in  equity  in  any  court  within  the  United 
States  by  an  enemy  or  ally  of  enemy  prior  to  the  end  of  the  war,  except 
as  provided  in  section  ten  hereof :  Provided,  however,  That  an  enemy 
or  ally  of  enemy  licensed  to  do  business  under  this  Act  may  prosecute 
and  maintain  any  such  suit  or  action  so  far  as  the  same  arises  solely 
out  of  the  business  transacted  within  the  United  States  under  such  license 
and  so  long  as  such  license  remains  in  full  force  and  efifect :  And  provided 
further,  That  an  enemy  or  ally  of  enemy  may  defend  by  counsel  any  suit 
in  equity  or  action  at  law  which  may  be  brought  against  him. 

Receipt  of  notice  from  the  President  to  the  effect  that  he  has 
reasonable  ground  to  believe  that  any  person  is  an  enemy  or  ally  of 
enemy  shall  be  prima  facie  defense  to  any  one  receiving  the  same,  in 
any  suit  or  action  at  law  or  in  equity  brought  or  maintained,  or  to  any 
right  or  set-off  or  recoupment  asserted  by,  such  person  and  based  on  fail- 
ure to  complete  or  perform  since  the  beginning  of  the  war  any  contract 
or  other  obligation.  In  any  prosecution  under  section  sixteen  hereof, 
proof  of  receipt  of  notice  from  the  President  to  the  effect  that  he  has 
reasonable  cause  to  believe  that  any  person  is  an  enemy  or  ally  of  enemy 
shall  be  prima  facie  evidence  that  the  person  receiving  such  notice  has 
reasonable  cause  to  believe  such  other  person  to  be  an  enemy  or  ally  of 
enemy  within  meaning  of  section  three  hereof. 


Trading  With  the  Enemy  Act  123 

(c)  If  the  President  shall  so  require,  any  money  or  other  property 
owing  or  belonging  to  or  held  for,  by,  on  account  of,  or  on  behalf  of,  or  for 
the  benefit  of  an  enemy  or  ally  of  enemy  not  holding  a.  license  granted  by 
the  President  hereunder,  which  the  President  after  investigation  shall  de- 
termine is  so  owing  or  so  belongs  or  is  so  held,  shall  be  conveyed,  trans- 
ferred, assigned,  delivered,  or  paid  over  to  the  afien  property  custodian. 

(d)  If  not  required  to  pay,  convey,  transfer,  assign,  or  deliver  under 
the  provisions  of  subsection  (c)  hereof,  any  person  not  an  enemy  or 
ally  of  enemy  who  owes  to,  or  holds  for,  on  account  of,  or  on  behalf  of, 
or  for  the  benefit  of  an  enemy  or  of  an  ally  of  enemy  not  holding  a 
license  granted  by  the  President  hereunder,  any  money  or  other  property, 
or  to  whom  any  obligation  or  form  of  liability  to  such  enemy  or  ally 
of  enemy  is  presented  for  payment,  may,  at  his  option,  with  the  consent 
of  the  President,  pay,  convey,  transfer,  assign,  or  deliver  to  the  alien 
Property  Custodian  of  any  debt  or  obligation  owed  to  an  enemy  or  ally  of 
regulations  as  the  President  shall  prescribe. 

(e)  No  person  shall  be  held  liable  in  any  court  for  or  in  respect 
to  anything  done  or  omitted  in  pursuance  of  any  order,  rule,  or  regulation 
made  by  the  President  under  the  authority  of  this  Act. 

Any  payment,  conveyance,  transfer,  assignment,  or  delivery  of  money 
or  property  made  to  the  Alien  Property  Custodian  hereunder  shall  be  a  full 
acquittance  and  discharge  for  all  purposes  of  the  obligation  of  the  person 
making  the  same  to  the  extent  of  same.  The  Alien  Property  Custodian 
and  such  other  persons  as  the  President  may  appoint  shall  have  power  to 
execute,  acknowledge,  and  deliver  any  such  instument  or  instruments  as 
may  be  necessary  or  proper  to  evidence  upon  the  record  or  otherwise 
such  acquittance  and  discharge  and  shall,  in  case  of  payment  to  the  Alien 
Property  Custodian  of  any  debt  or  obligation  owed  to  an  enemy  or  ally  of 
enemy,  deliver  up  any  notes,  bonds,  or  other  evidences  of  indebtedness  or 
obligation,  or  any  security  therefor  in  which  such  enemy  or  ally  of  enemy 
had  any  right  or  interest  that  may  have  come  into  the  possession  of  the 
Alien  Property  Custodian,  with  like  effect  as  if  he  or  they,  respectively, 
were  duly  appointed  by  the  enemy  or  ally  of  enemy,  creditor,  or  obligee. 
The  President  shall  issue  to  every  person  so  appointed  a  certificate  of  the 
appointment  and  authority  of  such  person,  and  such  certificate  shall  be 
received  in  evidence  in  all  courts  within  the  United  States.  Whenever 
any  such  certificate  of  authority  shall  be  offered  to  any  registrar,  clerk, 
or  other  recording  officer.  Federal  or  otherwise,  within  the  United  States, 
such  officer  shall  record  the  same  in  like  manner  as  a  power  of  attorney, 
and  such  record  or  a  duly  certified  copy  thereof  shall  be  received  in 
evidence  in  all  courts  of  the  United  States  or  other  courts  within  the 
United  States. 

Enforcement  of  Liens. 

Sec.  8.  (a)  That  any  person  not  an  enemy  of  ally  of  enemy  holding 
a  lawful  mortgage,  pledge,  or  lien,  or  other  right  in  the  nature  of  security 
in  property  of  an  enemy  or  ally  of  enemy  which,  by  law  or  by  the  terms  of 


124  Supplement  to  Important  Federal  Laws 

the  instrument  creating  such  mortgage,  pledge,  or  Hen,  or  right,  may 
be  disposed  of  on  notice  or  presentation  or  demand,  and  any  person  not 
an  enemy  or  ally  of  enemy  who  is  a  party  to  any  lawful  contract  with 
an  enemy  or  ally  of  enemy,  the  terms  of  which  provide  for  a  termination 
thereof  upon  notice  or  for  acceleration  of  maturity  on  presentation  or 
demand,  may  continue  to  hold  said  property,  and,  after  default,  may 
dispose  of  the  property  in  accordance  with  law  or  may  terminate  or 
mature  such  contract  by  notice  or  presentation  or  demand  served  or 
made  upon  the  Alien  Property  Custodian  in  accordance  with  the  law 
and  the  terms  of  such  instrument  or  contract  and  under  such  rules  and 
regulations  as  the  President  shall  prescribe ;  and  such  notice  and  such 
presentation  and  demand  shall  have,  in  all  respects,  the  same  force  and 
effect  as  if  duly  served  or  made  upon  the  enemy  or  ally  of  enemy  per- 
sonally :  Provided,  That  no  such  rule  or  regulation  shall  require  that 
notice  or  presentation  or  demand  shall  be  served  or  made  in  any  case 
in  which,  by  law  or  by  terms  of  said  instrument  or  contract,  no  notice, 
presentation,  or  demand  was,  prior  to  the  passage  of  this  Act,  required ;: 
and  that  in  case  where,  by  law  or  by  terms  of  such  instrument  or  contract, 
notice  is  required,  no  longer  period  of  notice  shall  be  required :  Pro- 
vided further.  That  if,  on  any  such  disposition  of  property,  a  surplus 
shall  remain  after  the  satisfaction  of  the  mortgage,  pledge  lien,  or  other 
right  in  the  nature  of  security,  notice  of  that  fact  shall  be  given  to  the 
President  pursuant  to  such  rules  and  regulations  as  he  may  prescribe,  and 
such  surplus  shall  be  held  subject  to  his  further  order. 

Abrogation  of  Contracts. 

(b)  That  any  contract  entered  into  prior  to  the  beginning  of  the- 
war  between  any  citizen  of  the  United  States,  or  any  corporation  or- 
ganized within  the  United  States,  and  an  enemy  or  ally  of  an  enemy, 
the  terms  of  which  provide  for  the  delivery,  during  or  after  any  war 
in  which  a  present  enemy  or  ally  of  enemy  nation  has  been  or 
is  now  engaged,  of  anything  produced,  mined,  or  manufactured  in  the 
United  States,  may  be  abrogated  by  such  citizen  or  corporation  by  serving 
thirty  days'  notice  in  writing  upon  the  Alien  Property  Custodian  of  his 
or  its  election  to  abrogate  such  contract. 

Statute  of  Limitations — Suspension. 

(c)  The  running  of  any  statute  of  limitations  shall  be  suspended' 
with  reference  to  the  rights  or  remedies  on  any  contract  or  obligation 
entered  into  prior  to  the  beginning  of  the  war  between  parties  neither- 
of  whom  is  an  enemy  or  ally  of  enemy,  and  containing  any  promise  to 
pay  or  liability  for  payment  which  is  evidenced  by  drafts  or  other  com- 
mercial paper  drawn  against  or  secured  by  funds  or  other  property 
situated  in  an  enemy  or  ally  of  enemy  country,  and  no  suit  shall  be- 
maintained  on  any  such  contract  or  obligation  in  any  court  within  the- 
United  States  until  after  the  end  of  the  war,  or  until  the  said  funds. 


Trading  With  the  Enemy  Act  125 

or  property  shall  be  released  for  the  payment  or  satisfaction  of  such 
contract  or  obligation :  Provided,  however,  That  nothing  herein  con- 
tained shall  be  construed  to  prevent  the  suspension  of  the  running  of 
the  statute  of  limitations  in  all  other  cases  where  such  suspension  would 
occur  under  existing  law. 

Claims — Right  to  Sue. 

Sec.  9.  That  any  person,  not  an  enemy,  or  ally  of  enemy,  claiming 
any  interest,  right,  or  title  in  any  money  or  other  property  which  may 
have  been  conveyed,  transferred,  assigned,  delivered,  or  paid  to  the  Alien 
Property  Custodian  hereunder,  and  held  by  him  or  by  the  Treasurer 
of  the  United  States,  or  to  whom  any  debt  may  be  owing  from  an  enemy, 
•or  ally  of  enemy,  whose  property  or  any  part  thereof  shall  have  been 
conveyed,  transferred,  assigned,  delivered,  or  paid  to  the  Alien  Property 
Custodian  hereunder,  and  held  by  him  or  by  the  Treasurer  of  the  United 
States,  may  file  with  the  said  custodian  a  notice  of  his  claim  under  oath 
and  in  such  form  and  containing  such  particulars  as  the  said  custodian 
shall  require ;  and  the  President,  if  application  is  made  therefor  by  the 
claimant,  may,  with  the  assent  of  the  owner  of  said  property  and  of  all 
persons  claiming  any  right,  title,  or  interest  therein,  order  the  payment, 
•conveyance,  transfer,  assignment  or  delivery  to  said  claimant  of  the 
money  or  other  property  so  held  by  the  Alien  Property  Custodian  or  by 
the  Treasurer  of  the  United  States  or  of  the  interest  therein  to  which 
the  President  shall  determine  said  claimant  is  entitled :  Provided,  That 
no  such  order  by  the  President  shall  bar  any  person  from  the  prosecution 
of  any  suit  at  law  or  in  equity  against  the  claimant  to  establish  any  right, 
title  or  interest  which  he  may  have  in  such  money  or  other  property.  If 
the  President  shall  not  so  order  within  sixty  days  after  the  filing  of 
such  application,  or  if  the  claimant  shall  have  filed  the  notice  as  above 
required  and  shall  have  made  no  application  to  the  President,  said  claimant 
may,  at  any  time  before  the  expiration  of  six  months  after  the  end  of 
the  war,  institute  a  suit  in  equity  in  the  district  court  of  the  United  States 
for  the  district  in  which  such  claimant  resides,  or,  if  a  corporation,  where 
it  has  its  principal  place  of  business  (to  which  suit  the  Alien  Property 
Custodian  or  the  Treasurer  of  the  United  States,  as  the  case  may  be, 
shall  be  made  a  party  defendant),  to  establish  the  interest,  right,  title, 
or  debt  so  claimed,  and  if  suit  shall  be  so  instituted  then  the  money  or 
other  property  of  the  enemy,  or  ally  of  enemy,  against  whom  such 
interest,  right,  or  title  is  asserted,  or  debt  claimed,  shall  be  retained  in 
the  custody  of  the  Alien  Property  Custodian,  or  in  the  Treasury  of  the 
United  States,  as  provided  in  this  Act,  and  until  any  final  judgment 
or  decree  which  shall  be  entered  in  favor  of  the  claimant  shall  be  fully 
satisfied  by  payment  or  conveyance,  transfer,  assignment,  or  delivery  by 
the  defendant  or  by  the  Alien  Property  Custodian  or  Treasurer  of  the 
United  States  on  order  of  the  court,  or  until  final  judgment  or  decree 
shall  be  entered  against  the  claimant,  or  suit  otherwise  terminated. 


126  Supplement  to  Important  Federal  Laws 

Except  as  herein  provided,  the  money  or  other  property  conveyed, 
transferred,  assigned,  delivered,  or  paid  to  the  Alien  Property  Custodian 
shall  not  be  liable  to  lien,  attachment,  garnishment,  trustee  process,  or 
execution,  or  subject  to  any  order  or  decree  of  any  court. 

This  section  shall  not  apply,  however,  to  money  paid  to  the  Alien 
Property  Custodian  under  section  ten  hereof. 

Patents — Provisions  As  To. 

Sec.  10.  That  nothing  contained  in  this  Act  shall  be  held  to  make 
unlawful  any  of  the  following  Acts : 

(a)  An  enemy,  or  ally  of  enemy,  may  file  and  prosecute  in  the 
United  States  an  application  for  letters  patent,  or  for  registration  of 
trademark,  print,  label,  or  copyright,  and  may  pay  any  fees  therefor  in 
accordance  with  and  as  required  by  the  provisions  of  existing  law  and 
fees  for  attorneys  or  agents  for  filing  and  prosecuting  such  applications. 
Any  such  enemy,  or  ally  of  enemy,  who  is  unable  during  war,  or  within 
six  months  thereafter,  on  account  of  conditions  arising  out  of  war,  to 
file  any  such  application,  or  to  pay  any  official  fee,  or  to  take  any  ac- 
tion required  by  law  within  the  period  prescribed  by  law,  may  be  granted 
an  extension  of  nine  months  beyond  the  expiration  of  said  period,  pro- 
vided the  nation  of  which  the  said  applicant  is  a  citizen,  subject,  or 
corporation  shall  extend  substantially  similar  privileges  to  citizens  and 
corporations  of  the  United  States. 

(b)  Any  citizen  of  the  United  States,  or  any  corporation  organ- 
ized within  the  United  States,  may,  when  duly  authorized  by  the  Presi- 
dent, pay  to  an  enemy  or  ally  of  enemy  any  tax,  annuity,  or  fee  which 
may  be  required  by  the  laws  of  such  enemy  or  ally  of  enemy  nation  in 
relation  to  patents  and  trademarks,  prints,  labels,  and  copyrights;  and 
any  such  citizen  or  corporation  may  file  and  prosecute  an  application  for 
letters  patent  or  for  registration  of  trademark,  print,  label,  or  copyright 
in  the  country  of  an  enemy,  or  of  an  ally  of  enemy  after  first  submitting 
such  application  to  the  President  and  receiving  license  so  to  file  and 
prosecute,  and  to  pay  the  fees  required  by  law  and  customary  agents' 
fees,  the  maximum  amount  of  which  in  each  case  shall  be  subject  to 
the  control  of  the  President. 

(c)  Any  citizen  of  the  United  States  or  any  corporation  organized 
within  the  United  States  desiring  to  manufacture,  or  cause  to  be  manu- 
factured, a  machine,  manufacture,  composition  of  matter,  or  design,  or 
to  carry  on,  or  cause  to  be  carried  on,  a  process  under  any  patent  or  to 
use  any  trademark,  print,  label  or  copyrighted  matter  owned  or  controlled 
by  an  enemy  or  ally  of  enemy  at  any  time  during  the  existence  of  a  state 
of  war  may  apply  to  the  President  for  a  license;  and  the  President  is 
hereby  authorized  to  grant  such  a  license,  non-exclusive  or  exclusive 
as  he  shall  deem  best,  provided  he  shall  be  of  the  opinion  that  such 
grant  is  for  the  public  welfare,  and  that  the  applicant  is  able  and  intends 


Trading  With  the  Enemy  Act  127 

in  good  faith  to  manufacture,  or  cause  to  be  manufactured,  the  machine, 
manufacture,  composition  of  matter,  or  design,  or  to  carry  on,  or  cause 
to  be  carried  on,  the  process  or  to  use  the  trademark,  print,  label  or 
copyrighted  matter.  The  President  may  prescribe  the  conditions  of  this 
license  including  the  fixing  of  prices  of  articles  and  products  necessary 
to  the  health  of  the  military  and  naval  forces  of  the  United  States  and 
the  successful  prosecution  of  the  war  and  the  rules  and  regulations  under 
which  such  license  may  be  granted  and  the  fee  which  shall  be  charged 
therefor,  not  exceeding  $100,  and  not  exceeding  one  per  centum  of  the 
fund  deposited  as  hereinafter  provided.  Such  license  shall  be  a  complete 
defense  to  any  suit  at  law  or  in  equity  instituted  by  the  enemy  or  ally  of 
enemy  owners  of  the  letters  patent,  trademark,  print,  label  or  copyright, 
or  otherwise,  against  the  licensee  for  infringement  or  for  damages,  royal- 
ty, or  other  money  award  on  account  of  anything  done  by  the  licensee 
under  such  license,  except  as  provided  in  subsection  (f)  hereof. 

(d)  The  licensee  shall  file  with  the  President  a  full  statement  of 
the  extent  of  the  use  and  enjoyment  of  the  license,  and  of  the  prices  re- 
ceived in  such  form  and  at  such  stated  periods  (at  least  annually)  as 
the  President  may  prescribe ;  and  the  license  shall  pay  at  such  times  as 
may  be  required  to  the  Alien  Property  Custodian  not  to  exceed  five 
per  centum  of  the  gross  sums  received  by  the  licensee  from  the  sale  of 
said  inventions  or  use  of  the  trademark,  print,  label  or  copyrighted  matter, 
or,  if  the  President  shall  so  order,  five  per  centum  of  the  value  of  the 
use  of  such  inventions,  trademarks,  prints,  labels  or  copyrighted  matter 
to  the  licensee  as  established  by  the  President ;  and  sums  so  paid  shall 
be  deposited  by  said  Alien  Property  Custodian  forthwith  in  the  Treasury 
of  the  United  States  as  a  trust  fund  for  the  said  licensee  and  for  the 
owner  of  the  said  patent,  trademark,  print,  label  or  copyright  registration 
as  hereinafter  provided,  to  be  paid  from  the  Treasury  upon  order  of 
the  court,  as  provided  in  subdivision  (f )  of  this  section,  or  upon  the  direc- 
tion of  the  Alien  Property  Custodian. 

(e)  Unless  surrendered  or  terminated  as  provided  in  this  Act,  any 
license  granted  hereunder  shall  continue  during  the  term  fixed  in  the 
license  or  in  the  absence  of  any  such  limitation  during  the  term  of  the 
patent,  trademark,  print,  label,  or  copyright  registration  under  which  it 
is  granted.  Upon  violation  by  the  licensee  of  any  of  the  provisions  of 
this  Act,  or  of  the  conditions  of  the  license,  the  President  may,  after 
due  notice  and  hearing,  cancel  any  license  granted  by  him. 

(f)  The  owner  of  any  patent,  trademark,  print,  label,  or  copyright 
under  which  a  license  is  granted  hereunder  may,  after  the  end  of  the  war 
and  until  the  expiration  of  one  year  thereafter,  file  a  bill  in  equity  against 
the  Hcensee  in  the  district  court  of  the  United  States  for  the  district 
in  which  the  said  licensee  resides,  or,  if  a  corporation,  in  which  it  has 
its  principal  place  of  business  (to  which  suit  the  Treasurer  of  the  United 
States  shall  be  made  a  party),  for  recovery  from  the  said  licensee   for 


128  Supplement  to  Important  Federal  Laws 

all  use  and  enjoyment  of  the  said  patented  invention,  trademark,  print, 
label,  or  copyrighted  matter:  Provided,  however.  That  whenever  suit 
is  brought,  as  above,  notice  shall  be  filed  with  the  Alien  Property  Cus- 
todian within  thirty  days  after  date  of  entry  of  suit :  Provided  further, 
That  the  licensee  may  make  any  and  all  defences  which  would  be  avail- 
able were  no  license  granted.  The  court  on  due  proceedings  had  may  ad- 
judge and  decree  to  the  said,  owner  payment  of  a  reasonable  royalty. 
The  amount  of  said  judgment  and  decree,  when  final,  shall  be  paid  on 
order  of  the  court  to  the  owner  of  the  patent  from  the  fund  deposited 
by  the  licensee,  so  far  as  such  deposit  will  satisfy  said  judgment  and 
decree ;  and  the  said  payment  shall  be  in  full  or  partial  satisfaction 
of  said  judgment  and  decree,  as  the  facts  may  appear;  and  if,  after  pay- 
ment of  all  such  judgments  and  decrees,  there  shall  remain  any  balance 
of  said  deposit,  such  balaijce  shall  be  repaid  to  the  licensee  on  order  of 
the  Alien  Property  Custodian.  If  no  suit  is  brought  within  one  year 
after  the  end  of  the  war,  or  no  notice  is  filed  as  above  required,  then 
the  license  shall  not  be  liable  to  make  any  further  deposits,  and  all 
funds  deposited  by  him  shall  be  repaid  to  him  on  order  of  the  Alien 
Property  Custodian.  Upon  entry  of  suit  and  notice  filed  as  above  required, 
or  upon  repayment  of  funds  as  above  provided,  the  liability  of  the  licensee 
to  make  further  reports  to  the  President  shall  cease. 

If  suit  is  brought  as  above  provided,  the  court  may,  at  any  time, 
terminate  the  license,  and  may,  in  such  event,  issue  an  injunction  to 
restrain  the  licensee  from  infringement  thereafter,  or  the  court,  in  case 
the  licensee,  prior  to  suit  shall  have  made  investment  of  capital  based  on 
possession  of  the  license,  may  continue  the  license  for  such  period  and 
upon  such  terms  and  with  such  royalties  as  it  shall  find  to  be  just  and 
reasonable. 

(g)  Any  enemy,  or  ally  of  enemy,  may  institute  and  prosecute  suits 
in  equity  against  any  person  other  than  a  licensee  under  this  Act  to  enjoin 
infringement  of  letters  patent,  trademark,  print,  label,  and  copyrights 
in  the  United  States  owned  or  controlled  by  said  enemy  or  ally  of  enemy, 
in  the  same  manner  and  to  the  extent  that  he  would  be  entitled  so  to  do 
if  the  United  States  was  not  at  war:  Provided,  That  no  final  judgment 
or  decree  shall  be  entered  in  favor  of  such  enemy  or  ally  of  enemy  by 
any  court  except  after  thirty  days'  notice  to  the  Alien  Property  Cus- 
todian, such  notice  shall  be  in  writing  and  shall  be  served  in  the  same 
manner  as  civil  process   of   Federal  courts. 

(h)  All  powers  of  attorney  heretofore  or  hereafter  granted  by  an 
enemy  or  ally  of  enemy  to  any  person  within  the  United  States,  in  so 
far  as  they  may  be  requisite  to  the  performance  of  acts  authorized  in 
subsections  (a)  and   (g)  of  this  section  shall  be  valid. 

(i)  Whenever  the  publication  of  an  invention  by  the  granting  of 
a  patent  may,  in  the  opinion  of  the  President,  be  detrimental  to  the  public 
safety  or  defense,  or  may  assist  the  enemy  or  endanger  the  successful 


Trading  With  the  Enemy  Act  129 

prosecution  of  the  war,  he  may  order  that  the  invention  be  kept  secret 
and  withhold  the  grant  of  a  patent  until  the  end  of  the  war:  Provided, 
That  the  invention  disclosed  in  the  application  for  said  patent  may  be  held 
abandoned  upon  it  being  established, before  or  by  the  Commissioner  of 
Patents  that,  in  violation  of  said  order,  said  invention  has  been  published 
or  that  an  application  for  a  patent  therefor  has  been  filed  in  any  other 
country,  bv  the  inventor  or  his  assigns  or  legal  representatives,  without 
the  consent  or  approval  of  the  commissioner  or  under  a  license  of  the 
President. 

When  an  applicant  whose  patent  is  withheld  as  herein  provided  and ' 
who  faithfully  obeys  the  order  of  the  President  above  referred  to 
shall  tender  his  invention  to  the  Government  of  the  United  States  for 
its  use,  he  shall,  if  he  ultimately  receives  a  patent,  have  the  right  to  sue 
for  compensation  in  the  Court  of  Claims,  such  right  to  compensation 
to  begin  from  the  date  of  the  use  of  the  invention  by  the  Government. 

Imports — Prohibition  of. 

Sec.  11.  Whenever  during  the  present  war  the  President  shall  find 
that  the  public  safety  so  requires  and  shall  make  proclamation  thereof 
it  shall  be  unlawful  to  import  into  the  United  States  from  any  country 
named  in  such  proclamation  any  article  or  articles  mentioned  in  such 
proclamation  except  at  such  time  or  times,  and  under  such  regulations 
or  orders,  and  subject  to  such  limitations  and  exceptions  as  the  President 
shall  prescribe,  until  otherwise  ordered  by  the  President  or  by  Congress : 
Provided,  however.  That  no  preference  shall  be  given  to  the  ports  of 
one  State  over  those  of  another. 

Investment  of  Funds  in  Governrneht  Bonds— Powers  of  Alien  Prop- 
erty Custodian. 

Sec.  12.  That  all  moneys  (including  checks  and  drafts  payable  on 
demand)  paid  to  or  received  by  the  Alien  Property  Custodian  pursuant 
to  this  Act  shall  be  deposited  forthwith  in  the  Treasury  of  the  United 
States,  and  may  be  invested  and  reinvested  by  the  Secretary  of  the 
Treasury  in  United  States  bonds  or  United  States  certificates  of  indebted- 
ness, under  such  rules  and  regulations  as  the  President  shall  prescribe 
for  such  deposit,  investment,  and  sale  of  securities;  and  as  soon  after 
the  end  of  the  war  as  the  President  shall  deem  practicable,  such  securities 
shall  be  sold  and  the  proceeds  deposited  in  the  Treasury. 

All  other  property  of  an  enemy,  or  ally  of  enemy,  conveyed,  trans- 
ferred, assigned,  delivered,  or  paid  to  the  Alien  Property  Custodian 
hereunder  shall  be  safelv  held  and  administered  by  him  except  as  here- 
inafter provided;  and  the  President  is  authorized  to  designate  as  a 
depositary,  or  depositaries,  of  property  of  an  enemy  or  ally  of  enemy 
any  bank,  or  banks,  or  trust  company,  or  trust  companies,  or  other  suit- 
able depositary  or  depositaries,  located  and  doing  business  in  the  United 
States.     The   Alien   Property   Custodian   may   deposit   with   such  desig- 

(9) 


130  Supplement  to  Important  Federal  Laws 

nated  depositary  or  depositaries,  or  with  the  Secretary  of  the  Treasury, 
any  stocks,  bonds,  notes,  time  drafts,  time  bills  of  exchange,  or  other 
securities,  or  property  (except  money  or  checks  or  drafts  payable  on 
demand  which  are  required  to  be  deposited  with  the  Secretary  of  the 
Treasury)  and  such  depositary  or  depositaries  shall  be  authorized  and 
empowered  to  collect  any  dividends  or  interest  or  income  that  may  be- 
come due  and  any  maturing  obligations  held  for  the  account  of  such 
custodian.  Any  moneys  collected  on  said  account  shall  be  paid  and  de- 
posited forthwith  by  said  depository  or  by  the  Alien  Property  Custodian 
into  the  Treasury  of  the  United  States  as  hereinbefore  provided. 

The  President  shall  require  all  such  designated  depositaries  to 
execute  and  file  bonds  sufficient  in  his  judgment  to  protect  property  on 
deposit,  such  bonds  to  be  conditioned  as  he  may  direct. 

The  Alien  Property  Custodian  shall  be  vested  with  all  of  the  powers 
of  a  common-law  trustee  in  respect  of  all  property,  other  than  money, 
which  shall  come  into  his  possession  in  pursuance  of  the  provisions  of  this 
Act,  and,  acting  under  the  supervision  and  direction  of  the  President,  and 
under  such  rules  and  regulations  as  the  President  shall  prescribe,  may  man- 
age such  property  and  do  any  act  or  things  in  respect  thereof  or  make  any 
disposition  thereof  or  of  any  part  thereof,  by  sale  or  otherwise,  and  exer- 
cise any  rights  which  may  be  or  become  a}>|:)urtenant  thereto  or  to  the  own- 
ership thereof,  if  and  when  necessary  to  prevent  waste  or  to  protect  such 
property,  and  to  the  end  that  the  interests  of  the  United  States  in  such 
property  and  rights  or  of  such  person  as  may  ultimately  become  en- 
titled thereto,  or  to  the  proceeds  thereof,  may  be  preserved  and  safe- 
guarded. It  shall  be  the  duty  of  every  corporation  incor]:)orated  within 
the  United  States  and  every  unincorporated  association,  or  company, 
or  trustee,  or  trustees  within  the  United  States  issuing  shares  or  cer- 
tificates representing  beneficial  interests  to  transfer  such  shares  or  cer- 
tificate upon  its,  his.  or  their  books  into  the  name  of  the  Alien  Property 
Custodian  upon  demand,  accompanied  by  the  presentation  of  the  cer- 
tificates which  represent  such  shares  or  l3eneficial  interests.  The  Alien 
Property  Custodian  shall  forthwith  deposit  in  the  Treasury  of  the 
United  States,  as  hereinbefore  provided,  the  proceeds  of  any  such  prop- 
erty or  rights  so  sold  by  him. 

Any  money  or  property  required  or  authorized  by  the  provisions 
of  this  Act  to  be  paid,  conveyed,  transferred,  assigned,  or  delivered  to 
the  Alien  Property  Custodian  shall,  if  said  custodian  shall  so  direct  by 
written  order,  be  paid,  conveyed,  transferred,  assigned,  or  delivered  to 
the  Treasurer  of  the  United  States  with  the  same  effect  as  if  to  the  Alien 
Property   Custodian. 

After  the  end  of  the  war  any  claim  of  any  enemy  or  of  an  ally  of 
enemy  to  any  money  or  other  property  received  and  held  by  the  Alien 
Property  Custodian  or  deposited  in  the  United  States  Treasury,  shall  be 
settled  as  Congress  .shall  direct :    Provided,  however.  That  on  order  of  the 


Trading  With  the  Enemy  Act  131 

President  as  set  forth  in  section  nine  hereof,  or  of  the  court,  as  set 
forth  in  sections  nine  and  ten  hereof,  the  AHen  Property  Custodian  or 
the  Treasurer  of  the  United  States,  as  the  case  may  be,  shall  forthwith 
convey,  transfer,  assign,  and  pay  to  the  person  to  whom  the  President 
shall  so  order,  or  in  whose  behalf  the  court  shall  enter  final  judgment 
or  decree,  any  property  of  an  enemy  or  ally  of  enemy  held  by  said 
custodian  or  by  said  Treasurer,  so  far  as  may  be  necessary  to  comply 
with  said  cvrder  of  the  President  or  said  final  judgment  or  decree  of  the 
court :  And  provided  further,  That  the  Treasurer  of  the  United  States, 
or  order  of  the  Alien  Property  Custodian,  shall,  as  provided  in  section  ten 
hereof,  repay  to  the  licensee  any  funds  deposited  by  said  licensee. 

Certificates  as  to  Cargo  and  Consignee  by  Shipmaster. 

Sec.  13.  That,  during  the  present  war,  in  addition  to  the  facts  re- 
quired by  sections  forty-one  hundred  and  ninety-seven,  forty-one  hun- 
dred and  ninety-eight,  and  forty-two  hundred  of  the  Revised  Statutes, 
as  amended  by  the  Act  of  June  fifteenth,  nineteen  hundred  and  seven- 
teen, to  be  set  out  in  the  master's  and  shipper's  manifests  before  clear- 
ance will  be  issued  to  vessels  bound  to  foreign  ports,  the  master  or  per- 
son in  charge  of  any  vessel,  before  departure  of  such  vessel  from  port, 
shall  deliver  to  the  collector  of  customs  of  the  district  wherein  such 
vessel  is  located  a  statement  duly  verified  by  oath  that  the  cargo  is  not 
shipped  or  to  be  delivered  in  violation  of  this  Act,  and  the  owners, 
shippers,  or  consignors  of  the  cargo  of  such  vessels  shall  in  like  manner 
deliver  to  the  collector  like  statement  under  oath  as  to  the  cargo  or  the 
parts  thereof  laden  or  shipped  by  them,  respectively,  which  statement 
shall  contain  also  the  names  and  addresses  of  the  actual  consignees  of 
the  cargo,  or  if  the  shipment  is  made  to  a  bank  or  other  broker,  factor, 
or  agent,  the  names  and  addresses  of  the  persons  who  are  the  actual 
consignees  on  whose  account  the  shipment  is  made.  The  master  or  person 
in  control  of  the  vessel  shall,  on  reaching  port  of  destination  of  any 
of  the  cargo,  deliver  a  copy  of  the  manifest  and  of  the  said  master's, 
owner's,  shipper's,  or  consignor's  statement  to  the  American  consular 
officer  of  the  district  in  which  the  cargo  is  unladen. 

Clearance  for  False  Representation  May  be  Refused. 

Sec.  14.  That,  during  the  present  war,  whenever  there  is  reason- 
able cause  to  believe  that  the  manifest  or  the  additional  statements  under 
oath  required  by  the  preceding  section  are  false  or  that  any  vessel,  do- 
mestic or  foreign,  is  about  to  carry  out  of  the  United  States  any  property 
to  or  for  the  account  or  benefit  of  an  enemy,  or  ally  of  enemy,  or  any 
property  or  person  whose  export,  taking  out,  or  transport  will  be  in 
violation  of  this  Act,  the  collector  of  customs  for  the  district  in  which 
such  vessel  is  located  is  hereby  authorized  and  empowered,  subject  to 
review  by  the  President,  to  refuse  clearance  to  any  such  vessel,  domestic 
or  foreign,  for  which  clearance  is  required  by  law,  and  by  formal  notice 


132  Supplement  to  Important  Federal  Laws 

served  upon  the  owners,  master,  or  person  or  persons  in  command  or 
charge  of  any  domestic  vessel  for  which  clearance  is  not  recjuired  by  law, 
to  forbid  the  departure  of  such  vessel  from  the  port,  and  it  shall  there- 
upon be  unlawful  for  such  vessel  to  depart.  The  collector  of  customs 
shall,  during  the  present  war,  in  each  case  report  to  the  President  the 
amount  of  gold  or  silver  coin  or  bullion  or  other  moneys  of  the  United 
States ,  contained  in  any  cargo  intended  for  export.  Such  report  shall 
include  the  names  and  addresses  of  the  consignors  and  consignees,  to- 
gether with  any  facts  known  to  the  collector  with  reference  to  such  ship- 
ment and  particularly  those  which  may  indicate  that  such  gold  or  silver 
coin  or  bullion  or  moneys  of  the  United  States  may  be  intended  for 
<lelivery  or  may  be  delivered,  directly  or  indirectly,  to  an  enemy  or  an  ally 
of  enemy. 

Appropriation.  ' 

Sec.  15.  That  the  sum  of  $450,000  is  hereby  appropriated,  out  of 
any  money  in  the  Treasury  of  the  United  States  not  otherwise  appropri- 
ated, to  be  used  in  the  discretion  of  the  President  for  the  purpose  of 
carrying  out  the  provisions  of  this  Act  during  the  fiscal  year  ending 
June  thirtieth,  nineteen  hundred  and  eighteen,  and  for  the  payment  of 
salaries  of  all  persons  employed  under  this  Act,  together  with  the  neces- 
sary expenses  for  transportation,  subsistence,  rental  of  quarters  in  the 
District  of  Columbia,  books  of  reference,  periodicals,  stationery,  type- 
writers and  exchanges  thereof,  miscellaneous  supplies,  printing  to  be 
done  at  the  Government  Printing  Office,  and  all  other  necessary  expenses 
not  included  in  the  foregoing. 

Penalty  for  Violation. 

Sec.  16.  That  whoever  shall  willfully  violate  any  of  the  provisions 
of  this  Act  or  of  any  license,  rule,  or  regulation  issued  thereunder,  and 
whoever  shall  willfully  violate,  neglect,  or  refuse  to  comply  with  any  order 
of  the  President  issued  in  compliance  with  the  provisions  of  this  Act, 
shall,  upon  conviction,  be  fined  not  more  than  $10,000,  or,  if  a  natural 
person,  imprisoned  for  not  more  than  ten  years,  or  both ;  and  the  officer, 
director,  or  agent  of  any  corporation  who  knowingly  participates  in  such 
violation  shall  be  punished  by  a  like  fine,  imprisonment,  or  both,  and 
any  property,  funds,  securities,  papers,  or  other  articles  or  documents, 
or  any  vessel,  together  with  her  tackle,  apparel,  furniture,  and  equipment, 
concerned  in  such  violation  shall  be  forfeited  to  the  United  States. 

Districts  Courts — Jurisdiction. 

Sec.  17.  That  the  district  courts  of  the  United  States  are  hereby 
given  jurisdiction  to  make  and  enter  all  such  rules  as  to  notice  and  other- 
wise, and  all  such  orders  and  decrees,  and  to  issue  such  process  as  may 
be  necessary  and  proper  in  the  premises  to  enforce  the  provisions  of  this 
Act,  with  a  right  of  appeal  from  the  final  order  or  decree  of  such 
court  as  provided  in  sections  one  hundred  and  twenty-eight  and  two  hun- 


Trading  With  the  Enemy  Act  133 

dred  and  thirty-eight  of  the  Act  of  March  third,  nineteen  hundred  and 
eleven,  entitled  "An  Act  to  codify,  revise,  and  amend  the  lav^s  relating 
to  the  judiciary." 

Philippines  and  Canal  Zone. 

Sec.  18.  That  the  several  courts  of  first  instance  in  the  Philippine 
Islands  and  the  district  court  of  the  Canal  Zone  shall  have  jurisdiction 
of  offenses  under  this  Act  committed  within  their  respective  districts, 
and  concurrent  jurisdiction  with  the  district  courts  of  the  United  States 
of  offenses  under  this  Act  committed  upon  the  high  seas  and  of  con- 
spiracies to  commit  such  offenses  as  defined  by  section  thirty-seven  of 
the  Act  entitled  "An  Act  to  codify,  revise,  and  amend  the  penal  laws 
of  the  United  States,"  approved  March  fourth,  nineteen  hundred  and 
nine,  and  the  provisions  of  said  section  for  the  purpose  of  this  Act  are 
hereby  extended  to  the  Philippine  Islands  and  to  the  Canal  Zone. 

Publications  in  Foreign  Language. 

Sec.  19.  Ten  days  after  the  approval  of  this  Act  and  until  the  end 
of  the  war  it  shall  be  unlawful  for  any  person,  firm,  corporation,  or 
association,  to  print,  publish,  or  circulate,  or  cause  to  be  printed,  pubhshed, 
or  circulated  in  any  foreign  language,  any  news  item,  editorial,  or  other 
printed  matter,  respecting  the  government  of  the  United  States,  or  of 
any  nation  engaged  in  the  present  war,  its  policies,  international  rela- 
tions, the  state  or  conduct  of  the  war,  or  any  matter  relating  thereto; 
Provided,  that  this  section  shall  not  apply  to  any  print,  newspaper,  or 
publication  where  the  pubHsher  or  distributor  thereof,  on  or  before 
oft'ering  the  same  for  mailing,  or  in  any  manner  distributing  it  to  the 
public,  has  filed  with  the  postmaster  at  the  place  of  publication,  in  the 
form  of  an  affidavit,  a  true  and  complete  translation  of  the  entire  article 
containing  such  matter  proposed  to  be  published  in  such  print,  news- 
paper, or  publication,  and  has  caused  to  be  printed,  in  plain  type  in  the 
English  language,  at  the  head  of  each  such  item,  editorial,  or  other 
matter,  on  each  copy  of  such  print,  newspaper,  or  publication,  the  words 
"True  translation  filed  with  postmaster  at  ,  on 

(naming  the  postoffice  where  the 
translation  was  filed,  and  the  date  of  filing  thereof),  as  required  by  the 
Act  of  (here  giving  the  date  of 

this  Act)." 

Any  print,  newspaper,  or  publication  in  any  foreign  language  which 
does  not  conform  to  the  provisions  of  this  section  is  hereby  declared  to 
be  non-mailable,  and  it  shall  be  unlawful  for  any  person,  firm,  corpora- 
tion, or  association,  to  transport,  carry,  or  otherwise  publish  or  distribute 
the  same,  or  to  transport,  carry  or  otherwise  publish  or  distribute  any 
matter  w^hich  is  made  non-mailable  by  the  provisions  of  the  Act  relating 
to  espionage,  approved  June  15,  1917:  Provided  further,  that  upon 
evidence  satisfactory  to  him  that  any  print,  newspaper,  or  publication, 


134  Supplement  to  Important  Federal  Laws 

printed  in  a  foreign  language  may  be  printed,  published,  and  distributed 
free  from  the  foregoing  restrictions  and  conditions  without  detriment  to 
the  United  States  in  the  conduct  of  the  present  war,  the  President  may 
cause  to  be  issued  to  the  printers  or  publishers  of  such  print,  newspaper, 
or  publication,  a  permit  to  print,  publish  and  circulate  the  issue  or  issues 
of  their  print,  newspaper,  or  publication,  free  from  such  restrictions  and 
requirements,  such  permits  to  be  subject  to  revocation  at  his  discretion. 
And  the  Postmaster  General  shall  cause  copies  of  all  such  permits  and 
revocations  of  permits  to  be  furnished  to  the  postmaster  of  the  postoffice 
serving  the  place  from  which  the  print,  newspaper,  or  publication,  granted 
the  permit  is  to  emanate.  All  matter  printed,  published  and  distributed 
under  permits  shall  bear  at  the  head  thereof  in  plain  type  in  the  English 
language,  the  words,  "Published  and  distributed  under  permit  authorized 
by  the  Act  of  (here  giving  date  of  this 

Act),  on  file  at  the  postoffice  of  (giving 

name  of  office)." 

Penalty. 

Any  person  who  shall  make  an  affidavit  containing  any  false  state- 
ment in  connection  with  the  translation  provided  for  in  this  section  shall 
be  guilty  of  the  crime  of  perjury  and  subject  to  the  punishment  provided 
therefor  by  Section  125  of  the  Act  of  March  4,  1909,  entitled  "An  Act  to 
codify,  revise,  and  amend  the  penal  laws  of  the  United  States,"  and  any 
person,  firm,  corporation,  or  association  violating  any  other  requirement 
of  this  section  shall,  on  conviction  thereof,  be  punished  by  a  fine  of  not 
more  than  five  hundred  dollars  ($500),  or  by  imprisonment  of  not  more 
thaii  one  year,  or,  in  the  discretion  of  the  Court,  may  be  both  fined  and 
imprisoned. 


Explosives  135 


EXPLOSIVES. 

Art  of  Oct.  G,  1017. 
All    Act    to    iroliibil     the    iiunuifiicture.    distribution,    storage,    use    and    posses- 
sion ill  tiuije  of  war  of  ^xiiJosives,  providing  regulations  for  the  safe  manu- 
facture,   distribution,    storage,    use,    and    possession    of    the    same,    and    for 
otlier  iiurposes. 

Manufacture,  etc.,  Prohibited. 

Section  1.  That  when  the  United  States  is  at  war  it  shall  he  un- 
lawful to  manufacture,  distrihute,  store,  use.  or  possess  powder,  ex- 
plosives, blasting  supplies,  or  ingredients  thereof,  in  such  manner  as  to 
be  detrimental  to  the  public  safety,  except  as  in  this  Act  provided. 

Definition. 

Sec.  2.  That  the  words  "explosive"  and  "explosives"  when  used 
herein  shall  mean  gunpowders,  powders  used  for  blasting,  all  forms  of 
high  explosives,  blasting  materials,  fuses,  detonators,  and  other  deto- 
nating agents,  smokeless  powders,  and  any  chemical  compound  or  me- 
chanical mixture  that  contains  any  oxidizing  and  combustible  units,  or 
other  ingredients,  in  such  proportions,  quantities  or  packing  that  ignition 
by  fire,  by  friction,  by  concussion,  by  percussion,  or  by  detonation  of, 
or  any  part  of  the  compound  or  mixture  may  cause  such  a  sudden  gen- 
eration of  highly  heated  gases  that  the  resultant  gaseous  pressures  are 
capable  of  producing  destructive  effects  on  contiguous  objects,  or  of 
destroying  life  or  limb,  but  shall  not  include  small  arms  or  shotgun 
cartridges :  Provided,  That  nothing  herein  contained  shall  be  construed 
to  prevent  the  manufacture,  under  the  authority  of  the  Government, 
of  explosives  for,  their  sale  to  or  their  possession  by,  the  military  or 
naval  service  of  the  United  States  of  America. 

Same. 

Sec.  3.  That  the  word  "ingredients"  when  used  herein  shall  mean 
the  materials  and  substances  capable  by  combination  of  producing  one  or 
more  of  the  explosives  mentioned  in  section  one  hereof. 

Same. 

Sec.  4.  That  the  word  "person,"  when  used  herein,  shall  include 
States,  Territories,  the  District  of  Columbia,  Alaska,  and  other  depend- 
encies of  the  United  States,  and  municipal  subdivisions  thereof,  individual 
citizens,  firms,  associations,  societies  and  corporations  of  the  United 
States  and  of  other  countries  at  peace  with  the  United  States. 
Unlawful  Purchase  or  Possession. 

Sec.  5.  That  from  and  after  forty  days  after  the  passage  and  ap- 
proval of  this  Act  no  person  shall  have  in  his  possession  or  purchase, 
accept,  receive,  sell,  give,  barter  or  otherwise  dispose  of  or  procure 
explosives,  or  ingredients,  except  as  provided  in  this  Act :  Provided, 
That  the  purchase  or  possession  of  said  ingredients  when  purchased  or 


136  Supplement  to  Important  Federal  Laws 

held  in  small  quantities  arid  not  used  or  intended  to  be  used  in  the  manu- 
facture of  explosives  are  not  subject  to  the  provisions  of  this  Act:  Pro- 
vided further,  That  the  superintendent,  foreman,  or  other  duly  author- 
ized employee,  at  a  mine,  quarry,  or  other  work,  may,  when  licensed  so 
to  do,  sell  or  issue,  to  any  workman  under  him,  such  an  amount  of 
explosives,  or  ingredients,  as  may  be  required  by  that  workman  in  the 
performance  of  his  duties,  and  the  workman  may  purchase  or  accept  the 
explosives,  or  ingredients,  so  sold  or  issued,  but  the  person  so  selling  or 
issuing  same  shall  see  that  any  amused  explosives,  or  ingredients,  are 
returned,  and  that  no  explosives,  or  ingredients,  are  taken  by  the  work- 
man to  any  point  not  necessary  to  the  carrying  on  of  his  duties. 

Not  to  Apply  to  Lawful  Transportation. 

Sec.  6.  That  nothing  contained  herein  shall  ajjply  to  explosives  or 
ingredients  while  being  transported  upon  vessels  or  railroad  cars  in  con- 
formity with  statutory  law  or  Interstate  Commerce  Commission  rules. 

License  Required.  | 

Sec.  7.  That  from  and  after  forty  days  after  the  passage  of  this 
Act  no  person  shall  manufacture  explosives  unless  licensed  so  to  do,  as 
hereinafter  provided. 

Information  Required. 

Sec.  8.  That  any  licensee  or  applicant  for  license  hereunder  shall 
furnish  such  information  regarding  himself  and  his  business,  so  far  as 
such  business  relates  to  or  is  connected  with  explosives  or  ingredients  at 
such  time  and  in  such  manner  as  the  Director  of  the  Bureau  of  Mines, 
or  his  authorized  representative,  may  request,  excepting  that  those  who 
have  been  or  are  at  tlie  time  of  the  passage  of  this  Act  regularly  engaged 
in  the  manufacture  of  explosives  shall  not  be  compelled  to  disclose 
secret  processes,  costs,  or  other  data  unrelated  to  the  distribution  of 
explosives.  I 

Itemized  Accounts. 

Sec.  9.  That  from  and  after  forty  days  after  the  passage  and  ap- 
proval of  this  Act  every  person  authorized  to  sell,  issue,  or  dispise  of 
explosives  shall  keep  a  complete  itemized  and  accurate  record,  showing 
each  person  to  whom  explosives  are  sold,  given,  bartered,  or  to  whom 
or  how  otherwise  disposed  of,  and  the  quantity  and  kind  of  explosives, 
and  the  date  of  each  such  sale,  gift,  barter,  or  other  disposition,  and  this 
record  shall  be  sworn  to  and  furnished  to  the  Director  of  the  Bureau  of 
Mines,  or  his   authorized   representatives  whenever  requested. 

Licenses — Issue  of. 

Sec.  10.  That  the  Director  of  the  Bureau  of  Mines  is  hereby  author- 
ized to  issue  licenses  as  follows : 

(a)  Manufacturer's  license,  authorizing  the  manufacture,  possession, 
and  sale  of  explosives  and  ingredients. 


Explosives  .  137 

(b)  V'endor's  license,  authorizing  the  purchase,  possession,  and  sale 
of  explosives  or  ingredients. 

(c)  Purchaser's  license,  authorizing  the  purchase  and  possession  of 
explosives  and  ingredients. 

(d)  Foreman's  license,  authorizing  the  purchase  and  possession  of 
explosives  and  ingredients,  and  the  sale  and  issuance  of  explosives  and 
ingredients  to  workmen  under  the  proviso  to  section  five  above. 

(e)  Exporter's  license,  authorizing  the  license  to  export  explosives, 
but  no  such  license  shall  authorize  exportation  in  violation  of  any  procla- 
mation of  the  President  issued  under  any  Act  of  Congress. 

(f)  Importer's  license,  authorizing  the  licensee  to  import  explosives. 

(g)  Analyst's,  educator's,  inventor's,  and  investigator's  licenses 
authorizing  the  purchase,  manufacture,  possession,  testing,  and  disposal 
of  explosives  and  ingredients. 

Licenses  Issued  Only  to  Citizens  and  Allies. 

Sec.  11.  That  the  Director  of  the  Bureau  of  Mines  shall  issue 
licenses,  upon  application  duly  made,  but  only  to  citizens  of  the  United 
States  of  America,  and  to  the  subjects  or  citizens  of  nations  that  are 
at  peace  with  them,  and  to  corporations,  firms,  and  associations  thereof, 
and  he  may,  in  his  discretion,  refuse  to  issue  a  license,  when  he  has 
reason  to  believe,  from  facts  of  which  he  has  knowledge  or  reliable  infor- 
mation, that  the  applicant  is  disloyal  or  hostile  to  the  United  States  of 
America,  or  that,  if  the  applicant  is  a  firm,  association,  society,  or  corpo- 
ration, its  controlling  stockholders  or  members  are  disloyal  or  hostile  to 
the  United  States  of  America.  The  director  may,  when  he  has  reason 
to  believe  on  like  grounds  that  any  licensee  is  so  disloyal  or  hostile, 
revoke  any  license  issued  to  him.  Any  applicant  to  whom  a  license  is 
refused  or  any  licensee  whose  license  is  revoked  by  the  said  director 
may,  at  any  time  within  thirty  days  after  notification  of  the  rejection 
of  his  application  or  revocation  of  his  license,  apply  for  such  license  or 
the  cancellation  of  such  revocation  to  the  Council  of  National  Defense, 
which  shall  make  its  order  upon  the  director  either  to  grant  or  to  withhold 
the  license. 

Application  for  License. 

Sec.  12.  That  any  person  desiring  to  manufacture,  sell,  export, 
import,  store,  or  purchase  explosives  or  ingredients,  or  to  keep  explo- 
sives or  ingredients  in  his  possession,  shall  make  application  for  a  license, 
which  application  shall  state,  under  oath,  the  name  of  the  applicant ;  the 
place  of  birth  ;  whether  native  born  or  naturalized  citizen  of  the  United 
States  of  America  :  if  a  naturalized  citizen,  the  date  and  place  of  natural- 
ization ;  business  in  which  engaged ;  the  amount  and  kind  of  explosives 
or  ingredients  which  during  the  past  six  months  have  been  purchased, 
disposed  of,  or  used  by  him  ;  the  amount  and  kind  of  explosives  or  in- 
gredients now  on  hand ;  whether  sales,  if  any,  have  been  made  to  jobbers. 


138  Supplement  to  Important  Federal  Laws 

wholesalers,  retailers,  or  consumers ;  the  kind  of  license  to  be  issued,  and 
the  kind  and  amount  of  explosives  or  ingredients  to  be  authorized  by 
the  license;  and  such  further  information  as  the  Director  of  the  Bureau 
of  Mines  may,  by  rule,  from  time  to  time  require. 

Applications  for  vendor's,  purchaser's,  or  foreman's  licenses  shall 
be  made  to  such  officers  of  the  State,  Territory,  or  dependency  having 
jurisdiction  in  the  district  within  which  the  explosives  or  ingredients  are 
to  be  sold  or  used,  and  having  the  power  to  administer  oaths  as  may  be 
designated  by  the  Director  of  the  Bureau  of  Mines,  who  shall  issue  the 
same  in  the  name  of  such  director.  Such  officers  shall  be  entitled  to 
receive  from  the  applicant  a  fee  of  25  cents  for  each  license  issued.  They 
shall  keep  an  accurate  record  of  all  licenses  issued  in  manner  and  form 
to  be  prescribed  by  the  Director  of  the  Bureau  of  Mines,  to  whom  they 
shall  make  reports  from  time  to  time  as  may  be  by  rule  issued  by  the 
director  required.  The  necessary  blanks  and  blank  records  shall  be  fur- 
nished to  such  officers  by  the  said  director.  Licensing  officers  shall  be 
subject  to  removal  for  cause  by  the  Director  of  the  Bureau  of  Mines, 
and  all  licenses  issued  by  them  shall  be  subject  to  revocation  by  the 
director  as  provided  in  section  eleven. 

Explosives  Inspector. 

Sec.  13.  That  the  President,  by  and  with  the  advice  and  consent  of 
the  Senate,  may  appoint  in  each  State  and  in  Alaska  an  explosives 
inspector,  whose  duty  it  shall  be,  under  the  direction  of  the  Director  of 
the  Bureau  of  Mines,  to  see  that  this  Act  is  faithfully  executed  and 
observed.  Each  such  inspector  shall  receive  a  salary  of  $2,400  per  an- 
num. He  may  at  any  time  be  detailed  for  service  by  said  director  in  the 
District  of  Columbia  or  in  any  State.  Territory,  or  dependency  of  the 
L^nited  Stares.  All  additional  employees  required  in  carrying  out  the 
provisions  of  this  Act  shall  be  appointed  by  the  Director  of  the  Bureau 
of  Mines,  subject  to  the  approval  of  the  Secretary  of  the  Interior. 
Unlawful  Misrepresentation. 

Sec.  14.  That  it  shall  be  unlawful  for  any  person  to  represent  him- 
self as  having  a  license  issued  under  this  Act,  when  he  has  not  such  a 
license,  or  as  having  a  license  different  in  form  or  in  conditions  from 
the  one  which  he  in  fact  has,  or  without  proper  authority  make,  cause 
to  be  made,  issue  or  exhibit  anything  purporting  or  pretending  to  be 
such  license,  or  intending  to  mislead  any  person  into  believing  it  is  such 
a  license,  or  to  refuse  to  exhibit  his  license  to  any  peace  officer,  Federal 
or  State,  or  representative  of  the  Bureau  of  Mines. 

Information  Not  to  be  Divulged. 

Sec.  15.  That  no  inspector  or  other  employee  of  the  Bureau  of 
Mines  shall  divulge  any  information  obtained  in  the  course  of  his  duties 
under  this  Act  regarding  the  business  of  any  licensee,  or  applicant  for 
license,  without  authority  from  the  applicant  for  license  or  from  the 
Director  of  the  Bureau  of  Mines. 


Explosives  ■  139 

Marking.. 

Sec.  16.  That  every  person  authorized  under  this  Act  to  manu- 
facture or  store  explosives  or  ingredients  shall  clearly  mark  and  define 
the  premises  on  which  his  plant  or  magazine  may  be  and  shall  conspicu- 
ously display  thereon  the  words  "Explosive — Keep  0&." 

Protection  of  Plants. 

Sec.  17.  That  no  person,  without  the  consent  of  the  owner  or  his 
authorized  agents,  except  peace  officers,  the  Director  of  the  Bureau  of 
Mines  and  persons  designated  by  him  in  writing,  shall  be  in  or  upon  any 
plant  or  premises  on  which  explosives  are  manufactured  or  stored,  or 
be  in  or  upon  any  magazine  premises  on  which  explosives  are  stored ;  nor 
shall  any  person  discharge  any  firearms  or  throw  or  place  any  explosives 
or  inflammable  bombs  at,  on.  or  against  any  such  plant  or  magazine 
premises,  or  cause  the  same  to  be  done. 

Rules  and  Regulations. 

Sec.  18.  That  the  Director  of  the  Bureau  of  Mines  is  hereby  au- 
thorized to  make  rules  and  regulations  for  carrying  into  eftect  this  Act, 
subject  to  the  approval  of  the  Secretary  of  the  Interior. 

Penalty. 

Sec.  19.  That  any  person  violating  any  of  the  provisions  of  this 
Act,  or  any  rules  or  regulations  made  thereunder,  shall  be  guilty  of  a 
misdemeanor  and  shall  be  punished  by  a  fine  'of  not  more  than  $5,000  or 
by  imprisonment  not  more  than  one  year,  or  by  both  such  fine  and 
imprisonment. 

Investigations  of  Fires,  Etc. 

Sec.  20.  That  the  Director  of  the  Bureau  of  Mines  is  hereby  au- 
thorized to  investigate  all  explosions  and  fires  which  may  occur  in  mines, 
quarries,  factories,  warehouses,  magazines,  houses,  cars,  boats,  convey- 
ances, and  all  places  in  which  explosives  or  the  ingredients  thereof  are 
manufactured,  transported,  stored,  or  used,  and  shall,  in  his  discretion, 
report  his  findings,  in  such  manner  as  he  may  deem  fit,  to  the  proper 
Federal  or  State  authorities,  to  the  end  that  if  such  explosion  has  been 
brought  about  by  a  willful  act  the  person  or  persons  causing  such  act  may 
be  proceeded  against  and  brought  to  justice;  or,  if  said  explosion  has 
been  brought  about  by  accidental  means,  that  precautions  may  be  taken 
to  prevent  similar  accidents  from  occurring.  In  the  prosecution  of  such 
investigations  the  employees  of  the  Bureau  of  Mines  are  hereby  granted 
the  authority  to  enter  the  premises  where  such  explosion  or  fire  has  oc- 
curred, to  examine  plans,  books,  and  papers,  to  administer  oaths  to,  and 
to  examine  all  witnesses  and  persons  concerned,  without  let  or  hindrance 
on  the  part  of  the  owner,  or  lessee,  operator,  or  agent  thereof. 
Cooperation  With  States. 

Sec.  21.  That  the  Director  of  the  Bureau  of  Mines,  with  the  ap- 
proval   of    the    President,   is   hereby   authorized   to   utilize   such   agents. 


140  Supplement  to  Important  Federal  Laws 

agencies,  and  all  officers  of  the  United  States  and  of  the  several  States, 
Territories,  dependencies,  and  municipalities  thereof,  and  the  District  of 
Columbia,  in  the  execution  of  this  Act,  and  all  agents,  agencies,  and  all 
officers  of  the  United  States  and  of  the  several  States  and  Territories, 
dependencies,  and  municipalities  thereof,  and  the  District  of  Columbia, 
shall  hereby  have  full  authority  for  all  acts  done  by  them  in  the  execution 
of  this  Act  when  acting  by  the  direction  of  the  Bureau  of  Mines. 
Appropriation. 

Sec.  22.  That  for  the  enforcement  Of  the  provisions  of  this  Act, 
including  personal  services  in  the  District  of  Columbia  and  elsewhere, 
and  including  supplies,  equipment,  expenses  of  traveling  and  subsistence, 
and  for  the  purchase  and  hire  of  animal-drawn  or  motor-propelled  pas- 
senger-carrying vehicles,  and  upkeep  of  same,  and  for  every  other  ex- 
pense incident  to  the  enforcement  of  the  provisions  of  this  Act,  there  is 
hereby  appropriated,  out  of  any  money  in  the  Treasury  not  otherwise  ap- 
propriated, the  sum  of  $300,000,  or  so  much  thereof  as  may  be  necessary: 
Provided,  That  not  to  exceed  $10,000  shall  be  expended  in  the  purchase 
of  motor-propelled  passenger-carrying  vehicles. 


CONDEMNATION  FOR  MILITARY  PURPOSES. 

(Act  of  July  2,  1917.) 
An  Act  to  authorize  condemnation  proceedings  of  lands  for  military  purposes. 
Section  1.  That  hereafter  the  Secretary  of  W-ar  may  cause  pro- 
ceedings to  be  instituted  in  the  name  of  the  United  States,  in  any  court 
having  jurisdiction  of  such  proceedings  for  the  acquirement  by  condemna- 
tion of  any  land,  temporary  use  thereof  or  other  interest  therin,  or  right 
pertaining  thereto,  needed  for  the  site,  location,  constructon,  or  prose- 
cution of  works  for  fortifications,  coast  defenses,  and  military  training 
camps,  such  proceedings  to  be  prosecuted  in  accordance  with  the  laws 
relating  to  suits  for  the  condemnation  of  property  of  the  States  wherein 
the  proceedings  may  be  instituted :  Provided,  That  when  the  owner  of 
such  land,  interest  or  rights  pertaining  thereto  shall  fix  a  price  for  the 
same,  which,  in  the  opinion  of  the  Secretary  of  War,  shall  be  reasonable, 
he  may  purchase  or  enter  into  a  contract  for  the  use  of  the  same  at  such 
price  without  further  delay:  Provided  further.  That  the  Secretary  of 
War  is  hereby  authorized  to  accept  on  behalf  of  the  United  States  dona- 
tions of  land  and  the  interest  and  rights  pertaining  thereto  required  for 
the  above-mentioned  purposes :  And  provided  further,  That  when  such 
property  is  acquired  in  time  of  war  or  the  imminence  thereof  upon  the 
filing  of  the  petition  for  the  condemnation  of  any  land,  temporary  use 
thereof  or  other  interest  therein  or  right  pertaining  thereto  to  be  acquired 
for  any  of  the  purposes  aforesaid,  immediate  possession  thereof  may  be 
taken  to  the  extent  of  the  interest  to  be  acquired  and  the  lands  may  be 
occupied  and  used  for  military  purposes,  and  the  provision  of  section 


Government  Bond  Issues  141 

three  hundred  and  fifty-five  of  the  Revised  Statutes,  providing  that  no 
public  money  shall  be  expended  upon  such  land  until  the  written  opinion 
of  the  Attorney  General  shall  be  had  in  favor  of  the  validity  of  the  title, 
nor  until  the  consent  of  the  legislature  of  the  State  in  which  the  land  is 
located  has  been  given,  shall  be,  and  the  same  are  hereby,  suspended  dur- 
ing the  period  of  the  existing  emergency. 


GOVERNMENT  BOND  ISSUES. 

(Act  of  April  24,  1917.) 

An  Act  to  authorize  an  issue  of  bonds  to  meet  expenditures  for  the  national 
security  and  defense,  and,  for  the  purpose  of  assisting  in  the  prosecution 
of  the  war,  to  extend  credit  to  foreign  governments,  and  for  other  pur- 
poses. 

Amount  of  Issue. 

Section  1.  That  the  Secretary  of  the  Treasury,  with  the  approval 
of  the  President,  is  hereby  authorized  to  borrow,  from  time  to  time,  on 
the  credit  of  the  United  States  for  the  purposes  of  this  Act,  and  to  meet 
expenditures  authorized  for  the  national  security  and  defense  and  other 
public  purposes  authorized  by  law  not  exceeding  in  the  aggregate  $5,000,- 
000,000,  exclusive  of  the  sums  authorized  by  section  four  of  this  Act, 
and  to  issue  therefor  bonds  of  the  United  States. 

The  bonds  herein  authorized  shall  be  in  such  form  and  subject  to 
such  terms  and  conditions  of  issue,  conversion,  redemption,  maturities, 
payment,  and  rate  and  time  of  payment  of  interest,  not  exceeding  three 
and  one-half  per  centum  per  annum,  as  the  Secretary  of  the  Treasury 
may  prescribe.  The  principal  and  interest  thereof  shall  be  payable  in 
United  States  gold  coin  of  the  present  standard  of  value  and  shall  be 
exempt,  both  as  to  principal  and  interest,  f rorn  all  taxation,  except  estate 
or  inheritance  taxes,  imposed  by  authority  of  the  United  States,  or  its 
possessions,  or  by  any  State  or  local  taxing  authority ;  but  such  bonds 
shall  not  bear  the  circulation  privilege. 

The  bonds  herein  authorized  shall  first  be  offered  at  not  less  than 
par  as  a  popular  loan,  under  such  regulations  prescribed  by  the  Secretary 
of  the  Treasury  as  wall  give  all  citizens  of  the  United  States  an  equal 
opportunity  to  participate  therein ;  and  any  portion  of  the  bonds  so  oft'ered 
and  not  subscribed  for  may  be  otherwise  disposed  of  at  not  less  than  par 
by  the  Secretary  of  the  Treasury ;  but  no  commissions  shall  be  allowed 
or  paid  on  any  bonds  issued  under  authority  of  this  Act. 

Bonds  of  Allies — Purchase  of. 

Sec.  2.  That  for  the  purpose  of  more  effectually  providing  for  the 
national  security  and  defense  and  prosecuting  the  war  by  establishing 
credits  in  the  United  States  for  foreign  governments,  the  Secretary 
of  the  Treasury,  with  the  approval  of  the  President,  is  hereby  authorized, 
on  behalf  of  the  United  States,  to  purchase,  at  par,  from  such  foreign 


142  Supplement  to  Important  Federal  Laws 

governments  then  engaged  in  war  with  the  enemies  of  the  United  States, 
their  obHgations  hereafter  issued,  bearing  the  same  rate  of  interest  and 
containing  in  their  essentials  the  same  terms  and  conditions  as  those  of 
the  United  States  issued  under  authority  of  this  Act ;  to  enter  into  such 
arrangements  as  may  be  necessary  or  desirable  for  establishing  such 
credits  and  for  purchasing  such  obligations  of  foreign  governments  and 
for  the  subsequent  payment  thereof  before  maturity,  but  such  arrange- 
ments shall  provide  that  if  any  of  the  bonds  of  the  United  States  issued 
and  used  for  the  purchase  of  such  foreign  obligations  shall  thereafter  be 
converted  into  other  bonds  of  the  United  States  bearing  a  higher  rate 
of  interest  than  three  and  one-half  per  centum  per  annum  under  the 
provisions  of  section  five  of  this  Act,  then  and  in  that  event  the  obliga- 
tions of  such  foreign  governments  held  by  the  United  States  shall  be, 
by  such  foreign  governments,  converted  in  like  manner  and  extent  intO' 
obligations  bearing  the  same  rate  of  interest  as  the  bonds  of  the  United 
States  issued  under  the  provisions  of  section  five  of  this  Act.  For  the 
purposes  of  this  section  there  is  appropriated,  out  of  any  money  in  the 
Treasury  not  otherwise  appropriated,  the  sum  of  $3,000,000,000,  or  so 
much  thereof  as  may  be  necessary :  Provided,  That  the  authority  granted 
by  this  section  to  the  Secretary  of  the  Treasury  to  purchase  bonds  from 
foreign  governments,  as  aforesaid,  shall  cease  upon  the  termination  of 
the  war  between  the  United  States  and  the  Imperial  German  Government. 

Bonds  of  Allies — Sale  of. 

Sec.  3.  That  the  Secretary  of  the  Treasury,  under  such  terms  and 
conditions  as  he  may  prescribe,  is  hereby  authorized  to  receive  on  or 
before  maturity  payment  for  any  obligations  of  such  foreign  govern- 
ments purchased  on  behalf  of  the  United  States,  and  to  sell  at  not  less 
than  the  purchase  price  any  of  such  obligations  and  to  apply  the  proceeds 
thereof,  and  any  payments  made  by  foreign  governments  on  account  of 
their  said  obligations  to  the  redemption  or  purchase  at  not  more  than  par 
and  accrued  interest  of  any  bonds  of  the  United  States  issued  under 
authority  of  this  Act ;  and  if  such  bonds  are  not  available  for  this  pur- 
pose the  Secretary  of  the  Treasury  shall  redeem  or  purchase  any  other 
outstanding  interest-bearing  obligations  of  the  United  States  which  may 
at  such  time  be  subject  to  call  or  which  may  be  purchased  at  not  more 
than  par  and  accrued  interest. 

Additional  Bonds. 

Sec.  4.  That  the  Secretary  of  the  Treasury,  in  his  discretion,  is 
hereby  authorized  to  issue  the  bonds  not  already  issued  heretofore 
authorized  by  section  thirty-nine  of  the  Act  approved  August  fifth, 
nineteen  hundred  and  nine,  entitled  "An  Act  to  provide  revenue,  equalize 
duties,  and  encourage  the  industries  of  the  United  States,  and  for  other 
purposes" ;  section  one  hundred  and  twenty-four  of  the  Act  approved 
June  third,  nineteen  hundred  and  sixteen,  entitled  "An  Act  for  making 


Government  Bond  Issues  143 

further  and  more  effectual  provision  for  the  national  defense,  and  for 
other  purposes" ;  section  thirteen  of  the  Act  of  September  seventh,  nine- 
teen hundred  and  sixteen,  entitled  "An  Act  to  establish  a  United  States 
shipping  board  for  the  purpose  of  encoiiraging,  developing,  and  creating 
a  naval  auxiliary  and  a  naval  reserve  and  a  merchant  marine  to  meet 
the  requirements  of  the  commerce  of  the  United  States  with  its  Terri- 
tories and  possessions  and  with  foreign  countries,  to  regulate  carriers  by 
water  engaged  in  the  foreign  and  interstate  commerce  of  the  United 
States,  and  for  other  purposes"  ;  section  four  hundred  of  the  Act  ap- 
proved March  third,  nineteen  hundred  and  seventeen,  entitled  "An  Act 
to  provide  increased  revenue  to  defray  the  expenses  of  the  increased 
appropriations  for  the  Army  and  Navy  and  the  extensions  of  fortifica- 
tions, and  for  other  purposes"  ;  and  the  public  resolution  approved  March 
fourth,  nineteen  hundred  and  seventeen,  entitled  "Joint  resolution  to 
expedite  the  delivery  of  materials,  equipment,  and  munitions  and  to 
secure  more  expeditious  construction  of  ships,"  in  the  manner  and  under 
the  terms  and  conditions  prescribed  in  section  one  of  this  Act. 

That  the  Secretar}^  of  the  Treasury  is  hereby  authorized  to  borrow 
on  the  credit  of  the  United  States  from  time  to  time,  in  addition  to  the 
sum  authorized  in  section  one  of  this  Act,  such  additional  amount,  not 
exceeding  $63,945,460  as  may  be  necessary  to  redeem  the  three  per  cent. 
loan  of  nineteen  hundred  and  eight  to  nineteen  hundred  and  eighteen, 
maturing  August  first,  nineteen  hundred  and  eighteen,  and  to  issue  there- 
for bonds  of  the  United  States  in  the  manner  and  under  the  terms  and 
conditions  prescribed  in  section  one  of  this  Act. 

Bonds  Convertible  Into  Higher  Rate. 

Sec.  5.  That  any  series  of  bonds  issued  under  authority  of  sections 
one  and  four  of  this  Act  may,  under  such  terms  and  conditions  as  the 
Secretary  of  the  Treasury  may  prescribe,  be  convertible  into  bonds  bear- 
ing a  higher  rate  of  interest  than  the  rate  at  w4iich  the  same  were  issued 
if  any  subsequent  series  of  bonds  shall  be  issued  at  a  higher  rate  of  in- 
terest before  the  termination  of  the  war  between  the  United  States  and 
the  Imperial  German  Government,  the  date  of  such  termination  to  be 
fixed  by  a  proclamation  of  the  President  of  the  United  States. 

Certificates  of  Indebtedness. 

Sec.  6.  That  in  addition  to  the  bonds  authorized  by  sections  one 
and  four  of  this  Act,  the  Secretary  of  the  Treasury  is  authorized  to  borrow 
from  time  to  time,  on  the  credit  of  the  United  States,  for  the  purposes  of 
this  Act  and  to  meet  public  expenditures  authorized  by  law,  such  sum  or 
sums  as,  in  his  judgment,  may  be  necessary,  and  to  issue  therefor  cer- 
tificates of  indebtedness  at  not  less  than  par  in  such  form  and  subject 
to  such  terms  and  conditions  and  at  such  rate  of  interest,  not  exceeding 
three  and  one-half  per  centum  per  annum,  as  he  may  prescribe;  and  each 
certificate  so  issued  shall  be  payable,  with  the  interest  accrued  thereon. 


144  Supplement  to  Important  Federal  Laws 

at  such  time,  not  exceeding  one  year  from  the  date  of  its  issue,  as  the 
Secretary  of  the  Treasury  may  prescribe.  Certificates  of  indebtedness 
herein  authorized  shall  not  bear  the  circulation  privilege,  and  the  sum 
of  such  certificates  outstanding  shall  at  no  time  exceed  in  the  aggregate 
$2,000,000,000,  and  such  certificates  shall  be  exempt,  both  as  to  principal 
and  interest,  from  all  taxation,  except  estate  or  inheritance  taxes,  imposed 
by  authority  of  the  United  States,  or  its  possessions,  or  by  any  State  or 
local  taxing  authority. 

Deposit  of  Funds. 

Sec.  7.  That  the  Secretary  of  the  Treasury,  in  his  discretion,  is 
hereby  authorized  to  deposit  in  such  banks  and  trust  companies  as  he 
may  designate  the  proceeds,  or  any  part  thereof,  arising  from  the  sale 
of  the  bonds  and  certificates  of  indebtedness  authorized  by  this  Act,  or 
the  bonds  previously  authorized  as  described  in  section  four  of  this  Act, 
and  such  deposits  may  bear  such  rate  of  interest  and  be  subject  to  such 
terms  and  conditions  as  the  Secretary  .of  the  Treasury  may  prescribe: 
Provided,  That  the  amount  so  deposited  shall  not  in  any  case  exceed  the 
amount  withdrawn  from  any  such  bank  or  trust  company  and  invested  in 
such  bonds  or  certificates  of  indebtedness  plus  the  amount  so  invested  by 
such  bank  or  trust  company,  and  such  deposits  shall  be  secured  in  the 
manner  required  for  other  deposits  by  section  fifty-one  hundred  and 
fifty-three.  Revised  Statutes,  and  amendments  thereto:  Provided  fur- 
ther. That  the  provisions  of  section  fifty-one  hundred  and  ninety-one 
of  the  Revised  Statutes,  as  amended  by  the  Federal  Reserve  Act  and  the 
amendments  thereof,  with  reference  to  the  reserves  required  to  be  kept 
by  national  banking  associations  and  other  member  banks  of  the  Federal 
Reserve  System,  shall  not  apply  to  deposits  of  public  moneys  by  the 
United  States  in  designated  depositaries; 

Expenses. 

Sec.  8.  That  in  order  to  pay  ail  necessary  expenses,  including  rent, 
connected  with  any  operations  under  this  Act,  a  sum  not  exceeding  one- 
tenth  of  one  per  centum  of  the  amount  of  bonds  and  one-tenth  of  one 
per  centum  of  the  amount  of  certificates  of  indebtedness  herein  authorized 
is  hereby  appropriated,  or  as  much  thereof  as  may  be  necessary,  out  of 
any  money  in  the  Treasury  not  otherwise  appropriated,  to  be  expended 
as  the  Secretary  of  the  Treasury  may  direct:  Provided,  That,  in  addi- 
tion to  the  reports  now  required  by  law,  the  Secretary  of  the  Treasury 
shall,  on  the  first  Monday  in  December,  nineteen  hundred  and  seventeen, 
and  annually  thereafter,  transmit  to  the  Congress  a  detailed  statement 
of  all  expenditures  under  this  Act. 


Government  Bond  Issues  145 

GOVERNMENT  BOND  ISSUES. 

(Act  of  September  24,  1917.) 
An  Act  to  authorize  an  additional  issue  of  bonds  to  meet  expenditures  for  the 
national    security   and   defense,   and,   for  the    purpose    of   assisting   in   the 
prosecution  of  the  war,  to  extend  additional  credit  to  foreign  Governments, 
and  for  other  purposes. 

Amount  of  Issue. 

Section  1.  That  the  Secretary  of  the  Treasury,  with  the  approval 
of  the  President,  is  hereby  authorized  to  borrow,  from  time  to  time,  on 
the  credit  of  the  United  States  for  the  purposes  of  this  Act,  and  to  meet 
expenditures  authorized  for  the  national  security  and  defense  and  other 
public  purposes  authorized  by  law,  not  exceeding  in  the  aggregate 
$7,538,945,460,  and  to  issue  therefor  bonds  of  the  United  States,  in  addi- 
tion to  the  $2,000,000,000  bonds  already  issued  or  offered  for  subscrip- 
tion under  authority  of  the  Act  approved  April  twenty-fourth,  nineteen 
hundred  and  seventeen,  entitled  "An  Act  to  atithorize  an  issue  of  bonds 
to  meet  expenditures  for  the  national  security  and  defense,  and,  for  the 
purpose  of  assisting  in  the  prosecution  of  the  war,  to  extend  credit  to 
foreign  governments,  and  for  other  purposes" :  Provided,  That  of  this 
sum  $3,063,945,460  shall  be  in  lieu  of  that  amount  of  the  unissued  bonds 
authorized  by  sections  one  and  four  of  the  Act  approved  April  twenty- 
fourth,  nineteen  hundred  and  seventeen,  $225,000,000  shall  be  in  lieu  of 
that  amount  of  the  unissued  bonds  authorized  by  section  thirty-nine  of 
the  Act  approved  August  fifth,  nineteen  hundred  and  nine,  $150,000,000 
shall  be  in  lieu  of  the  unissued  bonds  authorized  by  the  joint  resolution 
approved  March  fourth,  nineteen  hundred  and  seventeen,  and  $100,000,- 
000  shall  be  in  lieu  of  the  unissued  bonds  authorized  by  section  four 
hundred  of  the  Act  approved  March  third,  nineteen  hundred  and  seven- 
teen. 

The  bonds  herein  authorized  shall  be  in  such  form  or  forms  and 
denomination  or  denominations  and  subject  to  such  terms  and  conditions 
of  issue,  conversion,  redemption,  maturities,  payment,  and  rate  or  rates 
of  interest,  not  exceeding  four  per  centum  per  annum,  and  time  or  times 
of  payment  of  interest,  as  the  Secretary  of  the  Treasury  from  time  to 
time  at  or  before  the  issue  thereof  may  prescribe.  The  principal  and 
interest  thereof  shall  be  payable  in  United  States  gold  coin  of  the  present 
standard  of  valtie. 

The  bonds  herein  authorized  shall  from  time  to  time  first  be  offered 
at  not  less  than  par  as  a  popular  loan,  under  such  regulations,  prescribed 
by  the  Secretary  of  the  Treasury  from  time  to  time,  as  will  in  his  opin- 
ion give  the  people  of  the  United  States  as  nearly  as  may  be  an  equal 
opportunity  to  participate  therein,  but  he  may  make  allotment  in  full  upon 
applications  for  smaller  amounts  of  bonds  in  advance  of  any  date  which 
he  may  set  for  the  closing  of  subscriptions  and  may  reject  or  reduce 
allotments  upon  later  applications  and  applications  for  larger  amounts, 

(10) 


146  Supplement  to  Important  Federal  Laws 

and  may  reject  or  reduce  allotments  upon  applications  from  incorporated 
banks  and  trust  companies  for  their  own  account  and  make  allotment 
in  full  or  larger  allotments  to  others,  and  may  establish  a  graduated 
scale  of  allotments,  and  may  from  time  to  time  adopt  any  or  all  of  said 
methods,  should  any  such  action  be  deemed  by  him  to  be  in  the  public 
interest :  Provided,  That  such  reduction  or  increase  of  allotments  of 
such  bonds  shall  be  made  under  general  rules  to  be  prescribed  by  said 
Secretary  and  shall  apply  to  all  subscribers  similarly  situated.  And  any 
portion  of  the  bonds  so  offered  and  not  taken  may  be  otherwise  disposed 
of  by  the  Secretary  of  the  Treasury  in  such  manner  and  at  such  price  or 
prices,  not  less  than  par,  as  he  may  determine. 

Credits  for  Allied  Governments. 

Sec.  2.  That  for  the  purpose  of  more  eft'ectually  providing  for  the 
national  security  and  defense  and  prosecuting  the  war,  the  Secretary  of 
the  Treasury,  with  the  approval  of  the  President,  is  herebv  authorized, 
on  behalf  of  the  United  States,  to  establish  credits  with  the  United 
States  for  any  foreign  governments  then  engaged  in  war  with  the  ene- 
mies of  the  United  States;  and,  to  the  extent  of  the  credits  so  established 
from  time  to  time,  the  Secretary  of  the  Treasury  is  hereby  authorized  to 
purchase,  at  par,  from  such  foreign  governments  respectively  their  sev- 
eral obligations  hereafter  issued,  bearing  such  rate  or  rates  of  interest, 
maturing  at  such  date  or  dates,  not  later  than  the  bonds  of  the  United 
States  then  last  issued  under  the  authority  of  this  Act,  or  of  such  Act 
approved  April  twenty-fourth,  nineteen  hundred  and  seventeen,  and  con- 
taining such  terms  and  conditions  as  the  Secretary  of  the  Treasury  may 
from  time  to  time  determine,  or  to  make  advances  to  or  for  the  account 
of  any  such  foreign  governments  and  to  receive  such  obligations  at  par 
for  the  amount  of  any  such  advances ;  but  the  rate  or  rates  of  interest 
borne  by  any  such  obligations  shall  not  be  less  than  the  highest  rate 
borne  by  any  bonds  of  the  United  States  which,  at  the  time  of  the  acqui- 
sition thereof,  shall  have  been  issued  under  authority  of  said  Act  ap- 
proved April  twenty-fourth,  nineteen  hundred  and  seventeen,  or  of  this 
Act.  and  any  such  obligations  shall  contain  such  provisions  as  the  Secre- 
tary of  the  Treasury  may  from  time  to  time  determine  for  the  conversion 
of  a  proportionate  part  of  such  obligations  into  obligations  bearing  a 
higher  rate  of  interest  if  bonds  of  the  United  States  issued  under  author- 
ity of  this  Act  shall  be  converted  into  other  bonds  of  the  United  States 
bearing  a  higher  rate  of  interest,  but  the  rate  of  interest  in  such  foreign 
obligations  issued  upon  such  conversion  shall  not  be  less  than  the  highest 
rate  of  interest  borne  by  such  bonds  of  the  United  States;  and  the  Sec- 
retary of  the  Treasury  with  the  approval  of  the  President,  is  hereby 
authorized  to  enter  into  such  arrangements  from  time  to  time  with  any 
such  foreign  governments  as  may  be  necessary  or  desirable  for  establish- 
ing such  credits  and  for  the  payment  of  such  obligations  of  foreign  gov- 
ernments before  maturity.  For  the  purposes  of  this  section  there  is  appro- 


Government  Bond  Issues  147 

priated,  out  of  any  money  in  the  Treasury  not  otherwise  appropriated, 
the  sum  of  $4,000,000,000,  and  in  addition  thereto  the  unexpended  bal- 
ance of  the  appropriations  made  by  section  two  of  said  Act  approved 
April  twenty-fourth,  nineteen  hundred  and  seventeen,  or  so  much  thereof 
as  may  be  necessary :  Provided.  That  the  authority  granted  by  this 
section  to  the  Secretary  of  the  Treasury  to  establish  credits  for  foreign 
Governments,  as  aforesaid,  shall  cease  upon  the  termination  of  the  war 
between  the  United  States  and  the  Imperial  German  Government. 

Bonds  of  Allies — Disposition  of. 

Sec.  3.  That  the  Secretary  of  the  Treasury  is  hereby  authorized, 
from  time  to  time,  to  exercise  in  respect  to  any  obligations  of  foreign 
governments  acquired  under  authority  of  this  Act  or  of  said  Act  ap- 
proved April  twenty-fourth,  nineteen  hundred  and  seventeen,  any  privi- 
lege of  conversion  into  obligations  bearing  interest  at  a  higher  rate 
provided  for  in  or  pursuant  to  this  Act  or  said  Act  approved  April 
twenty-fourth,  nineteen  hundred  and  seventeen,  and  to  convert  any  short- 
time  obligations  of  foreign  governments  which  may  have  been  purchased 
under  the  authority  of  this  Act  or  of  said  Act  approved  April  twenty- 
fourth,  nineteen  hundred  and  seventeen,  into  long-time  obligations  of 
such  foreign  government,  respectively,  maturing  not  later  than  the  bonds 
of  the  United  States  then  last  issued  under  the  authority  of  this  Act  or 
of  said  Act  approved  April  twenty-fourth,  nineteen  hundred  and  seven- 
teen, as  the  case  may  be,  and  in  such  form  and  terms  as  the  Secretary  of 
the  Treasury  may  prescribe;  but  the  rate  or  rates  of  interest  borne  by 
any  such  long-time  obligations  at  the  time  of  their  acquisition  shall  not  be 
less  than  the  rate  borne  by  the  short-time  obligations  so  converted  into 
such  long-time  obligations ;  and,  under  such  terms  and  conditions  as  he 
may  from  time  to  time  prescribe,  to  receive  payment,  on  or  before 
maturity,  of  any  obligations  of  such  foreign  governments  acquired  on 
behalf  of  the  United  States  under  authority  of  -this  Act  or  of  said  Act 
approved  April  twenty- fourth,  nineteen  hundred  and  seventeen,  and,  with 
the  approval  of  the  President,  to  sell  any  of  such  obligations  (but  not  at  ' 
less  than  the  purchase  price  with  accrued  interest  unless  otherwise  here- 
after provided  by  law),  and  to  apply  the  proceeds  thereof,  and  any  pay- 
ments so  received  from  foreign  governments  on  account  of  the  principal 
of  their  said  obligations,  to  the  redemption  or  purchase, .  at  not  more - 
than  par  and  accrued  interest,  of  any  bonds  of  the  United  States  issued 
under  authority  of  this  Act  or  of  said  Act  approved  April  twenty-fourth, 
nineteen  hundred  and  seventeen;  and  if  such  bonds  can  not  be  so  re- 
deemed or  purchased  the  Secretary  of  the  Treasury  shall  redeem  or  pur- 
chase any  other  outstanding  interest-bearing  obligations  of  the  United 
States  which  may  at  such  time  be  subject  to  redemption  or  which  can 
be  purchased  at  not  more  than  par  and  accrued  interest. 


148  Supplement  to  Important  Federal  Laws 

Convertibility;  Powers  of  Secretary  of  Treasury. 

Sec.  4.  That  in  connection  with  the  issue  of  any  series  of  bonds 
under  the  authority  of  section  one  of  this  Act  the  Secretary  of  the 
Treasury  may  determine  that  the  bonds  of  such  series  shall  be  con- 
vertible as  provided  in  or  pursuant  to  this  section,  and,  in  any  such  case, 
he  may  make  appropriate  provision  to  that  end  in  offering  for  subscrip- 
tion the  bonds  of  such  series  (hereinafter  called  convertible  bonds).  In 
any  case  of  the  issue  of  a  series  of  convertible  bonds,  if  a  subsequent 
series  of  bonds  (not  including  United  States  certificates  of.  indebtedness, 
war  savings  certificates,  and  other  obligations  maturing  not  more  than 
five  years  from  the  issue  of  such  obligations,  respectively)  bearing  inter- 
est at  a  higher  rate  shall,  under  the  authority  of  this  or  any  other  Act, 
be  issued  by  the  United  States  before  the  termination  of  the  war  between 
the  United  States  and  the  Imperial  German  Government,  then  the  holders 
of  such  convertible  bonds  shall  have  the  privilege,  at  the  option  of  the 
several  holders,  at  any  time  within  such  period,  after  the  pubHc  oft'ering 
of  bonds  of  such  subsequent  series,  and  under  such  rules  and  regulations 
as  the  Secretary  of  the  Treasury  shall  have  prescribed,  of  converting 
their  bonds,  at  par,  into  bonds  bearing  such  higher  rate  of  interest  at 
such  price  not  less  than  par  as  the  Secretary  of  the  Treasury  shall  have 
prescribed.  The  bonds  to  be  issued  upon  such  conversion  under  this 
Act  shall  be  substantially  the  same  in  form  and  terms  as  shall  be  pre- 
scribed by  or  pursuant  to  law  with  respect  to  the  bonds  of  such  subse- 
quent series,  not  only  as  to  interest  rate  but  also  as  to  convertibility  (if 
future  bonds  be  issued  at  a  still  higher  rate  of  interest)  or  nonconverti- 
bility,  and  as  to  exemption  from  taxation,  if  any,  and  in  all  other  re- 
spects, except  that  the  bonds  issued  upon  such  conversion  shall  have  the 
same  dates  of  maturity,  of  principal,  and  of  interest,  and  be  subject  to 
the  same  terms  of  redemption  beforeniaturity,  as  the  bonds  converted ; 
and  such  bonds  shall  be  issued  from  time  to  time  if  and  when  and  to 
the  extent  that  the  privilege  of  conversion  so  conferred  shall  arise  and 
shall  be  exercised.  If  the  privilege  of  conversion  so  conferred  under 
this  Act  shall  once  arise,  and  shall  not  be  exercised  with  respect  to  any 
convertible  bonds  within  the  period  so  prescribed  by  the  Secretary  of  the 
Treasury,  then  such  privilege  shall  terminate  as  to  such  bonds  and  shall 
not  arise  again  though  again  thereafter  bonds  be  issued  bearing  interest 
at  a  higher  rate  or  rates. 

Certificates  of  Indebtedness. 

Sec.  5.  That  in  addition  to  the  bonds  authorized  by  section  one  of 
this  Act  the  Secretary  of  the  Treasury  is  authorized  to  borrow  from 
time  to  time,  on  the  credit  of  the  United  States,  for  the  purposes  of  this 
Act  and  to  meet  public  expenditures  authorized  by  law,  such  sum  or  sums 
as  in  his  judgment  may  be  necessary,  and  to  issue  therefor  certificates  of 
indebtedness  of  the  United  States  at  not  less  than  par  in  such  form  or 


Government  Bond  Issues  149 

forms  and  subject  to  such  terms  and  conditions  and  at  such  rate  or  rates 
of  interest  as  he  may  prescribe ;  and  each  certificate  so  issued  shall  be 
payable  at  such  time  not  exceeding  one  year  from  the  date  of  its  issue, 
and  may  be  redeemable  before  maturity  upon  such  terms  and  conditions, 
and  the  interest  accruing  thereon  shall  be  payable  at  such  time  or  times 
as  the  Secretary  of  the  Treasury  may  prescribe.  The  sum  of  such  cer- 
tificates outstanding  hereunder  and  under  section  six  of  said  Act  ap- 
proved April  twenty-fourth,  nineteen  hundred  and  seventeen,  shall  not 
at  any  one  time  exceed  in  the  aggregate  $4,000,000,000. 

War  Saving  Certificates. 

Sec.  6.  That  in  addition  to  the  bonds  authorized  by  section  one  of 
this  Act  and  the  certificates  of  indebtedness  authorized  by  section  five 
of  this  Act,  the  Secretary  of  the  Treasury  is  authorized  to  borrow  from 
time  to  time,  on  the  credit  of  the  United  States,  for  the  purposes  of  this 
Act  and  to  meet  public  expenditures  authorized  by  law,  such  sum  or  sums 
as  in  his  judgment  may  be  necessary,  and  to  issue  therefor,  at  such  price 
or  prices  and  upon  such  terms  and  conditions  as  he  may  determine, 
war-savings  certificates  of  the  United  States  on  which  interest  to  matur- 
ity may  be  discounted  in  advance  at  sitch  rate  or  rates  and  computed  in 
such  manner  as  he  may  prescribe.  Such  war-savings  certificates  shall 
be  in  such  form  or  forms  and  subject  to  such  terms  and  conditions,  and 
may  have  such  provisions  for  payment  thereof  before  maturity,  as  the 
Secretary  of  the  Treasury  may  prescribe.  Each  war-saving  certificate 
so  issued  shall  be  payable  at  such  time,  not  exceeding  five  years  from 
the  date  of  its  issue,  and  may  be  redeemable  before  maturity,  upon  such 
terms  and  conditions  as  the  Secretary  of  the  Treasury  may  prescribe. 
The  sum  of  such  war-savings  certificates  outstanding  shall  not  at  any 
one  time  exceed  in  the  aggregate  $2,000,000,000.  The  amount  of  war- 
savings  certificates  sold  to  any  one  person  at  any  one  time  shall  not 
exceed  $100,  and  it  shall  not  be  lawful  for  any  one  person  at  any  one 
time  to  hold  war-savings  certificates  to  an  aggregate  amount  exceeding 
$1,000.  The  Secretary  of  the  Treasury  may,  under  such  regulations  and 
upon  such  terms  and  conditions  as  he  may  prescribe,  issue,  or  cause  to  be 
issued,  stamps  to  evidence  payments  for  or  on  account  of  such  certifi- 
cates. 

Taxation  of  Bonds. 

Sec.  7.  That  none  of  the  bonds  authorized  by  section  one,  nor  of 
the  certificates  authorized  by  section  five,  or  by  section  six,  of  this  Act, 
shall  bear  the  circulation  privilege.  All  such  bonds  and  certificates  shall 
be  exempt,  both  as  to  principal  and  interest  from  all  taxation  now  or 
hereafter  imposed  by  the  United  States,  any  State,  or  any  of  the  posses- 
sions of  the  United  States,  or  by  any  local  taxing  authority,  except  (a) 
estate  or  inheritance  taxes,  and  (b)  graduated  additional  income  taxes, 
commonly  known  as  surtaxes,  and  excess  profits  and  war-profits  taxes, 


150  Supplement  to  Important  Federal  Laws 

now  or  hereafter  imposed  by  the  United  States,  upon  the  income  or 
profits  of  individuals,  partnerships,  associations,  or  corporations.  The 
interest  on  an  amount  of  such  bonds  and  certificates  the  principal  of 
which  does  not  exceed  in  the  aggregate  $5,000,  owned  by  any  individual, 
partnership,  association,  or  corporation,  shall  be  exempt  from  the  taxes 
provided  for  in  subdivision  (b)  of  this  section. 

Deposit  of  Proceeds. 

Sec.  8.  That  the  Secretary  of  the  Treasury,  in  his  discretion,  is 
hereby  authorized  to  deposit,  in  such  incorporated  banks  and  trust  com- 
panies as  he  may  designate,  the  proceeds,  or  any  part  thereof,  arising 
from  the  sale  of  the  bonds  and  certificates  of  indebtedness  and  war- 
savings  certificates  authorized  by  this  Act,  and  such  deposits  shall  bear 
such  rate  or  rates  of  interest,  and  shall  be  secured  in  such  manner,  and 
shall  be  made  upon  and  subject  to  such  terms  and  conditions,  as  the 
Secretary  of  the  Treasury  may  from  time  to  time  prescribe :  Provided, 
That  the  provisions  of  section  fifty-one  hundred  and  ninety-one  of  the 
Revised  Statutes,  as  amended  by  the  Federal  Reserve  Act,  and  the 
amendments  thereof,  with  reference  to  the  reserves  required  to  be  kept 
by  national  banking  associations  and  other  member  banks  of  the  Federal 
Reserve  System,  shall  not  apply  to  deposits  of  public  moneys  by  the 
United  States  in  designated  depositaries.  The  Secretary^  of  the  Treasury 
is  hereby  authorized  to  designate  depositaries  in  foreign  countries,  with 
which  shall  be  deposited  all  public  money  which  it  may  be  necessary  or 
desirable  to  have  on  deposit  in  such  countries  to  provide  for  current  dis- 
bursements to  the  military  and  naval  forces  of  the  United  States  and  to 
the  diplomatic  and  consular  and  other  representatives  of  the  United 
States  in  and  about  such  countries  until  six  months  after  the  termination 
of  the  war  between  the  United  States  and  the  Imperial  German  Govern- 
ment, and  to  prescribe  the  terms  and  conditions  of  such  deposits. 

Postal  Departments — Duties  of. 

Sec.  9.  That  in*  connection -with  the  operations  of  advertising,  sell- 
ing, and  delivering  any  bonds,  certificates  of  indebtedness,  or  war-savings 
certificates  of  the  United  States  provided  for  in  this  Act,  the  Postmaster 
General,  under  such  regulations  as  he  may  prescribe,  shall  require,  at 
the  request  of  the  Secretary  of  the  Treasury,  the  employees  of  the  Post 
Office  Department  and  of  the  Postal  Service  to  perform  such  services 
as  may  be  necessary,  desirable,  or  practicable,  without  extra  compensa- 
tion. 

Appropriation. 

Sec.  10.  That  in  order  to  pay  all  necessary  expenses,  including 
rent,  connected  with  any  operations  under  this  Act,  except  under  section 
twelve,  a  sum  not  exceeding  one-fifth  of  one  per  centum  of  the  amount 
of  bonds  and  war-savings  certificates  and  one-tenth  of  one  per  centum 
of  the  amount  of  certificates  of  indebtedness  herein  authorized  is  hereby 


Government  Bond  Issues  151 

appropriated,  or  as  much  thereof  as  may  be  necessary,  out  of  any  money 
in  the  Treasury  not  otherwise  appropriated,  to  be  expended  as  the 
Secretary  of  the  Treasury  may  direct :  Provided,  That  in  addition  to 
the  reports  now  required  by  law,  the  Secretary  of  the  Treasury  shaU, 
on  the  first  Monday  in  December,  nineteen  hundred  and  eighteen,  and 
annually  thereafter,  transmit  to  the  Congress  a  detailed  statement  of  all 
expenditures  under  this  Act. 

Conversion  Bonds. 

Sec.  11.  That  bonds  shall  not  be  issued  under  authority  of  sections 
one  and  four  of  said  Act  approved  April  twenty-fourth,  nineteen  hun- 
dred and  seventeen,  in  addition  to  the  $2,000,000,000  thereof  heretofore 
issued  or  offered  for  subscription,  but  bonds  shall  be  issued  from  time  to 
time  upon  the  interchange  of  such  bonds  of  different  denominations  and 
of  coupon  and  registered  bonds  and  upon  the  transfer  of  registered  bonds, 
under  such  rules  and  regulations  as  the  Secretary  of  the  Treasury  shall 
prescribe,  and,  if  and  to  the  extent  that  the  privilege  of  conversion  pro- 
vided for  in  such  bonds  shall  arise  and  shall  be  exercised,  in  accordance 
with  such  provision  for  such  conversion.  No  bonds  shall  be  issued  under 
authority  of  the  several  sections  of  Acts  and  of  the  resolution  mentioned 
in  said  section  four  of  the  Act  approved  April  twenty-fourth,  nineteen 
hundred  and  seventeen  ;  but  the  proceeds  of  the  bonds  herein  authorized 
may  be  used  for  purposes  mentioned  in  said  section  four  of  the  Act  of 
April  twenty-fourth,  nineteen  hundred  and  seventeen,  and  as  set  forth 
in  the  Acts  therein  enumerated. 

Certificates  of  Indebtedness  Amendment. 

That  section  two  of  an  Act  of  Congress  approved  February  fourth, 
nineteen  hundred  and  ten,  entitled  "An  Act  prescribing  certain  provisions 
and  conditions  under  which  bonds  and  certificates  of -indebtedness  of  the 
United  States  may  be  issued,  and  for  other  purposes,"  is  hereby  amended 
to  read  as  follows : 

"Sec.  2.  That  any  certificates  of  indebtedness  hereafter  issued  shall 
be  exempt  from  all  taxes  or  duties  of  the  United  States  (but,  in  the 
case  of  certificates  issued  after  September  first,  nineteen  hundred  and 
seventeen,  onlv  if  and  to  the  extent  provided  in  connection  with  the 
issue  thereof),  as  well  as  from  taxation  in  any  form  by  or  under 
State,  municipal,  or  local  authority ;  and  that  a  sum  not  exceeding  one- 
tenth  of  one  per  centum  of  the  amount  of  any  certificates  of  indebted- 
ness issued  is  hereby  appropriated,  out  of  any  money  in  the  Treasury  not 
otherwise  appropriated,  to  pay  the  expenses  of  preparing,  advertising, 
and  issuing  the  same." 

Audit  of  Accounts. 

Sec.  12.  That  the  Secretary  of  the  Treasury  is  authorized  during 
the  war,  whenever  it  shall  appear  that  the  public  interests  require  that 
anv  of  the   accounts  of  the   ^lilitarv   Establishment  be  audited   at   anv 


152  Supplement  to  Important  Federal  Laws 

place  other  than  the  seat  of  Government,  to  direct  the  Comptroller  of 
the  Treasury  and  the  Auditor  for  the  War  Department  to  exercise,  either 
in  person  or  through  assistants,  the  powers  and  perform  the  duties  of 
their  offices  at  any  place  or  places  away  from  the  seat  of  Government 
in  the  manner  that  is  or  may  be  rjequired  by  law  -at  the  seat  of  Govern- 
ment and  in  accordance  with  the  provisions  of  this  section. 

(a)  That  when  the  Secretary  of  the  Treasury  shall  exercise  the 
authority  herein  referred  to,  the  powers  and  duties  of  the  said  comp- 
troller and  auditor,  under  and  pursuant  to  the  provisions  of  the  Act  of 
July  thirty-first,  eighteen  hundred  and  ninety-four,  and  all  other  laws 
conferring  jurisdiction  upon  those  officers,  shall  be  exercised  and  per- 
formed in  the  same  manner  as  nearly  as  practicable  and  with  the  same 
effect  away  from  the  seat  of  Government  as  they  are  now  exercised  and 
performed  and  have  effect  at  the  seat  of  Government,  and  decisions 
authorized  by  law  to  be  rendered  by  the  comptroller  at  the  request  of 
disbursing  officers  may  be  rendered  with  the  same  eft'ect  by  such  assist- 
ants as  may  be  authorized  by  him  to  perform  that  duty. 

(b)  That  when  pursuant  to  this  section  the  said  comptroller  and 
auditor  shall  perform  their  duties  at  a  place  in  a  foreign  country,  the 
balances  arising  upon  the  settlement  of  accounts  and  claims  of  the  Mili- 
tary Establishment  ^hall  be  certified  by  the, auditor  to  the  Division  of 
Bookkeeping  and  Warrants  of  the  Treasury  Department  as  now  pro- 
vided for  the  certification  of  balances  by  said  auditor  in  Washington, 
and  the  balances  so  found  due  shall  be  final  and  conclusive  upon  all 
branches  of  the  Government,  except  that  any  person  whose  account  has 
been  settled  or  the  commanding  officer  of  the  Army  abroad,  or  the  comp- 
troller may  obtain  a  revision  of  such  settlement  by  the  comptroller  upon 
application  therefor  within  three  months,  the  decision  to  be  likewise  final 
and  conclusive  and  the  differences  arising  upon  such  revision  to  be  certi- 
fied to  and  stated  by  the  auditor  as  now  provided  by  law :  Provided, 
That  certificates  of  balances  due  may  be  transmitted  to  and  |)aid  by  the 
proper  disbursing  officer  abroad  instead  of  by  warrant :  Provided,  fur- 
ther, That  any  person  whose  account  has  been  settled,  or  the  Secretary 
of  W^ar,  may  obtain  a  reopening  and  review  o-f  any  settlement  made 
pursuant  to  this  section  upon  application  to  the  Comptroller  of  the  Treas- 
ury in  Washington  within  one  year  after  the  close  of  the  war,  and  the 
action  of  the  comptroller  thereon  shall  be  final  and  conclusive  in  the 
same  manner  as  herein  provided  in  the  case  of  a  balance  found  due  by 
the  auditor. 

(c)  That  the  comptroller  and  auditor  shall  preserve  the  accounts, 
and  the  vouchers  and  papers  connected  therewith,  and  the  files  of  their 
offices  in  the  foreign  country  and  transmit  them  to  Washington  within 
six  months  after  the  close  of  the  war  and  at  such  earlier  time  as  may 
be  directed  by  the  Secretary  of  the  Treasury  as  to  any  or  all  accounts, 
vouchers,  papers,  and  files. 


Government  Bond  Issues  153 

(d)  That  the  Secretary  of  the  Treasury  is  authorized  to  appoint 
an  assistant  comptroller  and  an  assistant  auditor  and  to  fix  their  com- 
pensation, and  to  designate  from  among  the  persons  to  be  employed 
hereunder  one  or  more  to  act  in  the  absence  or  disability  of  such  assist- 
ant comptroller  and  assistant  auditor.  He  shall  also  prescribe  the  num- 
ber and  maximum  compensation  to  be  paid  to  agents,  accountants,  clerks, 
translators,  interpreters,  and  other  persons  who  may  be  employed  in  the 
work  under  this  section  by  the  comptroller  and  auditor.  The  assistant 
comptroller  and  assistant  auditor  shall  have  full  power  to  perform  in  a 
foreign  country  all  the  duties  with  reference  to  the  settlement  there  of 
the  accounts  of  the  Military  Establishment  that  the  comptroller  and 
auditor  now  have  at  the  seat  of  Government  and  in  foreign  countries 
under  the  provisions  of  this  section,  and  shall  perform  such  duties  in 
accordance  with  the  instructions  received  from  and  rules  and  regulations 
made  by  the  comptroller  and  auditor.  Such  persons  as  are  residing  in  a 
foreign  country  when  first  employed  hereunder  shall  not  be  required  to 
take  an  oath  of  office  or  be  required  to  be  employed  pursuant  to  the  laws, 
rules,  and  regulations  relating  to  the  classified  civil  service,  nor  shall 
they  be  reimbursed  for  subsistence  expenses  at  their  post  of  duty  or  for 
expenses  in  traveling  to  or  from  the  United  States. 

(e)  That  it  shall  be  the  duty  of  all  contracting,  purchasing,  and 
disbursing  officers  to  allow  any  representative  of  the  comptroller  or 
auditor  to  examine  all  books,  records,  and  papers  in  any  way  connected 
with  the  receipt,  disbursement,  or  disposal  of  public  money,  and  to 
render  such  accounts  and  at  such  time  as  may  be  required  by  the  comp- 
troller. No  administrative  examination  by  the  War  Department  shall 
be  required  of  accounts  rendered  and  settled  abroad,  and  the  time  within 
which  these  accounts  shall  be  rendered  by  disbursing  officers  shall  be 
prescribed  by  the  comptroller,  who  shall  have  power  to  waive  any  delin- 
quency as  to  time  or  form  in  the  rendition  of  these  accounts.  All  con- 
tracts connected  with  accounts  to  be  settled  by  the  auditor  abroad  shall 
be  filed  in  his  office  there. 

(f)  That  any  person  appointed  or  employed  under  the  provisioi^s 
of  this  section  who  at  the  time  is  in  the  service  of  the  United  States 
shall,  upon  termination  of  his  services  hereunder,  be  restored  to  the 
position  held  by  him  at  the  time  of  such  employment.  No  provision 
of  existing  law  shall  be  construed  to  prevent  the  payment  of  money 
appropriated  for  the  salary  of  any  Government  officer  or  employee 
at  the  seat  of  Government  who  may  be  detailed  to  perform  duty 
under  this  section  outside  the  District  of  Columbia,  and  such  details 
are  hereby  authorized. 

(g)  That  for  the  payment  of  the  expenses  in  carrying  into  effect 
this  section,  including  traveling  expenses,  per  diem  of  $4  in  lieu  of 
subsistence  for  officers  and  employees  absent  from  Washington,  rent, 
cablegrams    and    telegrams,    printing,    law    books,    books    of    reference, 


154  Supplement  to  Important  Federal  Laws 

periodicals,  stationery,  office  equipment  and  exchange  thereof,  suppHes, 
and  all  other  necessary  expenses,  there  is  hereby  appropriated,  out  of 
any  money  in  the  Treasury  not  otherwise  appropriated,  for  the  fiscal 
year  ending  June  thirtieth,  nineteen  hundred  and  eighteen,  the  sum  of 
$300,000,  of  which  not  exceeding  $25,000  may  be  expended  at  Washing- 
ton for  the  purposes  of  this  section,  but  no  officer  or  employee  shall 
receive  for  duty  in  Washington  any  compensation  other  than  his  regular 
salary. 

(h)  That  the  Secretary  of  the  Treasury  may  designate  not  more 
than  two  persons  employed  hereunder  to  act  as  special  disbursing  agents 
of  the  appropriation  herein,  to  serve  under  the  direction  of  the  comp- 
troller, and  their  accounts  shall  be  rendered  to  and  settled  by  the  account- 
ing officers  of  the  Treasury  in  WashingtoiL  All  persons  employed  under 
this  section  shall  perform  such  additional  duties  as  the  Secretary  of  the 
Treasury  may  direct. 

(i)  That  the  comptroller  and  the  auditor,  and  such  persons  as  may 
be  authorized  in  writing  by  either  of  them,  may  administer  oaths  to 
American  citizens  in  respect  to  any  matter  within  the  jurisdicton  of 
either  of  said  officers  and  certify  the  official  character,  when  known,  of 
any  foreign  officer  whose  jurat  or  certificate  may  be  necessary  on  any 
paper  to  be  filed  with  them. 

(j)  That  persons  engaged  in  work  abroad  under  the  provisions  of 
this  section  may  purchase  from  Army  stores  for  cash  and  at  cost  price 
for  their  own  use  such  articles  or  stores  as  may  be  sold  to  officers  and 
enlisted  men. 

(k)  That  the  authority  granted  under  this  section  shall  terminate 
six  months  after  the  close  of  the  war  or  at  such  earlier  date  as  the 
Secretary  of  the  Treasury  may  direct,  and  it  shall  be  the  duty  of  the 
comptroller  and  auditor  to  make  such  reports  as  the  Secretary  of  the 
Treasury  may  require  of  the  expenditures  made  and  work  done  pursuant 
to  this  section,  and  such  reports  shall  be  transmitted  to  the  Congress  at 
such  time  as  he  may  decide  to  be  compatible  wnth  the  public  interest. 

(1)  No  officers,  employees,  or  agents  appointed  or  employed  under 
this  section  shall  receive  more  salary  or  compensation  than  like  officers, 
employees,  or  agents  of  the  Government  now  receive. 

Sec.  13.  That  for  the  purposes  of  this  Act  the  date  of  the  termi- 
nation of  the  war  between  the  United  States  and  the  Imperial  German 
Government  shall  be  fixed  by  proclamation  of  the  President  of  the 
United  States. 


Citizenship — National  Bank  Act  155 

CITIZENSHIP. 

(Act  of  October  5,  1917.) 

An  Act  defining  the  status  of  citizens  of  thie  United  States  who  have  entered 
the  military  or  naval  services  of  certain  countries  during  the  existing  war 
in  Europe. 

Section  1.  That  any  person  formerly  an  American  citizen,  who 
may  be  deemed  to  have  expatriated  himself  under  the  provisions  of  the 
first  paragraph  of  section  two  of  the  Act  approved  March  second,  nine- 
teen hundred  and  seven,  entitled  "An  Act  in  reference  to  the  expatriation 
of  citizens  and  their  protection  abroad,"  by  taking,  since  August  first, 
nineteen  hundred  and  fourteen,  an  oath  of  allegiance  to  any  foreign 
State  engaged  in  war  with  a  country  with  which  the  United  States  is 
at  war,  and  who  took  such  oath  in  order  to  be  enabled  to  enlist  in  the 
armed  forces  of  such  foreign  State,  and  who  actually  enlisted  in  such 
armed  forces,  and  who  has  been  or  may  be  duly  and  honorably  dis- 
charged from  such  armed  forces,  may,  upon  complying  with  the  provi- 
sions, of  this  Act,  reassume  and  acquire  the  character  and  privileges  of  a 
citizen  of  the  United  States :  Provided,  however.  That  no  obligation  in 
the  way  of  pensions  or  other  grants  because  of  service  in  the  army  or 
navy  of  any  other  country,  or  disabilities  incident  thereto,  shall  accrue 
to  the  United  States. 

Any  such  person  who  desires  so  to  reacquire  and  reassume  the  char- 
acter and  privileges  of  a  citizen  of  the  United  States  shall,  if  abroad, 
present  himself  before  a  consular  officer  of  the  United  States,  or,  if  in  the 
United  States,  before  any  court  authorized  by  law  to  confer  American 
citizenship  upon  aliens,  shall  offer  satisfactory  evidence  that  he  comes 
within  the  terms  of  this  x*\ct,  and  shall  take  an  oath  declaring  his  alle- 
giance to  the  United  States  and  agreeing  to  support  the  Constitution 
thereof  and  abjuring  and  disclaiming  allegiance  to  such  foreign  State 
and  to  every  foreign  prince,  potentate,  State,  or  sovereignty.  The  con- 
sular officer  or  court  officer  having  jurisdiction  shall  thereupon  issue  in 
triplicate  a  certificate  of  American  citizenship,  giving  one  copy  to  the 
applicant,  retaining  one  copy  for  his  files,  and  forwarding  one  copy  to 
the  Secretary  of  Labor.  Thereafter  such  person  shall  in  all  respects  be 
deemed  to  have  acquired  the  character  and  privileges  of  a  citizen  of  the 
United  States.  The  Secretary  of  State  and  the  Secretary  of  Labor  shall 
jointly  issue  regulations  for  the  proper  administration  of  this  Act. 


NATIONAL  BANK  ACT. 

(Amendment  of  October  5,  1917.) 
An  Act  to  amend  the  laws  relating  to  the  denominations  of  circulating'  notes 
by  national  banks  and  to  permit  the  issuance  of  notes  of  small  denomina- 
tions, and  for  other  purposes. 

Section  L     That  the  Act  of  June  third,  eighteen  hundred  and  six- 
ty-four.  Revised   Statutes,   section   fifty-one   hundred   and   seventy-five, 


156  Supplement  to  Important  Federal  Laws 

which  prohibits  national  banks  from  being  furnished  with  notes  of  less 
denomination  than  $5,  be,  and  it  is  hereby,  repealed. 

Sec.  2.  That  that  part  of  the  Act  of  March  fourteenth,  nineteen 
hundred,  which  provides  "that  no  national  banking  association  shall,  after 
the  passage  of  this  Act,  be  entitled  to  receive  from  the  Comptroller  of 
the  Currency,  or  to  issue  or  reissue,  or  place  in  circulation  more  than 
one-third  in  amount  of  its  circulating  notes  of  the  denomination  of  $5,"' 
be,  and  it  is  hereby,  repealed. 

Sec.  3.  That  from  and  after  the  passage  of  this  Act  any  national 
banking  association,  upon  compliance  with  the  provisions  of  law  appli- 
cable thereto,  shall  be  entitled  to  receive  from  the  Comptroller  of  Cur- 
rency, or  to  issue  or  reissue,  or  place  in  circulation  notes  in  denomina- 
tions of  $1,  $2,  $5,  $10,  $20,  $50,  and  $100  in  such  proportion  as  to  each 
of  said  denominations  as  the  bank  may  elect :  Provided,  however.  That 
no  bank  shall  receive  or  have  in  circulation  at  any  one  time  more  than 
$25,000  in  notes  of  the  denominations  of  $1  and  $2. 

Sec.  4.  That  all  Acts  or  parts  of  Acts  which  are  inconsistent  with 
this  Act  are  hereby  repealed. 


INTERSTATE  COMMERCE. 
(Amendment  of  May  29,  1917.) 

An  Act  to  amend  an  act  entitled  "An  Act  to  regulate  commerce,"  as  amended, 
in  respect  of  car  service,  and  for  other  purposes. 

Section  1.  That  section  one  of  the  Act  entitled  "An  Act  to  regu- 
late commerce,"  approved  February  twenty-fourth,  eighteen  hundred  and 
eighty-seven,  as  heretofore  amended,  is  further  amended  by  adding  there- 
to the  following:^ 

The  term  "car  service"  as  used  in  this  Act  shall  include  the  move- 
ment, distribution,  exchange,  interchange,  and  return  of  cars  used  in  the 
transportation  of  property  by  any  carrier  subject  to  the  provisions  of  this. 
Act. 

It  shall  be  the  duty  of  every  such  carrier  to  establish,  observe,  and 
enforce  just  and  reasonable  rules,  regulations,  and  practices  with  respect 
to  car  service,  and  every  unjust  and  unreasonable  rule,  regulation,  and 
practice  with  respect  to  car  service  is  prohibited  and  declared  to  be 
unlawful. 

The  Interstate  Commerce  Commission  is  hereby  authorized  by  gen- 
eral or  special  orders  to  require  all  carriers  subject  to  the  provisions  of 
the  Act,  or  any  of  them,  to  file  with  it  from  time  to  time  their  rules  and' 
regulations  with  respect  to  car  service,  and  the  commission  may,  in  its 
discretion,  direct  that  the  said  rules  and  regulations  shall  be  incorporated 
in  their  schedules  showing  rates,  fares  and  charges  for  transportation 
and  be  subject  to  any  or  all  of  the  provisions  of  the  Act  relating  thereto.. 
1  Important  Federal  Laws,  pp.  468-472. 


Interstate  Commerce  157 

The  commission  shall,  after  hearing,  on  a  complaint  or  upon  its 
own  initiative  without  complaint,  establish  reasonable  rules,  regulations, 
and  practices  with  respect  to  car  service,  including  the  classification  of 
cars,  compensation  to  be  paid  for  the  use  of  any  car  not  owned  by  any 
such  common  carrier  and  the  penalties  or  other  sanctions  for  nonob- 
servance  of  such  rules. 

Whenever  the  commission  shall  be  of  opinion  that  necessity  exists 
for  immediate  action  with  respect  to  the  supply  or  use  of  cars  for  trans- 
portation of  property,  the  commission  shall  have,  and  it  is  hereby  given, 
authority,  either  upon  complaint  or  upon  its  own  initiative  without  com- 
plaint, at  once,  if  it  so  orders,  without  answer  or  other  formal  pleading 
by  the  interested  carrier  or  carriers,  and  with  or  without  notice,  hearing, 
■or  the  making  or  filing  of  a  report,  according  as  the  commission  may- 
determine,  to  suspend  the  operation  of  any  or  all  rules,  regulations,  or 
practices  then  established  with  respect  to  car  service  for  such  time  as 
may  be  determined  by  the  commission,  and  also  authority  to  make  such 
just  and  reasonable  directions  with  respect  to  car  service  during  such 
time  as  in  its  opinion  will  best  promote  car  service  in  the  interest  of  the 
public  and  the  commerce  of  the  people. 

The  directions  of  the  commission  as  to  car  service  may  be  made 
through  and  by  such  agents  or  agencies  as  the  commission  shall  designate 
and  appoint  for  that  purpose. 

In  case  of  failure  or  refusal  on  the  part  of  any  carrier,  receiver,  or 
trustee  to  comply  with  any  direction  or  order  with  respect  to  car  service, 
such  carrier,  receiver,  or  trustee  shall  be  liable  to  a  penalty  of  not  less 
than  $100  nor  more  than  $500  for  each  such  offense  and  $50  for  each  and 
every  day  of  the  continuance  of  such  offense,  which  shall  accrue  to  the 
United  States  and  may  be  recovered  in  a  civil  action  brought  by  the 
United  States. 


INTERSTATE  COMMERCE. 

(Amendment  of  August  9,  1917.) 

An  Act  to  amend  the   act  to  regulate  commerce,  as   amended,  and   for  other 
purposes. 

Section  1.  That  section  twenty- four  of  an  Act  entitled  "An  z\ct 
to  regulate  commerce,"  approved  February  fourth,  eighteen  hundred  and 
eighty-seven,  as  amended,  be  further  amended  to  read  as  follows:^ 

"Sec.  24.  That  the  Interstate  Commerce  Commission  is  hereby  en- 
larged so  as  to  consist  of  nine  members,  with  terms  of  seven  years,  and 
each  shall  receive  $10,000  compensation  annually.  The  qualifications  of 
the  members  and  the  manner  of  the  payment  of  their  salaries  shall  be 
as  already  provided  by  law.  Such  enlargement  of  the  commission  shall 
be  accomplished  through  appointment  by  the  President,  by  and  with  the 

iLapp's  Important  Federal  Laws,  pp.   503-.504. 


158  Supplement  to  Important  Federal  Laws 

advice  and  consent  of  the  Senate,  of  two  additional  Interstate  Commerce 
Commissioners,  one  for  a  term  expiring  December  thirty-first,  nineteen 
hundred  and  twenty-one,  and  one  for  a  term  expiring  December  thirty- 
first,  nineteen  hundred  and  twenty-two.  The  terms  of  the  present  com- 
missioners, or  of  any  successor  appointed  to  fill  a  vancancy  caused  by  the 
death  or  resignation  of  any  of  the  present  commissioners,  shall  expire  as 
heretofore  provided  by  law.  Their  successors  and  the  successors  of  the 
additional  commissioners  herein  provided  for  shall  be  appointed  for  the 
full  term  of  seven  years,  except  that  any  person  appointed  to  fill  a  vacancy 
shall  be  appointed  only  for  the  unexpired  term  of  the  commissioner 
whom  he  shall  succeed.  Not  more  than  five  commissioners  shall  be  ap- 
pointed from  the  same  political  party." 

Sec.  2.  That  section  seventeen  of  said  Act,  as  amended,  be  further 
amended  to  read  as  follows  :^ 

"Sec.  17.  That  the  commission  may  conduct  its  proceedings  in  such 
manner  as  will  best  conduce  to  the  proper  dispatch  of  business  and  to 
the  ends  of  justice.  The  commission  shall  have  an  official  seal,  which 
shall  be  judicially  noticed.  Any  member  of  the  commission  may  admin- 
ister oaths  and  affirmations  and  sign  subpoenas.  A  majority  of  the  com- 
mission shall  constitute  a  quorum  for  the  transaction  of  business,  except 
as  may  be  otherwise  herein  provided,  but  no  commissioner  shall  partici- 
pate in  any  hearing  or  proceeding  in  which  he  has  any  pecuniar}-  interest. 
The  commission  may,  from  time  to  time,  make  or  amend  such  general 
rules  or  orders  as  may  be  requisite  for  the  order  and  regulation  of  pro- 
ceedings before  it,  or  before  any  division  of  the  commission,  including 
forms  of  notices  and  the  service  thereof,  which  shall  conform,  as  nearly 
as  may  be,  to  those  in  use  in  the  courts  of  the  United  States.  Any  party 
may  appear  before  the  commission  or  any  division  thereof  and  be  heard 
in  person  or  by  attorney.  Every  vote  and  official  act  of  the  commission, 
or  of  any  division  thereof,  shall  be  entered  of  record,  and  its  proceedings 
shall  be  public  upon  the  request  of  any  party  interested. 

"The  commission  is  hereby  authorized  by  its  order  to  divide  the 
members  thereof  into  as  many  divisions  as  it  may  deem  necessary,  which 
may  be  changed  from  time  to  time.  Such  divisions  shall  be  denomi- 
nated, respectively,  division  one,  division  two,  and  so  forth.  Any  com- 
missioner may  be  assigned  to  and  may  serve  upon  such  division  or  divi- 
sions as  the  commission  may  direct,  and  the  senior  in  service  of  the  com-, 
missioners- constituting  any  of  said  divisions  shall  act  as  chairman  thereof. 
In  case  of  vacancy  in  any  division,  or  of  absence  or  inability  to  serve 
thereon  of  any  commissioner  thereto  assigned,  the  chairman  of  the  com-- 
mission,  or  any  commissioner  designated  by  him  for  that  purpose,  may 
temporarily  serve  on  said  division  until  the  commission  shall  otherwise 
order. 

"The  commission  may  by  order  direct  that  any  of  its  work,  business, 
2Lapp's  Important  Federal  Laws,  p.  492. 


Interstate  Commerce  159 

or  functions  arising  under  this  Act,  or  under  any  Act  amendatory  thereof, 
or  supplemental  thereto,  or  under  any  amendment  which  may  be  made 
to  any  of  said  Acts,  or  under  any  other  Act  or  joint  resolution  which  has 
been  or  may  hereafter  be  approved,  or  in  respect  of  any  matter  which  has 
been  or  may  be  referred  to  the  commission  by  Congress  or  by  either 
branch  thereof,  be  assigned  or  referred  to  any  of  said  divisions  for 
action  thereon,  and  may  by  order  at  any  time  amend,  modify,  supple- 
ment, or  rescind  any  such  direction.  All  such  orders  shall  take  effect 
forthwith  and  remain  in  effect  until  otherwise  ordered  by  the  commission. 

"In  conformity  with  and  subject  to  the  order  or  orders  of  the  com- 
mission in  the  premises,  each  division  so  constituted  shall  have  power 
and  authority  by  a  majority  thereof  to  hear  and  determine,  order, 
certify,  report,  or  otherwise  act  as  to  any  of  said  work,  business,  or 
functions  so  assigned  or  referred  to  it  for  action  by  the  commission,  and 
in  respect  thereof  the  division  shall  have  all  the  jurisdiction  and  powers 
now  or  then  conferred  by  law  upon  the  commission,  and  be  subject  to 
the  same  duties  and  obligations.  Any  order,  decision,  or  report  made 
or  other  action  taken  by  any  of  said  divisions  in  respect  of  any  matters 
so  assigned  or  referred  to  it  shall  have  the  same  force  and  effect,  and 
may  be  made,  evidenced,  and  enforced  in  the  same  manner  as  if  made,  or 
taken  by  the  commission,  subject  to  rehearing  by  the  commission,  as 
provided  in  section  sixteen-a  hereof  for  rehearing  cases  decided  by  the 
commission.  The  secretary  and  seal  of  the  commission  shall  be  the 
secretary  and  seal  of  each  division  thereof. 

"In  all  proceedings  before  any  such  divisions  relating  to  the  reason- 
ableness of  rates  or  to  alleged  discriminations  not  less  than  three  mem- 
bers shall  participate  in  the  consideration  and  decision ;  and  in  lal  proceed- 
ings relating  to  the  valuation  of  railway  property  under  the  Act  entitled 
'An  Act  to  amend  an  Act  entitled  "An  Act  to  regulate  commerce,"  ap- 
proved February  fourth,  eighteen  hundred  and  eighty-seven,  and  all 
Acts  amendatory  thereof,  by  providing  for  a  valuation  of  the  several 
classes  of  property  of  carriers  subject  thereto  and  securing  information 
concerning  their  stocks,  bonds,  and  other  securities,'  approved  March 
first,  nineteen  hundred  and  thirteen,  not  less  than  five  members  shall 
participate  in  the  consideration  and  decision. 

"The  salary  of  the  secretary  of  the  commission  shall  be  $5,000  per 
annum. 

"Nothing  in  this  section  contained,  or  done  pursuant  thereto,  -shall 
be  deemed  to  divest  the  commission  of  any  of  its  powers." 

Sec.  3.  So  much  of  section  eighteen  of  the  Act  to  regulate  com- 
merce as  fixes  the  salary  of  the  secretary  of  the  commission  is  hereby 
repealed.-^ 

Sec.  4.     That  paragraph  two,  section  fifteen,  of  the  Act  to  regulate 
commerce  approved  February  fourth,  eighteen  hundred  and  eighty-seven, 
SLapp's  Important  Federal  Laws,  p.   483. 


160  Supplement  to  Important  Federal  Laws 

as  amended,  be  further  amended  by  adding  the  following:'*  "Provided, 
further.  Until  January  first,  nineteen  hundred  and  twenty,  no  increased 
rate,  fare,  charge,  or  classification  shall  be  filed  except  after  approval 
thereof  has  been  secured  from  the  commission.  Such  approval  may, 
in  the  discretion  of  the  commission,  be  given  without  formal  hearing, 
and  in  such  case  shall  not  affect  any  subsequent  proceeding  relative  to 
such  rate,  fare,  charge,  or  classification." 
^Lapp's  Improved  Federal  Laws.  pp.  486-489. 


INTERSTATE  COMMERCE. 

(Amendment  of  August  10,  1917.) 

An  Act  to  amend  the  act  to  regulate  commerce,  as  amended,  and  for  other 
purposes. 

Section  1.  That  section  one  of  the  Act  entitled  "An  Act  to  regu- 
late commerce,"  approved  February  fourth,  eighteen  hundred  and  eighty- 
seven,  as  heretofore  amended,  be  further  amended  by  adding  thereto  the 
following:^ 

"That  on  and  after  the  approval  of  this  Act  any  person  or  persons 
w^ho  shall,  during  the  war  in  which  the  United  States  is  now  engaged, 
knowingly  and  willfully,  by  physical  force  or  intimidation  by  threats  of 
physical  force  obstruct  or  retard,  or  aid  in  obstructing  or  retarding,  the 
orderly  conduct  or  movement  in  the  United  States  of  interstate  or  for- 
eign commerce,  or  the  orderly  make-up  or  movement  or  disposition  of 
any  train,  or  the  movement  or  disposition  of  any  locomotive,  car,  or 
other  vehicle  on  any  railroad  or  elsewhere  in  the  United  States  engaged 
in  interstate  or  foreign  commerce  shall  be  deemed ■  guilty  of  a  misde- 
meanor, and  for  every  such  offense  shall  be  punishable  by  a  fine  of  not 
exceeding  $100  or  by  imprisonment  for  not  exceeding  six  months,  or  by 
both  such  fine  and  imprisonment;  and  the  President  of  the  United  States 
is  hereby  authorized,  whenever  in  his  judgment  the  public  interest  re- 
quires, to  employ  the  armed  forces  of  the  United  States  to  prevent  any 
such  obstruction  or  retardation  of  the  passage  of  the  mail,  or  of  the 
orderly  conduct  or  movement  of  interstate  or  foreign  commerce  in  any 
part  of  the  United  States,  or  of  any  train,  locomotive,  car,  or  other 
vehicle  upon  any  railroad  or  elsewhere  in  the  United  States  engaged  in 
interstate  or  foreign  commerce :  Provided,  That  nothing  in  this  section 
shall  be  construed  to  repeal,  modify,  or  aft'ect  either  section  six  or  section 
twenty  of  an  Act  entitled  'An  Act  to  supplement  existing  laws  against 
unlawful  restraints  and  monopolies,  and  for  other  purposes,'  approved 
October  fifteenth,  nineteen  hundred  and  fourteen. 

"That  during  the  continuance  of  the  war  in  which  the  United  States 
is  now  engaged  the  President  is  authorized,  if  he  finds  it  necessary  for 
the   national   defense  and   security,   to   direct   that   such   traffic   or  such 
iLapp's  Important  Federal  Laws,  pp.  468-472. 


Interstate  Commerce  161 

shipments  of  commodities  as.  in  his  judgment,  may  be  essential  to  the 
national  defense  and  security  shall  have  preference  or  ])riority  in  trans- 
portation by  any  common  carrier  by  railroad,  water,  or  otherwise.  He 
may  give  these  directions  at  and  for  such  times  as  he  may  determine, 
and  may  modify,  change,  suspend,  or  annul  them,  and  for  any  such  i)ur- 
pose  he  is  hereby  authorized  to  issue  orders  direct,  or  through  such 
person  or  persons  as  he  may  designate  for  the  purpose  or  through  the 
Interstate  Commerce  Commission.  ( )fficials  of  the  United  States,  when 
so  designated,  shall  receive  no  compensation  for  their  services  rendered 
hereunder.  Persons  not  in  the  employ  of  the  United  States  so  designated 
shall  receive  such  compensation  as  the  President  may  fix.  Suitable  offices 
may  be  rented  and  all  necessary  expenses,  including  compensation  of  per- 
sons so  designated,  shall  be  paid  as  directed  by  the  President  out  of 
funds  which  may  have  been  or  may  be  provided  to  meet  expenditures 
for  the  national  security  and  defense.  The  common  carriers  subject  to 
the  Act  to  regulate  commerce  or  as  many  of  them  as  desire  so  to  do  are 
hereby  authorized  without  responsibility  or  liability  on  the  part  of  the 
United  States,  financial  or  otherwise,  to  establish  and  maintain  in  the 
city  of  Washington  during  the  period  of  the  war  an  agency  empowered 
by  such  carriers  as  j(jin  in  the  arrangement  to  receive  on  behalf  of  them 
all  notice  and  service  of  such  orders  and  directions  as  may  be  issued  in 
accordance  with  this  Act  and  service  upon  such  agency  shall  be  good 
service  as  to  all  the  carriers  joining  in  the  establishment  thereof.  And  it 
shall  be  the  duty  of  any  and  all  the  officers,  agents,  or  employees  of  such 
carriers  by  railroad  or  water  or  otherwise  to  obey  strictly  and  conform 
promptly  to  such  orders,  and  failure  knowingly  and  willfully  to  comply 
therewith,  or  to  do  or  perform  whatever  is  necessary  to  the  prompt  exe- 
cution of  such  order,  shall  render  such  officers,  agents,  or  employees 
guiltv  of  a  misdemeanor,  and  any  such  officer,  agent  or  employee  shall, 
upon  conviction,  be  fined  not  more  than  $5,000,  or  imprisoned  not  more 
than  one  year,  or  both,  in  the  discretion  of  the  court.  For  the  transpor- 
tation of  persons  or  property  in  carrying  out  the  orders  and  directions  of 
the  President,  just  and  reasonable  rates  shall  be  fixed  by  the  Interstate 
Commerce  Commission;  and  if  the  transportation  be  for  the  Government 
of  the  United  States,  it  shall  be  paid  for  currently  or  monthly  by  the 
Secretary  of  the  Treasury  out  of  any  funds  not  otherwise  appropriated. 
Any  carrier  complying  with  any  such  order  or  direction  for  preference 
or  priority  herein  authorized  shall  be  exempt  from  any  and  all  provisions 
in  existing  law  imposing  civil  or  criminal  pains,  penalties,  obligations,  or 
liabilities  upon  carriers  by  reason  of  giving  preference  or  priority  in 
compliance  with  such  order  or  direction." 


(11 ) 


162  Supplement  to  Important  Federal  Laws 

SHIPPING  BOARD. 

(Amendment  of  October  6.  1917.) 

An  Act  giving,  the  United  States  Shipping  Board  power  to  suspend  present 
provisions  of  law  and  permit  vessels  of  foreign  registry  and  foreign-built 
vessels  admitted  to  American  registry  under  the  act  of  August  eighteenth, 
nineteen  hundred  and  fourteen,  to  engage  in  the  coastwise  trade  during 
the  present  war  and  for  a  period  of  one  hundred  and  twenty  days  there- 
after, except  the  coastwise  trade  with  Alaska. 

Section  1.  That  during  the  present  war  with  Germany  and  for  a 
period  of  one  hundred  and  twenty  days  thereafter  the  United  States 
Shipping  Board  may,  if  in  its  judgment  the  interests  of  the  United  States 
require,  suspend  the  present  provisions  of  law  and  permit  vessels  of 
foreign  registry,  and  foreign-built  vessels  admitted  to  American  registry 
under  the  Act  of  Augtist  eighteenth,  nineteen  hundred  and  fourteen,  to 
engage  in  the  coastwise  trade  of  the  United  States :  Provided,  That  no 
such  vessel  shall  engage  in  the  coastwise  trade  except  upon  a  permit 
issued  by  the  United  States  Shipping  Board,  which  permit  shall  limit  or 
define  the  scope  of  the  trade  and  the  time  of  such  employment :  Pro- 
vided further,  That  in  issuing  permits  the  board  shall  give  preference  to 
vessels  of  foreign  registry  owned,  leased,  or  chartered  by  citizens  of  the 
United  States  or  corporations  thereof :  And  provided  further,  That  the 
provisions  of  this  Act  shall  not  apply  to  the  coastwise  trade  with  Alaska 
or  between  Alaskan  ports. 

CRIMINAL  CODE. 

(Amendment  of  May  7,  1917.) 
An  Act  to  amend  section  ten  of  chapter  two  of  the  Criminal  Code. 

Section  L  That  section  ten  of  chapter  two  of  an  Act  entitled  "An 
Act  to  codify,  revise,  and  amend  the  penal  laws  of  the  United  States," 
approved  March  fourth,  nineteen  hundred  and  nine,  be  amended  so  as 
to  read  as  follows  r^ 

"Sec.  10.  Whoever,  within  the  territory  or  jurisdiction  of  the 
United  States,  enlists  or  enters  himself,  or  hires  or  retains  another  per- 
son to  enlist  or  enter  himself,  or  to  go  beyond  the  limits  or  jurisdiction 
of  the  United  States  with  intent  to  be  enlisted  or  entered  in  the  service 
of  any  foreign  prince.  State,  colony,  district,  or  people  as  a  soldier  or 
as  a  marine  or  seaman  on  board  of  any  vessel  of  war,  letter  of  marque, 
or  privateer  shall  be  fined  not  more  than  $1,000  and  imprisoned  not  more 
than  three  years :  Provided,  That  this  section  shall  not  apply  to  citizens 
or  subjects  of  any  countr>^  engaged  in  war  with  a  country  with  which  the 
United  States  is  at  war,  unless  such  citizen  or  subject  of  such  foreign 
country  shall  hire  or  solicit  a  citizen  of  the  L^nited  States  to  enlist  or  go 
beyond  the  jurisdiction  of  the  L^nited  States  with  intent  to  enlist  or  enter 
the  service  of  a  foreign  country.  Enlistments  under  this  proviso  shall 
be  under  regulations  prescribed  by  the  Secretary  of  War." 
iLapp's  Important  Federal  Laws,  p.  697. 


Federal  Judicial  Code  163 

FEDERAL  JUDICIAL  CODE. 

(Amendment  of  October  6,  1917.) 

An  Act  to  amend  sections  twenty-four  and  two  hundred  and  fifty-six  of  the 
Judicial  Code,  relating  to  the  jurisdiction  of  the  district  courts,  so  as  to 
save  to  claimants  the  rights  and  remedies  under  the  workmen's  compen- 
sation law  of  any  State. 

Section  1.  That  clause  three  of  section  twenty-fotir  of  the  Judicial 
Code  is  hereby  amended  to  read  as  follows  :^ 

"Third.  Of  all  civil  causes  of  admiralty  and  maritime  jurisdiction, 
saving  to  suitors  in  all  cases  the  right  of  a  common-law  remedy  where 
the  common  law  is  competent  to  give  it,  and  to  claimants  the  rights  and 
remedies  under  the  workmen's  compensation  law  of  any  State ;  of  all 
seizures  on  land  or  waters  not  within  admiralty  and  maritime  jurisdic- 
tion ;  of  all  prizes  brought  into  the  United  States ;  and  of  all  proceedings 
for  the  condemnation  of  property  taken  as  prize." 

Sec.  2.  That  clause  three  of  section  two  hundred  and  fifty-six  of 
the  Judicial  Code  is  hereby  amended  to  read  as  follows  -.^ 

"Third.  Of  all  civil  causes  of  admiralty  and  maritime  jurisdiction, 
saving  to  suitors  in  all  cases  the  right  of  a  common-law  remedy  where 
the  common  law  is  competent  to  give  it,  and  to  claimants  the  rights  and 
remedies  tinder  the  workmen's  compensation  law  of  any  State." 


INTERSTATE  COMMERCE.* 

(Amendment  to  Act   of  March   4,   1915.) 
Bills  of  Lading. 

That  any  common  carrier,  railroad,  or  transportation  company 
subject  to  the  provisions  of  this  Act  receiving  property  for  transporta- 
tion from  a  point  in  one  State  or  Territory  or  the  District  of  Columbia 
to  a  point  in  another  State,  Territory,  District  of  Columbia,  or  from 
any  point  in  the  United  States  to  a  point  in  an  adjacent  foreign  country 
shall  issue  a  receipt  or  bill  of  lading  therefor,  and  shall  be  liable  to  the 
lawful  holder  thereof  for  any  loss,  damage,  or  injury  to  such  property 
caused  by  it  or  by  any  common  carrier,  railroad,  or  transportation  com- 
pany to  which  such  property  may  be  delivered  or  over  whose  line  or  lines 
such  property  may  pass  within  the  United  States  or  within  an  adjacent 
foreign  country  when  transported  on  a  through  bill  of  lading,  and  no 
contract,  receipt,  rule,  regulation,  or  other  limitation  of  any  character 
whatsoever,  shall  exempt  such  common  carrier,  railroad,  or  transpor- 
tation company  from  the  liability  hereby  imposed :  and  any  such  com- 
mon carrier,  railroad,  or  transportation  company  so  receiving  property 

2Lapp's  Important  Federal  Laws,  p.  794. 
-Lapp's  Important  Federal  Laws,  p.  853. 
*Errata  in  Lapp's  Important  Federal  Laws.  p.  500. 


164  Supplement  to  Important  Federal  Laws 

for  transportation  from  a  point  in  one  State,  Territory,  or  the  District 
of  Columbia  to  a  point  in  another  State  or  Territory,  or  from  a  point 
in  a  State  or  Territory  to  a  point  in  the  District  of  Columbia,  or  from 
any  point  in  the  United  States  to  a  point  in  an  adjacent  foreign  coun- 
try, or  for  transportation  wholly  within  a  Territory  shall  be  liable  to 
the  lawful  holder  of  said  recei])t  or  bill  of  lading  or  to  any  party 
entitled  to  recover  thereon,  whether  such  receipt  or  bill  of  lading  has 
been  issued  or  not,  for  the  full  actual  loss,  damage,  or  injury  to  such 
property  caused  by  it  or  by  any  such  common  carrier,  railroad,  or 
transportation  company  to  which  such  property  may  be  delivered  or 
over  whose  line  or  lines  such  property  may  pass  within  the  United 
States  or  within  an  adjacent  foreign  country  when  transported  on  a 
through  bill  of  lading,  notwithstanding  any  limitation  of  liability  or  lim- 
itation of  the  amount  of  recovery  or  representation  or  agreement  as 
to  value  in  any  such  receipt  or  bill  of  lading,  or  in  any  contract,  rule, 
regulation,  or  in  any  tariff  filed  with  the  Inters,tate  Commerce  Com- 
mission ;  and  any  such  limitation,  without  respect  to  the  manner  or 
form  in  which  it  is  sought  to  be  made  is  hereby  declared  to  be  unlawful 
and  void :  Provided,  however.  That  the  i)rovisions  hereof  resj^ecting 
liability  for  full  actual  loss,  damage,  or  injury,  notwithstanding  anv 
limitation  of  liability  or  recover)^  or  representation  or  agreement  or 
release  as  to  value,  and  declaring  any  such  limitation  to  be  unlawful  and 
void,  shall  not  apply,  first,  to  liaggage  carried  on  passenger  trains  or 
boats,  or  trains  or  boats  carrying  ])assengers ;  second,  to  property,  except 
ordinary  live  stock,  received  for  transportation  concerning  which  the  car- 
rier shall  have  been  or  shall  hereafter  be  expressly  authorized  or  required 
by  order  of  the  Interstate  Commerce  Commission  to  establish  and  main- 
tain rates  dependent  upon  the  value  declared  in  writing  b\-  the  shij^per  or 
agreed  upon  in  writing  as  the  released  value  of  the  property,  in  which 
case  such  declaration  or  agreement  shall  have  no  other  effect  than  to 
limit  liability  and  recovery  to  an  amount  not  exceeding  the  value  so  de- 
clared or  released,  and  shall  not,  so  far  as  relates  to  values,  be  held 
to  be  a  violation  of  section  ten  of  this  Act  to  regulate  commerce,  as 
amended ;  and  any  tariff  schedule  which  may  be  filed  with  the  com- 
mission pursuant  to  such  order  shall  contain  specific  reference  thereto 
and  may  establish  rates  varying  with  the  value  so  declared  or  agreed 
upon  ;  and  the  commission  is  hereby  empowered  to  make  such  order  in 
cases  where  rates  dependent  upon  and  varying  with  declared  or  agreed 
values  would,  in  its  opinion,  be  just  and  reasonable  under  the  circum- 
stances and  conditions  surrounding  the  transportation.  The  term  "ordi- 
nary live  stock"  shall  include  all  cattle,  swine,  sheep,  goats,  horses,  and 
mules,  except  such  as  are  chiefly  valuable  for  breeding,  racing,  show 
purposes,  or  other  special  uses.  Provided,  further.  That  nothing  in 
this  section   shall   deprive  any  holder  of   such   receipt  or  bill   of  lading 


Interstate  Commerce  165 

of  any  remedy  or  right  of  action  which  he  has  under  the  existing  law : 
Provided,  further,  That  it  shall  be  unlawful  for  any  such  common  car- 
rier to  provide  by  rule,  contract,  regulation,  or  otherwise  a  shorter 
period  for  giving  notice  of  claims  than  ninety  days  and  for  the  filing 
of  claims  for  a  shorter  period  than  four  months,  and  for  the  institution 
of  suits  than  two  years:  Provided,  however,  That  if  the  loss,  damage, 
or  injury  complained  of  was  due  to  delay  or  damage  while  being  loaded 
or  unloaded,  or  damaged  in  transit  by  carelessness  or  negligence,  then 
no  notice  of  claim  nor  filing  of  claim  shall  be  required  as  a  condition 
precedent  to  recovery.      (As  amended  August  9,  1916.) 


BANKING 

Federal  Reserve  Act. 

Amendments   of  June  21,    1917,   are   included   in   the   federal   re- 
serve act  as  it  appears  in  Important  Federal  Laws,  pp.   106-144. 


CONSCRIPTION 

The  conscription  act  passed  at  the  special  session  of  Congress 
appears  in  Important  Federal  Laws,  pp.  596-605. 


INDEX. 


ANIMAL  DISEASES. 

N(  r  Fond  tind   i'uvl  Control. 

ARMS      AND      AMMUNITION      FOR 
EXPORT. 

Sec  KMjiionagc  Act. 

BANKING. 

l>e:iomiu;Uioii     of     uotes — Ainend- 

uient 155-156 

F("iu>r;il  Iteserve  net — ArueiKliiients 165 

BILLS   OF  LADING. 
Ameudnieut  of  August  9,  1916 — 

T:ir;it,i   163-165 

BOND  ISSUES. 

Act   of   April   21,   1917 141-144 

Act  of  Septenil)ei-  24,  1917 145-154 

CITIZENSHIP. 

1  (('tilling   stntus   of   persons   enter- 
ing   service   of   otlier   countries 155 

COAL  AND  COKE. 

Nrc  Fijoil  a  ml  Fuel  Control. 

CONDEMNATION    OF    PROPERTY. 

.Military     luiriioses 140-141 

CONSCRIPTION    ACT   168 

CORPORATION  TAXES. 

Nc    Wdr  Revenue   Taxes. 

CRIMINAL    CODE. 

Enlisting   in   foreign   service 162 

ENLISTING  IN  FOREIGN  SERVICE. 

Uciiioving  restrictions  as   to  allies 162 

ESPIONAGE   ACT. 

Anns   and   ammunition    for    export — 

Exports — 

Seizure    of    SO 

District  court  jurisdiction 80 

Restoration — I'rocedure    81 

Libel   proceedings  81 

President's  powers 82 

Commerce — 

Interfering    with    76-77 

Conspiracy    74 

To  destroy  property 84 

Courts  martial — Powers 74 

Courts — Jurisdiction    90 

Definitions 84,  90 

Ivxports 

May  be  i)roLiibited 82 

Penalties   82 

Refusing  clearance  for  vessels 82-83 

False  reports 73-74 

Foreign  relations — 

Disturbance   of    83 

Pretending  to  be  foreign  represen- 
tative  83 


Penalty   ^ 83-84 

Defiiiitii>n  of  "foreign  governnieut"_84 

Foreign  vessel. s — 

Seizure  of 75-76 

Government   seal — 

Falsely  aftixiug 85 

.    Counterfeitiug 85-86 

Harboring  offender 74 

Information — 

Securing    73 

Transmitting 73 

Mails— Use  of  to  violate 89-90 

Neutrality — 

Building  ships  for  belligerents 77-78 

Detaining  vessels  77 

Enforcement  of 79 

Internment    78-79 

Violation   of   79 

Refusing  clearance 77-78 

Passes  and  Permits — - 

Counterfeiting    86 

Pa  ssports — 

Regulation  of 84-85 

Phices   protected    from    espionage — 
President's  powers i 74 

Prosecuting  disloyalty 73-74 

Repeals ___75 

Search  warrants — 
Provisions  as  to 86-89 

Territorial  applications 74-75 

EXPLOSIVES— REGULATION  OF. 
Accounts    136 

Appropriation 140 

Cooperation  with  states 139-140 

Definitions 135 

Exports — Prohibition  of. 
*S'ce  Espionage  Act. 

Fires — Investigation  of 139 

Foreign    relations — Disturbance   of. 
Sec  Espionage  Act. 

Information  not  to  be  divulged 138 

Inspector   13S 

Lawful  transportation  permitted 136 

License 13(J 

Information 13(; 

Issue  of    136-137 

Issue  to  citizens  only 137 

Application  for 137-138 

Manufacture  restricted 135 

Marking 139 

Misrepresentation   __^ 138 

Penalties   139 

Protection  of  plants 139 

Rules  and  regulations 1 139 

Unlawful   purchase 1.35-136 


INDEX. 


FOOD  AND  FUEL  CONTROL. 
Animal  Diseases — 

Importation  of  tick  infested  cattle 

IiermitteJ   70-71 

A])proi>riation 61' 

Army  and  Navy  supplies — Requisi- 
tion    57 

Coal   aud   Coke — 

Regulation  of  fuel 63-64 

Commandeering  of 64-65 

Trade  commission  to  investigate-60-66 

Monopoly    66-67 

Contracts — Interest    in    by    agents 

and  employees 53-54 

Cooperation  with  voluntary  agencies_53 

Definitions    63 

Destruction  of  Necessaries — 

Penalties   56 

Distilled  Spirits^ 

Prohibition  of  use  of  foodstuffs 

for    60-61 

Commandeering 61 

Grain  Exchanges — 

Regulation   58-59 

Hoarded   Products — 

Condemnation   of   56 

Hoarding — 

Defined  and  prohibited ^55-56 

Homestead  Law — 

Amendment    7] 

Licensing  by  President 54-55 

Limiting  supplies— Penalty 56-57 

Manufacturing  plants — Requisition 

of 57-58 

Minimum  Prices — 

Guarantee 59-60 

Monopoly  prohibited 54 

Nitrate  of  Soda- 
Procurement   for    agriculture 67 

President's  report 62 

Purchase  and  sale  by  government 57 

Purposes   of  53 

Reclamation  Act— Amendment 71 

Seeds — Agricultural — 
Purchase  and  sale  by  government- _6S 

Survey  of  food  supply 68-70 

Appropriations    69-70 

Assistant     Secretaries   of   Agri- 
culture    69 

Cooperation  with  states 68-69 

Definition    69 

Duties  and  powers 68 

Secretary  of  Agriculture 68 

Waste  prohibited   54 

GOVERNMENT     SEAL— COUNTER- 
FEITING. 

See  Espionage  Act. 


HOMESTEAD    LAW. 

Anjondnifnt 71 

INCOME  TAX. 

Sec  War  Jicrouic  Taxes. 
INHERITANCE    TAX.. 

See  War  Rereniie  Taxes. 
INSURANCE. 

Allotment  of  pay 103 

Application  of  act 102-103 

Appropriation  for 99-100 

Death  or  Disability  Compensation — 

Amount 106 

Assignment  not  permitted 110 

P.ack  claims no 

Death  penalty  a  bar  to 109 

Examination  of  claimant 108 

Liability  of  third  parties 110-111 

Payments  for  death 106 

I'ayments  for  disability 107 

Record  of  death ' 100 

Reedncat  ion 108-109 

Review   of  award 109 

Service    of    retirement    pay    bars 

compensation    110 

Time  limit 109-110 

Definitions   100-101 

Family  allowance 103-105 

Apportionment   between  classes  A 

and  P. 105 

Limitation 105 

Payment    to    beneficiaries,   investi- 
gation of 105 

Government  insurance — 

After  the  war 113 

Amount  of 111-112 

Application  for 111-112 

Disagreement  on  claims 113 

Excess  hazard  113 

Terms  and  conditions 112-113 

Marriage — Proof  of 100 

Payments  to  guardian 101,  102 

Records,  etc. 102 

Perjury    102 

Soldiers  and  Sailors 97-113 

War  Risk  Bureau— Duties  of 97-98 

Deputies  and  assistants 98 

Powers  of  director 98-99 

Widows'    Pensions — Previous    Wars_lll 
INSURANCE. 

See  War  RisJc  Insurance. 
INTERSTATE    COMMERCE. 

Car  service  amendment 156-157 

Commission — Enlargement  of 157-158 

Powers   of   158-159 

Secretary's  salary 159 

Obstructing  during  war 160-101 


INDEX. 


NEUTRALITY. 

i:<cc  JJsitioDOffc  Act. 
NITRATE   OF  SODA. 

S<'i'  J'ootl  and   Furl   ('onliol. 

POSTAL    RATES. 

^'c'(■   War  Revenue  Taxes. 

RECLAMATION  ACT. 

Ameiuliiiont 71 

SHIPPING    BOARD. 

^'I'sst'ls  of  foreign  registry  in  coast- 
wise trade 162 

STAMP  TAXES. 

Sec  War  Revenue  Taxes. 

TAXATION. 

tSee  Wai'  Revenue  Taxes. 

TRADING   WITH    THE    ENEMY. 

Alien  pruperly  eustodian 110-120 

Apiiropriation 132 

Canal  Zone 133 

Claims— Suit  125-126 

Contracts — Abrogation 124 

Definitions 114-115 

District   court  jurisdiction 132-133 

Enemy  companies — License 116-lin 

Exceptions  121-123 

Imports — Prohibition 120 

Investment   of  enemy   funds 120-130 

Liens,   enforcement   of 123-124 

Newspapers  in  foreign  languages_133-134 

I'enalties    134 

I'a tents   126-120 

Penalties   132 

Philippines    133 

Prohibitions    115-116 

Statute    of   limitation — Suspension 124 

Stockholders,  directors,  etc.,  Disclos- 
ure of 120-121 

Suspension  of  provisions 110 

Vessels — Cargo — Certificate  as  to 131 

Clearance     on     false     representa- 
tion     131-132 

WAR   REVENUE  TAXES. 

Administrative  provisions 34-37 

Automobiles 22 

Cameras 24 

/  Chewing  gum 24 

M:;iubs 26-27 

Excess  profits  tax 5-13 

Administrative  provisions  applica- 
ble   12 

Deductions 7-0 

Definitions   5-6 

Exemptions 4 

Invested  capital — 

Change  of  ownership 11 


Companies  having  no 11 

Definition   0-11 

Determination  of 11-12 

Net  income — How  obtains 0 

Rates    67 

Repeal  of  act  of  March,  1017 12 

Returns — Foreign   partnership 12 

Rules  and  regulations 12 

Income  tax — 
Rates 3-4 

Income  tax — Corporations- 
Aliens  4S-40 

Deductions 47-48 

Dividend — Definition   of 51 

Information  at  source 50 

Rates 4-5 

Reports  of  coi-porations 40 

Undistributed   profits 46-47 

Income  tax — Personal — • 

Deductions    42 

Deduction  at  source 44-45 

Exemptions : 40-42 

Guardians — Duties  of : 43 

Partnerships 43 

Inheritance  tax    .33-34 

Insurance  22-23 

Intoxicating  liquor — 

Fermented    16-17 

Importation  forbidden 13 

Sirups  used  in . IS 

Soft    drinks    IS 

Wines    17-18 

Distilled  liquor — - 

Alcohol,  production  of 13-14 

Ethyl  alcohol,  manufacture  per- 
mitted   14 

Importation  prohibited 13 

Measurement  of 16 

Rectification  of 15-16 

Tax   13 

AVithdrawal    14 

Jewelry    23 

Medical    supplies 24 

Mineral   waters is 

Moving  picture  films 23 

Musical  instruments 23 

Perfumes 24 

Postal  rates 37-39 

Public    utilities — Fares    20-22 

Sporting   goods    24 

Stamp  taxes 27-.33 

Bonds  30 

Capital    stock    •_ ,30-31 

Exchanges,  sale  on 31-32 

Drafts  .and   checks 32 


INDEX. 


Coiivey;uKes   32      WAR    RISK    INSURANCE. 


Custoinliouse  eutry 32 

Customlionse  withdrawal 82 

Parcel  post  packages 33 

Playing  cards 33 

Power  of  attorney 33 

Proxies   82-33 

Steamship  tickets 32 

Theaters 25-26 

Tobacco,  cigars,  etc. __lS-20 

Yachts    25 


Ailvisory  board   94 

Aiiiendiiieut  of  act  of  1914 92-96 

Appropriation 95 

Attorne.v   fees  prohibited 95 

I'ureau  created   92 

Friendly   vessel — Re-insurance 92 

Officers  and  crew  insured 93-94 

Policies,  forms  of 93 

Repeal    96 

Vessels  and  cargo  insured 92 


'  "^^'KBSITY  OF  C^T 


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1 

14  DAY  USE 

RETURN  TO  DESK  FROM  WHICH  BORROWED 

LOAN  DEPT. 

This  book  is  due  on  the  last  date  stamped  below,  or 
on  the  date  to  which  renewed. 

Renewed  books  are  subjea  to  immediate  recall. 

-jjftDBS  .r^ 

jP^iH  :A      J 

LD  21A-50m.4,'60                                 TT„;^«f«*^^r/l!f^rni« 
(A9562sl0)476B                                   ^""^^^B^rklSf 

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